1 Highlights: POSITIVE SCOPING STUDY DEMONSTRATES POTENTIAL OF SALAMANCA PROJECT Positive Scoping Study confirms technical and economic viability of the Salamanca Project; Initial mine life of 11 years, including 7 years steady state operation, with strong potential to increase; Steady state annual production of 3.2 million pounds U 3 O 8, with average annual production of 2.6 million pounds U 3 O 8 over the life of mine; Life of mine average operating costs of US$25.65 per pound of U 3 O 8 ; Upfront capital cost of US$83.6 million to deliver initial production. A further US$95.0 million, incurred in the second year of production and largely funded from operating cashflow, to achieve steady state operation; and Pre-Feasibility Study to commence immediately, targeting completion in mid Berkeley Resources Limited ( Berkeley or the Company ) is pleased to announce that the Scoping Study for the Company s flagship Salamanca Project (the Project ) in Spain has confirmed the technical and economic viability of the Project. Using only the current Mineral Resource Estimates for Retortillo and Alameda, which total 33.9 million pounds U 3 O 8 (35.9 million tonnes at 429 ppm; 200 ppm U 3 O 8 cut-off grade), as a base case scenario, the Project can support an average annual production of 3.2 million pounds of U 3 O 8 during the seven years of steady state operation and 2.6 million pounds of U 3 O 8 over a minimum eleven year mine life. There is strong potential to increase the production profile and mine life through the exploitation of additional resources held by the Company (totalling 27.1 million pounds U 3 O 8 ) and with ongoing exploration work. The Scoping Study is based on open pit mining, heap leaching, a centralised process plant at Retortillo, and a remote ion exchange operation at Alameda, with loaded resin trucked to the centralised plant for final extraction and purification. The Company currently favours a contractor mining scenario. The average annual ore processing rate during steady state operation is 5.5 million tonnes. Operating cost estimates average US$25.65 per pound U 3 O 8 over the life of mine. The initial capital cost (nominally ± 30% accuracy) for the Project is estimated at US$83.6 million. This cost is inclusive of all mine, processing, infrastructure and indirect costs required to develop and commence production at Retortillo. A further US$95.0 million of capital, incurred in the second year of production and largely funded from operating cashflow, is required to develop Alameda and achieve steady state operation. The Project s capital cost reflects the excellent existing infrastructure, use of heap leaching as the preferred processing route, and the favoured mining contractor scenario (no mining fleet capital expenditure). Berkeley Resources Limited ASX/AIM:BKY T: F: E: W: Level 9, BGC Centre, 28 The Esplanade PERTH 6000 ABN:
2 Berkeley will award and commence the Pre-Feasibility Study ( PFS ) immediately and anticipates completion of the PFS in mid The Company will undertake a more detailed mine scheduling and materials movement optimisation study, metallurgical testwork program and infrastructure assessment during the PFS phase, with the aim of identifying opportunities to further enhance the Project economics through capital and operating cost reductions. Resource infill and exploration drilling programs aimed at upgrading the resource classification and increasing the overall resource base are also underway. The Directors are encouraged by the positive results of the Scoping Study which clearly demonstrate the potential of the integrated Salamanca Project to support a significant scale, long life uranium mining operation. Accordingly, the Company will continue to focus on pursuing the ongoing exploration, appraisal and development of the Project in order to fulfil its strategic objective of becoming the next European uranium producer. Enquiries: Robert Behets Berkeley Resources
3 ASX RELEASE 29 November 2012 ASX:BKY Introduction Following the agreement with ENUSA in July 2012, Berkeley Resources Limited ( Berkeley or the Company ) has focussed on the advancement of its wholly owned flagship Salamanca Project ( the Project ), which comprises the Retortillo, Alameda and Gambuta deposits plus a number of other Satellite deposits located in western Spain (Figure 1), through the development phase. The results of a Preliminary Feasibility Study ( PFS ) completed in early 2012 confirmed the technical and economic viability of a stand-alone project exploiting Retortillo, whilst Alameda formed part of a separate Feasibility Study completed in The Company has now completed an initial assessment of the integrated development of Retortillo and Alameda and is pleased to report the results of this Scoping Study ( the Study ). The Study has been managed by Berkeley with input from a number of industry recognised specialist consultants covering the key disciplines. The Study has incorporated all of the information generated from the previous studies conducted on Retortillo and Alameda, as well as new, more recently completed drilling and metallurgical testwork data. Figure 1: Location of the Salamanca Project, Spain
4 Scoping Study Parameters The Scoping Study was completed using the following parameters: Life of Mine ( LOM ) minimum 11 years, including 7 years of steady state operation Average Production 3.2 million pounds U 3 O 8 per annum during steady state operation Strip Ratio 1:2.0 (ore to waste) average LOM Ore Processing Rate 5,500,000 tonnes per annum during steady state operation Mining Cut-off Grade 98 parts per million (ppm) U 3 O 8 Metallurgical Recovery 85% Uranium Price US$65 per pound U 3 O 8 Exchange Rate US$/ 1.25 The key considerations for the Study were preferred mining and processing route, scale, throughput rate, mine life, as well as development of the associated infrastructure taking due cognisance of community and environmental impacts. The Study, which has been based solely on the Mineral Resource Estimates ( MRE ) for Retortillo and Alameda, demonstrates the Project has a minimum mine life of eleven years (including 7 years of steady state operation). Given the significant additional Mineral Resources and exploration upside associated with Gambuta and other Satellite deposits within the Salamanca Province, the potential exists to increase the mine life and accordingly, the Study is considered as a base case scenario. The basic conceptual approach to the development of Retortillo and Alameda contemplated in the Study includes: Open pit mining (transfer mining to facilitate continuous rehabilitation) Heap leaching using on-off leach pads Centralised solvent extraction ( SX ) and ammonium diuranate ( ADU ) precipitation plant, located at Retortillo Remote ion exchange ( IX ) operation at Alameda, with loaded resin trucked to the centralised plant for final extraction and purification Mineral Resources The Study has been based solely on the MRE s for Retortillo and Alameda (Table 1). The MRE s were prepared by Berkeley and are reported in accordance with the JORC Code (2004). Updated MRE s for Retortillo and Alameda, based on a combination of chemical assays and e-grades (down-hole gamma logging data presented as equivalent U 3 O 8 grades or eu 3 O 8 ) from historical drilling, supplemented by additional diamond and reverse circulation ( RC ) drilling by Berkeley with both chemical assays and e-grades, were reported in July These MRE s were developed by a team of in-house and consulting geologists who undertook a rigorous program to verify the historical data and create a validated database containing all historical and recent data. The MRE at Retortillo was based on data from approximately 20,000 metres of historical drilling and 42,000 metres of drilling undertaken by Berkeley whilst the Alameda MRE was based on data from 41,000 metres of historical drilling and 10,000 metres of drilling undertaken by Berkeley. The drilling is a combination of diamond and RC drilling.
5 ASX RELEASE 29 November 2012 ASX:BKY Table 1 - Summary of Mineral Resource Estimates used as basis of the Study Retortillo and Alameda Mineral Resource Estimates July 2012 Reported at a lower cut-off grade of 200 ppm U3O8 Category Retortillo Alameda Tonnage (million tonnes) Grade (U3O8 ppm) Indicated Inferred Sub Total Indicated Sub Total Indicated Inferred Combined Inferred Total Contained U3O8 (million pounds) Retortillo and Alameda are both vein type deposits hosted in meta-sedimentary sequences adjacent to granitic intrusives. At Alameda, the uranium mineralisation occurs in a complex network of moderately to steeply dipping brittle structures (veins, faults, fractures and along bedding contacts) as a result of a low temperature hydrothermal event. The mineralised zones commonly have sharp boundaries, separating mineralised structures from poorly mineralised host rock. At Retortillo, the mineralised envelope is generally sub-horizontal and the mineralisation is contained within a stockwork of veins. The uranium mineralisation appears to be associated with the presence of sulphides within the partially weathered zone and the base of mineralisation is associated with the base of partial weathering which locally deepens along structures. Figure 2: Grade Tonnage Curves Whilst the Retortillo and Alameda MRE s are reported at a 200 ppm U3O8 lower cut-off grade, the grade tonnage curves (Figure 2) highlight the significant impact that the cut-off grade used has on the resource estimate. At a 100 ppm U3O8 lower cut-off grade, which approximates the mining cut-off grade derived from the pit optimisations undertaken in the Study, the resource estimates for Retortillo and Alameda total 18.2 million pounds and 25.4 million pounds contained U3O8 respectively. This represents increases of 42% and 20% in contained uranium at Retortillo and Alameda respectively when compared with the MRE at the 200 ppm lower cut-off grade.
6 Although the Study has been based solely on the Retortillo and Alameda MRE s, the Company has a 100% interest in additional Inferred Resources totalling 27.1 million pounds of contained U 3 O 8 (28.5 million tonnes averaging 431 ppm U 3 O 8, refer ASX June 2012 Quarterly Report) at Gambuta and other Satellite deposits, which are in close proximity to Retortillo and Alameda. These additional resources have not been considered in the current Study and their inclusion in subsequent studies has the potential to increase the mine life and/or production scale of the Project. The Company is also planning drilling programs with the objective of testing the numerous exploration targets within the Project area. Mining The mining of both ore and waste is a conventional open pit operation. Diesel-powered truck and shovel operations, in combination with an effective drill and blast plan has been considered for both deposits. As part of the Study, a series of Whittle optimisations were completed on the Retortillo and Alameda MRE s. Materials classified in the Indicated and Inferred categories were used in the optimisation process. Pit designs, waste dump designs and life of mine ( LOM ) mining schedules were then completed to determine the optimal long term mine plan. The mining schedule is expected to be conducted over a period of 11 years. Initial mining activity is at Retortillo, with the first of seven years of steady state operation being achieved in Year 3, with the commencement of mining at Alameda. The mine schedule averages 5.5 million tonnes per annum of combined mine production during steady state operation (Retortillo million tonnes per annum; Alameda million tonnes per annum). At its peak, the mining schedule contemplates the movement of a combined 16.9 million tonnes per annum (both waste and ore). Strip ratios for the Project are low with the average LOM strip ratio being 1:2.0 ore to waste (Retortillo 1:2.6; Alameda 1:1.6). The open pits are shallow with the maximum depths being 90 metres at Retortillo and 135 metres at Alameda. The mined grade averages 291 ppm U 3 O 8 and 322 ppm U 3 O 8 at Retortillo and Alameda respectively over the LOM. The basic mining fleet will comprise standard truck and shovel equipment, in the form of 7m 3 to 12m 3 hydraulic excavators (Komatsu PC 1250 or ) and a fleet of 100 tonne capacity (CAT 777 or similar) rigid dump trucks. Mine support equipment will include track mounted dozers, graders, water trucks and front end loaders, the latter used predominantly to feed the crusher. The graders will provide the majority of pit and road clean-up and support to the excavators, whilst the dozers will carry out floor level control and waste dump maintenance. The mining method utilised will be transfer mining which will allow the open pits to be continuously backfilled, minimising waste dump volumes and waste rehandling, whilst also facilitating a continuous rehabilitation program that minimises environmental impact. Typical mining bench heights of six metres will be employed at both deposits. Blast hole drilling will be carried out in fresh rock using diesel powered top-hammer rock drills, whilst the Tertiary cover and weathered materials will be loaded without blasting. The mining cost estimates assume a contractor mining scenario.
7 ASX RELEASE 29 November 2012 ASX:BKY Processing The results of extensive metallurgical testwork previously carried out on an approximately 5 tonne representative sample of the Alameda deposit at the SGS laboratories in Perth (including tank leach and heap leach scenarios) and the recent metallurgical testwork program undertaken on a 5.5 tonne bulk sample, representative of the Retortillo deposit, at Mintek s mineral processing facility in Johannesburg (heap leach scenario, refer ASX September 2012 Quarterly Report) have been used to select the preferred process route and design the flowsheet. The process flowsheet comprises crushing, agglomeration, stacking and heap leaching using on-off leach pads, followed by uranium recovery and purification by direct solvent extraction ( SX ), ammonium diuranate ( ADU ) precipitation and calcination at a centralised plant, located at Retortillo (Figure 3). Pregnant liquor solution ( PLS ) from the heap leach process at Alameda will be passed through an ion exchange ( IX ) adsorption column, with the loaded resin trucked to the centralised plant for final extraction and purification. Heap leach technology has been selected as the preferred leaching option due to the high efficiency shown during testwork, with high recoveries (ranging from 85% to 95% across both deposits and comparable to the tank leaching testwork results) and good leach kinetics. The uranium recoveries were achieved at relatively coarse crush sizes of 40mm for Retortillo and 20mm for Alameda. In addition, the spent ore from the on-off heap leach pads ( ripios ) can be backfilled to the open pits, removing the requirement for a tailings storage facility. Figure 3: Process Flow Sheet
8 Two stage crushing of run of mine ( ROM ) ore will be undertaken at Retortillo (target product size of 40mm) while three stage crushing is contemplated at Alameda, to deliver a finer product (20mm) to optimise the uranium recovery during heap leaching. The primary stage of crushing will use a jaw crusher, while cone crushers will be used for the secondary and tertiary stages. Crushed ore will be agglomerated before stacking. The crushed ore will be fed directly into a conventional drum where spray bars will dose the ore with sulphuric acid and raffinate to produce agglomerated ore. No polymer addition is required during the agglomeration process. The agglomerates are conveyed via overland conveyors to the heap leach pad. The heap leach comprises an on-off pad subdivided into cells to define areas for stacking, leaching, rinsing and reclaiming. The heap leach facility is complete with ponds for makeup water, barren, immediate leach solution, PLS, storm water and all associated pumping and reagent storage facilities. The pad design includes a triple insulation system including two high density polyethylene ( HDPE ) sheets and a clay layer. The agglomerated material is stacked in 6 metre lifts and irrigated with sulphuric acid using drip emitters. The testwork has indicated a commercial leach cycle of 140 days. The ripios will be backfilled into lined (HDPE and clay) and isolated areas previously mined within the pits. Acid consumption for the heap leach will range from 18 kg/t to 22 kg/t, inclusive of the addition of approximately 8 kg/t to 10 kg/t of acid in the agglomeration process. There is potential to reduce the total acid consumption through further optimisation of the acid addition in agglomeration. An external chemical oxidant is not required in the process. At Retortillo, the heap leach PLS will contain approximately 400 mg/l of U 3 O 8 which will feed directly into the SX facility. The Alameda heap leach PLS will be loaded onto resin in an IX adsorption column and the loaded resin transported a distance of approximately 50 kilometres by road to the centralised plant at Retortillo. Once the resin has been stripped, the eluate containing uranium will be combined with the Retortillo PLS and fed into the SX plant for further processing. The SX facility will be designed with four extraction steps and three stages of scrub to produce a raffinate of <1mg/l U 3 O 8. Regenerated resin will be returned to Alameda for re-use. The purified enriched uranium solution from the SX plant is treated to precipitate the uranium using anhydrous ammonia. The solution is heated to a temperature of degrees and ammonia is injected into the solution, raising the ph to around 7 and precipitating the uranium as ADU. The ADU slurry from the precipitation is pumped into a thickener for dewatering. The underflow is then further dewatered using centrifuges. The centrifuge cake is finally calcined to produce U 3 O 8 which is drummed and prepared for shipping. Analytical data of the PLS obtained during the testwork programs indicate that there are no impurities at levels that could adversely impact the quality of the yellowcake to be produced. Annual production averages 3.2 million pounds of U 3 O 8 during the seven years of steady state operation, and 2.6 million pounds of U 3 O 8 over the entire eleven year mine life. Infrastructure The total power requirements for the Project are low at an estimated 3.7 MW and 3.5 MW of installed power for Retortillo and Alameda respectively. Power will be supplied from the distribution grid available in the area at a cost of US$0.10 per kilowatt hour excluding capital.
9 ASX RELEASE 29 November 2012 ASX:BKY Water is available from both adjacent water courses and on-site sources derived from bores. Both Retortillo and Alameda are readily accessible from the existing public road network, with only the deviation of 4.5 kilometres of an existing road being required at Retortillo and the upgrade of 6 kilometres of an existing road necessary at Alameda. Given the Project sites proximity to the city of Salamanca and local villages, on-site accommodation facilities are not required. Figure 4: Project Infrastructure Capital Costs The initial capital cost for the mine, processing facilities and associated infrastructure for Retortillo is estimated at US$83.6 million. This cost is inclusive of all infrastructure and indirect costs required to develop and commence production at Retortillo. The capital cost for the mine, processing facilities and associated infrastructure for Alameda is estimated at US$95.0 million. This cost, which will be incurred in the second year of production, includes all infrastructure and indirect costs required for the Project to achieve a steady state production profile averaging 3.2 million pounds of U3O8 per annum. The indirect costs include the first fill of reagents, ECPM (engineering, procurement and construction management) costs and a 15% contingency. No allowance has been made for the acquisition of mining fleet (included in operating costs), as it is envisaged that this activity will be outsourced to a specialist mining contractor.
10 The engineering studies conducted to date, to support a capital cost estimate for the Project, allow for a level of accuracy of nominally +/- 30%. A summary of major capital costs is shown in Tables 2 and 3. Table 2 Summary of Retortillo Capital Costs (nominally ± 30% accuracy) Description Cost (US$m) Pre-Strip 3.1 Processing: ROM Pad 0.2 Crushing 3.2 Agglomeration 2.5 Heap Leach 8.9 Water Treatment Plant 5.2 SX 7.2 Refinery 8.9 Reagents and Utilities 5.2 Infrastructure: Power Supply 3.7 Road Diversion 1.4 Temporary/Waste Dumps, Water Dams 10.2 Security 0.4 Land Acquisition 4.6 G & A 2.1 Indirect Costs 16.8 Mining Fleet (included in Opex) 0 Total 83.6 Table 3 Summary of Alameda Capital Costs (nominally ± 30% accuracy) Description Cost (US$m) Pre-Strip 6.1 Processing: ROM Pad 2.4 Crushing 7.3 Agglomeration 3.9 Heap Leach 17.9 Water Treatment Plant 4.9 IX 5.2 Reagents and Utilities 2.7 Infrastructure: Power Supply 1.1 Road Diversion 2.0 Temporary/Waste Dumps, Water Dams 15.3 Security 0.4 Land Acquisition 6.1 G & A 2.1 Indirect Costs 17.6 Mining Fleet (included in Opex) 0 Total 95.0 An additional US$12.4 million of capital is required to develop a second major pit at Retortillo in the fifth year of production. Rehabilitation and Closure costs for the Project are estimated at US$120 million over the LOM. Operating Costs The average LOM operating cost has been estimated at US$25.65 per pound of U 3 O 8 produced. The operating costs (C1 cash costs) are defined as the direct operating costs including contract mining, processing, ripios management, water treatment and general and administration. The operating costs were estimated in conjunction with the Scoping Study process design criteria, block flow diagram, mechanical equipment lists, metallurgical testwork results for reagents, in-country labour cost data, in-country reagent and fuel supply prices, and benchmarked local mining contractor rates. Key operating cost data is summarised in Table 4.
11 Table 4 - Summary of LOM Operating Costs (nominally ± 30% accuracy) Description Cost (US$/lb U 3 O 8 ) Retortillo Alameda Mining Processing (including ripios backfill) General and Administration Subtotal by Area Total Operating Costs Marketing and transport costs of US$0.98/lb U 3 O 8 are in addition to the operating costs. A number of potential opportunities to reduce operating costs have been identified, including ripios management, reagent consumption, mining design and mine scheduling. Trade-off and optimisation studies focussed on these key operating cost drivers will be undertaken during the next phase of the Project. Waste Management and Rehabilitation Waste has been characterised and classified into four types: Oxide waste ( inert waste ) - an inert waste that can be handled as a typical mining waste; Acid Rock Drainage ( ARD ) - potential acid generator due to a marginal sulphide content; Natural Occurring Radioactive Materials ( NORM ) - rock containing very low residual uranium below the mining cut-off grade; and Ripios - spent ore from the on-off heap leach pads which can be considered equivalent to ARD and/or NORM waste due to its similar physical and chemical characteristics. As noted earlier, open pit mining will be undertaken using the transfer mining method to allow continuous backfilling of the pits with waste, thus minimising waste dump volumes and waste rehandling, whilst also allowing for a continuous rehabilitation program that minimises the environmental impact. Inert waste will be managed using standard industry procedures, placing the material on permanent waste dumps or backfilling the material directly into mined areas within the pits. Ripios, ARD and NORM waste will be placed onto temporary dumps designed with the required isolation system (HDPE and clay) during the initial years of operation and subsequently backfilled into lined and isolated areas within the mined pits (once sufficient space is available). The backfilling of ripios is prioritised over ARD and NORM. At the end of the mine life, the whole volume of ripios, ARD and NORM waste will be fully encapsulated within the mined pits, and the surface rehabilitated as per the existing profile and vegetation. Community and Employment Berkeley has worked closely with all stakeholders, including local communities and relevant government authorities, in all aspects of work conducted on the Project to date. As part of this strategy, the Company has already signed co-operation agreements with the three municipalities proximal to Retortillo. These agreements are an important step in progressing through the permitting phase to production. As part of the agreements, the municipalities undertake to actively and promptly contribute throughout the necessary administrative procedures required for the Project to achieve both licensing and permitting. Berkeley in turn commits to contribute to the economic and social development of the municipalities.
12 Similar agreements are being negotiated with the relevant municipalities proximal to Alameda. The workforces required for the construction and operational phases of the Project will be sourced from the local communities whenever possible, in combination with a small number of highly skilled professionals who will be recruited from elsewhere in Spain or abroad. There is over thirty years of uranium mining experience within the region that hosts the Project. Permitting The permitting of Retortillo and Alameda are independent processes, with the process for Retortillo already well advanced. In October 2011, Berkeley initiated the licensing and permitting process for the development of Retortillo with the submission of an application for the conversion of the Pedreras Investigation Permit (Exploration Permit) into an Exploitation Concession (Mining Permit). The submission included a Scoping Environmental Impact Assessment and was subjected to a consultation period. All comments received from the consultation period were addressed and/or incorporated into the Environmental Impact Assessment ( EIA ) submitted in March Along with the EIA, the Company also submitted other key documents for the permitting process in March, including the Exploitation Plan, the Restoration and Closure Plans, the Authorisation for the Use of Rural Land for Industrial Purposes, and the Initial Authorisation for the Process Plant as a Radioactive Facility. The application was approved for public information in May and the 30 day Public Information Period was completed in mid September. The public comments were received in late September and the Company submitted its responses to these comments in late October. The Company s responses will be subject to clearance and direction from the relevant authorities before they are incorporated into the Declaration of Environmental Impact. Ancillary permits, such as those associated with water and roads, are also currently being advanced. The permitting process for Alameda will follow same procedure as for Retortillo however, reporting to Central Administration instead of Regional Government. The process has commenced with the Company submitting the Scoping Environmental Impact Assessment to the relevant authorities in November. Pre-Feasibility Study and Drilling Berkeley will award and commence the PFS immediately and anticipates it being completed in mid During the PFS phase, the Company will undertake a more detailed mine scheduling and materials movement optimisation study, metallurgical testwork program and infrastructure assessment aimed at identifying opportunities to further enhance the Project economics through capital and operating cost reductions. Resource infill and exploration drilling programs aimed at upgrading the resource classification and increasing the overall resource base are also underway. The drilling programs comprise both diamond and RC drilling, with the diamond drilling planned to give a better geological understanding of the structural controls influencing the local distribution of uranium mineralisation, as well as to supply drill core for further metallurgical testwork.
13 Further optimisation of the mine schedule and materials movement will be undertaken with a view to accelerating the ramp up to steady state operation, and to minimising materials handling and rehandling. Waste dump positioning will be detailed to reduce haulage costs. The planned metallurgical testwork program will include additional column leach work which will generate more detailed information relating to the geotechnical characterisation of the heap, solution tenor and downstream precipitation options. The findings from this testwork program will be used to finalise the design of the process flowsheet and its associated infrastructure. All required infrastructure for the Project will be further assessed and optimal site layout plans generated. The opportunity to use local supply and rates will be investigated to further enhance the Project s capital efficiency. Competent Persons Statement The information in this announcement that relates to Exploration Results and Mineral Resources is based on information compiled by Craig Gwatkin, who is a Member of The Australian Institute of Mining and Metallurgy and is an employee of Berkeley Resources Limited. Mr. Gwatkin has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Gwatkin consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Forward Looking Statement Statements regarding plans with respect to the Company s mineral properties are forward-looking statements. There can be no assurance that the Company s plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that the Company will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company s mineral properties.