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Berkwood Resources Ltd (3)
Symbol BKR
Shares Issued 39,869,794
Close 2018-12-13 C$ 0.08
Market Cap C$ 3,189,584
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Berkwood continues drilling at Lac Gueret South

2018-12-14 08:12 ET - News Release

Mr. Tom Yingling reports

BERKWOOD DRILLS 90M OF GRAPHITE DURING ONGOING PHASE 4 DRILLING AND PROVIDES AN OVERVIEW OF MISE-A-LA-MASSE GEOPHYSICAL RESULTS AT THE LAC GUERET SOUTH GRAPHITE PROJECT

Drilling at Berkwood Resources Ltd.'s phase 4 definition drilling program on zone 1 at the company's 100-per-cent-owned Lac Gueret South project is continuing. The program is designed to extend eastward, and to infill drill portions of, the current mineralization model: to date Berkwood has drilled nine new holes for 1,080 metres of newly acquired core on phase 4, to bring the total drilling at zone 1 to 5,086 m over 36 drill holes. In hole BK1-35-18, drilling intersected 102.45 m (not a true width) of continuous graphite (Cgr ) mineralization. The company is also engaged in the collection of selected surface channel samples above the drill hole trace to assist with enhancing the geological model.

The phase 4 program is benefiting from the Mise-A-La-Masse (MALM) geophysical program undertaken during the recent fall season. The MALM program charged known graphite intercepts located in hole BK1-27-18 at grounding points located within two Cgr intercepts respectively located at 130 m and 170 m downhole. A surface survey grid consisting of nine north-south lines arranged 100 m apart, with lengths ranging between 525 m and 750 m, was established over the western portion of the historic airborne and ground-delineated EM conductive resistivity anomaly. Reference stations along the lines were located every 25 m along each line. The surveys from both Cgr horizons confirmed a surface expression of conductivity of about 250 to 500 m wide north-south that extends over 800 in an east-northeast direction, and is likely unconstrained to the east-northeast. The result indicates that these two graphite-rich beds are electrically interconnected, the current diffusing from one to the other when grounded. This current diffusion could result from background Cgr or connective structures between these mineralized horizons. It is also possible that the current spread through faults to highlight another graphitic bed located at a shallower depth. In each case, a north trend (zone) and south trend (zone) is identified within the broader conductive feature.

"We're pleased to share the MALM results with the public," states Tom Yingling, president and chief executive officer. "The phase 4 campaign integrates our deposit model generated through drilling phases 1 to 3 with the MALM data to drill with the purpose of assembling sufficient information for the preparation of a preliminary resource statement."

The phase 4 drill program is supported by Quebec-based drilling and project management companies, and project and camp support personnel from the project area. The drill program is being updated with near-real-time interactive updates to the geology, structure and mineralization model by frequent data transmission to Tony Gilman of Terrane Geosciences (structural modelling) and Michael Waldegger of MFW Geosciences (resource estimate), to ensure that the phase 4 work informs real-time model evolution and maximizes the effectiveness of drill targeting.

Lac Gueret South, zone 1

Lac Gueret South is located in Cote Nord, eastern Quebec, a three-hour drive north from Baie-Comeau in an area with very good infrastructure. The project lies directly south of Mason Graphite's advanced Lac Gueret project. Mason is developing one of the largest medium- to high-grade graphite deposits in the world.

The project comprises 288 claims which cover a total area of 15,552 hectares.

Prior to commencement of the current phase 4 campaign, the company has drilled 27 holes on zone 1 that totals 4,006 metres. The company is pleased to announce it has intersected visual graphite in every hole drilled to date. Success in these drill programs confirms that a significant component of the distinct electromagnetic conductors that occur over a two-kilometre strike length and 50 metres to 600 metres in width as defined by airborne EM geophysics (see the Berkwood news release dated Feb. 10, 2015) that includes graphite mineralization.

Edward Lyons, PGeo (British Columbia, Quebec, Newfoundland), is a qualified person under the definition of Canadian National Instrument 43-101, and he 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 the company

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 of experience and whose members have been involved with the discovery of several producing mines.

We seek Safe Harbor.

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