Overview

Spain:

  Salamanca I
  Salamanca II
  Caceres I
  Caceres II
  Caceres III
  Caceres VI
  Guadalajara I

Australia:

  Miriam Bouchers

Caceres

The Caceres project consists of 15 tenements totaling 87,858ha in Cáceres and Badajoz provinces. Portions of Cáceres I, Cáceres III and Cáceres VI have been granted and are being evaluated by airborne radiometrics and magnetics (Cáceres I  and Cáceres VI), mapping, ground radiometrics and IP and drilling (Cáceres III and Cáceres VI). These licenses contain a number of perigranitic uranium mineral occurrences of which Gambuta (Cáceres VI) is a typical example, and granite hosted uranium occurrences similar to those at Saguazal or Zafrilla (Cáceres III).

Caceres VI

Within the Cáceres VI tenement the Gambuta and Ojaranzo prospects have been partially evaluated. The Gambuta prospect is located 6kms to the west of Bohonal de Ibor in the extreme west of Berkeley’s Caceres VI licence while Ojaranzo is in the eastern part of the tenement. This license contains a number of perigranitic uranium mineral occurrences of which Gambuta and Ojaranzo are typical examples. Other prospects include El Zarzal and Cancho del Queso, located in the central and eastern part of the tenement respectively.

Gambuta

The initial discovery of uranium mineralisation at Gambuta was made by the Junta Energia Nuclear (“JEN”) during the 1960’s. Follow up by CISA (a joint venture between ENUSA, the Spanish State uranium company, and COGEMA, the French company now called AREVA) during the early 1990’s included a program of geological mapping, detailed ground radiometrics and trenching (11 totaling 240m), which helped target a program of 24 roto-percussion drillholes (1721.8m).

CISA records indicate that 21 of these 24 holes encountered significantly anomalous radiometrics in the downhole logs, which they believed equated to uranium mineralisation. CISA’s radiometric and geological logs broadly define the magnitude and tenor of the anomaly and differentiate between intrusive and metasedimentary material and the degree of weathering. Only summarized downhole gamma readings are available. No chemical assays were completed. Several historic drill collars have been located and their positions are within acceptable limits (1-2m).

CISA identified a north-westerly trending mineralised structural zone with dimensions of approximately 900m x 400m, including an area of untested Tertiary cover in the central area (see below).

Figure 2: Cáceres VI, Berkeley Drilling at Gambuta

Gambuta is associated with an area of anomalous radiometrics defined by the Junta de Energia Nuclear (JEN) in the 1960’s and briefly explored by CISA (a joint venture between COGEMA [now AREVA] and ENUSA [Empresa Nacional Uranio S.A.]) in the early 1990’s. Roto Percussion drilling by CISA (24 holes) identified a mineralised, north-westerly trending, structural zone with dimensions of approximately 900m x 400m, including a central untested area of Tertiary cover. A 36 hole program by Berkeley, from March-June 2008,(see Figure 2) has confirmed the CISA results and defined a continuous, structurally controlled, zone of mineralisation which is 250 – 350m wide, up to 94m below surface (see Figure 3) and extending for 1,500m in a west-northwesterly direction. This zone appears to extend beneath Tertiary and Quaternary cover to the north-west and about 1.3 km of untested strike potential remains within the license (see Figure 4).

Uranium mineralisation occurs within a sequence of strongly deformed Proterozoic spotted and banded grey to black phyllites which have been contact metamorphosed by Hercynian granites. The contacts between the phyllites and the granite to the east and northeast are tectonic. The sequence of host phyllites at Gambuta is similar to that hosting the Retortillo deposit in the Salamanca I license.

As at Retortillo, the Gambuta uranium mineralisation is generally sub-horizontal and associated with the weathering profile; a similar model of formation is envisaged. Most mineralisation occurs in the zone of partial oxidation (see Figure 3). Deeper mineralisation is associated with oxidation along steeply dipping shears and fractures dominantly sub-parallel to the mineralised trends. Uranium mineralisation occurs within the schistosity, particularly in zones of shearing and fracturing. The only visible uranium minerals are secondary autunite and torbernite.

The main mineralised horizon averages 17.5m in thickness and occurs at an average depth of 18.0m, beneath Tertiary cover and shales. A lower mineralised horizon averages 7.6m in thickness and is separated from the main horizon by 16.3m of shales. A central, higher grade zone, about 100m wide, is evident in the north-western half of the deposit and is open along strike.

Drilling results have been previously reported in Announcements to the ASX on 10th April and 6th of June, 2008. A resource estimate was reported to the ASX on the 8th August, 2008.

Initial inferred uranium resources for the Gambuta deposit have been calculated as follows:

• At a 200ppm U₃O₈ cut-off, 11.29Mt of ore at a grade of 371ppm U₃O₈ containing 9.23Mlbs U₃O₈
• At a 150ppm U₃O₈ cut-off, 15.49Mt of ore at a grade of 318ppm U₃O₈ containing 10.85Mlbs U₃O₈
• At a 100ppm U₃O₈ cut-off, 19.46Mt of ore at a grade of 278ppm U₃O₈ containing 11.95Mlbs U₃O₈

Figure 3: Cáceres VI, Gambuta Cross Section

Figure 4: Cáceres VI, Gambuta Schematic Long Section

Ojaranzo

The initial discovery of uranium mineralisation at Ojaranzo was made by the Junta Energia Nuclear (“JEN”) during the 1960’s. Follow up by CISA during the early 1990’s included a program of geological mapping, detailed ground radiometrics, approximately 1000 wagon drill holes and 21 trenches, which helped target a program of 23 roto-percussion drillholes.

Anomalous radiometrics occur in a 1,200 by 600m area of spotted and fine-banded dark phyllites striking about 1400 with sub-vertical bedding and cleavage. In places the phyllites shows strongly oxidation. Some uranium mineralisation is related to a bedding parallel fracture system containing quartz, sulphides and iron oxides.

A recent two hole diamond drilling program intersected:

• OJA-001:
• 4 m @ 0.079% U₃O₈ from 47 m
• OJA-002:
• 6,5 m @ 0.0635% U₃O₈ from 15,5 m
• Including: 4 m @ 0.0935% U₃O₈ from 18 m
• 0,85 m @ 0.0881% U₃O₈ from 23 m

Mineralisation appears related to weathering of dark shale bands containing increased quartz - pyrite veins. Secondary mineralisation occurs on oxidised fractures and zones with chloritic, kaolinitic and hematitic alteration.

Aerial Survey

In late 2007 Berkeley completed a helicopter-borne radiometric and magnetic survey over the Caceres VI licence to better define the extent of the known uranium occurrences and to identify potential extensions and possible new occurrences.

The survey comprised 1,468 line kilometres on 100m spaced north – south lines using a towed magnetic sensor at a nominal height of 35m and a spectrometer inside the aircraft. The survey specifications, supervision, quality control and data interpretation were undertaken in conjunction with Berkeley's senior geophysical consultant, Bob White.

The results show the Gambuta uranium mineralisation to occur adjacent to thorium-rich, differentiated granite with potential for significant extensions to the South East along the granite margin.

The Gambuta radiometric anomaly appears to be blanketed by Tertiary cover which extends to the north and west into areas where the magnetics suggest east- north-east orientated structures in the underlying granitic body. The northern portion of the Gambuta anomaly increases in strength towards the northern most contact with the Tertiary.

A magnetic anomaly also occurs under the cover and magnetic features are associated with uranium mineralisation in most areas.

Berkeley Resources Ltd.
Level 9, BGC Centre, 28 The Esplanade Perth,
Western Australia 6000