6th Apr 2005 09:35
Albidon Limited06 April 2005 Suite 1 Hillway House 141 Broadwayalbidon limited 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 via electronic lodgement http://www.rns-pdf.londonstockexchange.com/rns/6797k_-2005-4-6.pdf Feasibility Study Commenced on the Munali Nickel Project based on PositiveScoping Study HIGHLIGHTS • Scoping Study demonstrates the economic viability of underground mining at Munali. • The updated Inferred Resource is 4.11Mt at 1.35% nickel and 0.95 g/t PGM for 55,500 tonnes of contained nickel. • The current resource has twice the nickel grade and 25% more contained nickel metal than the previous estimate. • A Feasibility Study has commenced to improve the resource classification from Inferred to Indicated and advance all technical and commercial aspects of the project required for development. • A Project Manager will be appointed immediately and the Feasibility Study is scheduled for completion by end December 2005. • Two drill rigs are currently operating at the project and an additional rig has been purchased to expedite resource infill drilling and exploration drilling. Munali Mineral Resource Estimate A revised resource estimate has been compiled for Munali based on the pre-2004drill database and an additional 10,978 m of drilling completed by Albidonduring 2004. The new resource is based on a 0.7% Ni cutoff and a new geological model ofhigher grade massive to semi-massive sulphide mineralisation over a 700m-longzone within the south-eastern sector of the Munali Intrusion. The Inferred Resource estimate of 4.11Mt @ 1.35%Ni, 0.17%Cu, 0.07%Co and 0.95g/tPd+Pt for 55,500 tonnes of contained nickel is a 25% increase over the previousresource estimate published in 2003 (44,000t Ni), though derived from less thanhalf the previous resource tonnage, which currently remains as lower gradeunclassified hanging-wall mineralisation. The recent drilling program hasextended the resource at depth and has focussed on thicker and higher grademineralisation within the broader sulphide zone. Mineralisation is open at depthand along strike. Scoping Study Based on the updated resource estimate, a Scoping Study was undertaken in thefirst quarter of 2005 with the objective of evaluating Munali as an economicallyviable underground mining operation with production rates between 500,000tpa and750,000tpa, feeding a simple sulphide flotation plant to produce a bulkNi-Cu-Co-PGE concentrate on site. Concentrate grades are expected to be in therange of 10-15% Ni. The Scoping Study considered the following: 1. Geological interpretation and resource modelling. 2. Evaluation of existing metallurgical testwork and estimation of processing plant capital and operating costs. 3. Review of alternative mining techniques, mine design and scheduling. 4. Assessment of infrastructure and transport requirements. 5. Evaluation of nickel sulphide concentrate offtake options and indicative terms. 6. Estimation of capital and operating costs. 7. Project risk analysis. 8. Financial modelling. The Scoping Study indicates Munali is economically viable for the mining,processing and concentrate offtake options considered. Feasibility Study Based on the results of the Scoping Study a phased Feasibility Study has beenapproved by the Board to provide a definitive assessment of the technical andcommercial aspects of the project required for development. The Feasibility Study will consider: 1. Infill drilling to improve resource classification from JORC Inferred to Indicated status. 2. Detailed mine design and scheduling. 3. Geotechnical studies. 4. Hydrological studies. 5. Metallurgical testwork to enable detailed process flowsheet and plant design. 6. Infrastructure studies, including power supply from the nearby hydroelectric grid. 7. Commercial discussions with potential customers to finalise concentrate offtake terms and therefore transport requirements. 8. Environmental impact studies. 9. Social impact and community benefit studies. 10. Project financing requirements. 11. Statutory approvals and Project Development Agreement with the Government of Zambia. Timetable 2nd Quarter 2005 - Infill drilling and additional metallurgical work. 3rd Quarter 2005 - Project review and decision to proceed with engineeringstudies and concentrate marketing negotiations. 4th Quarter 2005 - Project financing discussions. 2nd Quarter 2006 - Start up of project construction. Latest Drilling Results Assay results have been received for the most recent drillholes completed atMunali and these are listed in the following table (true thicknesses ofmineralisation are listed in brackets). Drillhole locations are illustrated inFigure 2 in the hyperlink above and collar details are listed in Table 2. Hole ID From To Interval (m) Ni % Cu % Co % PGM g/t MAD061 212.0 213.1 1.1 (0.7) 2.61 0.20 0.14 0.78 MAD062 302.0 304.9 2.9 (2.0) 1.88 0.21 0.10 1.25 and 334.6 339.5 4.9 (3.3) 1.96 0.24 0.09 1.13 MAD063 269.0 275.0 6.0 (4.0) 1.15 0.20 0.05 0.59 and 282.2 285.5 3.3 (2.2) 1.68 0.10 0.07 1.02 and 293.3 302.4 9.1 (6.0) 1.48 0.22 0.07 1.29 MAD064 186.0 192.0 6 (4.1) 0.87 0.11 0.05 0.41 and 220.4 235.2 14.8 (10.2) 0.99 0.13 0.06 0.77 and 244.2 250.4 6.2 (4.3) 1.07 0.17 0.07 0.66 MAD065 289.3 301.4 12.1 (8.2) 2.15 0.24 0.11 0.88 incl 289.3 295.0 5.7 (3.9) 3.64 0.36 0.17 1.34 These results further confirm the continuity of thickness and grade of nickelmineralisation and are included in the resource estimate quoted above. Planned Exploration Program In addition to the ongoing infill and step out drilling at the Munali resource,an exploration drilling program is continuing with the objective of testing therecently announced new NSAMT geophysical conductors as well as other electrical,magnetic and geochemical targets elsewhere in the Munali host rock Intrusion andin the surrounding district. Information in this report relating to exploration results is based on datacompiled by David Chapman a consultant to the Company, who is a member of TheAustralasian Institute of Mining and Metallurgy. David Chapman has sufficientexperience, which is relevant to the style of mineralisation and type of depositunder consideration 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. David Chapmanconsents to the inclusion of the data in the form and context in which itappears. Information in this report relating to Mineral Resources has been reviewed byPaul Payne of Resource Evaluations Ltd. who is a member of The AustralasianInstitute of Mining and Metallurgy. Paul Payne 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. Paul Payne consentsto the inclusion of the data in the form and context in which it appears. 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 MAD061 621645 8239262 1099 300.2 -72 030 MAD062 621579 8239232 1097 372.2 -72 030 MAD063 621429 8239367 1096 340.2 -72 030 MAD064 621516 8239362 1099 280.2 -72 030 MAD065 621394 8239385 1099 339.2 -72 030 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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