REG - Berkeley Energia - Increase in grade expected to boost economics <Origin Href="QuoteRef">BKY.AX</Origin> - Part 2

Berkeley EnergiaAnnouncement

03/03/2016 18:04

- Part 2: For the preceding part double click  ID:nRSG0809La 

                                                                                                                                   loggingincludes recording descriptions of lithology, Fe oxides, sulphides, uranium mineralogy fracturing and no recovering zones.ENUSA geological logging includes        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               recording descriptions of lithology, colour, fracturing level, recovery, mineralogy, radiometry and water table.                                                          
                                                          Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.                                                                                                                                                                                                                                                                                                                                                                                                                                                               Geological logging is qualitative in nature. Berkeley DD core boxes and samples and RC samples and chip trays were photographed. JEN and ENUSA did not take photographs of 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               drill core or chip trays.                                                                                                                                                 
                                                          The total length and percentage of the relevant intersections logged.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                All DD and RC drill holes were logged in full by geologists employed by the relevant companies.                                                                           
 Sub-sampling techniques and sample preparation           If core, whether cut or sawn and whether quarter, half or all core taken.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Berkeley DD core was sampled using 0.3-2.5m intervals in the mineralised zones, including areas of internal low grade or waste. The majority of samples were 1m in length 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               (60%), with 33% being greater than 1m in length and 7% less than 1m in length. In addition, the sampling was extended 3-5m up and down hole from the interpreted          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               mineralised zone. Half or quarter core was used for sampling, with the majority (~74%) being quarter core.JEN and ENUSA DD core was sampled using 0.25m, 0.50m and 1m     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               intervals in the mineralised zones, with 0.25m intervals being the most frequent sample length.Whole core was used for sampling.                                          
                                                          If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Berkeley RC drill samples were collected at 1m intervals. RC intervals were sampled by splitting dry samples in the field to 3-5kg using cone and quarter method (previous 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               campaigns) or two riffle splitters in cascade (2014 campaign) and further split in the core shed to 0.7-1kg using a riffle splitter. Where samples were wet they were     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               dried prior to splitting. In rare cases, wet samples were split using a cone and quarter method.ENUSA RC drill samples were collected at 1m intervals. The sampling method 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               used is unknown.                                                                                                                                                          
                                                          For all sample types, the nature, quality and appropriateness of the sample preparation technique.                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Berkeley samples were sent to ALS laboratories for preparation and 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 uranium analysis by pressed powder XRF method. During 2006 to 2008 samples were sent to Actlabs Canada for DNC        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               analysis. Since 2008, ALS laboratories with pressed powder XRF analysis have been used. These methods are considered appropriate for this style of uranium mineralisation. 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               JEN and ENUSA core samples were prepared and assayed for uranium at internal company laboratories using XRF, AAS or fluorometric methods.                                 
                                                          Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.                                                                                                                                                                                                                                                                                                                                                                                                                                                                Berkeley field tests determined that the sample size and method of sampling produce representative RC samples. QA/QC procedures involved the use of standards and blanks  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               which were inserted into sample batches at a frequency of approximately 15-20%. Quality control procedures used by JEN and ENUSA are unknown.                             
                                                          Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.                                                                                                                                                                                                                                                                                                                                                                                             Duplicate splits of RC samples were taken every 10m down hole within the sampled intervals by Berkeley. The results from these duplicates show acceptable repeatability.  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Some indications of inhomogeneity were observed in a small proportion (<10%) of duplicates.                                                                               
                                                          Whether sample sizes are appropriate to the grain size of the material being sampled.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                The uranium is typically very fine grained. Previous test work carried out by Berkeley using different sample sizes demonstrated that the selected sample size is         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               appropriate.                                                                                                                                                              
 Quality of assay data and laboratory tests               The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.                                                                                                                                                                                                                                                                                                                                                                                                                     Berkeley assayed samples for uranium using the DNC method during the 2006 to 2008 drilling campaigns and pressed powder XRF during subsequent drilling campaigns. These   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               analytical methods report total uranium content.JEN and ENUSA assayed samples for uranium were completed at internal company laboratories using XRF, AAS or fluorometric  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               methods. The sampling and analytical methods used by Berkeley, JEN and ENUSA are considered appropriate for this style of uranium mineralisation.                         
                                                          For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.                                                                                                                                                                                                                                                                                                                                     Down-hole gamma logging was undertaken for all probe accessible holes drilled by Berkeley to provide eU3O8 ("equivalent" U3O8 grade) data. The down-hole gamma response   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               was converted to eU3O8 by correcting for radon, hole diameter, air/water and a deconvolution filter was also applied. eU3O8 data was used in the mineral resource grade   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               estimation process when chemical assay data was not available.eU3O8 data was also used to verify mineralisation intersections based on assay results.                     
                                                          Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.                                                                                                                                                                                                                                                                                                                                                         Standards, blanks and duplicates were regularly inserted into the sample stream by Berkeley, with approximately 15-20% of all samples used for quality control. The       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               external laboratories maintain their own process of QA/QC utilising internal standards, repeats and duplicates.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. 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               JEN and ENUSA used internal company laboratories. No QA/QC data is available for this historic data.A review of the JEN and ENUSA mineralisation intercepts compared to   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Berkeley infill drilling shows no bias between the two data sets.                                                                                                         
 Verification of sampling and assaying                    The verification of significant intersections by either independent or alternative company personnel.                                                                                                                                                                                                                                                                                                                                                                                                                                                                Reported significant intersections were checked and verified by Senior Geological management.                                                                             
                                                          The use of twinned holes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Berkeley completed a program of RC twin holes to compare with the JEN and ENUSA results. The results show good correlation of uranium grade and mineralisation thickness  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               between the twinned holes.                                                                                                                                                
                                                          Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.                                                                                                                                                                                                                                                                                                                                                                                                                                           All primary data was recorded in templates designed by Berkeley. Assay data 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. JEN and ENUSA primary paper data was digitalized and recoded following the Berkeley protocols. The validated data was then loaded into   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               the password secured relational database by a designated Company geologist.                                                                                               
                                                          Discuss any adjustment to assay data.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Uranium (ppm) assays received from the external laboratory were converted to U3O8 (ppm) using the stoichiometric factor of 1.179.                                         
 Location of data points                                  Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.                                                                                                                                                                                                                                                                                                                                                                                          Berkeley drill hole collar locations were surveyed by qualified surveyors (Cubica Ingeniería Metrica S.L) using standard DGPS equipment achieving sub decimetre accuracy  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               in horizontal and vertical position.  Berkeley down-hole surveys were undertaken using a Geovista down-hole deviation probe. Measurements were taken every 1cm down hole  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               and averaged every 10m. No strongly magnetic rocks are present within the deposit which may affect magnetic based readings. JEN and ENUSA holes were drilled on grid      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               coordinates and were not surveyed after drilling.                                                                                                                         
                                                          Specification of the grid system used.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               The grid system is ETRS 1989 UTM Zone 29N.                                                                                                                                
                                                          Quality and adequacy of topographic control.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Topographic control was based on a digital terrain model with sub metric accuracy sourced from the Spanish Geographical Institute (Instituto Geográfico Nacional) and was 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               verified by comparison with drill hole collar surveys completed by the surveyor using DGPS.                                                                               
 Data spacing and distribution                            Data spacing for reporting of Exploration Results.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   The majority of the Berkeley drilling was undertaken on a nominal 50m by 50m grid, with closer spaced drilling on 35m by 35m within open pit areas scheduled to be mined  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               during the initial two years of production based on the Pre-Feasibility Study (PFS). Section lines are orientated approximately perpendicular to the interpreted strike of 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               the mineralisation. The historical JEN and ENUSA drilling was completed on  spaced 50m by 50m grid with some infill areas spaced 35m by 35m.                              
                                                          Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.                                                                                                                                                                                                                                                                                                                                         The data spacing (notionally 35m by 35m) is considered sufficient to verify geological and grade continuity, and allow the estimation of Measured and Indicated Mineral   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Resources.                                                                                                                                                                
                                                          Whether sample compositing has been applied.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         No compositing of RC samples in the field has been undertaken.                                                                                                            
 Orientation of data in relation to geological structure  Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.                                                                                                                                                                                                                                                                                                                                                                                                           The mineralisation at Retortillo covers a 6km sub-vertical syncline structure with the dominant strike direction being SE-NW. Despite the general dip of the host         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               geological units and structures ranging from 50-70°, the mineralised zone is interpreted to be sub-horizontal (due to post mineralisation supergene processes) to         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               shallowly dipping to the SE.                                                                                                                                              
                                                          If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.                                                                                                                                                                                                                                                                                                                                                           The majority of DD and RC drill holes are vertical. Due to the interpreted flat lying nature of the mineralisation, no sampling bias is considered to have been introduced 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               by the orientation of the drilling. This has been validated by the drilling of 50 inclined DD holes and 25 inclined RC holes.                                             
 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 sample preparation shed where samples were prepared for     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               dispatch. Samples were sent directly from the sample preparation shed to the laboratory using a certified courier or a Berkeley owned vehicle authorised for radioactive  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               materials transport. No other freight was transported with the samples which were taken directly from the Berkeley facility to the external laboratory. Sample submission 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               forms were sent in paper form with the samples as well as electronically to the laboratory. Reconciliation of samples occurred prior to commencement of sample preparation 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               for assaying.The historical drilling samples were prepared and analysis using internal company laboratories. The chain of custody is unknown.                             
 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 an ongoing basis. Malcolm Titley (Competent Person (CP), Geology Consultant, Maja      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Mining Limited) has independently reviewed the sampling techniques, procedures and data. He has undertaken a number of site visits to review and inspect the application  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               of procedures. These reviews have concluded that the sampling and analytical results have resulted in data suitable for incorporation into Mineral Resource estimation.   
 
 
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 an ongoing basis. Malcolm Titley (Competent Person (CP), Geology
Consultant, Maja Mining Limited) has independently reviewed the sampling
techniques, procedures and data. He has undertaken a number of site visits to
review and inspect the application of procedures. These reviews have concluded
that the sampling and analytical results have resulted in data suitable for
incorporation into Mineral Resource estimation. 
 
Section 2 Reporting of Exploration Results 
 
(Criteria listed in the preceding section also apply to this section.) 
 
 Mineral tenement and land tenure status                           Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.                                                                                                                                The Retortillo deposits lie on the Exploitation Concession  (Mining Licence) CE 6605-10 which is 100% owned by Berkeley Minera España S.L., a wholly owned subsidiary of  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Berkeley Resources Limited. The Exploitation Concession is valid for an initial period of 30 years and may be renewed for two additional periods of 30 years. It covers an 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               area of 25.2km2 and includes the entire area containing the Retortillo mineralisation.No historical sites or national parks are located within the Concession.            
                                                                   The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.                                                                                                                                                                                                                                                                    Tenure in the form of an Exploitation Concession has been granted and is 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.                                                                                                                                                                                                                                                                                                                                               Previous exploration at Retortillo was completed initially by JEN and ENUSA, both Spanish state run companies, from the late 1950's through to the mid 1980's. Work       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               completed by JEN and ENUSA included mapping, radiometric surveys, trenching, RC and DD drilling.A detailed data assessment and verification of the historical data        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               supplied by JEN and ENUSA has been undertaken by Berkeley. No significant issues with the data were detected.                                                             
 Geology                                                           Deposit type, geological setting and style of mineralisation.                                                                                                                                                                                                                                                                                                                                               The uranium mineralisation is hosted within Ordovician metasediments adjacent to granite. The mineralisation typically occurs as a sub-horizontal to shallowly dipping    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               layer occurring between surface and 90m depth. The style of the uranium mineralisation includes veins, stockwork and disseminated mineralisation in joint/fracture filling 
                                                                                                                                                                                                                           

- More to follow, for following part double click  ID:nRSG0809Lc