Berkeley Energia Gains on Positive Uranium Update

- January 24th, 2019

Shares of Berkeley Energia jumped more than 30 percent on Thursday after the publication of assessment results for the Salamanca project.  

Shares of clean energy developer Berkeley Energia (LSE:BKY,ASX:BME) jumped 30.77 percent on Thursday (January 24) following the results of a number of favorable assessments from pertinent regulatory bodies. 

Two of which came from the Nuclear Safety Council in relation to the pre-operational surveillance plan for radiological and environmental affections and the pre-operational surveillance plan for the control of the underground water.

Berkeley is currently developing the Salamanca uranium project located in western Spain.

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Despite receiving two of the crucial pre-operational surveillance plan approvals, Berkeley is still awaiting a recommendation report from the Nuclear Safety Council to the relevant Minister as well as the express resolution on the award of the urbanism license.

“The Salamanca mine is being developed to the highest international standards and the company’s commitment to the environment remains a priority,” noted the company announcement. “It holds certificates in Sustainable Mining and Environmental Excellence which were awarded by AENOR, an independent Spanish government agency.”

Berkeley has spent the last 10 years developing Salamanca into a “world-class” uranium project.

“The company has invested more than 70 million euros developing the Salamanca mine over the past decade and plans to invest an additional 250 million euros over the life of the project,” the announcement stated.

Over the last two years, a robust exploration program has tested more than 3,600 soil samples along the area covered by the Salamanca mine. Ionic leach technology was used to analyze the samples.

The leach testing confirmed data for 60 different elements, including uranium.

In addition to hosting a prolific uranium deposit, significant anomalies for other elements such as gold, lithium, cobalt, tin and rare earths were also discovered. As a result, Berkeley has applied for 12 new investigation permits for all the other elements covering more than 350km2.

In terms of mine design, the latest in sustainable and environmentally conscious mine concepts are being implemented at Salamanca. Berkeley is also committing to the planting of 30,000 young oak trees over an area of 75 to 100 hectares. The first 20,000 of which will be planted in the nearby municipality of Vitigudino.

Moving forward, Berkeley believes it is an advantageous position to benefit from the steadily growing uranium spot price. Especially as China and the US look for uranium supplies to power their emerging clean energy grids and power systems.

“The fundamentals for uranium remain very strong,” noted the press release. “The company has 2.75 million pounds of U3O8 under contract for the first six years, with a further 1.25 million pounds of optional volume, at an average price above US$42.”

Company shares were up 30.77 percent on Thursday (January 24), trading at 0.43 euros.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

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