REG - Berkeley Energia - DFS confirms Salamanca as a low cost producer <Origin Href="QuoteRef">BKY.AX</Origin> - Part 2
14/07/2016 08:01
- Part 2: For the preceding part double click ID:nRSN1376Ea
713953 4527516 753 360 -90 65 21 33 12 704
incl. 22 25 3 1,424
40 49 9 1,029
incl. 40 43 3 2,286
Z7R-288 714087 4527335 768 360 -90 70 43 44 1 253
55 56 1 208
Z7R-289 713952 4527402 756 360 -90 70 18 19 1 204
28 35 7 336
49 50 1 514
Z7R-290 714049 4527323 763 360 -90 75 22 38 16 1,906
incl. 26 30 4 5,671
incl. 35 37 2 1,963
Z7R-292 714060 4527290 765 360 -90 64 18 26 8 260
Z7R-293 713906 4527427 756 360 -90 79 30 33 3 241
38 51 13 1,028
incl. 40 41 1 1,845
incl. 43 44 1 4,516
incl. 49 50 1 2,841
56 57 1 663
62 63 1 324
69 72 3 791
incl. 70 71 1 1,845
75 76 1 323
Z7R-294 714033 4527238 763 360 -90 60 17 27 10 2,139
incl. 21 27 6 3,344
43 44 1 1,539
Z7R-295 713927 4527368 757 360 -90 65 16 19 3 298
22 24 2 280
35 47 12 863
incl. 38 39 1 1,262
incl. 42 44 2 2,559
Z7R-296 714092 4527223 769 360 -90 60 No Significant Intercepts
Z7R-297 713885 4527493 755 360 -90 70 16 37 21 1,324
incl. 25 32 7 2,620
incl. 34 37 3 1,832
43 46 3 274
Z7R-298 714056 4527179 764 360 -90 60 43 44 1 258
48 49 1 1,833
52 53 1 389
Z7R-299 713815 4527362 761 360 -90 60 22 35 13 616
incl. 22 23 1 1,048
incl. 25 26 1 1,040
incl. 32 35 3 1,169
40 51 11 1,329
incl. 40 43 3 1,219
incl. 47 50 3 3,241
57 58 1 551
Z7R-300 714044 4527210 764 360 -90 63 21 22 1 222
27 37 10 1,969
incl. 27 36 9 2,149
46 49 3 1,016
incl. 46 48 2 1,406
Z7R-301 713839 4527406 759 360 -90 65 20 21 1 302
27 30 3 711
37 42 5 286
52 57 5 281
Z7R-302 714013 4527201 761 360 -90 60 16 18 2 350
22 27 5 923
incl. 24 25 1 2,499
31 36 5 1,521
incl. 34 35 1 5,789
Z7R-303 713862 4527451 757 360 -90 70 14 27 13 1,217
incl. 18 20 2 2,243
incl. 22 24 2 3,932
31 35 4 741
incl. 34 35 1 2,105
41 43 2 1,778
incl. 41 42 1 3,337
48 51 3 898
Z7R-304 713992 4527269 759 360 -90 60 16 21 5 2,740
24 29 5 993
incl. 24 25 1 2,948
37 41 4 1,760
incl. 37 38 1 3,207
incl. 40 41 1 3,690
44 45 1 619
52 56 4 204
Z7R-305 713772 4527385 760 360 -90 61 15 17 2 445
31 33 2 322
37 43 6 424
46 49 3 274
52 54 2 506
Z7R-306 714129 4527423 767 360 -90 70 60 61 1 266
Z7R-307 713794 4527430 758 360 -90 65 32 33 1 200
44 50 6 357
58 59 1 415
Z7R-309 713818 4527474 756 360 -90 82 31 37 6 430
40 43 3 223
54 55 1 345
73 77 4 383
Z7R-310 714062 4527398 759 360 -90 73 20 22 2 208
30 34 4 457
42 44 2 336
52 56 4 1,207
66 69 3 1,191
Z7R-311 713804 4527508 754 360 -90 70 No Significant Intercepts
Z7R-312 714107 4527378 769 360 -90 70 52 53 1 322
Z7R-313 713769 4527274 763 360 -90 64 21 23 2 982
incl. 21 22 1 1,350
45 47 2 496
50 53 3 934
incl. 52 53 1 1,539
56 58 2 636
Z7R-314 714151 4527355 773 360 -90 56 No Significant Intercepts
Z7R-315 713783 4527317 762 360 -90 60 42 47 5 275
52 53 1 353
56 57 1 325
Z7R-316 714128 4527311 772 360 -90 70 No Significant Intercepts
Z7R-317 713748 4527341 762 360 -90 60 40 53 13 256
Z7R-318 713759 4527452 757 360 -90 65 No Significant Intercepts
Z7R-319 713760 4527421 758 360 -90 65 No Significant Intercepts
Z7R-320 714104 4527266 770 360 -90 65 No Significant Intercepts
Z7R-321 713722 4527328 763 360 -90 67 58 62 4 498
incl. 61 62 1 1,046
Z7R-322 714110 4527188 769 360 -90 60 No Significant Intercepts
Z7R-323 713702 4527363 760 360 -90 60 No Significant Intercepts
Z7R-324 714034 4527134 763 360 -90 67 19 21 2 290
47 48 1 236
52 56 4 444
Z7R-325 713728 4527402 758 360 -90 60 44 45 1 235
Z7R-326 714066 4527066 765 360 -90 60 30 31 1 278
Z7R-327 714011 4527089 762 360 -90 60 18 23 5 386
26 37 11 202
Z7R-328 714088 4527107 766 360 -90 60 No Significant Intercepts
Z7R-329 713968 4527112 761 360 -90 60 28 43 15 1,288
incl. 29 32 3 5,599
Z7R-330 714110 4527153 768 360 -90 65 No Significant Intercepts
Z7R-331 714022 4527056 764 360 -90 60 27 28 1 241
30 31 1 284
34 38 4 294
Z7R-332 713923 4527136 761 360 -90 60 33 34 1 238
36 37 1 208
40 41 1 277
Z7R-333 713977 4527079 763 360 -90 60 22 36 14 1,167
incl. 28 29 1 9,585
incl. 34 35 1 2,629
Z7R-334 713933 4527102 762 360 -90 60 No Significant Intercepts
Z7R-335 714018 4527034 765 360 -90 60 No Significant Intercepts
Z7R-336 713945 4527176 760 360 -90 60 32 33 1 239
Z7R-337 713995 4527045 764 360 -90 60 No Significant Intercepts
Z7R-338 714153 4527467 761 360 -90 70 No Significant Intercepts
Z7R-339 713951 4527067 763 360 -90 60 25 31 6 437
Z7R-340 714105 4527623 755 360 -90 83 9 28 19 1,147
incl. 11 16 5 2,155
incl. 20 22 2 2,420
31 32 1 611
46 47 1 246
57 66 9 348
Z7R-341 713989 4527149 760 360 -90 60 10 13 3 211
21 25 4 1,432
32 33 1 244
35 36 1 208
Z7R-342 714153 4527566 762 360 -90 80 36 37 1 289
44 56 12 1,022
incl. 47 48 1 2,948
60 73 13 282
78 79 1 281
Z7R-343 714170 4527774 752 360 -90 60 2 23 21 1,471
incl. 7 12 5 4,552
32 33 1 249
Z7R-344 714138 4527756 753 360 -90 80 6 11 5 388
14 20 6 1,641
incl. 18 19 1 7,911
26 34 8 1,125
incl. 26 30 4 1,429
incl. 33 34 1 1,556
39 46 7 271
50 62 12 526
incl. 52 55 3 1,348
Z7R-345 714169 4527704 755 360 -90 85 14 30 16 497
incl. 14 17 3 1,141
34 43 9 529
incl. 34 35 1 2,158
58 62 4 274
73 74 1 2,523
79 80 1 371
Z7R-349 714224 4527607 758 257 -60 82 38 39 1 250
76 78 2 487
81 82 1 202
Z7R-350 714172 4527628 756 209 -60 74 27 28 1 204
48 55 7 245
67 73 6 412
Z7R-351 714128 4527638 754 171 -60 78 36 37 1 367
32 33 1 341
42 60 18 266
63 67 4 316
Z7R-352 714095 4527641 753 170 -60 80 40 41 1 217
77 79 2 295
Z7R-353 714051 4527665 752 166 -60 85 50 53 3 251
72 75 3 256
78 79 1 210
Z7R-354 713936 4527620 749 214 -60 73 7 9 2 506
16 26 10 619
incl. 18 19 1 1,763
incl. 22 23 1 1,710
32 33 1 523
46 47 1 248
56 57 1 222
60 61 1 210
Z7R-355 713978 4527686 749 360 -90 50 11 12 1 282
222
60
61
1
210
Z7R-355
713978
4527686
749
360
-90
50
11
12
1
282
Appendix 3: ASX Summary of Ore Reserve Estimate and Reporting Criteria
The DFS, Ore Reserve Estimate, Production Targets, and forecast financial information derived from the DFS, Ore Reserve
Estimate and Production Target contained in this announcement, are based on the material assumptions contained within this
announcement which are summarized below:
Table 15 - Material Assumptions
Maximum Accuracy variation +/- 10%
Mine Life 14 years
Mining Method Open-pit & transfer mining
Strip Ratio (life of mine average) 1:1.4
Mining Cut-off Grades 107 ppm U3O8 for Retortillo, 125 ppm U3O8 for Zona 7 and 90 ppm U3O8 for Alameda
Overall Pit Wall Slope Angles 34-61 degrees for Retortillo, 47-59 degrees for Zona 7, and 34-59 degrees for Alameda
Processing Method Heap leaching using on-off leach pads, followed by uranium recovery and purification by solvent extraction, ammonium diuranate precipitation and calcination
Annual Ore Processing Rate (steady state) 2.7 Mtpa for Retortillo and Zona 7 / 3.4 Mtpa for Alameda
Annual U3O8 Production (steady state) 4.4 Mtpa
Metallurgical Recovery 88%
Sulphuric Acid Price E70 per tonne
Acid Consumption 18 kg/t for Retortillo, 20 kg/t Alameda, and 10 kg/t for Zona 7
Mining Costs US$9.90/lb for Retortillo
US$3.50/lb for Zona 7
US$7.40 for Alameda
Processing Costs US$10.70/lb for Retortillo
US$5.50/lb for Zona 7
US$11.10 for Alameda
G&A Costs US$0.90/lb for Retortillo
US$0.90/lb for Zona 7
US$0.90 for Alameda
Initial Capital Costs (Retortillo) US$95.7 million
Initial Capital Costs (Zona 7) US$59.2 million
Initial Capital Costs (Almeda) US$79.7 million
Commercialisation Costs 1.00%
State Reserves Royalty - ENUSA (Alameda) 2.50%
Municipality Royalty 0.20%
Anglo Pacific Royalty 1.00%
RCF Royalty 0.38%
Corporate Tax Rate 25%
Exchange Rate USD / EUR 1.11
Exchange Rate GBP / EUR 0.75
Uranium Sales Price (2017 - 2030) US$39-US$68/lb
Discount Rate 8%
Discount Rate
8%
Mtpa = Million tonnes per annum
Mlbs = Million pounds of U3O8
Introduction
The Salamanca project is made up of three distinct deposits which will be mined independently of each other, namely:
§ Retortillo (including the Santidad satellite deposit);
§ Zona 7; and
§ Alameda.
Retortillo and Zona 7 will be mined sequentially with ore being processed in a common processing facility while Alameda
will be mined in parallel with the other sites. Processing of the Alameda ore will initially take place on-site, with
loaded resin then transported 50km by road to the Retortillo plant for final processing.
Bara Consulting (Pty) Ltd. (Bara) has been commissioned by Berkeley (the Company) to provide a JORC compliant Ore Reserve
Estimate for the Salamanca project based on all information available as of 13 July 2016. Bara's independence is ensured
by the fact that we are a private employee owned company.
Bara has classified the reserves given in this report in accordance with the 2012 edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code").
The generation of the Ore Reserve Estimate is the culmination of work by Bara and other parties. Bara has reviewed the
input by others and considers that the information provided is complete and supports the declaration of Ore Reserves, we
have no reason to believe that any material facts have been withheld.
This report includes technical information, which requires subsequent calculations to derive subtotals, totals and weighted
averages. Such calculations may involve a degree of rounding and consequently introduce an error. Where such errors occur,
Bara does not consider these to be material.
Mining method and assumptions
All of the deposits being considered are shallow (ranging between 0m to 160m depth below surface) and massive. Due to the
depth and geometry of the deposit, the selected mining method is conventional drill blast truck and shovel open pit mining.
Strip ratios will vary per deposit as follows:
§ Retortillo: 2.47 tonnes of waste per tonne of ore
§ Santidad: 1.36 tonnes of waste per tonne of ore
§ Zona 7: 1.13 tonnes of waste per tonne of ore
§ Alameda: 1.08 tonnes of waste per tonne of ore
Some of the pre-strip material will be used as construction material. Access to the pit will be by conventional open pit
ramps, 25m in width that enables access for 100 tonne trucks.
Metallurgical test work has demonstrated that the mineralised material at all the deposits is amenable to a heap leaching
process for the extraction of the uranium. Following heap leaching the pregnant solution will undergo ion exchange, solvent
extraction and precipitation of ADU.
All treated/spent ore will be deposited back into the mined voids along with all other mined waste material.
Ore Reserve Estimate classification criteria
The classification of the Mineral Resource Estimate was completed by Mr. M Titley, a competent person, based on the
guidelines specified in the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves
(The JORC Code, 2012 Edition).
Resource estimates were classified with consideration of the following criteria:
§ Quality and reliability of raw data (sampling, assaying, surveying).
§ Confidence in the geological interpretation.
§ Number, spacing and orientation of intercepts through mineralised zones.
§ Knowledge of grade continuities gained from observations and geostatistical analyses.
§ The potential prospect for eventual economic extraction.
For the Retortillo and Zona 7 Resource estimations, grade was estimated into large panels (20m x 20m x 6m and 25m x 25m x
6m respectively) with ISATIS software using Ordinary Kriging (OK) to estimate in-situ resources, and Uniform Conditioning
(UC) to estimate recoverable resources at the dimensions of the SMU (5m x 5m x 6m).
A post-processing step called Localised Uniform Conditioning (LUC) was applied. This involves reconstituting the
grade-tonnage of the panel model into the constituent SMU's of that panel - in this case, each panel has 16 SMU's that make
up the panel. The grade-tonnage curve of the 16 SMU's in each panel is designed to match the grade-tonnage curve of the
panel.
The Alameda model was estimated using ordinary kriging and Inverse Distance Squared (ID2) methods on a regular block size
of 10m x 10m x 6m.
The Retortillo deposits extend from surface to depths of up to 90m, in plan view the deposit is divided in two orebodies:
at the northwest Santidad and to the southeast Retortillo. Retortillo orebody covers an area of approximately 3km by 0.4km
the northern part, Santidad, is narrower covering an area of approximately 3km by 0.2km. At 100ppm cut-off grade, the
combined resource totals 36.6Mt at 259ppm U3O8 for 20.9Mlbs U3O8, with 27% of the resource currently in the Measured
Category and 72% in the Indicated Category. The remaining resource is classified as Inferred.
The Zona 7 deposit has a lateral unfolded extension of 3km at a width of 0.4km, thinning out towards the north. At 100ppm
cut-off grade, the Zona 7 resource totals 36.8Mt at 431ppm U3O8 for 35.0Mlbs U3O8, with 24% in the Measured Category and
55% of the resource in the Indicated Category. The remaining resource is classified as Inferred.
The Alameda deposit extends from surface to depths of up to 180m. The mineralised body is controlled through a central
brecciated fault and perpendicularly oriented folded stratigraphy, covering an area of 2km by 1.2 km. At 100ppm cut-off
grade, the Alameda resource totals 34.0Mt at 339ppm U3O8 for 25.4Mlbs U3O8, with 0% of the resource in the Measured
Category and 95% of the resource in the Indicated Category. The remaining resource is classified as Inferred.
The Mineral Resources for the Salamanca project, at a 100ppm U3O8 cut-off grade, is 107.4Mt at 343ppm U3O8, with 17% in the
Measured Category, 72% in the Indicated Category and 11% in the Inferred Category.
Table 16 summarise the resources declared for each of the deposits at a 100ppm cut-off grade.
Table 16: Salamanca Mineral Resources at 100ppm
Deposit Resource Tonnes U3O8 U3O8 U3O8 Category
Name Category (Mt) (ppm) (t) (Mlbs) (%)
Retortillo(including Santidad) Measured 7.6 332 2,539 5.6 27%
Indicated 28.5 240 6,839 15.1 72%
Inferred 0.5 231 115 0.3 1%
Total 36.6 259 9,493 20.9 100%
Zona 7 Measured 7.5 514 3,862 8.5 24%
Indicated 15.4 563 8,691 19.2 55%
Inferred 13.9 239 3,319 7.3 21%
Total 36.8 431 15,872 35.0 100%
Alameda Measured 0.0 0 0 0.0 0%
Indicated 32.8 335 11,003 24.3 95%
Inferred 1.2 464 535 1.2 5%
Total 34.0 339 11,537 25.4 100%
Salamanca project Measured 15.2 422 6,401 14.1 17%
Indicated 76.7 346 26,533 58.5 72%
Inferred 15.6 255 3,968 8.7 11%
Total 107.4 343 36,902 81.4 100%
All resources are reported using a 100ppm U3O8 cutoff grade, differences due to rounding
In order to determine the Mineral Resources that would be considered for inclusion into the mining plan a pay limit grade
calculation was undertaken. Based on the outcome of the pay limit grade calculation a mining cut-off grade was selected
which was above the pay limit. The pay limit grade calculation was undertaken for a range of U3O8pricing scenarios ranging
from US$44/lb to US$65/lb. The pay limit grade calculation is shown in Table 17 at a selling price of US$65/lb of U3O8.
Table 17: Pay Limit Grade Calculation
Item Retortillo/Santidad Zona 7 Alameda Unit
Revenue
Selling price (USD/lb U3O8) $65.00 $65.00 $65.00 USD/lb
Exchange rate (USD/E) 1.11 1.11 1.11 USD/E
U3O8 (E/lb) 58.50 58.50 58.50 E/lb
U3O8 excluding royalties(E/lb) 56.92 56.92 55.46 E/lb
Selling cost
Total Selling costs (% revenues) 2.70% 2.70% 5.20% %
Modifying Factors
Mine Recovery 95% 95% 99% %
Dilution 4% 4% 1% %
Plant Recovery 85% 85% 85% %
Cut Off Grade Estimate
Operating Cost (E/t processed) 9.45 9.90 8.63 E/t
Price U3O8 (E/t) 0.125 0.125 0.122 E/g
COG (ppm U3O8) 97 102 85 ppm
Based on the outcome of the pay limit grade calculation a mining cut-off grade was selected for each of the sites and
applied to the mineral resource models. The cut-off grades selected are higher than the pay limit for each of the sites in
order to optimise the economic margin. The cut-off grades selected for each site were:
§ Retortillo: 110ppm
§ Santidad: 100ppm
§ Zona 7: 125ppm
§ Alameda: 90ppm
Table 18 to Table 21 present the Mineral Resources considered for each deposit at the mining cut off.
Table 18:MineralResources Considered for Mining at 110ppm - Retortillo
Resources Category Tonnage (Mt) Grade (ppm) Content (Mlb)
Measured 7.0 345 5.3
Indicated 15.9 275 9.7
Inferred 0.0 0 0.0
Table 19:MineralResources Considered for Mining at 100ppm - Santidad
Resources Category Tonnage (Mt) Grade (ppm) Content (Mlb)
Measured 0.0 0 0.0
Indicated 10.0 203 4.5
Inferred 0.5 228 0.2
Table 20:MineralResources Considered for Mining at 125ppm - Zona 7
Resources Category Tonnage (Mt) Grade (ppm) Content (Mlb)
Measured 6.8 553 8.3
Indicated 13.9 603 18.5
Inferred 9.9 255 5.6
Table 21:MineralResources Considered for Mining at 90ppm - Alameda
Resources Category Tonnage (Mt) Grade (ppm) Content (Mlb)
Measured 0.0 0 0.0
Indicated 37.4 290.4 24.0
Inferred 0.0 0.0 0.0
Planned dilution of Retortillo, Santidad and Zona 7 was applied through regularisation of the block model. The original
resource model produced by Mr. Titley was populated with minimum block sizes of 5m x 5m x 1.5m. The block model was then
regularised to 5m x 5m x 6m to account for the selective mining unit. In addition to this, dilution of 4% was applied to
account for unplanned dilution due to blast movement, mixing of ore and waste and mining angles.
Planned dilution of Alameda was applied through regularisation of the block model. The original resource model was
populated with minimum block sizes of 5m x 5m x 1.5m. The block model was then regularised to 10m x 10m x 6m to account for
the selective mining unit. As a larger selective mining unit was applied to the Alameda model, lower dilution was applied
in comparison to the other deposits. An additional dilution of 1% and was applied to account for unplanned dilution due to
blast movement, mixing of ore and waste and mining angles.
An allowance was made for ore loss to account for:
§ Broken ore not loaded or loaded to waste (boundary effect).
§ Ore not broken due to inaccurate mining or mining complications.
§ Ore spillage during the mucking and hauling process, between the mining face and the RoM stockpile.
As with the dilution these modifying factors are affected by the size of the selective mining unit. Ore loss allowed for
Retortillo, Santidad and Zona 7 was 5% while at Alameda this was lower at 1% due to the larger SMU block size modelled.
The Mineral Resources, cut off grades and modifying factors described above were used to generate the mining inventory from
the Mineral Resource models. The process followed involved the following steps:
§ The selected cut-off grade was applied to the full model to define the payable Mineral Resources.
§ A design process was undertaken (pit optimisation, pit design and schedule) which defined the payable ore that would be
included into the mining plan.
§ The Mineral Resources contained in the mining plan were modified by the modifying factors (dilution and ore loss) to give
the modified mining inventory.
Table 22 to 25 show the steps in the generation of the mining inventory for each of the deposits.
Table 22: Generation of Mining Inventory - Retortillo
Description Cut Off Grade(ppm) Resource Category Tonnage(Mt) Grade(ppm) Content(Mlb)
Full Model 0 Measured 110.3 28 6.7
Indicated 286.3 22 13.8
Inferred 0.0 0 0.0
Full Model 110 Measured 7.0 345 5.3
Indicated 15.9 275 9.7
Inferred 0.0 0 0.0
Design Inventory 110 Measured 4.0 413 3.7
Indicated 7.4 342 5.6
Inferred 0.0 0 0.0
Modified Inventory 110 Measured 4.0 397 3.5
Indicated 7.3 329 5.3
Inferred 0.0 0 0.0
Table 23: Generation of Mining Inventory - Santidad
Description Cut Off Grade(ppm) Resource Category Tonnage(Mt) Grade(ppm) Content(Mlb)
Full Model 0 Measured 0.0 0 0.0
Indicated 274.1 13 7.9
Inferred 31.8 6 0.4
Full Model 100 Measured 0.0 0 0.0
Indicated 10.0 203 4.5
Inferred 0.5 228 0.2
Design Inventory 100 Measured 0.0 0 0.0
Indicated 4.7 268 2.8
Inferred 0.2 265 0.1
Modified Inventory 100 Measured 0.0 0 0.0
Indicated 4.6 258 2.6
Inferred 0.2 255 0.1
Table 24: Generation of Mining Inventory - Zona 7
Description Cut Off Grade(ppm) Resource Category Tonnage(Mt) Grade(ppm) Content(Mlb)
Full Model 0 Measured 10.7 375 8.9
Indicated 26.8 340 20.1
Inferred 27.4 121 7.3
Full Model 125 Measured 6.8 553 8.3
Indicated 13.9 603 18.5
Inferred 9.9 255 5.6
Design Inventory 125 Measured 6.6 564 8.2
Indicated 12.1 649 17.3
Inferred 0.4 466 0.4
Modified Inventory 125 Measured 6.5 542 7.8
Indicated 11.9 624 16.4
Inferred 0.4 448 0.4
Table 25: Generation of Mining Inventory - Alameda
Description Cut Off Grade(ppm) Resource Category Tonnage(Mt) Grade(ppm) Content(Mlb)
Full Model 0 Measured 0.0 0 0.0
Indicated 613.3 194 262.9
Inferred 15,885.0 0 0.0
Full Model 90 Measured 0.0 0 0.0
Indicated 37.4 290 24.0
Inferred 0.0 0 0.0
Design Inventory 90 Measured 0.0 0 0.0
Indicated 26.4 330 19.2
Inferred 0.0 0 0.0
Modified Inventory 90 Measured 0.0 0 0.0
Indicated 26.4 327 19.0
Inferred 0.0 0 0.0
It is specifically noted that small amounts of Inferred Mineral Resources are contained in the mining inventory for the
Santidad and Zona 7 deposits. These Inferred resources are unavoidably mined during the extraction of the Measured and
Indicated Resources and comprises less than 1% of the total Mining Inventory and will therefore have an insignificant
impact on the financial viability of the project. These Inferred Mineral Resources have not been included into the stated
Ore Reserves for the project.
Ore Reserve estimation
The results of the techno-economic evaluation (below) demonstrate that the project is economically viable based on the
designs established and the assumptions used in this study. It is therefore possible to declare an Ore Reserve for the
Salamanca project.
The Ore Reserve Statement is shown in the Table 26.
Table 26:Salamanca project Ore Reserve Statement
Deposit Name Ore Reserve Category Tonnage(Mt) Grade(ppm) Content(Mlb)
Retortillo Proved 4.0 397 3.5
Probable 7.3 329 5.3
Santidad Proved 0.0 0 0.0
Probable 4.6 258 2.6
Zona 7 Proved 6.5 542 7.8
Probable 11.9 624 16.4
Alameda Proved 0.0 0 0.0
Probable 26.4 327 19.0
Other material modifying factors
Economic
A detailed financial model and discounted cash flow analysis was been prepared in order to demonstrate the economic
viability of the Ore Reserves. The NPV of the projected cash flows is US$531.9 million at an 8% (real) discount rate, with
an IRR of 60%.
he table below give a summary of the results of this financial evaluation.
Table 27:Summary of Project Financial Evaluation
Description Value Unit
Production
Life of Mine (LOM) 13.75 years
Ore Mined 61.3 tonnes'million
Ore Grade 408 ppm
Recovered U3O8 48.6 Mlbs U3O8
Operating Cost
Life of Mine C1 Cash Cost 15.39 USD/lb U3O8
Life of Mine C2 Cash Cost 17.15 USD/lb U3O8
Life of Mine All-in Cash Cost 20.25 USD/lb U3O8
LOM Operating Cost 899.2 USD'million
Capital Cost
Capital to First Production 95.7 USD'million
LOM Capital Cost 274.4 USD'million
Revenue
Sales Pricing Basis UXC Forecasted Q2 2016
Sales Price (LOM Avg.) 52.07 USD/lb U3O8
Total Gross Sales (LOM) 2532.4 USD'million
Financial Metrics
EBITDA (Maximum Annual) 226.3 USD'million
Post-Tax NPV (8%) 531.9 USD'million
Post-Tax IRR 59.7 %
It is noted that limited amounts of risk capital have been spent on the project prior to the initiation of project
implementation on the following:
· Road diversion at Retortillo site.
· Power line diversion at Retortillo site
· Elements of the Front End Engineering & Design (FEED) program.
The total amount of capital expended on these items is approximately E3 million, this expenditure is considered sunk
capital and is not included in the financial evaluation. Based on the financial evaluation sensitivities this capital does
not materially affect the financial outcome or the viability of the project.
Infrastructure
Road, power line and communications are available for Retortillo and Zona 7.
A land acquisition process has begun with some land already acquired. It is not expected that there will be difficulties in
reaching amicable agreements with the current landowners in the future.
Access infrastructure is minor due to existing roads, and the same is applicable for power, water, etc for Alameda.
The land acquisition process has not begun at Alameda. Difficulties to reach amicable agreements with the current
landowners is not expected. In the event any difficulties are encountered, Spanish law provides for companies to initiate a
land expropriation process. Total land to be acquired is approximately 487Ha.
Environmental, Permitting, Legal and Socioeconomic Position
All permits have been approved for initial infrastructure development to commence with the road deviation and upgrading of
existing power line underway.
The main permits at Retortillo have been granted including the Environmental Licence and a 30 year Mining License valid
until 2044. The Mining Licence is renewable for two further periods of 30 years each. The initial Authorization of the
Radioactive facility has also been received by the Company.
Zona 7 lies on the Alisos Investigation Permit (PI 6605-20) which is 100% owned by a wholly owned subsidiary of Berkeley
Energia Limited. The Alisos Investigation Permit is currently in the first year of the third three year term which was
granted on 11 January 2016.
Alameda lies on the Salamanca XXVIII Definitive State Reserve 6362 which is 100% owned by a wholly owned subsidiary of the
Company.
The Definitive State Reserve is currently in the twelfth year of its second 30 year term (valid until 2033) and may be
extended for an additional period of 30 years. It covers an area of 16.5km2 and includes the entire area containing the
Alameda mineralisation.
Competent Persons Statement
The information in this announcement that relates to Definitive Feasibility Study is based on, and fairly represents,
information compiled or reviewed by Mr. Jeffrey Peter Stevens, a Competent Person who is a Member of The Southern African
Institute of Mining & Metallurgy, a 'Recognised Professional Organisation' (RPO) included in a list posted on the ASX
website from time to time. Mr. Stevens is employed by MDM Engineering (part of the Amec Foster Wheeler Group). Mr. Stevens
has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to
the activity being undertaken 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. Stevens 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 Ore Reserve Estimates, Mining, Uranium Preparation, Infrastructure,
Production Targets and Cost Estimation is based on, and fairly represents, information compiled or reviewed by Mr. Andrew
David Pooley, a Competent Person who is a Member of The Southern African Institute of Mining and Metallurgy', a Recognised
Professional Organisation' (RPO) included in a list posted on the ASX website from time to time. Mr. Pooley is employed by
Bara Consulting (Pty) Ltd. Mr. Pooley has sufficient experience that is relevant to the style of mineralization and type of
deposit under consideration and to the activity being undertaken 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. Pooley
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 announcement that relates to the Mineral Resources for Zona 7 is based on, and fairly represents,
information compiled or reviewed by Mr Malcolm Titley, a Competent Person who is a Member of The Australasian Institute of
Mining and Metallurgy. Mr Titley is employed by Maja Mining Limited, an independent consulting company. Mr Titley 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 Titley 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 announcement that relates to the Mineral Resources for Retortillo is extracted from the
announcement entitled 'Increase in Retortillo grade expected to boost economics' dated 7 January 2015 which is available to
view on Berkeley's website at www.berkeleyenergia.com. The information in the original announcement is based on, and fairly
represents, information compiled by Mr Malcolm Titley, a Competent Person who is a Member of The Australasian Institute of
Mining and Metallurgy. Mr Titley is employed by Maja Mining Limited, an independent consulting company. Mr Titley 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'. The Company confirms that it is not aware of any
new information or data that materially affects the information included in the original market announcement and, in the
case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in
the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and
context in which the Competent Person's findings are presented have not been materially modified from the original market
announcement.
The information in this announcement that relates to the Mineral Resources for Alameda (refer ASX announcement dated 31
July 2012) is based on information compiled by Mr Craig Gwatkin, who is a Member of The Australasian Institute of Mining
and Metallurgy and was an employee of Berkeley Energy Limited at the time of initial disclosure. Mr Gwatkin 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 2004 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Gwatkin consents to the inclusion in the
announcement of the matters based on his information in the form and context in which it appears. This information was
prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on
the basis that the information has not materially changed since it was last reported.
Forward Looking Statements
This announcement may include forward-looking statements. 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 Berkley, 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.
JORC Code, 2012 Edition - Table 1 report (Zona 7)
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Sampling techniques Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Berkeley reverse circulation (RC) drill samples are collected over 1m intervals. Multiple methods were used to determine uranium mineralisation intervals including down
hole gamma analysis, hand held scintillometer measurements and portable XRF analysis. Intervals containing uranium mineralisation were selected and submitted for
laboratory assay analysis.Berkeley diamond drill (DD) core was sampled using 0.25-1.85m intervals in the mineralised zones, including areas of internal low grade or
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