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Berkeley Energia kicks off drilling of uranium hot-spot

In all 10,000 metres will be drilled to assess the full potential of the ground. A total of 11 targets have been identified after what is described as an “extensive geological review” based on the reinterpretation of geophysical and historic data.
Berkeley Energia kicks off drilling of uranium hot-spot
The company is set to become one of the lowest cost producers of uranium.

Berkeley Energia (LON:BKY) said the rigs have started turning on Zona 7 of it Salamanca uranium project in western Spain, kicking off a major exploration programme.

In all 10,000 metres will be drilled to assess the full potential of the ground. A Total of 11 targets have been identified after what is described as an “extensive geological review” based on the reinterpretation of geophysical and historic data.

These hotspots all lie within 10 kilometres of the location of the proposed process plant and are being followed up with a two-phase reverse circulation drill programme.

It is fair to say Zona 7 deposit has transformed the economics of Salamanca and moved the company closer to its aim of becoming one of the world's lowest cost producers of uranium.

Salamanca has a Total resource of 89.5mln pounds of uranium in the measured, indicated and inferred categories.

The inclusion of Zona 7 was transformational as it increased the mine life from eleven to eighteen years and reduced operating costs to US$15.60 per pound from US$24.60.

Total capital costs to develop and commence production for Salamanca’s three deposits are estimated at just over US$200mln.

"The Zona 7 deposit was discovered just over one year ago and has transformed the Salamanca project into one of the world's lowest cost operations once in production,” said managing director Paul Atherley.

“The discovery of this new style of mineralisation has blown the whole licence wide open to further discoveries of a similar scale and quality to Zona 7.

“This major exploration programme has commenced testing eleven near surface exploration targets all located within ten kilometres of the plant and if successful has the potential to add significant scale and mine life to this already exceptional project."

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Newswire
July 21 2016

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