8th Nov 2006 07:00
Albidon Limited08 November 2006 Level 1 62 Colin Street West Perth 6005ALBIDON LIMITED Western Australia ARBN 107 288 755 Tel:x+61x8x9211 4600 Fax:x +61x8x9211 4699 Email:[email protected] ASX Code: ALB AIM Code: ALD via electronic lodgement Follow the link below to view the full releasehttp://www.rns-pdf.londonstockexchange.com/rns/7212l_-2006-11-8.pdf CONTINUED DRILLING SUCCESS AT MUNALI AS MINE DEVELOPMENT BEGINS HIGHLIGHTS • Development of the Enterprise Nickel Deposit has begun with initial excavation of the boxcut and construction of site access roads and associated infrastructure. • Further drilling at Enterprise has intersected grades and widths better than or consistent with the resource model including: MAD217: 6.50m @ 2.50 % Ni, 0.45 % Cu, 0.14 % Co & 1.52 g/t Pt + Pd, MAD222: 7.75m @ 1.97 % Ni, 0.20 % Cu, 0.10 % Co & 1.12 g/t Pt + Pd, MAD224: 8.24m @ 1.84 % Ni, 0.24 % Cu, 0.11 % Co & 0.59 g/t Pt + Pd, MAD229: 10.0m @ 2.54 % Ni, 0.34 % Cu, 0.13 % Co & 1.22 g/t Pt + Pd. • Drilling for EM platforms, to assist in targeting deeper drilling, intersected significant widths at the southern end of the Enterprise deposit including: MAD370: 21.0m (10m true width) @ 0.70 % Ni, 0.10 % Cu & 0. 04 % Co, MAD377: 31.0m (8m true width) @ 1.24% Ni, 0.17 % Cu & 0. 07 % Co, • Exploration drilling has confirmed the potential for additional resources between the Enterprise and Voyager nickel deposits at Munali, including: MAD332: 4.0m @ 1.38 % Ni, 0.17 % Cu, 0.07 % Co & 1.35 g/t Pt + Pd, MAD318: 4.0m @ 0.82 % Ni, 0.17 % Cu, 0.06 % Co & 0.73 g/t Pt + Pd. Programme Objectives 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 in the Munali Intrusion, the most advanced of which is theVoyager prospect along strike to the north of Enterprise. Metallurgical Drilling Programme During the Feasibility Study a number of mineralised intervals were sampled formetallurgical testing. With the project now in development, additionalmineralisation is being tested to further optimise the flotation flowsheet forthe concentrator. The first 10 drillholes have been completed and have returnedassay results better than or consistent with the grades that have been estimatedin the resource model including 10m @ 2.54 % Ni, 8.24m @ 1.84 % Ni and [email protected] % Ni from MAD229, 224 and 222 respectively. A full list of intersectionsfrom this drilling programme is included in Table 1. Drilling to provide samples to test the metallurgical characteristics ofadditional key portions of the Enterprise mining reserve is continuing. Thisdrilling is targeting the southern portion of the deposit which will make up thebulk of the early mining production. Deep Exploration Drilling at the Enterprise Deposit A number of drillholes have been completed deep below the base of the knownresource at Enterprise to provide down-hole EM platforms, which will assist inidentifying conductor targets at depth in the Munali Intrusion. Two of the drillholes intersected the Enterprise Deposit at shallow levels.Both of these returned significant mineralised intervals. The thicknesses of thedrill intervals are exaggerated due to the drill orientation and the trueintersection widths are estimated to be approximately half the down holeintersections. The down hole intersections are 21m (10m true width) @ 0.7% Niincluding 7m @ 1.01 % Ni in MAD 370 and 31m (8m true width) @ 1.24 % Ni inMAD377. These holes form part of the down-hole EM programme that is currently underway.This programme will utilise down-hole geophysical surveying equipment to locateconductor targets, and hence possible nickel mineralisation, at depth. Voyager - Enterprise Exploration Drilling An exploration drill programme has commenced with the aim of testing foradditional nickel mineralisation between Voyager and Enterprise (see Diagram 2in the hyperlink above). The drillholes from this program were successful inidentifying a number of mineralised zones. The better results include: 4.0 m @ 1.38 % Ni and 1.35 g/t PGM and 4.0 m @ 0.82% Ni and 0.73 g/t PGM; (see Table 1 below for a full listing of drilling detailsand assay results). 'PGM' is Platinum Group Metals. Additional down-hole EM has commenced in the area to better identify conductortargets and assist in planning further drilling. Forward Programme Following the positive Bankable Feasibility Study on the Enterprise NickelDeposit at Munali, the project has been accelerated, with development of themining access commencing ahead of schedule. Project development activities will continue in the coming weeks, including thefollowing key tasks: • Site preparation including mobilisation of the mining fleet,excavation of the boxcut for the decline, and construction of the access roads. • Drilling of additional water bores to provide construction water inaddition to assisting in dewatering the near-surface portions of the mine. • Grouting of the drillholes within the top 200 metres of the deposit. These development activities will be accompanied by an ongoing explorationprogram. This is designed to assess the potential for additional nickelresources elsewhere within the Munali Intrusion which hosts the EnterpriseDeposit, as well as throughout the surrounding Munali district. There are twodrill rigs on site, continuing a staged exploration programme that has thefollowing objectives: • A down-hole EM programme to better identify conductor targets deep inthe intrusion below the current base of the Enterprise resource. • Infill drilling at Voyager to allow a resource to be estimated. • Drilling of regional prospects identified from the recent airborneVTEM survey and accompanying geochemical surveys. Information in this report relating to exploration results is based on datacompiled by Mike Dunbar (a consultant to the Company and full time employee ofthe Mitchell River Group), who is a member of The Australasian Institute ofMining and Metallurgy. Mike Dunbar has sufficient experience which is relevantto the style of mineralisation and type of deposit under consideration and tothe activity which he is undertaking to qualify as a Competent Person under the2004 Edition of the Australasian Code for reporting of Exploration Results,Mineral Resources and Ore Reserves. Mike Dunbar consents to the inclusion of thedata in the form and context in which it appears. If you have any queries please contact the Company Secretary, Nicholas Day on+61 8 9211 4600 or email [email protected]. Additional information may also be viewed on Albidon's website atwww.albidon.com. Table 1: Drill Intersections and Significant Assay Results for the MunaliIntrusion, weighted by density. (Intersections >0.7% Ni and widths > 2 metres) Hole from to Interval Zone Ni % Cu % Co % Pd g/t Pt g/t Combined Comments (M) PGM g/tMAD206 219.00 222.00 3.00 MZ 1.06 0.11 0.07 0.52 0.02 0.54 Metallurgical drill holeMAD213 111.00 120.00 9.00 MZ 1.03 0.12 0.07 0.64 0.26 0.90 Metallurgical drill holeMAD214 172.45 175.15 2.70 MZ 2.22 0.35 0.13 1.08 1.02 2.10 Metallurgical drill holeMAD217 262.00 268.50 6.50 MZ 2.50 0.45 0.14 1.17 0.34 1.52 Metallurgical drill holeMAD220 248.40 252.50 4.10 MZ 1.04 0.12 0.06 0.71 0.26 0.97 Metallurgical drill holeMAD222 344.95 352.70 7.75 MZ 1.97 0.20 0.10 0.72 0.40 1.12 Metallurgical drill holeMAD223 375.79 383.50 7.71 MZ 0.95 0.15 0.06 0.25 0.23 0.48 Metallurgical drill holeMAD224 421.81 430.05 8.24 MZ 1.84 0.24 0.11 0.49 0.10 0.59 Metallurgical drill holeMAD228 352.20 371.66 19.46 MZ 0.93 0.16 0.06 0.36 0.34 0.70 Metallurgical drill holeinc 363.82 371.66 7.84 MZ 1.12 0.27 0.07 0.47 0.62 1.08 Metallurgical drill holeMAD229 289.00 299.00 10.00 MZ 2.54 0.34 0.13 0.83 0.39 1.22 Metallurgical drill holeMAD318 235 239 4 MZ 0.82 0.17 0.06 0.24 0.49 0.73 Exploration between Enterprise and VoyagerMAD325 274.1 277.94 3.84 MZ 0.73 0.09 0.05 0.18 0.44 0.62 Exploration between Enterprise and VoyagerMAD327 137 140 3 MZ 0.76 0.13 0.04 0.27 0.48 0.75 Exploration between Enterprise and VoyagerMAD331 184 187 3 MZ 0.76 0.11 0.05 0.72 0.39 1.11 Exploration between Enterprise and VoyagerMAD332 142 146 4 MZ 1.38 0.17 0.07 0.41 0.95 1.35 Exploration between Enterprise and VoyagerMAD370 85 106 21 MZ 0.70 0.10 0.04 *** *** *** Drilled through Enterprise to provide down hole EM platformInc 85 92 7 MZ 1.01 0.16 0.06 *** *** ***MAD377 90 121 31 MZ 1.24 0.17 0.07 *** *** *** Drilled through Enterprise to provide down hole EM platform Notes: 1. 'PGM' is Pt + Pd. 2. MZ: 'Main Zone' high grade breccia mineralisation. 3. *** Assays results not yet received Table 2: Drillhole collar positions, orientations and drillhole type. 'RC'denotes reverse circulation drillholes and 'DDH' denotes diamond drillholes. Hole ID Easting Northing RL Depth Hole Type Dip AzimuthMAD206 621927.66 8239149 1104.47 260 DDH -60 30MAD213 621982.98 8239245 1101 150 DDH -60 30MAD214 621585.93 8239357 1104.34 270 DDH -60 30MAD217 621537.24 8239283 1101.08 380 DDH -60 30MAD220 621368.52 8239381 1098.63 300 DDH -60 30MAD222 621302.24 8239392 1096.43 390.2 DDH -72 30MAD223 621285.27 8239437 1096.81 435 DDH -72 30MAD224 621334.36 8239281 1096.32 491.6 DDH -72 30MAD228 621306.54 8239472 1097.42 404.4 DDH -75 30MAD229 621349.61 8239388 1097.6 336 DDH -70 30MAD318 621080.45 8239682 1100 265 RC -62 30MAD321 620935.45 8239431 1100 592 DDH -72 30MAD322 621010.45 8239560 1100 501.5 DDH -60 30MAD323 621013.85 8239766 1100 240 RC -60 30MAD324 621100.45 8239716 1100 220 RC -60 30MAD325 621055.45 8239638 1100 342.73 DDH -60 30MAD327 621130.45 8239768 1100 170 RC -60 30MAD330 620983.85 8239714 1100 332.9 DDH -65 30MAD331 621187.06 8239666 1100 240 RC -60 30MAD332 621217.06 8239718 1100 200 RC -60 30MAD370 621820.6 8239324 1100 673 DDH -90 0MAD377 621959.5 8239324 1100 286 RC -60 120 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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