November 22nd, 2017, VANCOUVER, B.C. Berkwood Resources Ltd. (TSX-V: BKR, FSE: BK2, WKN: A110N3) (“Berkwood” or the “Company”) is pleased to announce that it has commenced drilling on the Zone 2 geophysical prospect at the Company’s 100% owned Lac Gueret South Project. The Zone 2 target is an extensive (greater than 2 km strike length) conductive system that displays a number of geophysical similarities with the Zone 1 prospect that is located approximately 3.5 km SSE of Zone 2, where the company discovered extensive graphite mineralization earlier this year. The Zone 1 drill program featured intersections of graphite in each of the 13 holes drilled. The initial metallurgical assessment is in progress.
The fall drill program at Zone 2 is located adjacent to the Berkwood / Mason Claim boundary, and has not previously been drill tested. The Company intends to assess whether Zone 2 has the potential to host commercial graphite, and will consider the results of this fall program in developing its drilling and metallurgical test work priorities.
Tom Yingling, President and CEO states, “I am pleased we have embarked upon our second drill program. Having had success in every one of the 13 holes drilled to date on Zone 1 is very exciting. We are still awaiting assay results on these holes, and we expect to release these within a few weeks. The drill rig is established on Zone 2. The geophysics on Zone 2 is comparable with that of Zone 1, which we now know includes graphite (although other conductive and magnetic phases, such as pyrrhotite, were also intersected in drilling). The location of the Zone 2 prospect along the Berkwood Mason property boundary is also compelling. Drilling a second, entirely distinct target provides Berkwood shareholders two potential opportunities for success as the Company will seek to prioritize the most compelling prospect for ongoing assessment of potential for development. Our fall drill program is fully financed, and the field project is managed by the same team that discovered Berkwood’s Zone 1 discovery and the Mason Graphite deposit. I am thrilled with our shareholder and financing support, and with our capital structure – we still only have approx. 32.5 million shares outstanding.”
The Company has completed road access and trails for the initial group of targets at Zone 2, and drill pads have been prepared for the initial suite of targeted PhiSpy conductive anomalies, located in the Zone 2 area. The Company anticipates completing up to 18 inclined drill holes (of between 60m and 120m in length) in this initial phase of work on Zone 2.
Lac Gueret South Zone 1
During the recently completed 13-hole drill program on Zone 1 the Company is pleased to announce intersecting visual Graphite in every hole drilled to date. (See news release dated October 17th, 2017.) Success in this drill program confirms that a significant component of the distinct electromagnetic conductors that occur over a two (2) kilometer length and 50 meters to 600 meters in width as defined by airborne EM geophysics (see the Berkwood news release dated February 10, 2015) include graphite.
Lac Gueret South Zone 2
Zone 2 is located approximately 3.5 kilometres NNW of Zone 1 and is contiguous with the southern limit of the Mason Graphite claim boundary: the anomaly presents as possibly occurring along strike from graphitic horizons defined by Mason Graphite. A total of two airborne VLF-EM and 15 PhiSpy ground geophysical anomalies indicate the occurrence of two parallel east-west trending conductors. The larger conductor extends over two kilometer in length and up to 60 meters in width. These Zone 2 anomalies were identified by the same airborne and ground surveys as the Zone 1 anomaly: Zone 1 is now drill-tested to include significant graphite mineral development.
To view a virtual reality video of the spring Zone 1 drill program visit our home page at: http://www.berkwoodresources.com.
Edward Lyons PGeo (BC, QC, NL) is a Qualified Person under the definition of Canadian National Instrument 43-101, and has approved the technical information in this news release. He has worked extensively on the Lac Gueret Property, now owned by Mason, and neighbouring graphite properties since 2000. The Cgr analyses are carried out and certified by MS Analytical Inc. of Langley, British Columbia using a LECO furnace and an infrared detector.
Lac Gueret South Property, Quebec
Lac Gueret South is located in Côte Nord, Quebec, a three hour drive from Baie-Comeau in an area of very good infrastructure. The Project lies directly south of Mason Graphite’s (TSX-LLG) advanced Lac Gueret Project. Mason is developing one of the largest high grade graphite deposits in the world.
In 2014, Berkwood conducted an electromagnetic (“EM”) airborne geophysical survey over its South Lac Gueret Property and successfully identified several anomalous zones of high conductivity. Several of these anomalies were downgraded as they are considered too small or too deep to represent economic graphite deposits. However, the Zone 1 and Zone 2 anomalies are of significantly larger size and were considered high priority targets. Thirteen holes drilled into Zone 1 confirmed the extensive development of graphite mineralization, confirming the targeting thesis. Drilling is now starting on Zone 2.
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 experience and whose members have been involved with the discovery of several producing mines.
On Behalf of the Board of Directors
Berkwood Resources Ltd.
President, CEO & Director
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Disclaimer for Forward-Looking Information:
Certain statements in this release are forward-looking statements, which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect.