5th Feb 2008 07:00
Albidon Limited05 February 2008 LEVEL 1 62 COLIN STREET WEST PERTH 6005ALBIDON LIMITED WESTERN AUSTRALIA ARBN 107 288 755 TEL: +61 8 9211 4600 FAX: +61 8 9211 4699 EMAIL: [email protected] ASX CODE: ALB AIM CODE: ALD http://www.rns-pdf.londonstockexchange.com/rns/2933n_1-2008-2-5.pdf HIGH GRADE ZINC CONFIRMED IN DRILLING AT NEFZA PROJECT, TUNISIA HIGHLIGHTS • An initial drilling program intersected 8.1m @ 11.7% Zn at Khatkhadha within the historic Bou Aouane mining district, confirming the prospectivity of the region for high grade zinc deposits. • A second hole drilled 800m to the southeast of Khatkhadaha intersected 21.4m @ 2.4% Zn and 1.7% Pb, confirming that zinc-lead mineralisation at Bou Aouane is laterally extensive. • Assays are awaited for five additional drill holes at Bou Aouane, and drilling has also commenced at the El Haouaria zinc prospect. Background The Nefza project is part of a joint venture agreement signed in December 2006by Albidon and Zinifex Limited for exploration and development of the Company'sNefza and Haffouz zinc projects in Tunisia. Further details of the JV areprovided below, and refer to Diagram 1 in the hyperlink above for a locationmap. Drill Program at Nefza - Initial Results The Bou Aouane prospect area (see Diagrams 2 and 3 in the hyperlink above) is ahistorical zinc mining centre which closed in 1986. Government reports from 1988describe remnant mineralisation remaining after the mine closed. In particularthe reports refer to a (non-JORC) 'resource' at Khatkhadha, which has yet to beconfirmed by the joint venture. The objective of the drilling program was to confirm the thickness and grade ofzinc mineralisation reported in previous drilling at Khatkhadha and to providereconnaissance drill coverage of the adjoining area. The program was directedtowards locating zinc mineralisation where grade is controlled by a favourablecombination of fault structures and geology. Complete assays have been receivedfor drill holes BADD001 to BADD005 and partial results for BADD006. Results areawaited for holes BADD007 to 11. Drill hole BADD003 was drilled within the reported Khatkhadha mineralisation andintersected 5.5m at 3.9% Zn and 0.1% Pb from 15m down hole, and 8.1m @ 11.7% Znand 0.6% Pb from 21.4m down hole. These intervals are separated by 1.4m of coreloss (see Table 1). These drill results support the reports of a remnantmineralised body at Khatkhadha. The mineralisation is near-surface and may beaccessed by an open pit were a sufficient resource defined. Additional drillingis planned within the Khatkhadha mineralised area. BADD003 was a re-drill of BADD001 which intersected significant mineralisationbut with very poor recovery. Results for BADD001 are superseded by BADD003 andare not reported. Drill hole BADD006 intersected 56.7 m @ 1.6% Zn and 1.1% Pb (from 99m),including 21.3 m @ 2.4% Zn and 1.7% Pb from 99m. This confirms that zinc-leadmineralisation at Bou Aouane is laterally extensive. Further drilling would berequired to assess the thickness, grade and continuity of the system. Step-out drilling 300m to the northeast of Khatkhadha has been recentlycompleted (BADD007-011) and assay results are pending (See Diagram 3 in thehyperlink above). Forward Program A program of 4,000 metres of diamond drilling within the 3,140 sq km Nefzalicence is planned for 2008 to test the Sidi Driss, Gantra, Bou Aouane and ElHaouaria prospects. The next immediate target area after Bou Aouane is ElHaouaria (see Diagram 2 in the hyperlink above). El Haouaria also containshistorical zinc mining areas, and old reports describe zinc mineralisation fromsurface to depths of about 200m. There appears to have been little exploration away from the outcroppingmineralization that was mined at El Haouaria. The style and setting ofmineralization ('stratabound') are similar to Bou Aouane and hold the potentialfor discovery of more substantial and higher grade resources than recorded inthe historical reports. Joint Venture with Zinifex The joint venture agreement between Albidon and Zinifex involves: Zinifex makinga staged series of cash payments totalling USD$ 1 million; a minimum initialexpenditure commitment of USD$1.3 million within 12 months (now completed);expenditure of an additional $6 million to earn a 51% interest; and expenditureof an additional $5 million to earn a 70% interest, at which time Albidon mayelect to fund its 30% interest. Zinifex is one of the world's foremost base metal mining companies and the JVprovides Albidon with considerable technical expertise in addition to thefunding provided by Zinifex. The projects are managed in concert withconsulting group, CSA Australia, which brings additional specialist expertise incarbonate-hosted zinc exploration and evaluation. 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. Information in this report relating to Exploration results, Mineral Resources orOre Reserves is based on information compiled by Mr John Schloderer (an employeeof Albidon Limted) who is a member of The Australian Institute of Geoscientists.Mr Schloderer has sufficient experience which is relevant to the style ofmineralisation and type of deposit under consideration and to the activity whichhe is undertaking to qualify as a Competent Person under the 2004 Edition of theAustralasian Code for reporting of Exploration Results, Mineral Resources andOre Reserves. Mr Schloderer consents to the inclusion of the data in the formand context in which it appears. If you have any queries please contact the Chief Financial Officer, Nicholas Dayor Managing Director, Dale Rogers on +61 8 9211 4600 or email [email protected]. Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen+61 8 9480 2500. Additional information may also be viewed on Albidon's website atwww.albidon.com Table 1: Drill intersections and significant assay results for the Bou AouaneProspect. Hole From (m) To (m) Width (m) Pb % Zn % Cut-Off Zn% Avge. Recovery %BADD003 5 41 36 0.16 3.69 0.5 60Including 15 29.5 14.5 0.37 8.01 1.5 66and 21.4 29.5 8.1 0.6 11.7 2 80BADD004 138.6 140.6 2 0.2 0.5 0.5 75BADD006 99 155.7 56.7 1.05 1.58 0.5 80Including 99 120.35 21.35 1.72 2.36 1.5 80and 112 120.35 8.35 1.91 3.01 2 65and 147 155 8 1.11 2 2 80 Notes: BADD003 includes complete core loss (from 20.5-21.4m and from 29.4-33m)which is assigned zero grade. Recoveries are averaged over the total intersection. Poor recovery is attributed to sandy and broken ground and not to cavities. Composites include up to 4m internal waste. All intersects calculated using Micromine software. Table 2: Drillhole collar positions. All holes are diamond drilled fromsurface with PQ/HQ diameter cores. Hole ID East North Depth DIP Azimuth RL BADD001 501270 4061810 35 90 215 BADD002 501466 4062650 122 90 238 BADD003 501270 4061810 61 90 215 BADD004 499780 4061840 168.5 70 240 215 BADD005 500390 4059740 225.78 90 229 BADD006* 502002 4061503 214.1 90 198 BADD007* 501663 4062137 237.9 90 214 BADD008* 502360 4061820 174.9 90 180 BADD009* 501950 4062013 95.9 90 204 BADD010* 502177 4061649 195.15 90 204 BADD011* 502023 4061747 218.1 90 204 * Denotes drillholes for which assays are pending.or incomplete. Drillholes BADD002, 4 and 5 are located outside the area shown in Diagram 3 inthe hyperlink above. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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