3rd Feb 2005 10:25
Albidon Limited03 February 2005 Suite 1 Hillway House 141 BroadwayALBIDON LIMITED Nedlands 6009 Western Australia ARBN 107 288 755 Tel: +61 8 9389 6300 Fax: +61 8 9389 6400 Email: [email protected] ASX Code: ALB AIM Code: ALD via electronic lodgement Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/1669i_-2005-2-3.pdf Drilling Continues to Extend the High Grade Massive Sulphide Zone at the MunaliNickel Deposit, Zambia HIGHLIGHTS • Four new drillholes have intersected high grade massive sulphide mineralisation at the Munali Ni-Cu-Co-PGM deposit. • The drill intersections include: Interval (m) Ni % Cu % Co % PGM g/t 13.4 1.62 0.23 0.09 0.76 10.0 1.77 0.22 0.09 1.21 • These results have once again extended the high grade zone at Munali and confirm a high degree of continuity of the deposit. • A new resource estimate is being calculated, based on these results and previously reported intersections. • The updated resource estimate will underpin a Scoping Study to assess the viability of developing the deposit in an underground mining operation. • Drilling is continuing. Drilling Program Assay results have been received for four additional cored drillholes completedas part of the ongoing drill program to define the extent of high gradeNi-Cu-Co-PGM sulphide mineralisation at the Munali deposit, located in southernZambia (see Figure 1 in the hyperlink above). The holes were drilled in theDecember quarter and bring to 20 the number of drillholes for which assayresults are available. Analytical data are pending for a further 6 drillholesthat have tested the zone, these are expected in several weeks. The objective ofthe drill program is to provide an updated resource estimate to form the basisfor a Scoping Study that will evaluate the feasibility of developing anunderground mining operation at Munali. Results All drillholes intersected massive to semi-massive sulphides ranging up to 16min down-hole thickness. Assay results are detailed in Table 1, and locations ofthe drillholes are illustrated in Figures 2 and 3 in the hyperlink above (seealso Table 2). The drillholes were positioned to provide additional informationon the along-strike and down-dip extent of high grade mineralisation on thesouth eastern flank of the deposit. These drillholes were successful insignificantly extending the known extent of massive sulphide mineralisation inthis portion of the deposit. The high grade zone remains open down-dip and alongstrike in this area (see Figure 3 in the hyperlink above). The drillholes were spaced at an average separation of 40m and further confirmthe high degree of continuity of massive and semi-massive sulphidemineralisation demonstrated by the previous 16 holes drilled over recent months. Table 1: Drill Intersections and Assay Results Hole ID From To Interval (m) Ni % Cu % Co % PGM g/t MAD057 390.9 396.0 5.1 (3.7) 1.71 0.21 0.10 0.54 MAD058 304.0 309.8 5.8 (4.0) 1.20 0.15 0.07 0.50 MAD059 276.0 292.0 16.0 (11.6) 1.35 0.17 0.07 0.89 including 276.0 286.0 10.0 (7.2) 1.77 0.22 0.09 1.21 MAD060 323.0 336.4 13.4 (9.5) 1.62 0.23 0.09 0.76 Note: Estimated true thicknesses are listed in brackets. 'PGM' is Pt+Pd. Munali Resource and Scoping Study All available drilling data will be incorporated in an informal resourceestimate for the high grade zone at Munali, expected to be available this month.The new resource estimate will underpin a Scoping Study that will incorporate:preliminary mine design; metallurgical test work results; capital and operatingcost estimates; infrastructure studies; transport costs and approximateconcentrate offtake terms. The objective is to evaluate the feasibility ofdeveloping an underground mining operation at Munali based on the resource ascurrently understood. The Scoping Study is scheduled for completion by the end of next month. If theoutcome of the evaluation is positive, detailed resource drilling will beundertaken to provide a JORC-compliant formal resource estimate. Metallurgicaland other technical programs will be commenced to form the basis of afeasibility study. Exploration Significance of the Massive Sulphide Zone The massive and semi-massive nickel sulphides at Munali are situated in what istermed a breccia complex. Breccias are composite rocks with different componentsof the rock brought together from different sources. In the case of the Munalibreccia, the Company has interpreted the nickel sulphides to have beenintroduced to the area of the deposit from a potentially much larger nickelsulphide body at depth. A program of electrical geophysical surveys has beenplanned to evaluate this possibility. The geophysics will be conducted as soonas wet-season weather conditions allow in the next couple of months. Information in this report relating to exploration results is based on datacompiled by Donal Windrim, who is employed by the Company. He has sufficientrelevant experience to qualify as a Competent Person under the JORC Code andconsents to the inclusion of the data in the form and context in which itappears. If you have any queries please contact the Company Secretary, 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 2: Drillhole collar positions and drillhole orientations Hole ID Easting Northing RL Depth Dip Azimuth MAD057 621424 8239279 1095 415.4 -73 030 MAD058 621650 8239192 1097 349.0 -70 030 MAD059 621563 8239285 1097 314.2 -70 030 MAD060 621511 8239271 1096 380.0 -72 030 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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