25th May 2006 10:33
Albidon Limited25 May 2006 Suite 1 Hillway HouseAlbidon Limited 141 Broadway Nedlands 6009 Western Australia ARBN 107 288 755 Tel:x+61x8x9389 6300 Fax:x +61x8x9389 6400 Email:[email protected] ASX Code: ALB AIM Code: ALD http://www.rns-pdf.londonstockexchange.com/rns/5725d_-2006-5-25.pdf DRILLING FURTHER EXTENDS ENTERPRISE NICKEL DEPOSIT, MUNALI PROJECT HIGHLIGHTS • Drilling outside the Enterprise Inferred Resource has further extended the deposit to the north. • Infill drilling has also confirmed the down-dip extension of the southern end of the Inferred Resource. • Results from north of the Enterprise resource include: MAD234: 8.57 m @ 1.33 % Ni, 0.15 % Cu, 0.07 % Co and 0.79 g/t Pt+Pd including: 4.41m @ 1.58 % Ni, 0.19 % Cu, 0.08 % Co and 0.76 g/ t Pt+Pd MAD250: 8.78m @ 1.65 % Ni, 0.17 % Cu, 0.07 % Co and 1.01 g/t Pt+Pd MAD254: 5.91m @ 1.38 % Ni, 0.22 % Cu, 0.08 % Co (PGM's pending) • Results from within the southern down-dip zone of the Inferred Resource include: MAD251: 12.33m @ 2.69 % Ni, 0.41 % Cu, 0.12 % Co and 1.31 g/t Pt+Pd MAD252: 8.72m @ 1.06 % Ni, 0.14 % Cu, 0.05 % Co (PGM's pending) including: 2.11m @ 2.72 % Ni, 0.28 % Cu, 0.12 % Co and 1.23 g/ t Pt+Pd • The extensions to the north are expected to be included in future resource upgrades. • Drilling is continuing, with 4 rigs currently on site. Drilling Programme and Results The Munali Project (100% Albidon) is located approximately 60 kilometres southof Zambia's capital city Lusaka (see Diagram 1 in the hyperlink above). TheMunali Project area comprises the Enterprise Deposit and a number of othernickel prospects around the Munali intrusion, the most advanced of which is theVoyager prospect along strike from Enterprise. The current drilling programme has two objectives: to improve confidence in theInferred portion of the Enterprise resource announced in December 2005; and toassess the extent of mineralisation along strike towards the Voyager zone to thenorth. Drilling North of the Enterprise Deposit Drilling to the north was designed to test two target zones. Firstly, toconfirm the interpreted northerly plunge of the higher grades seen at depth; andsecondly to test the shallower portion of the previously un-drilled area betweenEnterprise and Voyager (see Diagrams 2, 3 and 4 in the hyperlink above). All three holes drilled to test the interpreted northerly plunge of the thickerhigh grade zone at depth were successful, with intersections of 8.78m @ 1.65%Ni, 5.91m @ 1.38% Ni and 8.57m @ 1.33% Ni (MAD250, 254 and 234 respectively). As expected, shallow drilling to the north, between Enterprise and the Voyagerprospect, intersected generally narrower mineralisation than the deeperdrilling. Of the twelve shallow holes nine intersected significant gradesincluding 3.8m @ 0.8 % Ni, 1.94m @ 0.91 % Ni, 1.42m @ 2.66 % Ni, 4.5m @ 0.99 %Ni, 3.41m @ 0.88 % Ni, 1.72m @ 0.91 % Ni and 6.17m @ 1.10 %Ni in MAD235, 236,238, 245, 247, 249 and 255A respectively (see Table 1 for details of the fulllist of intersections). Reconnaissance Drilling Between the Enterprise Deposit and Voyager Prospect Two widely spaced exploration drillholes (MAD239 & 240) between Enterprise andVoyager intersected nickel mineralisation, confirming geological continuity ofthe breccia system which hosts mineralisation at both Enterprise and Voyager.The drillholes were designed to test the shallow portions (around 200m belowsurface) of the area between Enterprise and Voyager. These intersections aresignificant as they suggest Voyager and Enterprise are part of the samemineralising system. Drilling down dip of these intersections is underway to test for improvements inthickness and grade with depth, as seen at Enterprise and Voyager. Infill Drilling South of the Enterprise Deposit Two holes were drilled in the southern portion of the Enterprise deposit toassess the continuity of the recently reported thick high grade intersections(see Diagrams 2 and 4 in the hyperlink above). These drillholes were successfulwith both intersecting similar widths, further adding confidence in the resourcein this area. The holes intersected 12.33m @ 2.69 % Ni and 8.72m @ 1.06 % Ni,in MAD251 and 252 respectively. Infill drilling of the Inferred Resource has now been completed, with the drillrigs moving to exploration drilling around the Enterprise Resource and along theMunali Intrusion to the north. Forward Programme There are now four drill rigs on site, continuing an aggressive programme thathas the following objectives: • Step-out drilling to expand the Enterprise Deposit to the north, with the aim of substantially increasing the resource. This drilling will target the thicker high grade mineralisation that is open to the north at depth. • Continued drilling to extend Enterprise down-dip, where it remains open along most of its strike length. • Further confirmation drilling around the Voyager prospect and in the zone between Voyager and Enterprise (see Diagram 2 in the hyperlink above). • Exploration drilling further along strike from Voyager, which remains open in all directions, and towards the North West target area which is relatively unexplored. The Australasian Code for Reporting of Exploration Results, Mineral Resourcesand Ore Reserves (the 'JORC Code') sets out minimum standards, recommendationsand guidelines for Public Reporting in Australasia of Exploration Results,Mineral Resources and Ore Reserves. The information contained in thisannouncement has been presented in accordance with the JORC Code and referencesto "Indicated" and "Inferred Resources" are to those terms as defined in theJORC Code. Information in this report relating to exploration results is based on datacompiled by Mike Dunbar (a consultant to the Company and full time employee ofthe Mitchell River Group), who is a member of The Australasian Institute ofMining and Metallurgy. Mike Dunbar has sufficient experience which is relevantto the style of mineralisation and type of deposit under consideration and tothe activity which he is undertaking to qualify as a Competent Person under the2004 Edition of the Australasian Code for reporting of Exploration Results,Mineral Resources and Ore Reserves. Mike Dunbar consents to the inclusion of thedata in the form and context in which it appears. If you have any queries please contact the Chief Financial Officer and CompanySecretary, Nicholas Day on +61 8 9389 6300 or email [email protected]. Additional information may also be viewed on Albidon's website atwww.albidon.com. Table 1: Drill Intersections and Assay Results for the Enterprise Deposit, weighted by density. Hole from to Interval (M) ZONE Ni % Cu % Co % PGM g/t MAD234 435.34 443.91 8.57 MZ 1.33 0.15 0.07 0.79 Inc. 435.34 439.75 4.41 1.58 0.19 0.08 0.76 MAD235 256 259.8 3.8 MZ 0.80 0.17 0.05 0.75 MAD236 242.66 244.60 1.94 MZ 0.91 0.25 0.05 0.86 MAD238 212.62 214.04 1.42 MZ 2.66 0.23 0.12 1.94 MAD239 238.00 241.00 3 MZ 0.59 0.03 0.04 0.42 MAD240 262.51 263.69 1.18 MZ 0.58 0.07 0.05 0.60 MAD241 193.00 194.00 1 MZ 0.21 0.03 0.01 0.16 MAD245 375.81 380.31 4.5 MZ 0.99 0.11 0.05 0.53 MAD247 245.94 249.35 3.41 MZ 0.88 0.11 0.06 0.72 MAD249 237 238.72 1.72 MZ 0.91 0.14 0.06 0.97 MAD250 477.22 486 8.78 MZ 1.65 0.17 0.07 1.01 MAD251 306 318.33 12.33 MZ 2.69 0.41 0.12 1.31 MAD252 298.76 302 3.24 HW 0.99 0.17 0.06 **** MAD252 319 327.72 8.72 MZ 1.06 0.14 0.05 **** MAD252 325.61 327.72 2.11 INC 2.72 0.28 0.12 1.23 MAD253 512.5 513.7 1.2 MZ 0.74 0.16 0.05 **** MAD254 448.27 454.18 5.91 MZ 1.38 0.22 0.08 **** MAD255A 354.14 360.31 6.17 MZ 1.10 0.13 0.06 **** MAD256 130.00 133 3 MZ 0.67 0.09 0.05 **** MAD257 69 72.00 3.00 MZ 0.27 0.04 0.02 **** MAD258 123.00 131 8 MZ 0.47 0.05 0.03 **** MAD259 115 124 9 MZ 0.29 0.03 0.02 **** Notes: 1. 'PGM' is Pt + Pd. 2. MZ: 'Main Zone' high grade breccia mineralisation. HW: 'Hanging Wall' mineralisation 3. **** PGM results pending for these intersections. Table 2: Drillhole collar positions, orientations and drillhole type ('DDH' refers to diamond drillholes and 'RC' denotes reverse circulation drillholes). Hole_ID Easting Northing RL Depth Hole Type Dip Azimuth MAD234 621249 8239376 1095 483 DDH -70 30 MAD235 621262 8239496 1097 354 DDH -60 30 MAD236 621238 8239555 1096 276 DDH -60 30 MAD238 621319 8239495 1098 264.4 DDH -60 30 MAD239 620999 8239740 1093 270 RC -60 30 MAD240 621157 8239614 1094 287.6 DDH -60 30 MAD241 621282 8239531 1097 260 RC -65 30 MAD245 621174 8239443 1094 410.9 DDH -60 30 MAD247 621200 8239589 1095 308.9 DDH -60 30 MAD249 621296 8239455 1097 320.7 DDH -65 30 MAD250 621207 8239401 1094 510.1 DDH -65 30 MAD251 621835 8239108 1101 348 DDH -65 30 MAD252 621755 8239131 1101 392.7 DDH -70 30 MAD253 621133.8 8239374 1092.42 672 RC -65 30 MAD254 621163.9 8239426 1093.59 485.2 DDH -65 30 MAD255A 621184.3 8239461 1094.31 426 DDH -60 30 MAD256 621261.2 8239595 1097.02 237 RC -65 30 MAD257 621290.9 8239647 1096.97 136 RC -60 30 MAD258 621339.9 8239532 1099.82 150 RC -60 30 MAD259 621235.5 8239650 1095.67 164 RC -60 30 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ALD.L