In mining, the old phrase has it that grade is king. Berkeley Energia Limited (LON:BKY) is certainly living and dying by that maxim as it continues to move the Salamanca uranium project in Spain closer to a development decision, following on from a definitive feasibility study that was completed in July.
The study showed that Salamanca looks likely to be able to generate significant profits even at the current low uranium price, and central to that proposition was the grade at a key portion of the project, Zona 7.
Now, Zona 7 has proved its worth once again, as the latest round of drilling has delivered further high grades, including intercepts as high as 14 metres at 1,776 parts per million (ppm) U3O8, including eight metres at 2,664 ppm, 26 metres at 1,103 ppm U3O8, including four metres at 3,973 ppm and 10 metres at 635 ppm U3O8, including one metre at 2,246 ppm.
Under the current plans, Salamanca has an initial mine life of 14 years based on mining and treating only the measured and indicated resources of 59.8 million pounds;however, following the latest results, Berkeley Energia chief executive Paul Atherley is now talking of “potential resource upside” at the deposit.
How exactly that will factor into the company’s future plans remains to be seen. A further eight holes will be completed in the coming months