Berkeley Resources (ASX:BKY) should trade higher after revealing strong new uranium assays from Zona 7, the largest of the Retortillo Satellite Deposits and part of the company’s Salamanca Project in Spain.
Significant high grade intersections have been recorded near surface, from 3 metres to 71 metres, with thicknesses up to 20 metres.
Uranium assays included 19 metres at 2,332 ppm, 20 metres at 1,238 ppm, 12 metres at 1,422 ppm, 18 metres at 825 ppm and 13 metres 1,067 ppm.
The timing could not have been better for Berkeley, with uranium prices now trading around US$36.75 per pound, up from $28.50 in August, and Japan planning to restart the first Sendai nuclear plant in northern Japan.
Zona 7 is located within 10 kilometres of the proposed location of the centralised processing plant at Retortillo.
Retortillo currently hosts an Inferred Mineral Resource Estimate of 3.9 million tonnes averaging 414ppm uranium for a contained 3.6 million pounds, at a 200 ppm cut-off grade.
Drilling last year showed that the Zona 7 mineralisation extends a further 1,200 metres to the southwest of the current resource area.
Significant shallow, high grade intersections were recorded and the strike extent of the mineralised zone was essentially doubled.
The 2014 drilling program was aimed at infilling the zone of mineralisation delineated by the 2013 drilling.
Assay results released today have continued to highlight continuity of the mineralised zone, both in terms of thickness and grade, between the previous broader spaced holes.
An updated Zona 7 Mineral Resource Estimate anticipated to be announced late this month.
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