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Berkwood Resources Ltd (3)
Symbol BKR
Shares Issued 61,009,341
Close 2019-07-15 C$ 0.05
Market Cap C$ 3,050,467
Recent Sedar Documents

Berkwood pegs Lac Gueret S at 1.76M t of 17% Cg ind.

2019-07-16 07:43 ET - News Release

Mr. Thomas Yingling reports

BERKWOOD OBTAINS ROBUST PIT CONSTRAINED MINERAL RESOURCES AT ITS LAC GUERET SOUTH PROJECT

Berkwood Resources Ltd. has provided the results of a pit-constrained mineral resource estimate regarding its Lac Gueret South project. This maiden mineral resource estimate for Lac Gueret South, zone 1, is summarized in the "Current resource shell envelope generation parameters base case" table (with annotation). The mineral resource estimate is based on drilling campaigns in 2017 and 2018 totalling 6,232.49 metres and surface trench samples over 77 metres.

           BASE CASE PIT-CONSTRAINED MINERAL RESOURCE ESTIMATE AT 
                     THE LAC GUERET SOUTH PROJECT (1)
 
                                              Current resource (June, 2019) (8)
                                 
Mineral resource category   Tonnage (Mt) (5) (7)  Grade (% Cg) (4)   Cg (t) (6)

Indicated                          1.76                 17.00          299,200 
Inferred (3)                       1.53                  16.4          250,200 

Notes
 
(1) The mineral resources provided in this table were estimated using current 
    Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on 
    Mineral Resources and Reserves, Definition and Guidelines.
   
(2) Mineral resources that are not mineral reserves do not have demonstrated 
    economic viability. Additional trenching and/or drilling will be required 
    to convert inferred and indicated mineral resources to indicated and measured 
    mineral resources.
   
(3) Inferred mineral resource represent material that is considered too speculative 
    to be included in economic evaluations. Additional trenching and/or drilling 
    will be required to convert inferred mineral resource to indicated or measured 
    mineral resource.

(4) All analyses used for the resource estimates were performed by MS Analytical 
    in Langley, B.C., with verification samples at ALS Laboratory at Burnaby, B.C.,
    and was tested for graphitic carbon (per cent Cg), internal analytical code 
    SPM-140 and GE_CSA05V.

(5) Current resource effective June 30, 2019.
   
(6) No recovery was applied in the calculation of tonnage of graphitic carbon 
    (90-per-cent recovery was applied in pit optimization to define pit constrain 
    mineral resources).
   
(7) The current mineral resource are stated at a cut-off grade of 6.81 per cent Cg.

Tom Yingling, president and chief executive officer, states: "Berkwood has reached a significant milestone at our lac Gueret South project with the definition of significant pit constrained mineral resource. With this new data Berkwood has started the process of the permitting in order to permit forest logging in the area of the resource to allow for stripping and bulk sampling at surface. This resource presents sufficient size and grade for the company to move forward with immediate next step plans, as this maiden resource compares favourably with other developed and in-development projects. We are confident Lac Gueret South will figure into the emerging Lac Gueret graphite production camp in the near future. Our exploration and metallurgical work has received enthusiastic support of our investors and financiers, and we will immediately embark upon a program of resource expansion in the local area. We will immediately refine our current resource and increase our knowledge on the quality and size of the deposit(s) we can expect for eventual customers."

Edward Lyons, PGeo (B.C., Quebec, Newfoundland), states: "The results of the initial resource estimate and metallurgical testwork demonstrate that the zone 1 deposit as tested to date has substantial resources and robust recoveries, subject to further testing. The deposit has not been closed off in the lateral extents and the several geophysical surveys suggest that the shallower mineralization continues around the western fold hinge. The strike length has the potential to significantly increase resources with future development drilling. The zone 2 target now in early exploration stage, may add mineralization as well."

 
CURRENT RESOURCE PIT ENVELOPE CHARACTERISTICS
 
Characteristics            Main   Layer 01

Length (m) (1)              290        340     
Azimuth (?)                  80         42      
Maximum width (m)           130         35      
Surface area (square km)         0.13        

(1) Measured length is approximate.

Data sources and current resource estimation methods

The block model used to generate this resource is based on a total of 45 diamond drill holes and two trenches for a total of 6,232.49 metres and 77 metres of trenches with 1,194 core samples and 28 samples collected from trenches.

The present resource block model was prepared under supervision of Claude Duplessis, PEng, of GoldMinds Geoservices Inc. of Quebec City, Que., using Genesis mining software. The block model estimate was performed using interpolation according to the inverse of the distance from nearest sample composites and the ellipsoid influenced distance in calculation were adapted for the geology of the deposit using the special variable direction search ellipsoid tool available in Genesis software and designed for application to folded deposits.

The block size has been defined in order to respect the complex geometry of the envelopes of mineralization. The mineral resource estimate was carried out with a block size of 27 cubic metres (three m (east-west) by three m (north-south) by three m (Z)). The density to convert volume to tonnage used is 2.9 gram-centimetres minus three.

The envelopes have been filled by regular blocks and only composites within the envelopes were used to estimate the block grades. This represents a total of 3,015 composites.

The average percentage carbon was calculated using interpolation according to the inverse of the distance from nearest composites and the ellipsoid influenced distance in calculation. Interpolation parameters were based on drill spacing, envelope extension and orientation.

Different numbers of runs and ellipsoid dimensions were used depending on the envelope. Two runs were used in envelope Main and only one run was used in each remaining envelopes (Layer 01, Layer A and Layer B), for the mineral resource estimate (see ellipsoids parameters in the "Variable search ellipsoid parameters" table).

Specifically, run parameters were as follows.

  • Main envelope
    • In run one, the number of composites is limited to nine with a minimum of three per block and a maximum of two composites from the same drill hole.
    • For run two, the number of composites was limited to nine with a minimum of three and no limit number composites per drill hole.
  • For Layer 01, Layer A and Layer B:
    • One run was executed with the number of composites limited to nine with a minimum of three per block and a maximum of two composites from the same drill hole.

                   VARIABLE SEARCH ELLIPSOID PARAMETERS
 
Ellipsoids parameters   Main pass 01   Main pass 02   Layer 01   Layer A   Layer B

Azimuth                           80             80         50        50        50     
Dip                                0              0          0         0         0      
Spin                               5              5         35        35        35     
Major                             30             40         30        10        15     
Median                            40             60         40        15        15     
Minor                             10             15         10         5         5      

Within the folded or faulted nose of the Main envelope, a variable ellipsoid was used in the estimate, as Genesis software (chosen specifically for its features) has the capacity to search along complex planes.

The classical method of distance and composites within the search ellipsoid was selected to classify the deposit where one defined class is used by ellipsoid. A total of two ellipsoids and two runs were applied. Two runs were performed for the Main envelope (indicated and inferred) and one run was done for each envelope Layer 01, Layer A and Layer B (inferred).

The block model was afterward processed in MineSight software to provide an optimized pit envelope constraining the mineral resources (see the "Pit optimization results (rounded)" table). The technical and economic parameters used to generate the shell envelopes are listed in the "Current resource shell envelope generation parameters base case" table.

The resource shell parameters were derived from comparable graphite projects in the region and preliminary metallurgical testing done at Met-Solve Laboratories of Langley, B.C., in Section 13 of the upcoming National Instrument 43-101 report presenting similar results aligned with an adjacent project. Duplessis elected to apply a conservative recovery of 90 per cent as additional metallurgical testing is required to better define the flake class and pinpoint values of the eventual saleable products.

                          PIT OPTIMIZATION RESULTS (ROUNDED)
 
                                   Mineral resource                       

                             Indicated        Inferred             Waste(*)  
Optimized pit           Tonnes   Cg (%)     Tonnes   Cg (%)       tonnes     Stripping ratio              

Pit 01                 998,600   21.50     424,300   23.01     5,520,800                3.87           
Pit 02               1,161,300   20.21     730,800   20.96     8,371,100                4.42           
Pit 03               1,349,900   19.02     908,900   19.42     9,921,600                4.39           
Pit 04               1,474,900   18.19   1,042,400   18.46    10,730,700                4.26           
Pit 05               1,648,800   17,35   1,349,400   17.05    14,229,900                4.74           
Pit 06 (base case)   1,755,300   17.00   1,526,400   16.39    16,774,000                5.11           
Pit 07               1,816,800   16.73   1,793,800   15.49    19,592,000                5.42           

(*) Waste here is not waste but is considered to be material which is not economic at the 
    time of this pit optimization.

CURRENT RESOURCE SHELL ENVELOPE 
  GENERATION PARAMETERS BASE 
        CASE ($CDN)
 
Parameters           Values   

Mining cost            $6/t    
Transport             $36/t   
Processing            $40/t   
G&A                   $10/t   
Recovery                90%     
Selling price Cg   $1,530/t

Quality assurance and control were maintained through the systematic use of blank (non-graphitic) samples inserted into the sample sequence every 20th sample as well as duplicated quarter-cut drill core. The blank samples were consistently of very low grade. The duplicate samples were near the initial analyses on the half-core; there is typically some variation in grade owing to the reduced volume of material in quarter cut core versus half core plus the local variations at decimeter scale. Fifty samples selected by Lyons were taken from the original rejects at MS Analytical and one-kilogram riffle-split coarse reject was delivered to ALS Laboratory for analyses that closely followed the original methods used by MS Analytical. These had a close correlation.

The database was reviewed by Lyons and GoldMinds. Several typographic errors were discovered and resolved, and the final database included these corrections.

The technical data included in this release were prepared by qualified independent experts, as defined by NI 43-101 regulation, including Claude Duplessis, Eng, of GoldMinds Geoservices Inc. (resource estimation), Edward Lyons, PGeo (B.C., Quebec, Newfoundland), of Tekhne Research Inc. (senior author and most of the report), and Florent Baril, Eng, of Bumigeme Inc. for mineral processing and metallurgical testing.

Berkwood Resource is finalizing a mineral resource estimate technical report, in accordance with the National Instrument 43-101, detailing this important announcement: The report will be filed on SEDAR within the next 45 days.

Edward Lyons, PGeo (B.C., Quebec, Newfoundland), is the qualified person under the definition of Canadian National Instrument 43-101 for Berkwood Resources 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 200 years experience and whose members have been involved with the discovery of several producing mines.

We seek Safe Harbor.

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