December 21st, 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 completed the first five drill holes on the Phase Two drill program on the Company’s Zone 1 Graphite body. Further to the news release dated December 8th, 2017 whereby the Company announced a massive Graphite intercept of over 70 meters in length and close to surface, the Company is very pleased to announce that it has been successful in not only continuing to drill large intersections of Graphite but that it has drilled one intercept of over 107 meters width. All five of the holes drilled in the phase 2 drill program on the Company’s Zone 1 Graphite Body was successful in intersecting large intervals of graphite mineralisation.
Four HQ holes were drilled on an east-west line that crosses the area on Section 3100E around the initial holes BK1-03-17 and BK1-04-17, drilled on a northerly azimuth, and a fifth started another section to the north. The five holes totalled 719 m of HQ drilling.
The results of these five drill holes are as follows.
BK1-14-17 collared about 25 m east of the section line at 090° at -60°, as per the news release dated December 8th, 2017. The oriented core used in Phase 2 indicated that the foliation dipped sub vertically and had an azimuth to the north-northwest.
BK1-15-17 collared about 10 m west of BK1-14-17 on the same site as BK1-14-17 with a 270° azimuth and inclined at -45° west to a length of 145.35 m. The major graphite interval started at 47.2 m and ended at 116.2 m The graphite zone was 69 m in core length and continuous with an estimated true width of 56 m. The last few runs intersected several narrower graphite intervals.
BK1-16-17 collared on a new site ~25 m west of BK1-15-17, just west of Section 3100E with an azimuth of 090° and inclination of -60° east with a length of 145.35 m again. It intersected continuous graphite of typical grade ranges from high-grade to medium and less low grades from18.3 to 125.4 m (107.1 m). The true width is about 61 m.
BK1-17-17 was sited east of BK1-16-17 to create a scissors intersection at the tops of the holes for geological overlap. It is oriented 270° azimuth and inclined at -45° west to a length of 186 m. It intersected a major graphite zone from 47.7 – 138.5 m (90.8 m) with a true width of 53.3 m. Several narrower graphite zones occur down to 162 m. The Attikamagen Formation, the basement formation below the graphite and iron formation stratigraphy, was intersected in the lowest 10 m; it projects just west of the geophysical anomaly.
BK1-18-17 started from a new east-west line about 85 m north of the first east-west section and is near the site of BK1-05-17 and BK1-06-17 in Phase 1. It is collared just east of Section 3100E with an azimuth of 090° and inclination of -550° east with a length of 124.67 m. One significant graphite zone of medium and high-grade types was intersected from 57.3 to 70.3 m (13.0 m). The rest of the hole was in the typical mixed lithology seen in all the adjacent holes around the graphite zone(s).
Summary:
The test of the western end of Zone 1 along east-west sections showed that the graphite horizons are probably folded around the western end of the geophysical anomaly. Several examples within eight kilometers show the arcuate fold pattern exists on the scale of the Zone 1 anomaly. Continued drill testing is needed to define the folds. As well, the Company is considering using in-hole electromagnetic surveys that specifically charge the graphite horizons and maps them between holes as well as on the surface. The existing access trails provide an initial reconnaissance grid for the surface work. This Phase of the drill program completed five additional holes before shutting down for the holidays. The drill, drill pads, and financing are all in place and drilling is ready to commence in the beginning of January 2018.
The Zone 1 Graphite Body is a very large conductive and magnetic system with a 2.2 km east-west strike length and 0.6 km width. It shows two parallel zones that may be a large-scale fold. A total of 18 drill holes have been drilled into the Zone 1 Graphite Body. Assay results have confirmed not only high-grade graphite but also intersections of over 107 meters.
The Phase 2 drill program has already demonstrated some details in the Zone 1 graphite deposit geometry as well as continued strong, contiguous grades over significant continuous lengths.
The exploration potential for a significant graphite deposit has been supported by this Phase 2 campaign.
Sampling:
A total of 212 sawn core samples were taken from these first five holes of the Phase 2 drill program. All 212 of the samples were shipped to MS Analytical Laboratories in Langley, BC for the same analytical techniques used on the 383 Phase 1 samples. Results are expected back early 2018.
Lac Gueret South Property, Quebec
Lac Gueret South is located in Cote Nord, Quebec, a three hour drive from Baie-Comeau in an area of very good infrastructure. The Project directly borders Mason Graphite’s (TSX-LLG) advanced Lac Gueret Project to the South.
To view a virtual reality video of Berkwood’s drill program please scroll to the bottom of Berkwood’s home page at: 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. Edward Lyons holds the following stock option agreements in the Company (a) 40,000 common shares at $0.42 expiring August 28, 2022; and (b) 50,000 common shares at $0.26 expiring October 4, 2022.
Tom Yingling, President and CEO states, “I am very pleased to continue to drill such massive intercepts of graphite, including one of them over 107 meters thick, in an area already successfully proven to have good assays from our Phase 1 drill program. Having hit such large intercepts of graphite in all 18 holes drilled to date is helping determine the design, size and geometry of the graphite deposit. I would like to reiterate how fortunate Berkwood’s shareholders are to have our project lead and QP, Mr. Edward Lyons. Mr. Lyons has overseen the first two drill programs and plans on continuing in January 2018. He was key in developing our neighbour’s, Mason Graphite, discovery of one of the largest and highest-grade graphite deposits and soon to be in production mine.”
About the Company: Berkwood is engaged in exploration for the commodities that enable the modern revolution in essential technologies. These technologies are dependent upon materials that enhance the performance of energy storage systems and permit the development and miniaturization of new electronics and structural components in the new suite of innovative tools. The Company is led by a team with collectively over 100 years experience and have been involved with numerous discoveries of producing mines.
On Behalf of the Board of Directors
Berkwood Resources Ltd.
‘Thomas Yingling’
President, CEO & Director
FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations:
info@berkwoodresources.com or 1-778-945-2935 www.berkwoodresources.com
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.
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.
