Berkwood Provides Update on the Prospect Valley Gold Property, Merritt, BC

Jan 10, 2012, 16:30 ET from Berkwood Resources Ltd.

VANCOUVER, British Columbia, Jan. 10, 2012 /PRNewswire/ -- Berkwood Resources Ltd. (TSX-V SYMBOL:  BKR.V) ("Berkwood" or "the Company") announced on January 3, 2012 that it again controls 100% of the Prospect Valley Gold Property.  Plans are now being made to expand previously drill-defined gold zones and to advance exploration of the extensive epithermal gold mineralization on the property.

The Prospect Valley Gold Property covers 107 km2 over extensive, structurally controlled epithermal gold mineralization with the potential to host bulk tonnage and/or high grade vein deposits.  It is road-accessible, three hours driving time from Vancouver, and situated in proximity to good infrastructure and logistics near Merritt, British Columbia.

To date, several areas of epithermal gold mineralization have been identified on the property.  Since 2006, extensive field work has included stream sediment geochemistry, extensive grid soil sampling, ground geophysics (magnetics and induced polarization), geological mapping, extensive hand trenching, and over 7,000m of core drilling mainly in the center of the property.  This work outlined a prominent north-northeast trending linear zone that includes drill- defined gold mineralization at the Discovery South Zone, the Discovery North Zone and the Northeast Extension Zone. 

The 2011 summer field program at Prospect Valley identified additional zones of epithermal gold mineralization.  The exploration program evaluated 8 targets outside the North and South Discovery Zones in an area covering approximately 40 km2.  In an area 300m to 500m west to northwest of the Northeast Extension Zone, rock sampling resulted in the discovery of epithermal quartz veins and breccia in surface cobbles and bedrock.  A sample of epithermal quartz veined volcanic rocks found in a talus slope returned 6.2g/t gold.  Similar-looking material was traced uphill where a north striking and 50 degree west dipping breccia zone was discovered (see Berkwood news release dated October 12, 2011 for details).  The extent of this zone is unknown at present, but a 1.5m chip sample across this zone returned 0.33g/t gold.  Investigation of a soil anomaly at the northernmost line of the existing soil sampling grid, 440m south-southwest of the bedrock occurrence, revealed abundant angular quartz vein and breccia surface cobbles suggesting a local source.

George Gorzynski, P.Eng. a Director of Berkwood and a Qualified Person under the definition of Canadian National Instrument 43-101, is responsible for the technical information in this new release.

About Berkwood Resources Ltd.

Berkwood 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 10,790 hectare 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 work outlined drill defined gold mineralization at the Discovery South Zone, the Discovery North Zone and the Northeast Extension Zone.  The project is currently in advanced stages of exploration.

Berkwood also 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 open pit mine.  Berkwood has carried out initial mapping and geochemical sampling during the first seven months of exploration and will continue to report material results as they are received.

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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.