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Nov 2004 - Berkeley Resources

Berkeley Resources Limited (BKY) – Drilling its first Project (Xin Zhuang) in the Jiaodong Peninsular of Shandong Province

  • Berkeley has so far established two joint ventures in the Jiaodong Peninsular which is located in the eastern Shandong Province of China, being Ao Xin (an approved SFJV with the Shandong HeXi Gold Mining Group) in western Jiaodong, and Jin Xin (an applied for business licence with the 3rd (Geological) Brigade of the Shandong BGMR (Bureau of Geology and Mineral Resources) in eastern Jiaodong.
  • The first drilling programme has commenced in the Ao Xin JV over the Xin Zhuang prospect which is defining the gold mineralisation under alluvial cover on the primary Jiao Jia fault structure. There are numerous operating gold mines along the exposed Jiao Jia fault structure, and east and west of where the Jiao Jia fault goes under the alluvial cover. BKY are drilling a section between those mines.
  • The Xin Zhuang prospect covers a flexure in the Jiao Jia fault, which bears some resemblance to HeXi’s primary 1.2moz operating mine that lies on a flexure in a secondary fault east of the Jiao Jia primary structure. The initial drilling has produced similar core to HeXi being up to 8 to 9% pyrite in potassium altered (red/pink coloured) granite. However, initial intersections have only been in the
  • 0.7g/t to 2.0g/t vicinity. HeXi has a complex multiple stacked lode system, and these intersections could still be representative of a similar system.
  • On receipt of the business licence, the Jin Xin JV with the 3rd Brigade expects to focus on 3 (of the 8) properties being Shen Shan (containing Kong Xi Shan), Liu Shui Tou (containing the conglomerates), and Ying Wu Shan (containing Wen Deng). All are based on semi defunct gold mine operations, which have had some surface mining and occasional shallow underground mining.
  • With the lowest market cap (at less than half of the next lowest) of its Australian gold company peers in China as shown in Table 1 on page 6 of this report, BKY’s share price could easily suddenly increase.
  • Written by: Keith Goode
  • Monday, 01 November 2004