23rd Aug 2007 08:51
Albidon Limited23 August 2007 Level 1 62 Colin St West Perth 6005ALBIDON LTD Western Australia ARBN 107 288 755 Tel: +61 8 9211 4600 Fax: +61 89211 4699 Email: [email protected] ASX Code: ALB AIM Code: ALD Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/6893c_-2007-8-23.pdf HIGHER URANIUM GRADES IN FOLLOW-UP DRILLING AT GWABE, ZAMBIA HIGHLIGHTS • Infill drilling at the Gwabe Prospect has intersected higher grade uranium mineralisation than in the initial drill program reported recently. • The results from the first 40 infill drill holes at the Gwabe Prospect have identified higher grade uranium mineralisation over a considerable area, with potentially economic grades and thicknesses at shallow depths that may be amenable to open pit extraction. • The mineralisation at Gwabe is interpreted to occur at the intersection of an oxidised, coarse sandstone unit and a near-vertical fault. The down-plunge extent remains untested. • The table below summarises significant results from the first 40 holes of the infill program: GWN090 9m @ 684 ppm U3O8 from 15m including 5m @ 936 ppm U3O8 from 17m GWN087 6m @ 407 ppm U3O8 from 13m GWN089 5m @ 276 ppm U3O8 from 17m GWN058 13m @ 207 ppm U3O8 from 13m GWN083 3m @ 357 ppm U3O8 from 21m GWN057 5m @ 224 ppm U3O8 from 19m • Assay results for the remaining 70 drill holes from Gwabe are expectedin September. • Drilling to test the inferred down plunge extension of the Gwabemineralisation is scheduled to commence next month. • Extensional drilling around the known Njame North Inferred Resource iscurrently in progress. Drilling Program Update Assay results from the first 40 holes of the infill phase of aircore/reversecirculation ('RC') drill testing of the Gwabe uranium anomaly in Zambia haveindicated the presence of higher grade uranium mineralisation than previouslyintersected (see Diagram 1, Table 1 and refer to Table 2). It has beenestablished that 12 of the 40 holes for which assays are available containsignificant intersections of uranium mineralisation with greater than 150 ppmU3O8 over at least 2m drill widths, with several holes indicating mineralisedthickness of up to 13m (see Diagram 2). The drill program is being operated and sole-funded by African Energy Resources('African Energy') under the terms of a joint venture agreement with Albidon. Uranium mineralisation is hosted in oxidised, coarse grained sandstones, gritsand pebble conglomerates which overly a non-mineralised, chemically-reducedsilty-shale horizon. The mineralisation dips very gently to the south-east, andis situated at very shallow depths between 3m and 29m below surface, and appearsto be spatially related to an inferred WNW trending sub-vertical fault. Wherethe mineralisation approaches the surface, uranium grades are lower (Diagram 3).This reduction in grade may be due to surface oxidation and leaching processesrelated to weathering. The down plunge extension of the mineralisation, whereuranium grades are unaffected by near-surface processes remains untested bydrilling (Diagram 3). The initial program of infill drilling is now complete, with 140 holes drilledto date (see Table 3 for location details). Assays for the remaining 70 holesare expected in early September and will be used in resource estimation work.Further drilling to test the inferred down plunge extent of the uraniummineralisation is scheduled to commence in September. Forward Program The following work program is scheduled over the next three months: • A second RC drill rig is being sourced to undertake the drill testing of the down-plunge extent of the Gwabe uranium mineralisation. This drilling is scheduled to commence next month. • • On completion of this program, this second drill rig will mobilise to the Chirundu North uranium anomaly to undertake a 60 hole reconnaissance program. This prospect is located along-strike, and 20km north-east of Gwabe and was identified through airborne radiometric surveying completed in late 2006. • • Extensional drilling is currently in progress around the known Inferred Resource at Njame North (5.5Mt @ 400 ppm U3O8 for a contained total of 4.8 Mlb of U3O8). • Reconnaissance RC drill testing of the Chisebuka uranium anomaly will commence on completion of the Njame extensional drilling program in the third quarter of 2007. Drill site preparation for this program is complete. • Reconnaissance evaluation of six ground radiometric uranium anomalies previously identified at Namakande has commenced. Over the next few months this work will comprise follow-up scintillometer surveys to confirm the precise location of these anomalies, soil sampling to establish surface levels of uranium, and rock-chip sampling where warranted. Results form this program will be used to prioritise targets for drill testing scheduled to commence in the final quarter of 2007. Background The Gwabe uranium mineralisation, Chirundu North uranium anomaly and the Njameuranium deposit are located approximately 80km south-east of Lusaka, the capitalof Zambia, and form part of the Chirundu Joint Venture Project (see Diagram 1).The JV tenements are owned by Albidon, and African Energy may earn a 30% equityinterest in the Chirundu Project by completing expenditure of AUD $1 million onthe Project, and can increase this to 70% equity interest by completing apre-feasibility study on an Indicated Resource. The Chisebuka and Namakande uranium prospects are situated approximately 120kmsouth-west of Lusaka and occur within the Kariba Valley Joint Venture Project(Diagram 1). This project is subject to identical earn-in terms with AlbidonLimited as described above. 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 "Inferred Resources" and "Indicated Resources" are to those terms as definedin the JORC Code. Information in this report relating to Exploration results, Mineral Resources orOre Reserves is based on information compiled by Dr Frazer Tabeart (an employeeof African Energy Resources Limited) who is a member of The Australian Instituteof Geoscientists. Dr Tabeart has sufficient experience which is relevant to thestyle of mineralisation and type of deposit under consideration and to theactivity which he is undertaking to qualify as a Competent Person under the 2004Edition of the Australasian Code for reporting of Exploration Results, MineralResources and Ore Reserves. Dr Tabeart consents to the inclusion of the data inthe form and context in which it appears. If you have any queries please contact the Chief Financial Officer, Nicholas Dayon +61 8 9211 4600 or email [email protected]. Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen+61 8 94802500. Additional information may also be viewed on Albidon's website atwww.albidon.com (see Diagram 1. Location of Albidon's uranium projects in Zambia in hyperlink above) (see Diagram 2. Drill location map for Gwabe Prospect showing assay results todate in ppm U3O8. 'NSI' denotes No Significant Intercepts in the relevant drill hole. in hyperlink above) (See Diagram 3. Drill status map showing location of drill holes completed to date, interpreted fault position and the nature of the mineralisation encountered to date. Note that the leached zone comprises mineralisation at ornear surface where uranium has been removed by surface weathering processes. Theuntested target zone represents the inferred down plunge extension to the known mineralisation. Further drilling is required to test this idea. in the hyperlink above) Table 1: List of Significant Drill Intercepts in infill drilling to date Hole ID From/m To/m Interval/m Assay Equivalent GWN055 22 24 2 144 ppm U3O8GWN056 18 25 7 315 ppm U3O8GWN057 15 16 1 298 ppm U3O8 and 19 24 5 224 ppm U3O8GWN058 13 26 13 207 ppm U3O8GWN059 18 19 1 346 ppm U3O8GWN060 18 21 3 188 ppm U3O8GWN067 26 28 2 164 ppm U3O8GWN068 27 29 2 219 ppm U3O8GWN083 21 24 3 357 ppm U3O8GWN087 13 19 6 407 ppm U3O8GWN088 20 22 2 336 ppm U3O8GWN089 17 22 5 276 ppm U3O8GWN090 15 24 9 684 ppm U3O8 including 17 22 5 936 ppm U3O8 Table 2: List of Significant Drill Intercepts in initial drilling Hole ID From To Interval/m Assay equivalent GWN005 3 7 4 108 ppm U3O8 including 6 7 1 178 ppm U3O8GWN008 24 28 4 130 ppm U3O8 including 24 25 1 178 ppm U3O8GWN010 21 22 1 151 ppm U3O8GWN011 17 29 12 97 ppm U3O8 including 17 18 1 170 ppm U3O8 and 21 22 1 177 ppm U3O8 and 25 29 4 123 ppm U3O8GWN012 12 27 15 137 ppm U3O8 including 12 16 4 261 ppm U3O8 and 25 27 2 228 ppm U3O8GWN014 2 5 3 113 ppm U3O8 and 11 13 2 192 ppm U3O8GWN015 3 4 1 116 ppm U3O8 and 13 14 1 100 ppm U3O8GWN016 10 28 18 230 ppm U3O8 including 10 16 6 250 ppm U3O8 and 22 28 6 313 ppm U3O8GWN017 18 26 8 185 ppm U3O8 including 20 25 5 239 ppm U3O8GWN018 18 19 1 179 ppm U3O8GWN019 18 19 1 261 ppm U3O8 and 21 27 6 566 ppm U3O8 including 21 24 3 703 ppm U3O8 and 25 26 1 993 ppm U3O8 Table 3: List of drillhole collar coordinates (WGS84 UTM35S), all holes drilledvertically Hole ID EASTING NORTHING Elevation/m MAX DEPTH/m (WGS84 (WGS84 UTM35S) UTM35S)GWN001 690,021 8,232,216 416 76GWN002 689,876 8,232,357 415 107GWN003 689,726 8,232,495 419 119GWN004 689,656 8,232,549 418 120GWN005 689,796 8,232,428 418 120GWN006 689,954 8,232,283 415 108GWN007 690,289 8,232,517 397 120GWN008 690,138 8,232,656 402 90GWN009 689,997 8,232,785 409 90GWN010 690,065 8,232,716 406 60GWN011 690,180 8,232,613 400 67GWN012 690,222 8,232,581 398 61GWN013 689,929 8,232,850 412 60GWN014 690,122 8,233,212 404 90GWN015 690,192 8,233,147 401 60GWN016 690,348 8,233,013 393 60GWN017 690,413 8,232,935 390 60GWN018 690,266 8,233,087 394 60GWN019 690,493 8,232,866 386 60GWN020 689,746 8,231,911 428 67GWN021 689,694 8,232,015 430 60GWN022 689,603 8,232,052 430 60GWN023 689,517 8,232,124 431 60GWN024 689,453 8,232,194 432 60GWN025 689,378 8,232,262 434 60GWN026 689,109 8,231,980 438 60GWN027 689,185 8,231,901 440 56GWN028 689,255 8,231,849 440 47GWN029 689,334 8,231,765 438 53GWN030 688,222 8,231,720 450 38GWN031 688,130 8,231,788 454 44GWN032 688,055 8,231,863 456 47GWN033 687,975 8,231,927 457 50GWN034 688,324 8,232,154 447 40GWN035 688,399 8,232,090 445 50GWN036 688,249 8,232,196 441 49GWN037 687,779 8,231,567 447 38GWN038 687,708 8,231,631 439 44GWN039 687,507 8,231,267 439 38GWN040 687,424 8,231,337 441 40GWN041 687,363 8,231,405 442 41GWN042 687,309 8,231,446 434 42GWN043 687,384 8,230,852 424 26GWN044 687,319 8,230,910 427 31GWN045 687,235 8,230,975 432 35GWN046 687,161 8,231,040 435 33GWN047 687,092 8,231,116 426 29GWN048 686,961 8,230,688 425 29GWN049 686,774 8,230,324 427 60GWN050 686,695 8,230,395 431 32GWN051 686,629 8,230,458 434 32GWN052 690,615 8,233,306 395 32GWN053 690,541 8,233,371 396 27GWN054 690,565 8,232,806 382 32GWN055 690,427 8,232,657 391 32GWN056 690,352 8,232,730 392 35GWN057 690,215 8,232,868 397 29GWN058 690,242 8,232,832 396 31GWN059 690,391 8,232,695 392 30GWN060 690,163 8,232,632 401 40GWN061 690,357 8,232,439 397 30GWN062 690,318 8,232,482 397 30GWN063 690,256 8,232,548 398 31GWN064 690,103 8,232,683 403 31GWN065 690,032 8,232,748 408 28GWN066 689,966 8,232,818 410 28GWN067 690,458 8,232,625 391 31GWN068 690,496 8,232,585 389 32GWN069 690,162 8,233,178 402 27GWN070 690,235 8,233,109 396 22GWN071 690,303 8,233,046 393 32GWN072 690,382 8,232,974 393 38GWN073 690,161 8,232,365 405 30GWN074 690,077 8,232,434 407 28GWN075 690,012 8,232,501 412 30GWN076 689,935 8,232,569 411 28GWN077 689,864 8,232,634 411 30GWN078 689,898 8,232,604 411 33GWN079 689,822 8,232,665 409 28GWN080 689,975 8,232,534 411 29GWN081 690,041 8,232,463 409 26GWN082 690,114 8,232,402 405 31GWN083 690,528 8,232,840 384 30GWN084 690,221 8,233,396 377 30GWN085 690,253 8,233,358 380 29GWN086 690,290 8,233,319 383 28GWN087 690,548 8,233,087 384 28GWN088 690,454 8,233,203 390 56GWN089 690,523 8,233,111 386 64GWN090 690,597 8,233,058 387 58GWN091 690,485 8,233,421 397 66GWN092 690,572 8,233,338 396 48GWN093 690,665 8,233,268 391 66GWN094 689,296 8,231,801 439 60GWN095 689,224 8,231,870 440 34GWN096 689,147 8,231,940 440 47GWN097 689,535 8,231,846 434 60GWN098 689,502 8,231,887 435 90GWN099 689,465 8,231,912 435 60GWN100 689,428 8,231,951 434 60GWN101 689,392 8,231,983 435 50GWN102 689,357 8,232,013 435 60GWN103 689,316 8,232,048 435 60GWN104 689,280 8,232,084 436 40GWN105 689,247 8,232,117 436 60GWN106 689,210 8,232,154 434 90GWN107 689,712 8,231,963 430 42GWN108 689,635 8,232,025 430 48GWN109 689,564 8,232,093 430 90GWN110 689,491 8,232,163 432 40GWN111 689,418 8,232,232 433 30GWN112 689,350 8,232,291 433 40GWN113 689,890 8,232,071 425 39GWN114 689,845 8,232,107 424 22GWN115 689,812 8,232,138 424 90GWN116 689,772 8,232,176 424 34GWN117 689,696 8,232,239 425 39GWN118 689,667 8,232,275 426 33GWN119 689,642 8,232,313 427 26GWN120 689,586 8,232,336 430 90GWN121 689,552 8,232,378 430 28GWN122 689,520 8,232,412 431 30GWN123 689,483 8,232,444 431 90GWN124 689,689 8,232,525 418 60GWN125 689,762 8,232,460 419 60GWN126 689,836 8,232,391 416 90GWN127 689,988 8,233,066 404 60GWN128 690,021 8,233,026 406 60GWN129 690,060 8,232,999 406 60GWN130 690,096 8,232,965 403 90GWN131 690,131 8,232,932 401 52GWN132 690,171 8,232,901 399 40GWN133 690,291 8,232,789 394 37GWN134 690,319 8,232,762 393 37GWN135 690,285 8,233,266 386 50GWN136 690,351 8,233,226 388 40GWN137 689,912 8,232,317 414 22GWN138 690,643 8,233,020 390 34GWN139 690,616 8,232,789 383 22GWN140 690,662 8,232,768 386 53 This information is provided by RNS The company news 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