20th Mar 2006 12:14
Albidon Limited20 March 2006 Suite 1 Hillway HouseAlbidon Limited 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/0483a_-2006-3-20.pdf NEW HIGH GRADE NICKEL DRILL INTERCEPTS AT NORTHERN AND SOUTHERN ENDS OFENTERPRISE DEPOSIT HIGHLIGHTS • Four drillholes designed to extend both northern and southern boundaries of the Indicated Resource at the Enterprise Deposit have intersected high grade mineralisation, including the following intercepts: MAD226: 16m @ 2.53% Ni, 0.28% Cu, 0.12 % Co and 0.94g/t Pt+Pd; and MAD222: 7.75m @ 1.88% Ni, 0.19 % Cu, 0.09 % Co and 1.15g/t Pt+Pd. • Drillhole MAD226 is the thickest high grade mineralisation drilled to date at the southern end of Enterprise and is open down dip. • Drillhole MAD222 confirms the extent of thick high grade mineralisation recently reported at the northern end of Enterprise, which remains open along strike and down dip. • Drilling is continuing with four rigs now on site, aimed at further extending and detailing the Enterprise resource. Drilling Programme and Results 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 at various stages of advancement. A Bankable Feasibility Studyis underway on Enterprise for which an Indicated and Inferred Resource of 6.93Mt@ 1.4% Ni, 0.2% Cu, 0.08% Co and 1g/t PGM was recently announced. (see table 3below and in the hyperlink above) Following an infill drilling programme on the Enterprise resource, which wascompleted in the second half of 2005, an extensional drill programme wascommenced, in order to add confidence to the Inferred portion of the resourceand to assess its ultimate extent. The results reported here are for the fourdrillholes most recently completed, for which assays are available from thisprogramme. Drillhole MAD226 was completed close to the southern end of the EnterpriseDeposit and was designed to test the down dip extent of mineralisation in thisarea (see diagram 2 in the hyperlink above). The drillhole intersected massiveand semi-massive sulphides including 16m @ 2.53% Ni, 0.28 % Cu, 0.12 % Co and0.94g/t Pt+Pd. This is an important result because it is likely to extend the volume of theresource in this area. It is also notable in being the thickest high grademineralisation yet encountered in the southern half of Enterprise and is opendown dip. The mineralised intersections for drillholes MAD225 and MAD227 are listed inTable 1 below. The widths from these are as expected for this portion ofEnterprise, however the grades are significantly higher than the surroundingholes in the area. These drillholes provide additional confidence in the gradeand thickness of the resource towards the southern end of the deposit. Drillhole MAD222 was drilled at the northern end of Enterprise to follow up therecent thick high grade mineralisation reported for drillholes MAD195 and MAD215(see diagram 2 & 3 in the hyperlink above). MAD222 intersected 7.8m @ 1.88% Ni,0.19 % Cu, 0.09% Co and 1.15g/t Pt+Pd. This result further confirms the extentof high grade mineralisation in this portion of the deposit, which remains opento the north and down dip. Diagram 2 illustrates the positions of additionalrecently completed drillholes in this area, for which assay results are expectedin the coming weeks. Forward Programme There are now 4 drill rigs on site, continuing an aggressive program that hasthe following objectives: • Step-out extensional drilling to extend the Enterprise Deposit to the north. • Continued drilling to extend Enterprise down-dip, where it remains open along most of its strike length. • Further confirmation drilling at the Voyager prospect and in the zone between Voyager and Enterprise. • The resource estimate will be updated at the completion of the extensional drilling program. Information in this report relating to exploration results is based on datacompiled by Mike Dunbar, who is a member of The Australasian Institute of Miningand Metallurgy, who acts as a consultant to the Company. Mike Dunbar 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. MikeDunbar 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. Table 1: Drill Intersections and Assay Results for the Enterprise Deposit, using a 0.7% Ni cutoff, minimum intersection thickness of 2.5m and weighted by density. Hole from to Interval (M) ZONE Ni % Cu % Co % PGM g/t MAD222 344.95 352.7 7.75 MZ 1.88 0.19 0.09 1.15MAD225 313 319 6 MZ 1.42 0.13 0.08 1.02MAD226 304 309 5 HW 1.27 0.13 0.07 0.50MAD226 346 362 16 MZ 2.53 0.28 0.12 0.94MAD227 333 337 4 MZ 1.48 0.18 0.08 0.46 Notes: 1. 'PGM' is Pt + Pd. 2. 'Zones' defined in Table 1 include: MZ: 'Main Zone' high grade breccia mineralisation. HW: Mineralisation intersected in the hangingwall above the 'Main Zone' Table 2: Drillhole collar positions, orientations and drillhole type ('DDH' refers to diamond drillholes and 'RC' denotes reverse circulation drillholes). Hole_ID Easting Northing RL Depth Hole Type Dip Azimuth MAD222 621304 8239390 1100 390.2 DDH -72 30MAD225 621737 8239140 1100 350 RC -66 30MAD226 621789 8239110 1100 430 RC -66 30MAD227 621864 8239079 1100 380 RC -65 30 Table 3: Resource classification for the Enterprise deposit (as announced in December 2005) Enterprise Deposit December 2005 Resource Estimate @ 0.7% Ni Cutoff Class Type Tonnes Grade Metal Ni % Cu% Co% Pdg/t Ptg/t PGE g/t Ni T PGEOz Indicated ALL 4,500,000 1.4 0.2 0.07 0.7 0.3 1 63,000 145,000Inferred All 2,430,000 1.4 0.3 0.08 0.7 0.3 1 34,000 78,000Total All 6,930,000 1.4 0.2 0.08 0.7 0.3 1 97,000 223,000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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