🕐29.04.13 - 11:54 Uhr

INVESTEC: BERKELEY RESOURCES - QUARTERLY HIGHLIGHTS PROGRESS AND STRONG BALANCE SHEET - BUY



Victoria Geoghegan Partner Direct line: +44(0)20 7861 3925 Mobile: +44 (0)7917 551 155 6th Floor, Holborn Gate, 330 High Holborn, London, WC1V 7QD Tel: +44 (0)20 7861 3232 Fax: +44 (0)20 7861 3233 www.pelhambellpottinger.co.uk [cid:image001.gif@01CE44C6.6B2C93E0] a division of Bell Pottinger LLP Private & Confidential / Disclaimer: This document is private and confidential and remains the property of Bell Pottinger.

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Bell Pottinger is made up of Bell Pottinger Private Limited, a limited company registered in England & Wales with registered number 08024999 and Bell Pottinger LLP, a limited liability partnership registered in England & Wales with registered number OC380478, together with their subsidiaries.

Our registered office is at 6th Floor, Holborn Gate, London WC1V 7QD.

A list of the members of Bell Pottinger LLP is open for inspection at our registered office. From: Investec Securities Research [mailto:securities=] On Behalf Of Investec Securities Research Sent: 29 April 2013 10:43 To: Victoria Geoghegan Subject: Berkeley Resources - Quarterly highlights progress and strong balance sheet - Buy
Berkeley Resources (Price: 19.3p | Target: 40.0p | Rec: Buy) BKY’s Q3 highlights on-going progress at its Salamanca uranium project in Spain.

Metallurgical work is advancing with further results due in the June quarter, to lead into a PFS in the September quarter.

Permitting is also advancing for both ore deposits to be developed, Retortillo and Alameda.

Exploration work is planned to better define additional targets that have been identified.

The company finished the quarter with A$30m in cash ensuring it is well financed to continue project development.

We retain our risked NPV-based TP and Buy recommendation. * BKY plans to develop a 3.2mmlbpa U3O8 production base from two deposits, Alameda and Retortillo, in Spain.

A scoping study completed last year outlined a heap leach operation at each deposit, with Retortillo to be developed first.

The extensive tenement package held by BKY also holds other resources and targets for which exploration work is underway.

The largest of these targets, Gambuta, contains 11.1mmlbs at 394ppm and is being advanced to scoping study stage, to be integrated with Retortillo and Alameda.

It could add 1.0-1.5mmlbspa of production. * Metallurgical test work is underway with recent work confirming that the optimum route for the back end of the processing plant is solvent extraction and ammonium diuranate precipitation.

The PFS remains on course for completion in the September quarter.

An infill drilling programme has also commenced at Retortillo.

Permitting is advancing with Retortillo around one year ahead of Alameda.

The Retortillo Environmental License is pending formal approval at the Regional Government level and is anticipated this quarter.

Other aspects of permitting both deposits are also continuing. * With a strong balance sheet BKY can complete its DFS without needing to raise further finance prior to project development.

We expect this to coincide with stronger uranium market conditions, enhancing the attraction of the asset base that would support a reasonable production base in a secure jurisdiction.
To access the full note please click here Analyst: Marc Elliott
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