Berkeley doubles resource to 52 Mlbs U3O8 for Salamanca uranium project

Perth-based exploration and development group Berkeley Resources (AIM, ASX: BKY) are pleased to advise completion of the first stage Mineral Resource Estimates, which has resulted in the doubling of its resource to 52 Mlbs U308 for the Salamanca Uranium Project in Spain.

Initial estimates for the Águila Area and significant additions in the Retortillo Area have doubled Berkeley’s total Mineral Resource base to over 52 Mlbs
U3O8.

Mineral Resources for the Águila Area, which includes the Sageras, Palacios (previously Mina D) and Majuelos deposits, all within 3 kms of the Quercus processing plant, total 22.5 million tonnes at an average grade of 417 ppm for 20.7 Mlbs U3O8.

These Mineral Resources include 24% Measured Resources and 26% Indicated Resources.

Mineral Resources in the Retortillo Area increased by 33% to a total of 19.9 million tonnes at an average grade of 512 ppm for 22.5 Mlbs U3O8.

Total Mineral Resources are now 53.7 million tonnes at 442 ppm for 52.4 Mlbs U3O8, with 31% in the Measured and Indicated categories.

Confirmatory drilling at the substantial Alameda deposits (exploration target of 25.5-29 million tonnes @ 450-500 ppm U3O8) is well advanced. It is anticipated that additional Mineral Resources will be reported in accordance with the JORC Code by the end of the current quarter.

Uranium was first discovered in Salamanca during the 1950’s.

Production commenced in 1974 at the Fe mine, which grew to become the largest uranium mine in the Iberian Peninsula. The mine closed in 2000 due to low uranium prices and the mining areas have since been restored.

Berkeley’s Feasibility Study process for the Salamanca Uranium Project commenced in May 2009, following Cabinet approval of the Co-Operation Agreement between Berkeley and ENUSA.

The Study objective is to assess the viability of restarting mining within the Salamanca State Reserves, based on a number of known uranium deposits.

Following successful completion of the Scoping Study, announced in December 2009, the Company has been focused on the estimation of Mineral Resources based on historical exploration targets, as well as acquiring representative samples for a comprehensive program of metallurgical testing. This process has now been completed for the Águila Area, proximal to the Quercus processing plant.

Drilling at the Alameda area will be completed shortly with estimation of Mineral Resources expected by the end of March.

Final Mineral Resource Estimates for the Definitive Feasibility Study, which are intended to upgrade resource categories, will be available later in 2010 after infill RC drilling and probing of additional ENUSA holes.

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