Berkely Increases Resource at Zona 7 Deposit, Boosts Economics of Salamanca Project

Berkely Energy Ltd (ASX:BKY,LSE:BKY) announced that is has updated the mineral resource estimate for the Zona 7 deposit, which reported grades comparable to the world’s highest grade operating open pit mines and now stands at 31.4 million pounds U3O8. The company said that the bulk of the resource is within 50 meters of the surface.
As quoted in the press release:

Following the recently completed infill drill programme, the Mineral Resource Estimate for Zona 7 has been updated, reporting a significant increase in resource grade, an increase in resource pounds and with almost ninety percent of the resource upgraded to the Indicated category. The inclusion of the important Zona 7 deposit is expected to fundamentally improve the economics of the Salamanca project, even at current Uranium prices, by significantly increasing the mine life, the production rates and by reducing the operating costs from the levels previously reported.
A Pre-Feasibility Study which will include the Zona 7 deposit will allow the overall economics of the project to be reported for the first time and is expected to be published this quarter. Early indications from the study are that the project will have lower capital costs than previously reported, benefitting from favourable movements in exchange rates and due to the high grade, low strip ratio and impressive metallurgy it is expected that operating costs will reduce significantly. The total resource for Zona 7 now stands at 31.4 million pounds of U3O8 (at a cut-off grade of 200 ppm) including an Indicated resource of 17.1 million tonnes at 735 ppm containing 27.8 million pounds of U3O8. The overall Mineral Resource Estimate for the Salamanca Project now stands at 89.5 million pounds of U3O8.

Paul Atherley, managing director of Berkely Energy, commented:

With high grades, good recoveries and the potential for some of the lowest costs in the industry the Salamanca project is rapidly emerging as one of the best new projects around.

Click here to read the full Berkely Energy Ltd (ASX:BKY,LSE:BKY) press release.