8th Dec 2005 10:49
Albidon Limited08 December 2005 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 Large Increase in Enterprise Nickel Resource to 97,000 Tonnes of Nickel Metal HIGHLIGHTS • Infill and extensional drilling has significantly increased the mineralresource at the Enterprise deposit to 6,930,000 tonnes @ 1.4% Ni and 1.0g/t PGM(Indicated and Inferred Resources, JORC classification). • The current metal inventory is 97,000 tonnes of contained nickel and223,000 ounces of contained PGM, representing an increase of 75% over theInferred Resource estimate announced in April 2005. • The current resource estimate does not include the recently discoveredVoyager zone. • The Enterprise deposit remains open down dip and along strike to thenorth. Ongoing drilling is expected to yield further increases in the resource. • This large resource increase is likely to have a substantial positiveimpact on the project economics. The scale of the project is now under review. • Progress reports on metallurgical testwork and other aspects of theFeasibility Study on the Enterprise deposit will be announced in the comingweeks. Mineral Resource Estimate for Enterprise Nickel Deposit A revised resource estimate has been calculated for the Enterprise deposit basedon drilling completed during 2005 at the Munali Nickel Project, Zambia. This ismade up of 40 cored drill holes (for a total of 12,720 metres) and 59 reversecirculation (RC) holes (for a total of 9,800 metres). Drilling has beendirected at the volume of the Enterprise deposit defined by the previouslyannounced Inferred Resource estimate, with the objective of improving theclassification to Indicated Resource. The updated resource estimate isJORC-compliant and is summarised below: Class Tonnes Grade Metal Ni % Cu % Co % Pd g/t Pt g/t PGM g/t Ni T PGM Oz Indicated 4,500,000 1.4 0.2 0.07 0.7 0.3 1.0 63,000 145,000 Inferred 2,430,000 1.4 0.3 0.08 0.7 0.3 1.0 34,000 78,000 Total 6,930,000 1.4 0.2 0.08 0.7 0.3 1.0 97,000 223,000 The new resource is based on the breccia and massive sulphide zones near thesoutheastern contact of the Munali Intrusion. The modelled resource extends forover 800m along strike and 600m down dip within a continuous structural zone.The deposit is open along strike and down dip and drilling is continuing. It isnoted that the current resource estimate excludes the new Voyager NickelProspect which is also still being drilled. An external audit has been conducted by Resource Evaluations Pty Ltd. The auditincluded a site visit and review of: drilling and sampling procedures; samplepreparation laboratory; assay techniques and QA/QC of data and analyticalstandards. The resource model and classification of the resource following JORCguidelines was also completed by Resource Evaluations Pty Ltd's PrincipalGeologist, Mr P. Payne. Forward Drilling Program Drilling is continuing at Enterprise which remains open along strike and downdip. This work is expected to lead to an additional updated resource estimateprior to completion of the Feasibility Study in the first half of 2006. Drilling is also continuing at the Voyager Prospect, some 800m to the north ofEnterprise, and in the 500m long un-drilled area between the two deposits, whichare geologically very similar. Feasibility Study The substantially increased resource estimate of 97,000 tonnes of Ni metal willunderpin the next stage of the Enterprise Feasibility Study and is expected tohave a positive impact on project economics. A progress report on results of themetallurgical testwork program and other components of the Feasibility Studywill be announced in the coming weeks. Information in this report relating to exploration results is based on datacompiled by Mike Dunbar a consultant to the Company, who is a member of TheAustralasian Institute of Mining and Metallurgy. Mike Dunbar has sufficientexperience which is relevant to the style of mineralisation and type of depositunder consideration and to the activity which he is undertaking to qualify as aCompetent Person under the 2004 Edition of the Australasian Code for reportingof Exploration Results, Mineral Resources and Ore Reserves. Mike Dunbar consentsto the inclusion of the data in the form and context in which it appears. Information in this report relating to Mineral Resources has been eithercompleted by or reviewed by Paul Payne of Resource Evaluations Ltd. who is amember of The Australasian Institute of Mining and Metallurgy. Paul Payne 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. PaulPayne 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. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ALD.L