30th May 2006 12:01
Albidon Limited30 May 2006 ALBIDON LIMITED SUITE 1 HILLWAY HOUSE 141 BROADWAY 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 http://www.rns-pdf.londonstockexchange.com/rns/7433d_-2006-5-30.pdf Large Increase in Nickel Resource at the Enterprise Deposit, Munali Project,Zambia HIGHLIGHTS • Increase of over fifty percent (50%) for the Enterprise Indicated Resource, based on a new JORC estimate that includes recent drill results. • The Indicated and Inferred Resource for the Enterprise Deposit is now 8.0Mt @ 1.4% Ni and 0.9g/t of platinum group metals ('PGM'). • Enterprise contains 109,000 tonnes of Ni and 222,000 ounces of PGM. • The Indicated portion of the resource has increased to 6.9Mt @ 1.4% Ni and 0.9g/t of PGM, with approx 87% of the deposit now in this category, an increase of 55%. • The increase in the Indicated Resource will improve the economics of the Bankable Feasibility Study which is scheduled for completion in July. • The Enterprise Deposit remains open down dip and along strike to the north. • Drilling will now focus on step-out drilling to further expand the Enterprise deposit, as well as testing additional targets further north within the Munali Intrusion. Updated Mineral Resource Estimate for Enterprise Nickel Deposit 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. A revised resource estimate has been prepared for the Enterprise Deposit basedon drilling completed during the period December 2005 to April 2006. Thedrilling resulted in a substantial increase in the Indicated Resource of overfifty percent (50%). This Indicated Resource will form the basis of theBankable Feasibility Study being completed for the development of the EnterpriseDeposit. The infill drilling programme undertaken in the past few months was designed toimprove the confidence levels in the Enterprise resource announced in December2005. Drilling successfully achieved the objective of converting the majorityof the mineralisation from the Inferred to Indicated Resource category. The updated resource estimate has been prepared independently by ResourceEvaluations Pty Ltd and is JORC-compliant. The overall resource parameters andtonnages assigned to the Indicated and Inferred categories at a cut-off grade of0.7% Ni are summarised in the following table: Class Tonnes Grade Metal Ni % Cu % Co % Pd g/t Pt g/t PGM g/t Ni T PGM Oz Indicated 6,900,000 1.4 0.2 0.07 0.6 0.3 0.9 95,000 197,000 Inferred 1,100,000 1.3 0.2 0.07 0.5 0.2 0.7 14,000 25,000 Total 8,000,000 1.4 0.2 0.07 0.6 0.3 0.9 109,000 222,000 The infill drilling has been successful in converting 87% of the resource intothe Indicated category, reflecting increased confidence in the geological modeland the continuity of the resource. Although the primary aim of the programmewas infill drilling it has also led to a significant increase in the amount ofcontained metal, over 10% in the case of nickel. The updated resource is based on the breccia and massive sulphide zones at thesoutheastern corner of the Munali Intrusion. The modelled resource extends forover 1,000m along strike towards Voyager (an increase of 25%), and 600m down dipwithin a continuous structural zone (see Diagram 2, in the hyperlink above).The deposit is open along strike to the north and down dip. This resourceestimate excludes the Voyager prospect which will be the target of follow-updrilling in the coming months. The resource estimation procedure conducted by Resource Evaluations Pty Ltdincluded a rigorous auditing process. The audit included a site visit andreview of the drilling and sampling procedures, sample preparation laboratory,assay techniques and QA/QC of data and analytical standards and verification ofthe database. The resource model and classification of the resource followingJORC guidelines was completed by Resource Evaluations Pty Ltd's PrincipalGeologist, Mr P. Payne. The recent drill programme comprised an additional 20 cored drill holes (for atotal of 7,583 metres) and 18 reverse circulation (RC) holes (for a total of4,433 metres), giving an overall total of 51,755 metres of drilling now definingthe Enterprise Deposit. Forward Drilling Programme Drilling is continuing at Enterprise which remains open along strike to thenorth and down dip. The objective of the ongoing programme is to extend thedeposit to the north. Drilling has also recommenced at the Voyager prospect,aimed at testing the down-dip extent of this zone. These programmes will beaccompanied by reconnaissance drilling in the area between Enterprise andVoyager. 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 Mr Mike Dunbar, who is a full time employee of the Mitchell RiverGroup and a consultant to the Company, who is a member of The AustralasianInstitute of Mining and Metallurgy. Mr Dunbar has sufficient experience whichis relevant to the style of mineralisation and type of deposit underconsideration and to the activity which he is undertaking to qualify as aCompetent Person under the 2004 Edition of the Australasian Code for reportingof Exploration Results, Mineral Resources and Ore Reserves. Mr Dunbar consentsto the inclusion of the data in the form and context in which it appears. Information in this report relating to Mineral Resources has been eithercompleted by or reviewed by Mr Paul Payne of Resource Evaluations Ltd. who is amember of The Australasian Institute of Mining and Metallurgy. Mr Payne hassufficient experience which is relevant to the style of mineralisation and typeof deposit under consideration and to the activity which he is undertaking toqualify as a Competent Person under the 2004 Edition of the Australasian Codefor reporting of Exploration Results, Mineral Resources and Ore Reserves. MrPayne consents 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. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ALD.L