Aggressive uranium exploration continues
Fat Mining 33, 06 Aug, 2007
Berkeley Resources continues its rapid venture down the uranium development path. This can be
deduced from the completion of an aggressive drilling programme on its Saguazal project in the
Caceres Province in Spain. It also announced an initial resource estimate, which underlines its
advanced status as an emerging uranium producer.
"All of the evidence points to a substantial upgrading of the company's
current uranium resource base."
Fat Prophets initially recommended buying Berkeley Resources at 83p in April (Fat Euro Mining
17). Our last review of this stock was in June (Fat Euro Mining 27).
It is apparent that Berkeley Resources continues to attract firm investor support, rallying to a new
all time high of 91.5p since our last review in June. This represents a doubling in price since the
Upward trends rarely continue in a straight line. Instead, it is common for periodic corrections to
allow balance to return to prices before the trend resumes. As can be seen on the daily chart,
Berkeley Resources is no exception to this pattern. Accordingly, we believe that the recent
correction from 91.5p is merely a temporary interruption within the longer-term upward trend. In
our opinion, support at 74p limits initial downside risks with the May low providing additional
support at 67.5p.
Given the strength of the eight-month upward trend, we believe the long-term outlook for Berkeley
Resources remains positive. In the coming weeks, we anticipate a continuation of the upward
trend to new highs above 91.5p.
Berkeley Resources has announced an active June quarter exploration report, with a large
amount of activity on the uranium exploration and appraisal front.
As a reminder to our Members, Berkeley is best described as an 'advanced uranium explorer' and
'emerging potential producer'. The company sees itself as the premier uranium explorer on the