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Berkwood Resources Ltd (3)
Symbol BKR
Shares Issued 39,869,794
Close 2018-10-23 C$ 0.075
Market Cap C$ 2,990,235
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Berkwood moves crews to Lac Gueret for exploration

2018-10-24 10:38 ET - News Release

Mr. Thomas Yingling reports

BERKWOOD MOBILIZES A MISE-A-LA-MASSE PROGRAM AT ITS LAC GUERET GRAPHITE PROJECT

Berkwood Resources Ltd. has mobilized crews to its Lac Gueret South graphite project located in Quebec for the execution of a Mise-A-La-Masse geophysical program. The primary contractor for execution of the survey is TMC Geophysics of Val d'Or, Que., supported by people who were hired from the Manicouagan River area to help with the project. The program is utilizing cut lines prepared on the property in late September, early October, 2018 -- the program is continuing in snowy conditions, but benefits from the excellent access previously prepared.

MALM is an older electromagnetic technique that operates by placing a DC current electrode in a known, readily chargeable (conductive) horizon from a downhole location and tracing the electric current distribution via either on-surface or in-drill-hole placed receivers. The survey being undertaken by Berkwood will charge several known conductive horizons from selected graphite intersections in the existing drill holes, and will seek to trace the surface expression of current pathway(s) using surface-based receivers. The MALM work is intended to improve the company's understanding of how the graphite mineralization at its Lac Gueret zone 1 discovery is distributed, and to help in extending the existing geological model (see 3-D Model on the home page of Berkwood's website). The improved geological model is intended to inform targeting for a drill campaign that will enable the extension of the present model and the preparation of a resource report appropriate for public release.

The existing trails prepared for drilling and the extensions to cut lines previously released are being used to provide the access through the forest.

Lac Gueret South property, Quebec

Lac Gueret South is located in Cote Nord, Que., a three-hour drive from Baie-Comeau in an area of very good infrastructure, such that the property is accessible by road year-round. The project lies directly south of Mason Graphite's advanced Lac Gueret project. With a market capitalization of over $120-million Mason owns one of the largest high-grade graphite deposits in the world, and is planning on building a new graphite mine and processing plant.

Lac Gueret South's zone 1

Two distinct electromagnetic conductors appear to occur over a two-kilometre length and 50 metres to 600 metres in width as defined by airborne electromagnetic geophysics (see the Berkwood news release dated Feb. 10, 2015). The western part of this zone was further defined by ground very low frequency and EM surveys: four VLF and 22 contiguous PhiSpy EM conductors have been detected over an apparent 800-metre length and up to a 300-metre width. This western area is interpreted as a potential bulk graphite zone interlayered within the hinge of a complex fold. The limbs thin to 50 metres in width further to the east.

Three separate drill programs have been executed on Berkwood's zone 1 graphite body for a total of over 4,000 metres completed. All 27 holes have mineralization and 26 holes of these have intersected significant graphite. These intercepts support an evolving structural model of multiple recumbently folded horizon(s) hosting thicker and more consistent graphitic intervals of high-grade and wide true thicknesses that suggests strong continuity in the system. On the company's airborne EM anomaly, it has drilled an area about 300 m by 300 m, leaving a large anomalous area that is as yet untested by drilling.

The inclined holes were drilled to maximum lengths of about 190 metres. The graphite lies near surface to open-pit minable depths similar to the depths drilled by Mason Graphite for its planned open-pit development.

Edward Lyons, PGeo, states: "The application of MALM as a tool for mapping the extension of our known lithologies of greatest interest is based upon its past application in similar circumstances in the region. The results, combined with the structural data from earlier this year, will help the company to design a focused and efficient drill campaign. The company looks forward to the results of the survey with great interest and anticipation."

Tom Yingling, president and chief executive officer, states: "I am very pleased to have mobilizing the MALM survey: This application of geophysics is targeted specifically to inform what we hope is the next drill program required for the company to prepare a resource model that will enable the Berkwood to undertake a preliminary economic assessment of Lac Gueret. We are focused on advancing the zone 1 discovery with maximum efficiency, and the MALM survey is a key tool in our quest to most effectively model the mineralization."

Mr. Lyons is a qualified person under the definition of Canadian National Instrument 43-101, and has approved the technical information in this news release. Mr. Lyons has worked extensively on the Lac Gueret property, now owned by Mason, and neighbouring graphite properties since 2000.

About Berkwood Resources Ltd.

Berkwood is engaged in exploration for the commodities that enable the modern revolution in essential technologies. These technologies are dependent upon the ethical mining and supply of naturally occurring elements and minerals that enhance the performance of energy storage systems and permit the development and miniaturization of new electronics and structural components for the new suite of innovative tools. The company is led by a team with collectively over 100 years experience and whose members have been involved with the discovery of several producing mines.

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