Hi, Ive been having a look at Berkeley Resources in recent days...

Hi,

Ive been having a look at Berkeley Resources in recent days and took a position on Friday after yet another cracking set of drilling results. I remain a frustreated holder of 250k MEY shares.

Berkeley has three very exciting Spanish prospects, 80mlbs+ (100ppm cut off) already in the bag & a definative feasibility study which is well advanced. They hope to be in production in the near future. The DFS has been very impressive compared to peers (Bannerman, Deep Yellow, Forsys etc) and Scoping study indicated that production will cost a very economic $26-$29.

The latest drilling results are NOT included in the current 80mlbs and when they are will dramatically increased the indicated & inferred lbs in the ground. The latest drilling result the highlights released today took the market by surprise and the shares rose 8% in London on Friday. The Alamanda south deposit in particular looks an absolute cracker and highlights include:

Alameda South -High grade intersections returned include holes:

- ASR-029 35m @ 2,044ppm (at a depth between 28- 63m)
- ASR-031 26m @ 3,923ppm (Depth 28- 63m)
- ASR-032 18m @ 1,401ppm (22 - 40m)

In addition at Sageras, two RC holes have identified a new mineralised zone that appears to be open to the north-west.

- Hole ZRC-012 intersected very high grade mineralisation from 44m depth over a 3 metre interval grading 7,027ppm U3O8!!

I am aware that at least one institution is stake building.

On the face of it Berkeley looks very interesting and puts Marenicas low grades into the shade. However what puzzles me is why did Areva swap their stake in Berkeley (with Polo Resources in Dec 2009) for Polos stake in Marenica at an equivalent price of just under 20c?

What are Areva seeing in Marenica (a part from the obvious proximity to Trekopje) that the rest of the market does not?

D