December 8th, 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 hole of the Phase 2 drill program on Berkwood’s Zone 1 Graphite Body. Management is very pleased to report that the Company has drilled a massive Graphite intercept of over 70 meters in length and close to surface. Berkwood’s Phase 2 drill program on the Zone 1 Graphite Body was targeted based on the Phase 1 drill program’s successful results whereby the Company demonstrated average Graphite grades in the range of 14.39 to 25.52% Cgr and true thicknesses ranging 22.1 to 40.3 m. (see the news release dated November 28th, 2017 ) This Phase 2 drill program is designed to delineate the size and geometry of this Graphite body
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. The Phase 1 drill program on Berkwood’s Zone 1 Graphite Body focused on only a small western portion of the geophysical anomaly. The Company was waiting for the Phase One drill program assay results to determine if a Phase 2 drill program would commence on the Zone 1 Graphite Body, as well as determine the best location to commence the Phase 2 drill program. Significant exploration risk has been mitigated with the assays on the Phase 1 drill program. That, and the fact that most of the anomaly has not been drill tested, increases Zone 1 as a priority area.
Phase 2 drilling started on Berkwood’s Zone 1 Graphite Body, with BK1-14-17 on 4 December 2017. The planned series of holes are located around Section 3100E, which had the best graphite intersections in the Phase 1 program. The Phase 2 drill program has started with a series of eight drill holes planned across the previous north trend to delimit the structures and use a core orientation system to define the actual foliation strikes and dips. These will be completed by December 19th, 2017.
The first hole was successful in intersecting a key zone found in the Phase 1 drilling. The hole was sited about 40 m east of Site #2 where holes BK1-03-17 and BK1-04-17 drilled to the north intersected significant graphite intervals as previously reported with analyses. BK1-14-17 was drilled to the east with a -60° inclination and reached 109.7 m length. The TruCore alignment system showed the foliation was subvertical to steep east-dipping and had azimuths between 340° to 010° with most close to 360°. The geology summary with graphite and sulphide visual estimates is 19.4 – 50.5 m (31.1 m) Graphite quartz schist, with graphite visual estimates range from 20% to 30%+ Cgr (“carbon as graphite”) and a variety of graphite textures and medium flakiness.
50.5 – 80.2 m (29.7 m) High-grade graphite with 25+% Cgr..
80.2 – 90.9 m (10.7 m) Graphite-quartz-biotite schist; Gr 20% to 25% Cgr in fine to coarse flakes.
The combined graphite interval of 60.8 m core length is 51 m true width, based on foliation attitudes is about 27.6 m, similar to true widths previously drilled.
Samples are being saw-cut and will be sent to MS Analytical Laboratories in Langley, BC., at the end of the Phase 2 drill program, as were the Phase 1 samples.
DDH BK1-15-17, on the same site, is oriented at 270° azimuth and -45° inclination to test the orientation and grade of graphite intervals in the two holes on Site #2. Eight holes are planned for a total of about 850 m before the Christmas shutdown. Drilling is planned to recommence in early January 2018.
The new program has already demonstrated some details in the Zone 1 graphite deposit geometry as well as continued strong, contiguous grades over significant continuous lengths.
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 have drilled such a massive intercept of graphite in an area already successfully proven to have good assays from our Phase 1 drill program. I would like to reiterate how fortunate Berkwood’s shareholders are to have our project lead and QP, Mr. Edward Lyons. Mr. Lyons is currently on site managing and directing our drill program. He was responsible for 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.
President, CEO & Director
FOR MORE INFORMATION, PLEASE CONTACT:
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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.