16th May 2007 10:52
Albidon Limited16 May 2007 Level 1 62 Colin St West Perth 6005ALBIDON LTD 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 Paste the following link into your web browser to download the PDF documentrelated to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/6890w_-2007-5-16.pdf DRILLING SUCCESS CONTINUES AT MUNALI HIGHLIGHTS Voyager Prospect Exploration drilling at the Voyager nickel prospect has continued to intersectsignificant grades and widths of mineralisation including: • MAD410: 12 m (6.4 m true width) @ 2.16% Ni, 0.24% Cu, 0.12% Co and 2.82 g/t Pt + Pd; • MAD402: 14.13 m @ 0.78% Ni, 0.05% Cu, 0.04% Co and 0.77 g/t Pt + Pd, including 3.08 m @ 1.95% Ni, 0.16% Cu, 0.06% Co and 1.75 g/t Pt + Pd; and • MAD388: 4.09 m (2.3m true width) @ 2.6% Ni, 0.22% Cu, 0.08% Co and 2.73 g/t Pt + Pd. These results, combined with previously reported intersections, confirm thepotential of the Voyager prospect. • PGM grades at Voyager are particularly encouraging. Enterprise Deposit Further drilling at the Enterprise deposit has intersected grades and widthsbetter than or consistent with the resource model including: • MAD396: 13.56 m @ 0.91% Ni, 0.14% Cu, 0.06% Co and 1.3 g/t Pt + Pd, including 3.21 m @ 2.3% Ni, 0.38% Cu, 0.14% Co and 3.36 g/t Pt + Pd; and • MAD405: 13.35 m @ 1.01% Ni, 0.15% Cu, 0.06% Co and 0.75 g/t Pt + Pd, including 4.83 m @ 1.45% Ni, 0.22% Cu, 0.08% Co and 1.01 g/t Pt + Pd. Drilling is planned to continue at Voyager, Enterprise and at other targets inthe Munali Intrusion throughout the rest of this year. Drilling Programme Voyager Prospect A drilling programme has commenced with the aim of testing for additional nickelmineralisation north of Enterprise, and to provide access for down-holegeophysical surveys beneath Voyager and the North West target zone (see Diagram1 below). Drill holes from this programme were successful in confirming a numberof mineralised zones. The better results include: 12.0 m (6.4 m true width) @ 2.16% Ni and 2.81 g/tPGM, and 4.09 m (2.3 m true width) @ 2.6% Ni and 2.73 g/t PGM (see Table 1 belowfor a full listing of drilling details and assay results). An initial programme of down-hole geophysical surveying has been completed andthe results will be combined with the recent drilling data to generate astructural model that will guide future drilling at Voyager and other targetsalong strike to the north west (see Diagram 1 below). Enterprise Deposit An additional five drillholes have been completed at Enterprise and havereturned mineralised intervals better than or consistent with the grades thathave been estimated in the resource model. Results include 13.56 m @ 0.91% Ni(including 3.21 m @ 2.3% Ni), and 13.35 m @ 1.01% Ni (including 4.83 m @ 1.45%Ni) from MAD396 and 405 respectively. A full list of results received to datefrom this drilling programme is included in Table 1. Deep Exploration at the Enterprise Deposit A number of previously completed drillholes designed to test the deeper portionsof the Enterprise deposit have been surveyed using down-hole geophysics. Targetsdefined by analysis of the data will be drill tested in the coming months. Forward Programme Exploration activities will continue at Munali in parallel with the minedevelopment activities. There is significant untested potential within theMunali Intrusion as well as the greater Munali region. There are currently twodrill rigs on site, continuing a phased exploration programme. This programmewill include modelling of the recent down-hole geophysical data to define newtargets at Enterprise and Voyager, with drill testing of any significantconductors scheduled for the next quarter. 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 at www.albidon.com Table 1: Drill Intersections and Significant Assay Results for the MunaliIntrusion, weighted by density. Hole from to Interval (M) Zone Ni % Cu % Co % Pd g/t Pt g/t Combined PGM g/t MAD388 122.94 127.03 4.09(2.30 TW) MZ 2.6 0.22 0.08 1.97 0.76 2.73MAD396 159.00 164.00 5.00 HW 0.93 0.06 0.04 0.77 0.35 1.12MAD396 172.69 186.25 13.56 MZ 0.91 0.14 0.06 0.67 0.63 1.30inc. 183.04 186.25 3.21 MZ 2.30 0.38 0.14 1.69 1.67 3.36MAD398 201.00 203.17 2.17 MZ 0.66 0.04 0.05 0.47 0.08 0.55MAD402 153.87 168.00 14.13 MZ 0.78 0.05 0.04 0.51 0.26 0.77inc. 164.92 168.00 3.08 MZ 1.95 0.16 0.06 1.24 0.51 1.75MAD405 170.12 183.47 13.35 MZ 1.01 0.15 0.06 0.48 0.27 0.75inc. 178.64 183.47 4.83 MZ 1.45 0.22 0.08 0.64 0.37 1.01MAD409 9.00 13.00 4.00 MZ 0.70 0.10 0.04 0.20 0.32 0.52MAD410 51.00 63.00 12.00(6.40TW) MZ 2.16 0.24 0.12 1.62 1.2 2.82 Notes: 'PGM' is Pt + Pd. MZ: 'Main Zone' high grade breccia mineralisation. HW: 'Hanging Wall' mineralisation. TW: True Width. 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 Azimuth MAD379 8239411 622010 1119.400 262 RC -60 120MAD380 8239503 622051 1120.380 114 RC -60 120MAD381 8240676 620038 1095.300 397 DDH -60 30MAD382 8240899 620453 1114.202 356 DDH -60 30MAD383 8240784 620331 1111.735 812 DDH -60 30MAD384 8240982 620388 1103.960 301 DDH -60 30MAD385 8240957 620431 1106.670 286 RC -60 30MAD387 8240193 620914 1106.530 334 DDH -60 210MAD388 8240319 620756 1119.650 199 DDH -55 210MAD396 8239186 621880 1108.615 280 DDH -70 30MAD398 8240036 620707 1100.182 301 DDH -50 30MAD402 8240224 620701 1149.351 202 RC -80 30MAD403 8240300 620514 1132.294 180 RC -45 30MAD405 8239250 621709 1103.240 295 DDH -75 30MAD406 8239928 620934 1097.105 220 DDH -60 330MAD407 8239963 620954 1098.235 120 RC -60 30MAD408 8239997 620974 1098.865 120 RC -60 30MAD409 8240032 620994 1099.065 120 RC -60 30MAD410 8240378 620674 1123.898 150 RC -55 210MAD411 8240428 620588 1129.550 175 RC -55 210MAD412 8240504 620516 1138.905 141 RC -55 210MAD413 8240656 620373 1122.880 210 RC -55 210 (see Diagram 1: Plan View of the Munali Intrusion indicating the location ofthe most recent significant drill intercepts and the location of the EnterpriseDeposit, Voyager Prospect and the North West Target Zone in hyperlink above) BACKGROUND: The Munali Nickel Project (100% Albidon) is located approximately 60 kilometressouth of Zambia's capital city Lusaka. The Project comprises the EnterpriseDeposit and a number of other nickel prospects in the Munali Intrusion, the mostadvanced of which is the Voyager prospect along strike to the north ofEnterprise. The Enterprise Deposit is presently being developed, with firstproduction of Ni-Cu-Co-PGM concentrate expected in mid-2008. A positive Bankable Feasibility Study was completed in July 2006 and site workscommenced in September 2006, following receipt of all required approvals. Acapital raising was completed in October 2006 to provide US$35 million of equityfinance for the project funding. Senior debt financing from the EuropeanInvestment Bank and Barclays Capital of US$60 million is in now place. An offtake agreement was signed in December 2006 that provides for the purchaseby Jinchuan of nickel concentrates from the Project over the life of the mine. AUS$25 million subordinated debt and equity facility with Jinchuan is also inplace. 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