August 22, 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 two holes and collared a third on its Lac Gueret South Graphite Project located in Quebec. The Company is pleased to confirm that the initial two holes have intersected visual graphite at depths consistent with conductive units detected using electromagnetic (“EM”) geophysical techniques. These techniques were applied by the Company to develop its initial group of targets, and drill pads have been prepared for the initial suite of targeted PhiSpy conductive anomalies, located in the Zone 1 area (refer location descriptions below). The initial holes and their visually logged intercepts are important as they justify continued prosecution of the planned program. The Company anticipates completing up to 14 further inclined drill holes (of between 60m and 120m in length) in this initial phase of work.
The drill program started at Site #1 with DDH BK1-01-17 inclined at -45° on azimuth 358°. The 2nd hole on the same site, BK1-02-17, was inclined at -70°. These initial holes were located on the southern margin of the SW extent of a large airborne and ground EM and magnetic anomalous area in order to confirm the modelled dip direction of the large structure and to test for the presence of graphite. The dip on section appears to be about 70° to the south, confirming the geophysical model in this part of Zone 1. The drilling intersected visually identifiable graphite over intercepts at 40.2m – 45.3m (3.1m) and between 99.48 and 137.77m (38.29m) in BK1-01-17; and over intercepts from 43.6 – 46.3 (2.7m) and from 63.1 – 73.0 (9.9m) in BK1-02-17. These intercepts are as drilled intercepts, and do not represent true widths. The reader is cautioned that visual recognition of graphite does not equate to grades of significance.
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. With a market capitalisation of over $200 million Mason owns one of the largest high grade graphite deposits in the world, and is planning on building a new graphite mine and processing plant.
In 2014, Berkwood conducted an airborne EM geophysical survey over its Lac Gueret Property and successfully identified several anomalous zones f high conductivity. The Zone 1 and Zone 2 anomalies are the largest and are therefore considered high priority targets for immediate exploration by drilling and trenching. These conductive areas are almost entirely covered by muskeg and till with limited bedrock outcrops on the property.
Lac Gueret South’s Zone 1
Two distinct electromagnetic conductors appear to occur over a two kilometer length and 50 meters to 600 meters in width as defined by airborne EM geophysics (see the Berkwood’s news release dated February 10, 2015). The pattern suggests a closed syncline or anticline that could repeat favourable stratigraphy. The western part of this zone was further defined by ground VLF and EM surveys: four VLF and 22 contiguous PhiSpy EM conductors have been detected over an apparent 800 meters length and up to a 300 meters width. This western area is interpreted as a potential bulk graphite zone interlayered within the inge of a complex foldsystem. The limbs thin to 50 meters in width as the Zone extends eastward.
A total of 11 rock grab samples were collected in the vicinity of the Zone 1 anomaly: three of these samples contained 36.3%, 14.4%, and 1.04% Cgr (Carbon as Graphite) respectively. The presence of significant values of Carbon as Graphite found in the vicinity of these mainly covered large geophysical anomalies is interpreted to indicate that the anomalies are probably large graphite zones.
Lac Gueret South’s Zone 2
Zone 2 lies immediately south of the Mason Graphite claim boundary and long strike from the graphite zones of Mason Graphite. A total of two LF-EM and 15 PhiSpy ground geophysical anomalies confirm the occurrence of two parallel east-west conductors. The larger conductor extends 1 kilometer in length and 60 meters in width. The program is being undertaken subject to two current drilling permits issued by regulators in Quebec.
Edward Lyons P.Geo. (BC, QC, NL) is a Qualified Person under the definition of Canadian National Instrument #43- 101, and has read and approved the technical information in this news release. The Cgr analyses were carried out and certified by AGAT Laboratories of Mississauga, Ontario using a LECO furnace and an infrared detector.
Tom Yingling, President and CEO states, “I am pleased to provide early confirmation that we have intersected graphite in the initial holes in our program. This confirms the effectiveness of our targeting methods and justifies further exploration of the extensive and very compelling conductive zone, in a district in which the world class Mason graphite deposit is now in development. We caution investors that visual confirmation of graphite should not be treated as equivalent to assay data: however, the observed intercepts fully justify continuation of the planned program.”
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.
Signed: “Thomas Yingling”
Thomas Yingling, President, CEO & Director
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 ased on certain expectations, estimates and assumptions, which may prove to be incorrect.