Berkwood Reproduces Initial Mineral Resource Estimate on the Prospect Valley Gold Project, Merritt, BC

VANCOUVER, British Columbia, Jan. 25, 2012 /PRNewswire/ -- Berkwood Resources Ltd. (TSX-V SYMBOL: BKR.V) ("Berkwood") announced on January 3, 2012 that it again controls 100% of the Prospect Valley Gold Property. After regaining control of the project, Berkwood reviewed previously published NI43-101 compliant Mineral Resource estimates for the property (see Altair Ventures news release dated October 19, 2011 at www.sedar.com) and is formally reissuing these estimates now in Berkwood's name. The North and South Discovery Zones host a combined inferred mineral resource estimated at 166,000 ounces gold grading 0.511g/t gold above a cut-off grade of 0.30g/t gold.  The reissued NI 43-101 compliant report by Henry J. Awmack and Gary H. Giroux will be filed on www.sedar.com shortly.

The Prospect Valley Gold Property is road-accessible, three hours driving time from Vancouver, and situated in proximity to good infrastructure and logistics near Merritt, British Columbia. It covers 107 km(2) encompassing a number of structurally controlled epithermal gold prospects with potential to host bulk tonnage and/or high grade vein deposits. The NI43-101 compliant Mineral Resource estimates were calculated on two of these gold prospects, the North Discovery Zone and South Discovery Zone. The zones remain open for expansion and the property is host to a number of other gold prospects not yet drilled.

Mineral Resource Estimate Methodology

The Mineral Resource study used a database of 45 drill holes totaling 6,940 metres completed between 2006 and 2010 and containing 95 down hole orientation surveys and 3,609 assays. Using a 0.04g/t gold cut-off, 2 three dimensional solids were built to constrain the North and South Discovery zones.  Drill holes were then compared to these solids and individual assays were tagged if inside or outside the solids.  Of the individual assay intervals within the mineralized solids, 95% were less than 2m in length.  As such, uniform 2.5m composites were produced that honoured the solid boundaries.  No dilution was incorporated.  Grade continuity for gold was examined using pairwise relative semi-variograms within the combined North and South zone composites.  The 2 domains were combined for variography since they lined up along the Early Fault Zone and Early Fault Zone Breccia.  A block model with blocks of 10m x 10m x 5m in dimension was superimposed over the mineralized solids.  The average specific gravity of 2.55 g/cc was used to convert volume to tonnes.  Grades for gold were interpolated into blocks containing some percentage of North or South zone mineralized solids by ordinary kriging. For blocks in the North Zone only North Zone composites were used and likewise for blocks in the South Zone. The kriging exercise was completed in a series of 4 passes with the search ellipsoid for each pass a function of the semivariogram range.

Based on this study, the delineated mineralization of the North and South Discovery Zones were classified as a NI43-101 compliant inferred mineral resource.  Although the drill density is not sufficient to classify any material as measured or indicated, the resource calculations tabulated below assumes one could mine to the limits of the mineralized solids. A possible open-pittable economic cut‑off grade of 0.3 g/tonne Au has been highlighted, although no economic studies have been done to date.  The effective date for this reissued resource is June 30, 2011.

Table 1:  All Blocks – Inferred

These results can be subdivided into North and South Zone Resources.

Table 2:  North Zone – Inferred

Table 31:  South Zone – Inferred

Henry J. Awmack, P.Eng. of Equity Exploration Consultants Ltd. and Gary H. Giroux, P.Eng. of Giroux Consultants Limited, both Qualified Persons under the definition of Canadian National Instrument 43‑101, are responsible for the mineral resource information in this new release. Both are independent of Berkwood applying all of the tests in section 1.5 of NI 43‑101. The property was  visited by Mr. Awmack in July 2011.  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 news release other than information directly related to the mineral resource estimates.

Future Plans

These mineral resource estimates represent an initial encouraging compilation for two partially drill tested gold prospects on the Prospect Valley Property. These zones both remain open for expansion to depth and along strike. Notably the gold grade of the Discovery South Zone increases with depth where additional drilling is proposed.  A number of other gold prospects and anomalies known on the property have yet to be explored. Berkwood is now making plans for the 2012 exploration season to expand the known gold zones and carry out exploration on the balance of the large 107 km(2) property.

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 km(2) 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 above a cut-off of 0.30g/t gold 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 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 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.