Issued and Outstanding:33,910,578|TSX-V:BKR

twitter-4-32 dark brownfacebook-4-32 dark brownlinkedin-4-32 dark  brown

Berkwood Resources Ltd.

News

September 25th, 2014       No:  14-11


Berkwood receives work recommendations and plans airborne geophysics

on graphite properties and announces private placement


Berkwood Resources Ltd. (TSX-V: BKR) (“Berkwood” or the “Company”) is pleased to announce that geologist, Alain Berclaz, P. Geo and CEO of Abgéoconseil Inc. consultants, has returned from a site visit to the Company’s Lac Guéret South and East Graphite Properties (“the Properties”), in Northeastern Quebec.
 
Over the duration of his field examinations, Mr. Berclaz visited Berkwood’s newly acquired 5,788 Ha Lac Guéret South Graphite Property as well as Berkwood’s 100% owned Lac Guéret East Graphite Property (see attached map). From his historical work compilation and field observations, Mr. Berclaz notes that a fieldwork program with the objective to delineate high-quality conductors associated with new prospective Graphite targets or with extensions on strike with known massive Graphite mineralization is of particular interest within Berkwood’s Lac Guéret South Property and should be of the highest priority. His recommendation for initial fieldwork in order to rapidly advance the project to a drilling stage, is to immediately commence with a detailed magnetic-electromagnetic (MAG-EM) helicopter-borne geophysical survey.
 
The Lac Guéret South Graphite Property borders the southern boundary of Mason Graphite’s significant Lac Guéret Project where a NI 43-101 compliant mineral resource estimate with measured & indicated mineral resources of 50 million tonnes grading 15.6% Cgr (including 6.6 million tonnes grading 32.4% Cgr) was announced. Mr. Berclaz also traversed Berkwood’s Lac Guéret East Graphite Property which borders the eastern boundary of Mason Graphite’s Lac Guéret Project.
 
The Properties are part of the Archean Ulamen Complex (2780 to 2680 Ma) mainly composed of (i) gneissic tonalite and granulitic tonalite gneisses interlayered with (ii) minor mafic metavolcanics and metagabbros. The Archean Ulamen Complex contains units of Paleoproterozoic units reported to be metasedimentary in origin and stratigraphically correlated with the Gagnon Group. Units of the Gagnon Group present on or adjacent to the Properties include: biotite, garnet, sillimanite paragneisses and graphitic schists of the Nault Formation; iron formations with ferruginous quartzites and cherts of the Wabush Formation; quartzites of the Wapussakatoo Formation (1868 Ma); and dolomitic and calcitic marbles of the Duley Formation (Source: Quebec government public file Sigeom MERQ RG2013-01).The overall structural pattern is an arc with gneissic fabrics striking NNE-SSW in the Lac Guéret East Property passing through E-W to WNW-ESE in the Lac Guéret South Property.
 
In the proximal area of the Properties, seventeen (17) Graphite prospects are reported, including the Mason Graphite Lac Guéret deposit and Mason Graphite Capitaine Cosmos Graphite Prospect which returned up to 34.1% Cg and 0.8 g/t Au over one meter (Source: Quebec government public file Sigeom MERQ GM60839). Berkwood’s Lac Guéret South Graphite Property surrounds the Capitaine Cosmos Property where Graphite mineralization is reported to occur as semi-massive to massive (up to 90% Cgr) interfolded lenses and veins intimately associated with silicate and sulfide iron formations, sulfide schists, dolomites and calcites, quartzites, amphibolites, calc-silicates and metamorphosed, aluminous and ferrous alteration.
 
The Company has also made adjustments to the mineral claims package on its Lac Guéret East Graphite Property, with a change to the eastern boundary, in order to maximise Berkwood’s coverage of aforementioned geological structures and existing graphite prospects. The property now totals 2,269 Ha.
 
Brian Buchanan, President and Director of Berkwood, commented “We are very encouraged by Mr. Berclaz’s initial observations, which reinforce that Berkwood’s properties are in an ideal geological setting for achieving our Graphite exploration goals. This area of Quebec is known for high purity, large flake Graphite and Berkwood is well positioned as one of the few companies to have acquired a significant land position in the prospective Lac Guéret Region. We are excited to be preparing for an airborne electromagnetic survey on our Lac Guéret South Property in the coming weeks. If the survey identifies strong geophysical conductors similar to those associated with the Mason Graphite deposits, we will quickly look to test such anomalies through follow-up ground geophysics, stripping, trenching and possible drilling.”
 
Alain Berclaz, P.Geo a consultant to the Company and a Qualified Person under the definition of Canadian National Instrument 43-101, approved the technical information in this news release.

 

 

To view details, maps and photos of Berkwood’s Graphite properties please click here.
 
Private Placement:
 
The Company is also pleased to announce a non-brokered private placement of 4.8 million units, of which 4 million units will be flow-through units and 800,000 units will be non-flow-through units, at a price of $0.07 per unit, for the gross proceeds of $336,000.
 
The flow through units will each be comprised of one common share and one-half of one common share purchase warrant. The non-flow through units will each be comprised of one common share and one common share purchase warrant. Each full warrant shall entitle the holder to purchase one additional non-flow-through common share of the Company at $0.10 per share for a period of two years from the date of closing. A finder's fee on the sale of units will be payable in accordance with the policies of the TSX Venture Exchange. The terms of the private placement are subject to approval by the TSX Venture Exchange.
 
The proceeds from the financing will be used for exploration programs, acquisitions and general working capital. The Company will use the gross proceeds from the sale of the flow-through shares for Canadian exploration expenses (CEE), within the meaning of the Income Tax Act (Canada), with the Company using its commercial best efforts to ensure that such CEE qualify as a “flow-through mining expenditure” for the purposes of the Income Tax Act (Canada), related to the exploration of the Company's mineral exploration projects located in Canada.
 
If you are not currently on the Berkwood news and updates list, you can opt-in via the Berkwood website by clicking here. News Releases and exploration updates are emailed to list members who wish to keep up to date with Berkwood and our projects.
 
 
On behalf of Berkwood Resources Ltd.
 
“Brian Buchanan”
 
Brian Buchanan, President and Director
 
 
For additional information please contact:
 
Karim Sayani, Corporate Communications
Tel: (604) 662-7455 E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
 
Tom Steer, Corporate Development
Tel: (604) 662-7455 E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
 
Forward Looking Statements
This Berkwood News Release may contain certain “forward-looking” statements and information relating to Berkwood that are based on the beliefs of Berkwood's management as well as assumptions made by and information currently available to Berkwood's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitation, competitive factors, general economic conditions, relationships with strategic partners, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results and forward-looking statements and forward-looking information may vary materially from those described herein. Except as required by law, Berkwood does not assume the obligation to update any forward-looking statement or forward-looking information. The Mason Graphite NI 43-101 mineral resource estimate was sourced from the Mason Graphite news release dated July 29, 2014. The Qualified Person has been unable to verify the information contained within the Mason Graphite news release and the mineralization on the Mason Graphite property is not necessarily indicative of the mineralization on the Company’s property.
 
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Berkwood Resources Ltd.
14th Floor - 1111 W. Georgia Street, Vancouver, BC Canada V6E 4M3
Telephone: (778) 945 2935
Fax: (604) 689 8199
info@berkwoodresources.com