Berkeley Energia - Quarterly Report March 2023
28/04/2023 07:00
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RNS Number : 7918X Berkeley Energia Limited 28 April 2023
BERKELEY ENERGIA LIMITED
NEWS RELEASE | 28 April 2023
Quarterly Report March 2023
Highlights:
· Project Update
Subsequent to the end of the quarter, Berkeley Energia Limited ("Berkeley" or
"Company") announced that following notification from the Ministry for
Ecological Transition and the Demographic Challenge ("MITECO") in relation to
the rejection of the administrative appeal filed by the Company's wholly owned
Spanish subsidiary, Berkeley Minera España ("BME"), against MITECO's
rejection of the Authorisation for Construction for the uranium concentrate
plant as a radioactive facility ("NSC II") at the Salamanca project, BME had
submitted a contentious-administrative appeal before the Spanish National
Court.
MITECO's rejection of BME's administrative appeal concluded the administrative
process however, in accordance with the law in Spain, BME has now submitted
its contentious-administrative appeal in the Spanish Courts in an attempt to
overturn the MITECO decision denying NSC II.
In the Company's strong opinion, MITECO has rejected the NSC II application
and the administrative appeal without following legally established procedure,
including taking into account the various 'Improvement Reports' that
supplemented BME's initial NSC II application, which implies the rejection is
not legal.
Whilst the Company's focus is on resolving the current permitting situation,
and ultimately advancing the Salamanca project towards production, the Company
and BME will continue to strongly defend its position and take all necessary
actions to preserve its rights.
Initiation of the contentious-administrative appeal is necessary to preserve
BME's rights however, the Company reiterates that it is prepared to
collaborate with the relevant authorities and remains hopeful that the
permitting situation can be resolved amicably.
· Global Nuclear Power and Uranium Market:
Spain's Nuclear Safety Council ("NSC") published a manifesto during the
quarter setting out the strategic importance of the country's nuclear power
plants and warned that there will be no turning back if current closure plans
are allowed to go ahead.
"I applaud the initiative of the NSC and the professionals that make it up,"
World Nuclear Association Director General Sama Bilbao y Léon said. "It is
time for Spain to recognise the extremely important role that nuclear power
has played for decades, as well as the absolutely essential role that it
continues to play today. At a critical moment worldwide, in which more and
more countries plan to use nuclear energy as a pillar of decarbonisation,
energy independence and economic development, it makes no sense for Spain to
get rid of this clean and reliable source of energy."
The International Energy Agency ("IEA") has criticised European Union ("EU")
Member States opposed to nuclear energy, including Spain. "When the war in
Ukraine is over, the anti-nuclear EU member states will have to sit down and
do some serious self-criticism," said the Director of the IEA, at a conference
in Paris in April 2023. "…the mistake was being cold on nuclear matters. As
for the EU Member States, some are guilty of putting their eggs in the same
basket, namely Russia."
The outlook for nuclear power and the uranium market continued to strengthen
during the quarter. Demand for nuclear power is stable to growing through life
extensions and new construction as follows:
· France
o Due to a long-standing policy based on energy security, 70% of France's
electricity is now from nuclear energy.
o In March, President Macron's office announced funding for six reactors
across the country, a US$50bn proposal for the nation's new-build reactor
program which will be presented to the government by the end of 2023.
· Finland
o Five operating reactors and another planned which will take nuclear
contribution to 60%.
o In February, Finland's government issued operating license extensions
until the end of 2050 for Units 1 and 2 at the Loviisa nuclear plant, which
had previously been set to expire in 2027 and 2030.
· Sweden
o Swedish state run utility, Vattenfall, is considering adding up to 2,800
MWe to the Ringhal nuclear power plant's current capacity of 2,190 MWe.
o Vattenfall is also advancing plans for small modular reactors, each with
an output power between 300 MWe to 400 MWe.
· Belgium
o The Belgian federal government announced that an agreement had been
reached to extend the operating life of two reactors which had been scheduled
for final shut-down in 2025. Both reactors will now be allowed to operate for
a further ten years.
· Netherlands
o In 2021, Netherlands announced plans to build two nuclear reactors by
2035, which should supply up to 13% of the country's total electricity
production.
o The government has earmarked US$5.3bn in funding, and construction for
reactors is expected to commence in 2028.
· Japan
o In February, Japan's Cabinet approved nuclear reactors to operate beyond
the current 60-year statutory limit.
o Further, Japan is aiming to restart an additional seven reactors by mid
2023.
· South Korea
o Nuclear power plants currently account for 30% of South Korea's total
power generation with the government aiming to increase this to 32.4% by 2030.
o In line with this policy, South Korea has taken the decision to pursue
restarting construction of two reactors. Construction activities were
suspended in 2017 in accordance with the previous administration's nuclear
phase-out policy which has been reversed by the recently elected Yoon Suk Yeol
government.
· India
o Installed nuclear capacity is set to more than triple by 2031, and nuclear
power plants are likely to generate about 9% of the country's electricity by
2047, according to Minister of State Jitendra Singh.
Other developments in the nuclear power and uranium market during the quarter
included:
· Spain's Centrales Nucleares Almaraz-Trillo announced it will
apply to MITECO for the renewal of the operating license of the Trillo nuclear
power plant to extend it by ten years, to November 2034. It said the studies
that accompany its application, specifically the Integrated Management Plan
and the Periodic Safety Review, show the good condition of the plant from a
safety point of view for the extended period of use.
· Uranium has been included in a list of mineral deposits deemed to
be of strategic importance for the sustainable development of Ukraine's
economy that are to be offered for development under the terms of production
sharing agreements.
· Ramp up at Cameco's McArthur River project continues with target
annual output of 15 million pounds of U(3)O(8) in 2023 and 18 million pounds
in 2024 (vs 1.1 million pounds in 2022).
· Spot market activity reportedly increased in the March quarter
with the Sprott Physical Uranium Trust purchasing a total of 2.3 million
pounds of U(3)O(8) in February alone. This saw the uranium spot increase to
US$51.00 per pound in February before settling at US$50.00 per pound by the
end of March.
Spot uranium prices ended the quarter at US$50.00 per pound. Longer-term
uranium price indicators continued to remain stable and closed at the end of
March 2023 at US$53.00 per pound (Long-Term); US$57.00 per pound (3-year
forward price); and US$61.00 per pound (5-year forward price).
· Balance Sheet
The Company is in a strong financial position with A$78 million in cash
reserves and no debt at 31 March 2023.
Classification: 2.2 This announcement contains inside information
For further information please contact:
Robert
Behets
Francisco Bellón
Acting Managing Director
Executive Director
+61 8 9322
6322
+34 923 193 903
info@berkeleyenergia.com (mailto:info@berkeleyenergia.com)
Salamanca Project Summary
The Salamanca project is being developed in a historic uranium mining area in
Western Spain about three hours west of Madrid.
The Project hosts a Mineral Resource of 89.3Mlb uranium, with more than two
thirds in the Measured and Indicated categories. In 2016, Berkeley published
the results of a robust Definitive Feasibility Study ("DFS") for Salamanca
confirming that the Project may be one of the world's lowest cost producers,
capable of generating strong after-tax cash flows.
In 2021, the Company received formal notification from MITECO that it had
rejected the NSC II application at Salamanca. This decision followed the
unfavourable NSC II report issued by the NSC in July 2021.
Berkeley strongly refutes the NSC's assessment and, in the Company's opinion,
the NSC has adopted an arbitrary decision with the technical issues used as
justification to issue the unfavourable report lacking in both technical and
legal support.
Berkeley submitted documentation, including an 'Improvement Report' to
supplement the Company's initial NSC II application, along with the
corresponding arguments that address all the issues raised by the NSC, and a
request for its reassessment by the NSC, to MITECO in July 2021.
Further documentation was submitted to MITECO in August 2021, in which the
Company, with strongly supported arguments, dismantled all of the technical
issues used by the NSC as justification to issue the unfavourable report. The
Company again restated that the project is compliant with all requirements for
NSC II to be awarded and requested its NSC II Application be reassessed by the
NSC.
In addition, the Company requested from MITECO access to the files associated
with the Authorisation for Construction and Authorisation for Dismantling and
Closure for the radioactive facilities at La Haba (Badajoz) and Saelices El
Chico (Salamanca), which are owned by ENUSA Industrias Avandas S.A., in order
to verify and contrast the conditions approved by the competent administrative
and regulatory bodies for other similar uranium projects in Spain.
Based on a detailed comparison of the different licensing files undertaken by
the Company following receipt of these files, it is clear that Berkeley, in
its NSC II submission, has been required to provide information that does not
correspond to: (i) the regulatory framework, (ii) the scope of the current
procedural stage (i.e., at the NSC II stage), and/or (iii) the criteria
applied in other licensing processes for similar radioactive facilities.
Accordingly, the Company considers that the NSC has acted in a discriminatory
and arbitrary manner when assessing the NSC II application for the Salamanca
project.
In Berkeley's strong opinion, MITECO has rejected the Company's NSC II
Application without following the legally established procedure, as the
Improvement Report has not been taken into account and sent to the NSC for its
assessment, as requested on multiple occasions by the Company.
In this regard, the Company believes that MITECO have infringed regulations on
administrative procedures in Spain but also under protection afforded to
Berkeley under the Energy Charter Treaty ("ECT"), which would imply that the
decision on the rejection of the Company's NSC II Application is not legal.
During the quarter, BME submitted a contentious-administrative appeal before
the Spanish National Court in an attempt to overturn the MITECO decision
denying NSC II.
Whilst the Company's focus is on resolving the current permitting situation,
and ultimately advancing the Salamanca project towards production, the Company
and BME will continue to strongly defend its position and take all necessary
actions to preserve its rights.
Initiation of the contentious-administrative appeal is necessary to preserve
BME's rights however, the Company reiterates that it is prepared to
collaborate with the relevant authorities and remains hopeful that the
permitting situation can be resolved amicably.
Salamanca Project Update
During the quarter, the Company continued with its commitment to health,
safety and the environment as a priority.
An assessment of the Environmental Aspects ("EA") according to ISO 14001
Standards and Sustainable Mining Management Indicators ("SMMI") according to
UNE 22470/80 Standards of the Company's activities was carried out during the
quarter, and work continued on the achievement of the Sustainability Goals set
in 2022. Significant progress and improvements continue to be made and the
conclusions of the assessment will be reported in detail in the Annual
Sustainability Report planned to be published in late June.
As previously reported, Berkeley has initiated a study evaluating the design,
permitting, construction and operation of a solar power system at the Project.
The Project's location has a natural abundance of sunlight which is conducive
to solar power generation, which will become a reliable source of low cost and
carbon-free energy for the Project. In addition to making a significant
contribution to reduce carbon emissions, the proposed solar power system will
potentially contribute to reducing the Project's power related operating
costs.
The proposed facility will have an installed power of 20.1 MW and be able to
supply up to 75% of the power requirements at the Project. Detailed analysis
is underway, evaluating storage capacity versus capital and operational costs,
to ensure the optimal outcome for the Project.
During the previous quarter, contracts for the engineering and design, and
environmental studies were awarded to Salamanca based companies who specialise
in the design of solar power systems and environmental studies, and work
commenced.
Engineering and design is now at 60% completion. This work, as well as
preparation of all documentation required for submission to relevant
authorities, is forecasted to be completed during the June quarter, after
which the permitting process can commence.
The decision to pursue a solar power system is in line with Berkeley's ongoing
commitment to environmental sustainability and to continue to have a positive
impact on the people, environment and society surrounding the mine.
Additional Information on the Global Nuclear Power and Uranium Market
The outlook for nuclear power and the uranium market continued to strengthen
during the quarter, with a number of important recent developments, including:
· A poll conducted by Estonia's State Chancellery found that 75% of
Estonians support the construction of a nuclear power plant in the country. Of
those who support the construction of a nuclear power plant, 47% cited energy
security as the reason of support while 46% cited cheaper electricity prices.
· The majority of Belgians support the use of nuclear energy,
according to a polls which found that 7 out of 10 Belgians say they are in
favour of the continued operation of two reactors, 6 out of 10 prefer an
extension of all Belgian nuclear power plants, while 5 out of 10 support the
construction of new reactors in Belgium. In response to the poll's findings,
the Belgian Nuclear Forum called on the government to "take the necessary
decisions as a matter of urgency in order to adapt or even abolish the
'Nuclear Exit Law' dating from 2003", under which the country's three
remaining operating reactors are scheduled to shut down in 2025.
Further, the Belgian government has requested an investigation into whether
the operation of the country's three oldest reactors can be extended until
2027. The reactors are currently scheduled to shut down in 2025.
· According to the latest survey by Energiateollisuus (Finnish
Energy), support for nuclear power in Finland is currently at its highest
level for the past 40 years. The poll showed that 68% of Finns are supportive
of nuclear power, up from 60% in 2022. The main factor behind the popularity
of nuclear power is climate reasons, with 69% of respondents considering
nuclear power to be an important means of combating climate change. Only 6% of
respondents had a negative opinion of nuclear power, down from 11% last year.
· The USA and the EU intend to work together to reduce dependency
on Russia for nuclear materials, they said in a joint statement issued after
the tenth meeting of the US-EU Energy Council in Brussels in April. "The
Council intends to intensify cooperation to reduce dependency on Russia for
nuclear materials and fuel cycle services, and it supports ongoing efforts by
affected EU Member States to diversify nuclear fuel supplies, as appropriate,"
they said. The statement also said the USA and EU will later this year
co-organise a High-Level Small Modular Reactors Forum on transatlantic
cooperation in the field of SMRs and other advanced nuclear reactors.
· France's parliament voted with a large majority in favour of the
government's plan for nuclear investment in March, according to EU Reporter.
With 402 votes for and 130 against, the nuclear renewal plan was approved. Its
key component is the construction of six reactors. Prime Minister Elisabeth
Borne tweeted: "After the Senate last month, the lower house tonight by a
large majority voted for the nuclear plan ... the result of a co-construction,
which aims to combat climate change and ensure our energy sovereignty".
· Nuclear 'partially' included in EU's Net-Zero Industry Act. The
European Commission has proposed the Net-Zero Industry Act to scale up
manufacturing of clean technologies in the EU and make sure it is
well-equipped for the clean-energy transition.
· Energy ministers from 11 EU member states have called for a
strengthening of European cooperation in the field of nuclear energy. The call
came during an informal Council of Energy Ministers in Stockholm, Sweden, to
discuss the energy market and energy supply, focusing on preparations for next
winter and beyond.
· The UK government is committed to a programme of new nuclear
projects beyond Sizewell C, giving the industry and investors the confidence
they need to deliver projects at speed, according to a new policy paper
Powering Up Britain. It describes nuclear as "the critical baseload of the
future energy system."
· Britain's Rolls-Royce has signed memorandums of understanding to
explore the deployment of its small modular reactor in Finland and Sweden, as
well as to help post-war recovery in Ukraine.
· The Canadian budget underlines government support for inclusion
of nuclear in clean energy with an investment tax credit plus making it
eligible for a range of other tax incentives which show the Government of
Canada's "clear and strong" support for nuclear's indispensable role in the
clean energy transition, according to the Canadian Nuclear Association.
· For the first time since the 2011 accident at the Fukushima
Daiichi plant, the majority of respondents in an annual survey conducted were
in favour of Japan's nuclear power reactors being restarted. Rising energy
costs following Russia's invasion of Ukraine in 2022 was a factor that
influenced their opinion.
· Brazil will establish a new body within the Ministry of Mines and
Energy to coordinate the nuclear sector, Minister Alexandre Silveira told a
meeting of nuclear industry representatives. Silveira said that the focus is
on the "efficient management of public resources, working, for example, on the
conclusion of important structuring works so that we can advance in the
balance of the Brazilian energy matrix". The new body will come under the
Ministry's Executive Secretariat.
· Texas-based enCore Energy Corporation has secured its fourth
uranium sales agreement with the addition of a multi-year purchase sales
agreement with a US utility commencing in 2027. It covers firm deliveries of
650,000 pounds of uranium, with an option to acquire up to 400,000 pounds of
uranium under a two year extended term, if exercised. enCore said the
agreement supports its business strategy to provide a domestic uranium supply
commencing at its 100%-owned South Texas In-Situ Recovery uranium processing
plants
· BHP Group's Xplor programme to support promising minerals
explorers will expand to include prospective uranium and lithium projects from
September 2023, Reuters has reported. "We will be looking not just at copper
and nickel, but at uranium and lithium and so on," Xplor programme head Sonia
Scarselli told a commodities conference in Singapore.
Exploration
During the quarter, the Company continued with its initial exploration program
focusing on battery and critical metals in Spain.
The exploration initiative is targeting lithium, cobalt, tin, tungsten, rare
earths, and other battery and critical metals, within the Company's existing
tenements in western Spain that do not form part of Berkeley's main
undertaking being the development of the Salamanca uranium project. Further
analysis of the mineral and metal endowment across the entire mineral rich
province and other prospective regions in Spain is also being undertaken, with
a view to identifying additional targets and regional consolidation
opportunities.
Investigation Permit Conchas
The Investigation Permit ("IP") Conchas is located in the very western part of
the Salamanca province, close to the Portuguese border.
The tenement covers an area of ~31km(2) in the western part of the Ciudad
Rodrigo Basin and is largely covered by Cenozoic aged sediments. Only the
north-western part of the tenement is uncovered and dominated by the Guarda
Batholith intrusion. The tenement hosts a number of sites where small-scale
historical tin and tungsten mining was undertaken. In addition, several
mineral occurrences (tin, tungsten, titanium, lithium) have been identified
during historical mapping of stream sediment sampling programs.
Billiton PLC undertook exploration on the IP Conchas between 1981 and 1983,
with a focus on tin and tantalum (lithium was not taken into account).
Billiton's work programs comprised regional and detailed geological mapping,
geochemistry, trenching and limited drilling.
Soil sampling programs completed by Berkeley in the northern and central
portions of the tenement during 2021 (200m by 200m) and 2022 (100m by 100m)
defined a tin-lithium anomaly covering approximately 1.1km by 0.7km which
correlated with a mapped aplo-pegmatitic leucogranite.
Based on the results of the Company's soil sampling programs and information
gleaned from a review of the available historical data, a small initial
drilling program was designed and implemented to test the tin-lithium anomaly.
The drill program comprised only five broad spaced reverse circulation ("RC")
holes for a total of 282m. Drill samples were submitted for multi-element
analysis with the assay results recently received and verified. The
multi-element suite included 51 elements, with anomalous results (which are
not considered material) for lithium ("Li"), tin ("Sn"), rubidium ("Rb"),
cesium ("Cs"), niobium ("Nb") and tantalum ("Ta") reported in Appendix 5.
The occurrence of these six elements is observed to be largely associated with
a sub-horizontal muscovitic leucogranite unit that locally outcrops at
surface. The muscovitic leucogranite has a mapped extent of approximately 2km
(in a NE-SW orientation) by 0.4km (in a NW-SE orientation) and varies in
thickness from 7m to over 70m in the drill holes.
Mineralogical studies are currently being undertaken on samples from the
drilling to determine the mineral species present and understand their
characteristics and properties.
Select intercepts include:
Hole No. Down Hole Intercept From Depth
(Down Hole)
CCR0001 7m @ 0.12% Li(2)O & 0.14% Rb(2)O surface
CCR0002 25m @ 0.56% Li(2)O & 0.22% Rb(2)O surface
10m @ 0.20% Li(2)O & 0.11% Rb(2)O 28m
7m @ 0.18% Li(2)O & 0.12% Rb(2)O 41m
CCR0003 70m @ 0.14% Li(2)O & 0.15% Rb(2)O surface
CCR0004 17m @ 0.29% Li(2)O & 0.13% Rb(2)O 3m
incl. 11m @ 0.41% Li(2)O & 0.17% Rb(2)O 7m
CCR0005 44m @ 0.31% Li(2)O & 0.19% Rb(2)O surface
All intersections returned from the drill holes, along with the details of the
collar positions, drilling orientations and depths, are summarised in Appendix
5.
Subject to the results of the mineralogical studies currently underway,
further work at the IP Conchas may include follow-up drilling focused on
improving confidence in the geology, continuity, and grade distribution of the
zone of multi-element mineralisation.
Oliva and La Majada Projects Acquisition
During the quarter, the Company acquired the rights to three new tenements
within two project areas in Spain which are considered prospective for
tungsten, cobalt, antimony and other metals.
Oliva Project
The Oliva project is located 65 km south of the city of Badajoz, near the
border with Portugal and approximately 370km southwest of Madrid.
The project comprises the granted IP "Los Bélicos" with an area of 5km(2) and
the IP application ("IPA") "Ampliación los Bélicos", with an area of
44km(2), which is pending grant approval.
The IP "Los Bélicos" contains the historical Virgen de Gracia tungsten and
bismuth mine and there are other indications of small-scale historical mining
activity and mineral occurrences of tungsten, bismuth, cobalt, copper and gold
reported within the area.(1)
The mining history of the area dates back to Roman times, and the Virgen de
Gracia mine is first described in literature in 1912. Tungsten and bismuth
were exploited by underground mining from the mid-20(th) century, reached a
peak in the 1960's, and ceased in the mid-1970's.
Mineralisation was observed to be hosted in quartz stockworks and
sub-horizontal quartz dykes, interpreted to be associated with subsurface
greisenised granite domes. The mineralisation may be located above or near
granitic cupolas in flat or sheeted veins in the exocontact zones of
metamorphic rocks.(1)
Historical exploration activities have included geological mapping, soil
sampling, panel sampling of underground workings, and limited drilling. The
Company is compiling and verifying this historical data.
The initial phase of exploration work planned for the IP "Los Bélicos"
includes soil sampling on a 100m by 100m grid covering the entire tenement,
with subsequent infill soils over defined areas of anomalism. Once granted,
the Company plans to undertake geological mapping and soil sampling on the
"Ampliación los Bélicos" tenement.
La Majada Project
The La Majada project is located 70km southeast of the city of Ciudad Real and
220km south of Madrid.
The project comprises the IPA "La Majada" which has an area of 6km(2), is
centered on the historical "La Nazarena" antimony mines, and is pending grant
approval.
The discovery and extraction of antimony (stibnite) in the area dates back to
the Renaissance period. The La Nazarena deposit was subsequently discovered in
1784 however, industrial scale mining operations were not developed until the
mid-20(th) century when economic interest in antimony heightened due to its
use in military industry applications. Mining activity in the area ceased in
the early 1960's.
At the La Nazarena mine, disseminated stibnite mineralisation is hosted within
a series of alternating quartzites and sandy shales of Ordovician age. The
mineralisation is associated with intraformational breccias and appears to be
strongly lithostratigraphically and structurally controlled. The mineralised
zones have a stratiform shape but also appear like veins due to remobilisation
towards extensional fractures.(2)
Other antimony mineral occurrences, showing similar characteristics to the La
Nazarena mineralisation and associated with the same controlling structure,
have been reported within the project area.(3)
Following grant of the IP, the Company plans to undertake an exploration work
program comprising of acquisition, compilation and verification of all
available historical data, geological mapping, soil sampling, and ground
geophysical surveys to generate drill targets.
Antimony
Antimony is a silvery, lustrous grey metal that exhibits poor heat and
electrical conductivity. It is most commonly used with other metals to form
antimony alloys or combined with oxygen to form antimony trioxide (ATO;
Sb(2)O(3)). Metallic antimony is used as a hardening agent for lead and its
use in lead storage batteries accounts for around one third of global use.
Antimony alloys are also used for manufacturing solder, sheet and pipe metal,
ammunition, bearings, castings and pewter.
ATO is used in non-metallic products such as paint (pigment and fire
retardant), ceramics (opacifier), enamels, rubber, paper, plastics and
textiles (fire retardant) and glass (de-gassing). ATO's use as a fire
retardant also accounts for about one third of global antimony use. In its
purest forms, antimony is used in semiconductor technology, infrared detectors
and diodes.(4)
Recent innovation has found a new use for antimony with it now playing an
essential role in large-scale renewable energy storage, which is critical to
the clean energy movement.
China dominates global production and processing of antimony, essentially
controlling both the upstream and downstream ends of the commodity supply
chain.(5)
Antimony is regarded as a critical mineral by many advanced economies and has
been listed in the European Commission's 2023 Critical Raw Materials for the
European Union list, the United States Geological Survey's List of Critical
Minerals 2022, Australia's Critical Minerals List 2022, and the British
Geological Survey's Critical Minerals List 2021.
Commercial Terms of Acquisition
Exploración de Recursos Minerales, S.L. ("ERM"), a wholly owned subsidiary of
the Company, has entered into a Tenement Sale and Purchase Agreement and
Royalty Deed with Consultores De Proyectos Mineros, S.L. ("COPROMI"), to
acquire 100% of IP Los Belicos, IPA Ampliacion Los Belicos, and IPA La Majada
for upfront consideration of €10,000 and contingent consideration by
granting a 1.5% net smelter royalty on any future production from the Oliva
project and La Majada project.
ERM has the absolute right to withdraw from each IP or IPA individually
provided that ERM has satisfied the minimum spend requirements as follows: (a)
€20,000, in respect of IP Los Bélicos; (b) €60,000, in respect of
IPA Ampliación Los Bélicos (once granted); and (c) €20,000, in respect of
IPA La Majada (once granted).
Forward Looking Statements
Statements regarding plans with respect to Berkeley's mineral properties are
forward-looking statements. There can be no assurance that Berkeley's plans
for development of its mineral properties will proceed as currently expected.
There can also be no assurance that Berkeley will be able to confirm the
presence of additional mineral deposits, that any mineralisation will prove to
be economic or that a mine will successfully be developed on any of Berkeley
mineral properties. These forward-looking statements are based on Berkeley's
expectations and beliefs concerning future events. Forward looking
statements are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of Berkeley, which could cause actual
results to differ materially from such statements. Berkeley makes no
undertaking to subsequently update or revise the forward-looking statements
made in this announcement, to reflect the circumstances or events after the
date of that announcement.
Competent Persons Statement
The information in this report that relates to Exploration Results is based
on, and fairly represents, information compiled by Mr Enrique Martínez, a
Competent Person who is a Member of the Australasian Institute of Mining and
Metallurgy. Mr Martínez is Berkeley's Geology Manager and a holder of shares
and options in Berkeley. Mr Martínez has sufficient experience which is
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr
Martínez consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
The information in this report that relates to the Mineral Resource Estimate
is extracted from the announcement entitled 'Annual Report 2022' dated 31
August 2022, which is available to view on Berkeley's website at
www.berkeleyenergia.com. Berkeley confirms that: a) it is not aware of any new
information or data that materially affects the information included in the
original announcement; b) all material assumptions and technical parameters
underpinning the Mineral Resource Estimate in the original announcement
continue to apply and have not materially changed; and c) the form and context
in which the relevant Competent Persons' findings are presented in this
announcement have not been materially modified from the original announcement.
References
(1) Gumiel P. (1981). Essai sur la classification typologique des principaux
gisements de Sn-W d'Estremadure (Espagne). Chr. Rech. Min. 463, 5-26.; Gumiel
P. et al (1983). Contribución al conocimiento de las mineralizaciones de W,
Bi del distrito de Oliva de la Frontera (Badajoz), Rev, Mat. Proc. Geol. V. 1,
pp 229-248.
(2) Antimony Deposits of the Iberian Peninsula. P Gumiel and A Arribas,
Economic Geology, Vol. 82, 1987, pp 1453-1463
(3) Gumiel P. (1982). Metalogenia de los yacimientos de antimonio de la
Península Ibérica. Tecniterrae, 54, pp 120
(4) Australian Resource Reviews: Antimony 2020, Allison Britt and Anthony
Senior, Geoscience Australia
(5) Antimony: A Mineral with a Critical Role in the Green Future, Visual
Capitalist 2021
To view this announcement in full, including all illustrations and figures,
please refer to
https://app.sharelinktechnologies.com/announcement/asx/4938359d8c611e1c4da0f6eae1cfb2cc
(https://app.sharelinktechnologies.com/announcement/asx/4938359d8c611e1c4da0f6eae1cfb2cc)
.
Appendix 1: Mineral Resource at Salamanca
Deposit Resource Category Tonnes U(3)O(8) U(3)O(8)
Name (Mt) (ppm) (Mlbs)
Retortillo Measured 4.1 498 4.5
Indicated 11.3 395 9.8
Inferred 0.2 368 0.2
Total 15.6 422 14.5
Zona 7 Measured 5.2 674 7.8
Indicated 10.5 761 17.6
Inferred 6.0 364 4.8
Total 21.7 631 30.2
Alameda Indicated 20.0 455 20.1
Inferred 0.7 657 1.0
Total 20.7 462 21.1
Las Carbas Inferred 0.6 443 0.6
Cristina Inferred 0.8 460 0.8
Caridad Inferred 0.4 382 0.4
Villares Inferred 0.7 672 1.1
Villares North Inferred 0.3 388 0.2
Total Retortillo Satellites Total 2.8 492 3.0
Villar Inferred 5.0 446 4.9
Alameda Nth Zone 2 Inferred 1.2 472 1.3
Alameda Nth Zone 19 Inferred 1.1 492 1.2
Alameda Nth Zone 21 Inferred 1.8 531 2.1
Total Alameda Satellites Total 9.1 472 9.5
Gambuta Inferred 12.7 394 11.1
Salamanca Project Total Measured 9.3 597 12.3
Indicated 41.8 516 47.5
Inferred 31.5 395 29.6
Total (*) 82.6 514 89.3
Appendix 2: Summary of Mining Tenements
As at 31 March 2023, the Company had an interest in the following tenements:
Location Tenement Name Percentage Interest Status
Spain
Salamanca D.S.R Salamanca 28 (Alameda) 100% Granted
D.S.R Salamanca 29 (Villar) 100% Granted
E.C. Retortillo-Santidad 100% Granted
E.C. Lucero 100% Pending
I.P. Abedules 100% Granted
I.P. Abetos 100% Granted
I.P. Alcornoques 100% Granted
I.P. Alisos 100% Granted
I.P. Bardal 100% Granted
I.P. Barquilla 100% Granted
I.P. Berzosa 100% Granted
I.P. Campillo 100% Granted
I.P. Castaños 2 100% Granted
I.P. Ciervo 100% Granted
I.P. Conchas 100% Granted
I.P. Dehesa 100% Granted
I.P. El Águila 100% Granted
I.P. El Vaqueril 100% Granted
I.P. Espinera 100% Granted
I.P. Horcajada 100% Granted
I.P. Lis 100% Granted
I.P. Mailleras 100% Granted
I.P. Mimbre 100% Granted
I.P. Pedreras 100% Granted
E.P. Herradura* 100% Granted
Cáceres I.P. Almendro 100% Granted
I.P. Ibor 100% Granted
I.P. Olmos 100% Granted
Badajoz I.P. Los Bélicos 100% Granted**
I.P.A. Ampliación Los Bélicos 100% Pending**
Ciudad Real I.P.A. La Majada 100% Pending**
*An application for a 1-year extension at E.P. Herradura was previously
rejected however this decision has been appealed and the Company awaits the
decision regarding its appeal.
**During the period, ERM, a wholly owned subsidiary of the Company, entered
into a Tenement Sale and Purchase Agreement and Royalty Deed with COPROMI, to
acquire IP Los Bélicos, IPA Ampliación Los Bélicos, and IPA La Majada.
Appendix 3: Related Party Payments
During the quarter ended 31 March 2023, the Company made payments of $179,000
to related parties and their associates. These payments relate to existing
remuneration arrangements (director and consulting fees plus statutory
superannuation).
Appendix 4: Exploration and Mining Expenditure
During the quarter ended 31 March 2023, the Company made the following
payments in relation to exploration and development activities:
Activity $000
Radiological protection and monitoring 37
Permitting related expenditure (including legal dispute expenses) 332
Consultants and other expenditure 303
Solar Farm initiative 141
Payment/(return) of VAT in Spain 120
Total as reported in the Appendix 5B 933
There were no mining or production activities and expenses incurred during the
quarter ended 31 March 2023.
Appendix 5: Summary of RC Drilling Intercepts
Drill Hole Easting Northing Elevation Azimuth Dip Depth From To Interval Li(2)O Li(2)O Rb(2)O Rb(2)O SnO(2) SnO(2) Cs(2)O Cs(2)O Nb(2)O(5) Nb(2)O(5) Ta(2)O(5) Ta(2)O(5)
ID
(m) ((o)) ((o))
(m)
(m)
(%)
(ppm)
(%)
(ppm)
(%)
(ppm)
(%)
(ppm)
(%)
(ppm)
(%)
(ppm)
(m) (m) (m) (m)
CCR001 684,349 4,492,848 766 360 -90 52 0 7 7 0.12 1,163 0.14 1,357 0.02 197 0.01 83 0.007 68 0.004 43
CCR002 684,225 4,492,895 766 360 -90 48 0 25 25 0.56 5,584 0.22 2,193 0.07 730 0.02 163 0.009 95 0.005 52
and 28 38 10 0.20 2,003 0.11 1,069 0.04 351 0.01 101 0.005 47 0.002 21
incl. 29 33 4 0.41 4,069 0.18 1,774 0.08 776 0.01 126 0.009 93 0.005 47
and 41 48 7 0.18 1,812 0.12 1,164 0.02 240 0.01 101 0.005 49 0.002 24
Incl. 43 46 3 0.33 3,330 0.17 1,714 0.03 350 0.02 153 0.007 67 0.004 36
CCR003 684,585 4,492,925 762 360 -90 70 0 70 70 0.14 1,446 0.15 1,511 0.01 67 0.01 87 0.007 71 0.004 40
CCR004 684,475 4,492,796 766 360 -90 60 3 20 17 0.29 2,871 0.13 1,306 0.03 344 0.01 140 0.006 55 0.002 23
incl. 7 18 11 0.41 4,071 0.17 1,729 0.05 468 0.02 192 0.007 73 0.003 32
CCR005 684,412 4,492,233 765 360 -90 52 0 44 44 0.31 3,061 0.19 1,853 0.05 546 0.01 112 0.009 91 0.006 60
Appendix 6: JORC Code, 2012 Edition - Table 1 Report
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling techniques Nature and quality of sampling (eg cut channels, random chips, or specific Berkeley reverse circulation (RC) drill samples are collected over 1m
specialised industry standard measurement tools appropriate to the minerals intervals. All samples are placed into individually labelled, consecutively
under investigation, such as down hole gamma sondes, or handheld XRF numbered sample bags. The RC samples obtained are considered representative of
instruments, etc). These examples should not be taken as limiting the broad the material drilled.
meaning of sampling.
Include reference to measures taken to ensure sample representivity and the Field duplicate samples are inserted into the sample stream to assess the
appropriate calibration of any measurement tools or systems used. variability of the mineralisation. Approximately 15% of all samples relate to
quality control. Given the preliminary nature of the exploration drilling in
the area, no blanks or standards have been included in the samples sent. In
addition, the laboratories undertake their own duplicate sampling as part of
their internal QA/QC processes.
Examination of the QA/QC, sample data indicates satisfactory performance of
field sampling protocols and assay laboratories providing acceptable levels of
precision and accuracy.
Drill hole collar locations are surveyed by qualified surveyors using standard
differential GPS (DGPS) equipment achieving sub decimetre accuracy in
horizontal and vertical position.
Down-hole surveys are not undertaken due to the terrain conditions that do not
allow the vehicle transporting the equipment to reach the location of the
drill holes. Down-hole surveys will be undertaken as soon as the ground
conditions allow it.
Given the drill holes are vertical, drilled through very hard rocks and at low
drilling speeds, significant deviations are not expected.
Aspects of the determination of mineralisation that are Material to the Public RC drill samples are collected over 1m intervals. The entire sample is placed
Report. In cases where 'industry standard' work has been done this would be in a properly named and numbered plastic bag and transported to the Berkeley
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m warehouse. Samples are manually homogenised before being split using a
samples from which 3 kg was pulverised to produce a 30 g charge for fire three-tier riffle splitter to provide an approximate 3-5kg sample. Wet samples
assay'). In other cases more explanation may be required, such as where there are split using a cone and quarter method.
is coarse gold that has inherent sampling problems. Unusual commodities or
mineralisation types (eg submarine nodules) may warrant disclosure of detailed Samples are further split using a one tier riffle splitter such that 0.7-1kg
information. samples are sent to the preparation laboratories of ALS (Seville, Spain) and
analytical laboratory of ALS (Loughrea, Ireland). Samples are dried, fine
crushed down to 70% below 2mm, split to obtain 250g and pulverised with at
least 85% of the sample passing 75µm. 10g of sample is used for 51 elements
analysis by ICP-MS method with results corrected for spectral inter-element
interferences.
Drilling techniques Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, Drilling comprised RC drilling using a 140mm diameter face sampling hammer.
auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or other type, whether core is
oriented and if so, by what method, etc).
Drill sample recovery Method of recording and assessing core and chip sample recoveries and results Berkeley RC drill samples are collected over 1m intervals through a cyclone.
assessed. Plastic sample bags are strapped to the cyclone to maximise sample recovery.
Individual sample bags are not weighed to assess sample recovery but a visual
inspection is made by the Company geologist to ensure all samples are of
approximately equivalent size. Overall sample recoveries in excess of 90% were
typically recorded in mineralised zones, which is considered acceptable.
Measures taken to maximise sample recovery and ensure representative nature of The RC drilling rigs utilised suitably sized compressors to ensure dry samples
the samples. where possible. Plastic sample bags are strapped to the cyclone to maximise
sample recovery. Sample logs record whether the sample is dry, moist or wet.
When the drill holes past through zones with a significant water inflow, the
sample bags are pierced to release the amount of water from the cyclone. In
this operation, a part of the finest fraction is lost, resulting in a poorer
recovery. Future studies will be undertaken to determine whether the loss of
fines influences the grade however, no material grade variation was observed
across mineralised intervals that went from dry to wet in this drilling
campaign.
Whether a relationship exists between sample recovery and grade and whether There is no current known relationship between sample recovery and grade. The
sample bias may have occurred due to preferential loss/gain of fine/coarse RC sample recoveries are of an acceptable level and no bias is expected from
material. any sample losses.
Logging Whether core and chip samples have been geologically and geotechnically logged Berkeley geological logging of RC chip samples included recording descriptions
to a level of detail to support appropriate Mineral Resource estimation, of lithology, weathering, alteration and mineralisation.
mining studies and metallurgical studies.
Whether logging is qualitative or quantitative in nature. Core (or costean, Geological logging is qualitative in nature.
channel, etc.) photography.
Berkeley RC samples and chip trays are photographed.
The total length and percentage of the relevant intersections logged. All RC drill holes are logged in full by Company geologists.
Sub-sampling techniques If core, whether cut or sawn and whether quarter, half or all core taken. Drilling is RC.
and sample preparation If non-core, whether riffled, tube sampled, rotary split, etc and whether Berkeley RC drill samples were collected at 1m intervals. RC intervals were
sampled wet or dry. sampled by splitting dry samples in the core shed to 3-5kg using three tier
riffle splitter and further split to 0.7-1kg using a one tier riffle splitter.
Wet samples were split using a cone and quarter method.
For all sample types, the nature, quality and appropriateness of the sample Samples were sent to ALS laboratory (Seville, Spain) for preparation and
preparation technique. analysis. Samples were dried, fine crushed down to 70% below 2mm and
pulverised with at least 85% of the sample passing 75µm. 10g of sample was
used for multi element analysis by ICP-MS method. This method is considered
appropriate for this style of mineralisation.
Quality control procedures adopted for all sub-sampling stages to maximise Routine sample preparation and analyses of RC samples were carried out by ALS,
representivity of samples. who operates an independent sample preparation laboratory in Seville (Spain)
and an analytical laboratory in Loughrea (Ireland). QA/QC procedures involve
the use of duplicates which are inserted into sample batches at a frequency of
approximately 15%.
Measures taken to ensure that the sampling is representative of the in situ Duplicate splits of RC samples are taken every 7m down hole within the sampled
material collected, including for instance results for field intervals. The results from these duplicates generally show acceptable
duplicate/second-half sampling. repeatability.
Whether sample sizes are appropriate to the grain size of the material being Sample sizes are well in excess of standard industry requirements.
sampled.
Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory All samples were routinely assayed by ALS for 51 elements using ICP-MS method.
procedures used and whether the technique is considered partial or total. This analytical method reports total content for each element.
For geophysical tools, spectrometers, handheld XRF instruments, etc, the No geophysical down hole tools have been used.
parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc.
Nature of quality control procedures adopted (eg standards, blanks, Duplicate samples were regularly inserted into the sample stream by Berkeley,
duplicates, external laboratory checks) and whether acceptable levels of with approximately 15% of all samples related to quality control. The external
accuracy (ie lack of bias) and precision have been established. laboratories used, also maintain their own process of QA/QC utilising
standards, pulp repeats, sample duplicates and blanks.
Review of the Berkeley quality control samples, as well as the external
laboratory quality QA/QC reports, has shown no sample preparation issues,
acceptable levels of accuracy and precision and no bias in the analytical
datasets.
Verification of sampling and assaying The verification of significant intersections by either independent or Reported drill intersections have been checked and verified by Senior
alternative company personnel. Geological management.
The use of twinned holes. No twinned holes were drilled for the current exploration stage.
Documentation of primary data, data entry procedures, data verification, data All primary data was recorded in templates designed by Berkeley. Assay data
storage (physical and electronic) protocols. from the external laboratory is received in spreadsheets and downloaded
directly into an Access Database managed by the Company. Data is entered into
controlled excel templates for validation. The validated data is then loaded
into a password secured relational database by a designated Company geologist.
Daily backups of all digital data are undertaken. These procedures are
documented in the Berkeley Technical Procedures and Protocols manual.
Discuss any adjustment to assay data. Lithium (ppm) assays received from the external laboratory are converted to
Li(2)O (ppm) using the stoichiometric factor of 2.153 and then passed to
percentage.
Rubidium (ppm) assays are converted to Rb(2)O (ppm) using the stoichiometric
factor of 1.094 and then passed to percentage.
Tin (ppm) assays are converted to SnO(2) (ppm) using the stoichiometric factor
of 1.270 and then passed to percentage.
Cesium (ppm) assays are converted to Cs(2)O (ppm) using the stoichiometric
factor of 1.060 and then passed to percentage.
Niobium (ppm) assays are converted to Nb(2)O(5) (ppm) using the stoichiometric
factor of 1.431 and then passed to percentage.
Tantalum (ppm) assays are converted to Ta(2)O(5) (ppm) using the
stoichiometric factor of 1.221 and then passed to percentage.
Location of data points Accuracy and quality of surveys used to locate drill holes (collar and Drill hole collar locations were surveyed by qualified surveyors using
down-hole surveys), trenches, mine workings and other locations used in standard differential GPS (DGPS) equipment achieving sub decimetre accuracy in
Mineral Resource estimation. horizontal and vertical position. Down-hole surveys are not undertaken due to
the terrain conditions that do not allow the vehicle transporting the
equipment to reach the location of the drill holes. Down-hole surveys will be
undertaken as soon as the ground conditions allow it.
Given the drill holes are vertical, drilled through very hard rocks and at low
drilling speeds, significant deviations are not expected.
Specification of the grid system used. The grid system is ETRS 1989 UTM Zone 29N.
Quality and adequacy of topographic control. Topographic control is based on a digital terrain model with sub metric
accuracy sourced from the Spanish Geographical Institute (Instituto
Geográfico Nacional) and is verified through detailed drill hole collar
surveys by a qualified surveyor using a DGPS.
Data spacing and distribution Data spacing for reporting of Exploration Results. The objective of this drilling campaign is to check the results of previous
exploration works which were based on soil sampling and geological mapping.
The results reported herein relate to three sections with a drill hole
(CCR004) common to all of them, with two or three holes on each section, with
plan distances between drill holes from 130m to 570m.
Whether the data spacing and distribution is sufficient to establish the The data spacing is not considered sufficient to assume geological and grade
degree of geological and grade continuity appropriate for the Mineral Resource continuity.
and Ore Reserve estimation procedure(s) and classifications applied.
Whether sample compositing has been applied. No compositing of RC samples has been undertaken.
Orientation of data in relation to geological structure Whether the orientation of sampling achieves unbiased sampling of possible The lithological unit of interest, a muscovitic leucogranite, has a mapped
structures and the extent to which this is known, considering the deposit extent of 2km by 0.4km. The mineralised zone is interpreted to be
type. sub-horizontal following the regional plutonic tendency.
If the relationship between the drilling orientation and the orientation of All drill holes are vertical and perpendicular to the interpreted mineralised
key mineralised structures is considered to have introduced a sampling bias, body. Due to the interpreted sub-horizontal nature of the mineralisation, no
this should be assessed and reported if material. sampling bias is considered to have been introduced by the orientation of the
drilling so the reported intervals approximate true widths.
Sample security The measures taken to ensure sample security. Chain of custody is managed by Berkeley. Samples were transported from the
drill site by Company vehicle to a logging core shed where samples are
prepared for dispatch. Samples are sent directly from the core shed to the
laboratory using a certified courier. Samples are included in cardboard boxes
conveniently closed and strapping to prevent its opening. The samples are
taken directly from the Berkeley facility to the external laboratory. Sample
submission forms are sent in paper form with the samples as well as
electronically to the laboratory. Reconciliation of samples occurs prior to
commencement of sample preparation for assaying.
Audits or reviews The results of any audits or reviews of sampling techniques and data. Sampling techniques and procedures, as well as QA/QC data, are reviewed
internally on an ongoing basis. These reviews have concluded that the sampling
and analytical results are to industry standards.
Section 2 Reporting of Exploration Results
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status Type, reference name/number, location and ownership including agreements or The Conchas Prospect lies on the Conchas I Investigation Permit PI 6930 which
material issues with third parties such as joint ventures, partnerships, is 100% owned by Berkeley Minera España, S.L., a wholly owned subsidiary of
overriding royalties, native title interests, historical sites, wilderness or Berkeley Energia Limited.
national park and environmental settings.
The Conchas I Investigation Permit was granted in October 2020 and is
currently in the first year of a second three-year term.
No historical sites, wilderness or national parks are located within the
Permit. The Conchas Prospect is located adjacent to the village of Fuentes de
Oñoro and close to the border with Portugal.
The security of the tenure held at the time of reporting along with any known Tenure in the form of an Investigation Permit has been granted and is
impediments to obtaining a licence to operate in the area. considered secure. There are no known impediments to obtaining a licence to
operate in this area.
Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. Mining in the area goes back to the WWII years when, in an artisanal manner,
tin and tungsten were obtained by means of surface excavations and washed by
hand.
Modern exploration at Conchas I were carried out by Billiton PLC between 1981
and 1983. The investigation was focused on tin and tantalum with lithium,
rubidium etc. not taken into account. Billiton carried out several exploration
work programs which resulted in a regional geological map and another detailed
geological map, a leucogranite bottom isopach map, geochemistry with 85 test
pits, trenches and 20 direct circulation drill holes, and sectional
interpretations of the different magmatic facies.
SIEMCALSA (Mining Investigation and Exploration Society of Castilla y León,
S.A.) within the European Union project POCTEP, summarized the Billiton data,
making a review of the land and a chip sampling (14 samples) of the types of
rocks existing in the area. Mineralogical and metallogenetic studies of
samples were carried out at the Universities of León (Spain) and Porto
(Portugal) however, Berkeley has not yet obtained access to these
reports/results.
Only public domain historical data has been obtained by Berkeley.
Geology Deposit type, geological setting and style of mineralisation. Around the 70% of the permit area is filled by the Cenozoic cover and, only in
the NW, the Fuentes de Oñoro granite can be found. Cenozoic materials have
Oligocene age.
Granites make up the Vilar Formoso-Fuentes de Oñoro area, which in turn
belongs to the Guarda Batholith whose origin is associated with the Hercynian
orogeny. Regionally, coarse to very coarse-grained granodiorites and
porphyritic granites are found, porphyritic and with a considerable amount of
biotite, arranged subparallel to the edge of the batholith and commonly
considered as edge facies.
The monzogranite facies is the one with the greatest superficial development
and constitutes approximately 50% of the outcropping granites. They are
two-mica granites, with a predominance of biotite, fine to coarse grain size
and sometimes porphyry, although the potassium feldspar megacrystals do not
reach the size of those of the previous edge facies.
Aplogranites constitute the mineralised facies of aplo-pegmatitic
leucogranites. This occurs in the vicinity of Fuentes de Oñoro and in front
of the Portuguese town of Poço Velho. The mineralogy in which lithium and
rubidium occurs is not yet known.
Historical reports indicate the presence of cassiterite and columbo-tantalite
distributed homogeneously throughout the mineralized zone. Cassiterite (tin)
normally occurs in angular and heterometric crystals of between 10μm and 1mm.
Tantalum and niobium occur in the form of columbo-tantalite, both in isolated
crystals and in inclusions within the cassiterite.
Drill hole Information A summary of all information material to the understanding of the exploration Details of all reported drill holes are provided in Appendix 5 of this
results including a tabulation of the following information for all Material release.
drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level - elevation above sea level in metres) of the
drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
If the exclusion of this information is justified on the basis that the All information has been included in Appendix 5 of this release.
information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why
this is the case.
Data aggregation methods In reporting Exploration Results, weighting averaging techniques, maximum Reported drill intersections are based on chemical assay data and are
and/or minimum grade truncations (eg cutting of high grades) and cut-off calculated using a 500ppm Rb(2)O cut-off, no high grade cut and may include up
grades are usually Material and should be stated. to 2m of internal dilution.
Where aggregate intercepts incorporate short lengths of high grade results and Higher grade intervals that are internal to broader zones of mineralisation
longer lengths of low grade results, the procedure used for such aggregation are reported as included intervals using a 1,000ppm Rb(2)O cut-off.
should be stated and some typical examples of such aggregations should be
shown in detail.
The assumptions used for any reporting of metal equivalent values should be No metal equivalent values are used.
clearly stated.
Relationship between mineralisation widths and intercept lengths These relationships are particularly important in the reporting of Exploration All drilling was planned in such a way as to intersect expected mineralisation
Results. If the geometry of the mineralisation with respect to the drill hole in a perpendicular manner. Drill holes are oriented to be orthogonal to the
angle is known, its nature should be reported. general strike of the interpreted mineralised structures. The zone of
mineralisation is interpreted to be sub-horizontal dipping so the drill holes
are vertical.
Exploration results have been reported as an interval with 'from' and 'to'
stated in summary table of drilling intercepts. The reported down-hole
intervals approximate true widths.
If it is not known and only the down hole lengths are reported, there should The reported down-hole intervals approximate true widths.
be a clear statement to this effect (eg 'down hole length, true width not
known').
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts Appropriate diagrams, including a drill plan and cross sections, are included
should be included for any significant discovery being reported These should in the main body of this release.
include, but not be limited to a plan view of drill hole collar locations and
appropriate sectional views.
Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, All results are reported in Appendix 5 of this release.
representative reporting of both low and high grades and/or widths should be
practiced to avoid misleading reporting of Exploration Results.
Other substantive exploration data Other exploration data, if meaningful and material, should be reported A check of the lithologies present in the area, especially associated with the
including (but not limited to): geological observations; geophysical survey mineralised zone, in situ analysis using a portable XRF, and two soil
results; geochemical survey results; bulk samples - size and method of geochemistry campaigns (203 samples collected) were carried out before the
treatment; metallurgical test results; bulk density, groundwater, geotechnical drilling reported in this release.
and rock characteristics; potential deleterious or contaminating substances.
Further work The nature and scale of planned further work (eg tests for lateral extensions Mineralogical studies are currently being undertaken on samples from the
or depth extensions or large-scale step-out drilling). drilling to determine the mineral species present, and understand their
characteristics and properties.
Subject to the results of these mineralogical studies, further work at Conchas
may include follow-up exploration drilling focused on improving confidence in
the geology, continuity, and grade distribution of the zone of multi-element
mineralisation.
The zone of mineralisation remains open along strike and at depth, with both
areas to be potentially targeted in subsequent drilling.
Geological studies will include detailed interpretation of lithology,
structure and weathering and an assessment of potential relationships between
these factors and grade distribution of the minerals of interest.
Further work is also planned on a number of other exploration targets within
the Salamanca II Region.
Diagrams clearly highlighting the areas of possible extensions, including the The known boundaries of the lithological unit of interest are shown in a
main geological interpretations and future drilling areas, provided this geology plan included the main body of this release.
information is not commercially sensitive.
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
Name of entity
Berkeley Energia Limited
ABN Quarter ended ("current quarter")
40 052 468 569 31 March 2023
Consolidated statement of cash flows Current quarter Year to date
$A'000
(9 months)
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from customers
1.2 Payments for (933) (2,017)
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (246) (716)
(e) administration and corporate costs (161) (704)
1.3 Dividends received (see note 3) - -
1.4 Interest received 9 277
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other (provide details if material) (72) (162)
(a) Business Development - (476)
(b) Preparation of Prospectus
1.9 Net cash from / (used in) operating activities (1,403) (3,798)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment - -
(d) exploration & evaluation - -
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal of: - -
(a) entities
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash from / (used in) investing activities - -
3. Cash flows from financing activities - -
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities or convertible debt - -
securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing activities - -
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 78,860 79,942
4.2 Net cash from / (used in) operating activities (item 1.9 above) (1,403) (3,798)
4.3 Net cash from / (used in) investing activities (item 2.6 above) - -
4.4 Net cash from / (used in) financing activities (item 3.10 above) - -
4.5 Effect of movement in exchange rates on cash held 700 2,013
4.6 Cash and cash equivalents at end of period 78,157 78,157
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
$A'000
$A'000
5.1 Bank balances 78,107 78,810
5.2 Call deposits 50 50
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 78,157 78,860
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included (179)
in item 1
6.2 Aggregate amount of payments to related parties and their associates included -
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements available to the entity.
$A'000
$A'000
Add notes as necessary for an understanding of the sources of finance available to the entity.
7.1 Loan facilities - -
7.2 Credit standby arrangements - -
7.3 Other (please specify) - -
7.4 Total financing facilities - -
7.5 Unused financing facilities available at quarter end -
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
Not
app
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abl
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8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (1,403)
8.2 (Payments for exploration & evaluation classified as investing activities) -
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (1,403)
8.4 Cash and cash equivalents at quarter end (item 4.6) 78,157
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 78,157
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) >10
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8.
7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
Answer: Not applicable
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
Answer: Not applicable
8.8.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Answer: Not applicable
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date: 28 April 2023
Authorised by: Company Secretary
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash
flow report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
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