Berkwood Announces Annual General Meeting Results

July 25, 2019, VANCOUVER, B.C. – Berkwood Resources Ltd. (“Berkwood” or the “Company”) is pleased to announce that on July 25, 2019 it held its annual general meeting of shareholders (the “Meeting”). A total of 7,116,042 common shares (approximately 12.45% of the outstanding common shares) were represented at the Meeting in person or proxy.

1.   Election of Directors

Each of the following individuals were elected as directors of the Company as approved by a vote by ballot, for a term expiring at the conclusion of the next annual meeting of shareholders of the Company or until their successors are elected or appointed, as follows:

Name Votes “For”
(%)
Votes “Against”
(%)
Votes “Withheld/Abstained”
(%)
Thomas Yingling 91.87 0 8.13
Binny Jassal 91.87 0 8.13
Charn Deol 96.96 0 3.04
Ian Graham 86.81 0 13.19

2.   Appointment of Auditor

The appointment of Smythe LLP, Chartered Professional Accountants, as the auditor of the Company, to hold office until the next annual meeting of shareholders of the Company, and the authorization of the directors of the Company to fix the auditor’s remuneration, was approved by a resolution passed by a vote by ballot, with 6,241,542 (100%) total votes cast “FOR” and 0 “WITHHELD/ABSTAIN”.

3.   Stock Option Plan

The Stock Option Incentive Plan resolution was approved by a resolution passed by a vote by ballot, with 5,704,542 (91.40%) total votes cast “FOR” and 536,500 (8.60%) total votes cast “Against”.

Immediately following the annual meeting, the directors convened and the following were appointed offices for the ensuing year:

Thomas Yingling – President and CEO
Binny Jassal – Chief Financial Officer

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

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.

Berkwood Mobilizes a Surface Sampling program at its Lac Gueret Graphite Project mineralised extensions

July 24th, 2019, VANCOUVER, B.C. Berkwood Resources Ltd. (TSX-V: BKR, FSE: BK2, WKN: A2DNV4) (“Berkwood” or the “Company”) is pleased to announce that it has mobilized field crews to its Lac Gueret extension projects, located adjacent to its Lac Gueret South Graphite Project in Quebec, for the immediate collection of surface graphite exposure samples, and for the collection of near surface conductor distribution data by beep-mat. Based upon the recent News Release regarding the Company’s robust pit-constrained mineral resource at its Lac Gueret South Project (NR of July 16th, 2019), the Company has determined that a potential long-term graphite production strategy is further served by evaluating multiple proximally located podiform graphite deposits (comparable to its centrally located Zone 1 project) to feed a future, centrally located conceptual processing facility. The model is amenable to graphite production from multiple shallow, low strip ratio open pit mining locations surrounding the Company’s existing project.

To advance the current project model the Company has, in the context of resource learning acquired from the evaluation of its drilled Zone 1 occurrence, further assessed the historic sampling of known graphite exposure in the area. The review has isolated a number of high priority targets, some of which have returned high grade samples during work by previous entities. The presently planned geophysics and sampling campaign will target at least five identified areas (including the eastern extension of Zone 1), including three (3) high priority locations where previous workers have previously reported multiple high grade samples at surface. The five target zones will be prospected, sampled and surveyed on the strength of:

  1. historic sampling exercises;
  2. airborne geophysical anomalies (2003 regional GeoTEM time domain EM data, locally a 2014 TDEM survey flown by the Company, 2012 airborne magnetics flown by government entities, and 2015 EM data filed for assessment credit, respectively) and
  3. ease of access and proximity to the core Zone 1 project.

The program as envisaged will access the targets using existing roads and forest trails and will not include further access development as part of the present program. The initiative is lead by Quebec-based field teams with channel sampling being supervised by Steven Lauzier P.Geo of Acton Vale, QC.

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 $43 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.

Lac Gueret South’s Zone 1

The Project arises from two distinct electromagnetic conductors that occur over a two kilometer length and up to 600 meters in width as defined by airborne EM geophysics (see the Berkwood news release dated February 10, 2015). 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 was interpreted as a potential bulk graphite zone interlayered within the hinge of a complex fold system. Based upon the geophysics, drilling confirmed the presence of high interest graphite. Since discovery four separate drill programs have been executed on the western extent of Berkwood’s Zone 1 Graphite Body for a total of 45 holes and 6,006m completed. This work lead to the recent completion and announcement of a pit-constrained resource comprising 1.76 million tonnes of 17% Cg (Carbon as graphite) as an indicated resource and 1.53 million tonnes of inferred resource at 16.4% Cg (refer NR of June 16th, 2019).

Tom Yingling, President and CEO states, “Berkwood is in the process of demonstrating a viable conceptual hub resource location at its Zone 1, Lac Gueret South prospect location. The coarse nature of the naturally occurring graphite, and the compelling in situ grades, has stimulated our determination to rapidly locate and evaluate certain nearby zones of Zone 1 lookalike graphite occurrences. These occurrences are of interest as they could support our emerging hub-and-spoke mining feed model, which envisions an integrated graphite production scenario that depends upon shallow production from multiple podiform deposits. The model would offer maximum optionality in production scheduling and extended resource life. The existence of a number of nearby known high grade occurrences and some geophysical Zone 1 lookalike targets has motivated Berkwood to galvanise this rapid sampling and shallow geophysical initiative so as to expedite definition of proximal feed sources: these will compliment the potential of the Zone 1 prospect, where the recently reported resource underpins Berkwood’s near term plans for next steps.”

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. Ed has worked extensively on the Lac Gueret Property, now owned by Mason, and neighbouring graphite properties since 2000.

About the Company:  Berkwood is engaged in exploration for the commodities that enable the modern revolution in essential technologies. These technologies are dependent upon the ethical mining and supply of naturally occurring elements and minerals that enhance the performance of energy storage systems and permit the development and miniaturization of new electronics and structural components for the new suite of innovative tools.  The Company is led by a team with collectively over 100 years experience and whose members have been involved with the discovery of several producing mines.

On Behalf of the Board of Directors
Berkwood Resources Ltd.

‘Thomas Yingling’

President, CEO & Director

FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations: 
info@berkwoodresources.com or 1-604-343-7740     www.berkwoodresources.com

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.

Neither 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 release.

Berkwood obtains robust pit constrained mineral resources at its Lac Guéret South Project

Vancouver, July 16th, 2019 – Berkwood Resources Ltd. (TSX-V: BKR) is pleased to announce the results of a pit-constrained Mineral Resource Estimate regarding its Lac Guéret South Project. This maiden Mineral Resource Estimate for Lac Guéret South, Zone 1, is summarized in Table 5 (with annotation). The Mineral Resource Estimate is based on drilling campaigns in 2017 and 2018 totalling 6,232.49 meters and surface trench samples over 77 meters.

Table 1: Base Case Pit-Constrained Mineral Resource Estimate at the Lac Guéret South Project1

Mineral Resource Category Current Resource (June 2019)8
Tonnage (Mt)5,7 Grade (% Cg)4 Cg (t)6
Indicated 1.76 17.00 299,200
Inferred3 1.53 16.4 250,200

Notes:

  1. The mineral resources provided in this table were estimated using current Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definition and Guidelines.
  2. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Additional trenching and/or drilling will be required to convert Inferred and Indicated Mineral Resources to Indicated and Measured Mineral Resources.
  3. Inferred Mineral Resource represent material that is considered too speculative to be included in economic evaluations. Additional trenching and/or drilling will be required to convert Inferred Mineral Resource to indicated or Measured Mineral Resource.
  4. All analyses used for the Resource Estimates were performed by MS Analytical in Langley, BC with verification samples at ALS-Laboratory at Burnaby, BC and was tested for graphitic carbon (“% Cg”), internal analytical code SPM-140 and GE_CSA05V.
  5. Current Resource effective June 30, 2019.
  6. No recovery was applied in the calculation of tonnage of graphitic Carbon (90% recovery was applied in pit optimization to define pit constrain mineral resources)
  7. The Current Mineral Resource are stated at a cut-off grade of 6.81% Cg.

Tom Yingling President and CEO states: “Berkwood has reached a significant milestone at our lac Guéret South project with the definition of significant pit constrained mineral resource. With this new data Berkwood has started the process of the permitting in order to permit forest logging in the area of the resource to allow for stripping and bulk sampling at surface. This resource presents sufficient size and grade for the Company to move forward with immediate next step plans, as this maiden resource compares favourably with other developed and in-development projects. We are confident Lac Guéret South will figure into the emerging Lac Guéret graphite production camp in the near future. Our exploration and metallurgical work has received enthusiastic support of our investors and financiers, and we will immediately embark upon a program of resource expansion in the local area. We will immediately refine our current resource and increase our knowledge on the quality and size of the deposit(s) we can expect for eventual customers.”

Edward Lyons, PGeo (BC,QC,NL) states: “The results of the initial resource estimate and metallurgical testwork demonstrate that the Zone 1 deposit as tested to date has substantial resources and robust recoveries, subject to further testing. The deposit has not been closed off in the lateral extents and the several geophysical surveys suggest that the shallower mineralisation continues around the western fold hinge. The strike length has the potential to significantly increase resources with future development drilling. The Zone 2 target now in early exploration stage, may add mineralisation as well.”

Table 2: Current Resource Pit Envelope Characteristics.

Characteristics Main Layer 01
Length (m)1 290 340
Azimuth (°) 80 42
Maximum width (m) 130 35
Surface Area (km2) 0.13
  1. Measured length is approximate.

Data Sources and Current Resource Estimation Methods

The block model used to generate this Resource is based on a total of 45 diamond drillholes and two trenches for a total of 6,232.49 metres and 77 metres of trenches with 1194 core samples and 28 samples collected from trenches.

The present Resource block model was prepared under supervision of Claude Duplessis, P.Eng. of GoldMinds Geoservices Inc. of Québec City, QC using Genesis© mining software. The block model estimate was performed using interpolation according to the inverse of the distance from nearest sample composites and the ellipsoid influenced distance in calculation were adapted for the geology of the deposit using the special variable direction search ellipsoid tool available in Genesis software and designed for application to folded deposits.

The block size has been defined in order to respect the complex geometry of the envelopes of mineralization. The mineral resource estimate was carried out with a block size of twenty-seven cubic meters (3m (EW) x 3m (NS) x 3m (Z)). The density to convert volume to tonnage used is 2.9 g.cm-3.

The envelopes have been filled by regular blocks and only composites within the envelopes were used to estimate the block grades. This represents a total of 3015 composites.

The average percentage carbon (% Cgr) was calculated using interpolation according to the inverse of the distance from nearest composites and the ellipsoid Influenced distance in calculation. Interpolation parameters were based on drill spacing, envelope extension and orientation.

Different numbers of runs and ellipsoid dimensions were used depending on the envelope. Two runs were used in envelope “Main” and only one run was used in each remaining envelopes (Layer 01, Layer A and Layer B), for the mineral Resource Estimate (see ellipsoids parameters in Table 3).

Specifically, run parameters were as follows: Main envelope: In run one (1), the number of composites is limited to nine (9) with a minimum of three (3) per block and a maximum of two (2) composites from the same drillhole. For run two (2), the number of composites was limited to nine (9) with a minimum of three (3) and no limit number composites per drillhole. For Layer 01, Layer A and Layer B: One run was executed with the number of composites limited to nine (9) with a minimum of three (3) per block and a maximum of two (2) composites from the same drillhole.

Table 3: Variable Search Ellipsoid Parameters

Ellipsoids Parameters Main Pass01 Main Pass02 Layer01 Layer A Layer B
Azimuth 80 80 50 50 50
Dip 0 0 0 0 0
Spin 5 5 35 35 35
Major 30 40 30 10 15
Median 40 60 40 15 15
Minor 10 15 10 5 5

Within the folded or faulted nose of the Main envelope, a variable ellipsoid was used in the estimate, as Genesis software (chosen specifically for its features) has the capacity to search along complex planes.

The classical method of distance and composites within the search ellipsoid was selected to classify the deposit where one defined class is used by ellipsoid. A total of two ellipsoids and two runs were applied. Two runs were performed for the Main envelope (indicated and inferred) and one run was done for each envelope Layer 01, Layer A and Layer B (inferred).

The block model was afterward processed in MineSight software to provide an optimized pit envelope constraining the mineral resources (see Table 4 below). The technical and economic parameters used to generate the shell envelopes are listed in the Table 5 below. The base case is in bold.

The resource shell parameters were derived from comparable graphite projects in the region and preliminary metallurgical testing done at Met-Solve Laboratories of Langley, British Colombia in Section 13 of the upcoming NI 43-101 report presenting similar results aligned with an adjacent project. Duplessis elected to apply a conservative recovery of 90% as additional metallurgical testing is required to better define the flake class and pinpoint values of the eventual saleable products.

Table 4: Pit optimization Results (rounded)

Optimised Pit. Mineral Resource Waste(*) Stripping Ratio
Indicated Inferred
Tonnes Cg (%) Tonnes Cg (%) Tonnes
Pit 01 998 600 21.50 424,300 23.01 5,520,800 3.87
Pit 02 1,161,300 20.21 730,800 20.96 8,371,100 4.42
Pit 03 1,349,900 19.02 908,900 19.42 9,921,600 4.39
Pit 04 1,474,900 18.19 1,042,400 18.46 10.730,700 4.26
Pit 05 1 648 800 17,35 1,349,400 17.05 14,229,900 4.74
Pit 06 (base Case) 1,755,300 17.00 1,526,400 16.39 16,774,000 5.11
Pit 07 1,816,800 16.73 1,793,800 15.49 19,592,000 5.42

(*) “waste” here is not waste but is considered to be material which is not economic at the time of this pit optimization.

Table 5: Current Resource Shell Envelope Generation Parameters Base Case ($CDN)

Parameters Values
Mining Cost 6 $/t
Transport 36 $/t
Processing 40 $/t
G & A 10 $/t
Recovery 90 %
Selling Price Cg 1,530 $/t

Quality assurance and control were maintained through the systematic use of blank (non-graphitic) samples inserted into the sample sequence every 20th sample as well as duplicated quarter-cut drill core. The blank samples were consistently of very low grade. The duplicate samples were near the initial analyses on the half-core; there is typically some variation in grade owing to the reduced volume of material in quarter-cut core vs. half-core plus the local variations at decimeter scale. Fifty (50) samples selected by Lyons were taken from the original rejects at MS Analytical and one-kilogram riffle-split coarse reject was delivered to ALS Laboratory for analyses that closely followed the original methods used by MS Analytical. These had a close correlation.

The database was reviewed by Lyons and GoldMinds. Several typographic errors were discovered and resolved, and the final database included these corrections.

The technical data included in this release was prepared by qualified independent experts, as defined by NI 43-101 Regulation, including Claude Duplessis Eng., of GoldMinds Geoservices Inc. (resource estimation), Edward Lyons PGeo (BC, QC,NL) of Tekhne Research Inc. (senior author and most of the report), and Florent Baril, Eng. of Bumigème Inc. for mineral processing and metallurgical testing.

Berkwood Resource Ltd is finalising a Mineral Resource Estimate technical report, in accordance with the National Instrument (NI) 43-101, detailing this important announcement: the report will be filed on SEDAR within the next 45 days.

Edward Lyons PGeo (BC, QC, NL) is the Qualified Person under the definition of Canadian National Instrument 43-101 for Berkwood Resources and has approved the technical information in this news release. Ed has worked extensively on the Lac Gueret Property, now owned by Mason, and neighbouring graphite properties since 2000.

About the Company: Berkwood is engaged in exploration for the commodities that enable the modern revolution in essential technologies. These technologies are dependent upon the ethical mining and supply of naturally occurring elements and minerals that enhance the performance of energy storage systems and permit the development and miniaturization of new electronics and structural components for the new suite of innovative tools.  The Company is led by a team with collectively over 200 years experience and whose members have been involved with the discovery of several producing mines.

On Behalf of the Board of Directors
Berkwood Resources Ltd.

‘Thomas Yingling’

President, CEO & Director

FOR MORE INFORMATION, PLEASE CONTACT:

Investor Relations: 
info@berkwoodresources.com  or 1-604-343-7740  www.berkwoodresources.com

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.

Neither 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 release.

Berkwood plans a Surface Sampling program at its Lac Gueret Graphite Project mineralised extensions.

July 9th, 2019, VANCOUVER, B.C. Berkwood Resources Ltd. (TSX-V: BKR, FSE: BK2, WKN: A110N3) (“Berkwood” or the “Company”) is pleased to announce that it has planned for mobilization of field crews extension projects, located adjacent to its Lac Gueret South Graphite Project located in Quebec for the immediate collection of surface graphite exposure samples, and for the collection of near surface conductor distribution data by beep-mat. The Company has determined that a long-term graphite production strategy is best served by evaluating multiple proximally located podiform graphite deposits (comparable to its centrally located Zone 1 project) to feed a future, centrally located processing facility. The model is amenable to graphite production from multiple shallow, low strip ratio open pit mining locations surrounding the Company’s existing project.

To advance the current project model the Company has, in the context of resource learning acquired from the evaluation of its drilled Zone 1 occurrence, further assessed the historic sampling of known graphite exposure on ground currently held. The review has isolated a number of high priority targets, some of which have returned high grade samples during previous workers. The presently planned sampling campaign will target five identified areas (including the eastern extension of Zone 1).

The sampling and shallow geochemistry program will focus on five (5) high priority locations where previous workers have previously reported multiple high-grade samples at surface. The five target zones will be prospected, sampled and surveyed on the strength of historic sampling exercises, airborne geophysical anomalies (2003 regional GeoTEM time domain EM data, locally a 2014 TDEM survey flown by the Company, and 2012 airborne magnetics flown by government entities respectively), ease of access and proximity to the core Zone 1 project.

The planned program will access the projects using existing roads and forest trails but will not include further access development as part of the present program. Preparations for mobilization are presently being expedited, and mobilization will be affected mid-July.

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 $250 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.

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 news release dated February 10, 2015). 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 hinge of a complex fold. The limbs thin to some 50 meters in width further to the east.

Four separate drill programs have been executed on the western extent of Berkwood’s Zone 1 Graphite Body for a total of 44 holes and 6,006m completed. The Company is pleased to announce it has intersected visual Graphite in every hole drilled to date, with significant Cgr intercepts being observed in 41 holes. These programs have provided the data and assays for a resource estimation program that is presently in process.

Tom Yingling, President and CEO states, Berkwood is in the process of demonstrating a viable conceptual hub resource location at its Zone 1, Lac Gueret South prospect location. The coarse nature of the naturally occurring graphite, and the compelling in situ grades, has stimulated our determination to rapidly locate and evaluate certain nearby zones of Zone 1 lookalike graphite occurrences. These occurrences are of interest as they could support our emerging hub-and-spoke mining feed model, which envisions an integrated graphite production scenario that depends upon shallow production from multiple podiform deposits. The model would offer maximum optionality in production scheduling and extended resource life. The existence of a number of nearby known high grade occurrences and some geophysical Zone 1 lookalike targets has motivated Berkwood to galvanise this rapid sampling and shallow geophysical initiative so as to expedite definition of proximal feed sources: these will compliment the potential of the Zone 1 prospect, where we intend to shortly report a resource.”  

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.  Ed has worked extensively on the Lac Gueret Property, now owned by Mason, and neighbouring graphite properties since 2000.

About the Company:  Berkwood is engaged in exploration for the commodities that enable the modern revolution in essential technologies. These technologies are dependent upon the ethical mining and supply of naturally occurring elements and minerals that enhance the performance of energy storage systems and permit the development and miniaturization of new electronics and structural components for the new suite of innovative tools.  The Company is led by a team with collectively over 100 years experience and whose members have been involved with the discovery of several producing mines.

On Behalf of the Board of Directors

Berkwood Resources Ltd.

‘Thomas Yingling’

President, CEO & Director

FOR MORE INFORMATION, PLEASE CONTACT:

Investor Relations: 
info@berkwoodresources.com or 1-604-343-7740          www.berkwoodresources.com

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.

Neither 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 release.