Berkwood Provides Update on Geological Mapping and Soil Sampling Results on the Cimandiri Gold Project

VANCOUVER, British Columbia, Jan. 31, 2012 /PRNewswire/ -- Berkwood Resources Ltd. (TSX-V SYMBOL: BKR)  ("Berkwood") is pleased to provide an update on its 100% owned Cimandiri Gold Project in West Java, Indonesia and the previously reported geological mapping program utilising two mapping teams (see news release dated October 27th 2011), as well as an update on the continuing soil sampling program taking place on the Cimandiri Property.

Geological mapping of alteration, structure and lithology has now been completed. Surface geological mapping and geochemical analysis of the samples have identified two gold targets, the Cipetir prospect and the Cisaru prospect (see map here). These prospect areas indicate a low sulphidation epithermal system associated with stockwork style mineralization.

The surface and soil sampling program, that continues on the property, has confirmed the Cipetir and Cisaru prospects, which were previously identified during geological mapping. Soil and rock sampling has also confirmed the continuity of mineralization and alteration between the Cipetir and Cisaru gold prospects (see maps here).

This sampling has also identified a new prospect, the Lubang prospect, a 500 m2 area of interest on the Cimandiri property, where an old, hand dug adit made by locals with a depth of 2 meters was found. A grab sample in the adit has returned a result of 5.4 g/ton, and soil sampling has confirmed this anomaly on surface. The Lubang prospect is still open to the North West and North East.

The soil samples have been taken at depths between 1 to 6 meters, following ridge and spur sampling technique. Hand auger tools are being utilized to reach the 'C' horizon level. As sampling continues, infill sampling will take place between the areas of interest to expand all of the current prospects.

Soil and rock samples are being sent to Intertek laboratories in Jakarta for geochemical analysis of Au, Ag, Cu, Pb, Zn, Hg, and As using Fire Assay, Acid Assay, and ICP.

Johannes Erasmus, associate geologist of Micromine Pty Ltd, a Qualified Person as defined by National Instrument 43-101, reviewed and approved the content of this News Release.

About Berkwood Resources

Berkwood now holds a 100% interest in the Prospect Valley Gold Property near Merritt, BC.  To date, several areas of gold mineralization have been identified on the 107 km2 property.  The majority of historic drilling has taken place in the centre of the claim block along a prominent north-northeast trending linear zone.  This drilling outlined NI43-101 compliant Mineral Resources totaling 166,000 ounces grading 0.511 g/t gold, 10,077,000 metric tonnes above a cut-off of 0.30g/t gold (see news release dated January 25th 2012)  at the combined Discovery South and Discovery North Zones. The zones remain open for expansion and other known zones of gold mineralization have yet to be drilled.

Berkwood has a 100% interest in the Cimandiri Gold Property in Indonesia, located 120km south of Jakarta, approximately 3 hours driving time.  Railway lines are nearby, with the closest rail station located only 8km from the property.  The project is located 9km southwest of the Cikondang Gold mine.  Berkwood has carried out initial mapping and geochemical sampling during the first phase of exploration and will continue to report material results as they are received.

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For additional information please contact:

Karim Sayani, Corporate Communications
Tel: (604) 662-7455 E-mail: [email protected] 

Tom Steer, Media Relations Manager
Tel: (604) 681-5556 E-mail: [email protected]

On Behalf of Berkwood Resources,
Brian Buchanan, President and Director

This Berkwood News Release contains certain "forward-looking" statements and information relating to Berkwood that are based on the beliefs of Berkwood's management as well as assumptions made by and information currently available to Berkwood's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. Berkwood does not assume the obligation to update any forward-looking statement.

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.

SOURCE Berkwood Resources Ltd.