28th Nov 2007 11:26
Albidon Limited28 November 2007 ALBIDON LIMITED LEVEL 1 62 COLIN STREET WEST PERTH WA 6005 AUSTRALIA TELEPHONE: +61 89211 4600 FACSIMILE: +61 8 9211 4699 EMAIL: [email protected] WEBSITE: www.albidon.com ABN 86 107 288 755 ASX CODE: ALB AIM CODE: ALD via electronic lodgement Munali Nickel Project - Enterprise Deposit Resource Update Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/6643i_-2007-11-28.pdf HIGHLIGHTS • The Enterprise resource has been re-estimated with the inclusion of infill drilling of the early stoping levels and additional deep drilling. • The Indicated and Inferred Resource for the Enterprise Deposit is now 9.12Mt @ 1.23% Ni and 0.9g/t of platinum group metals ('PGM') at a revised cutoff grade of 0.6% Nickel. • Enterprise contains 112,000 tonnes of Ni and 243,000 ounces of PGM. • The Indicated portion of the resource has increased to 7.5Mt @ 1.28% Ni and 0.9g/t of PGM. • The updated resource includes an additional 33 drill holes (15%) or 10,400 metres of additional drilling. Updated Mineral Resource Estimate for Enterprise Nickel Deposit The Munali Nickel Project (100% Albidon) is located approximately 60 kilometressouth of Zambia's capital city Lusaka (see Diagram 1 in the hyperlink above).The Munali Project area comprises the Enterprise Deposit and a number of othernickel prospects around the Munali intrusion, the most advanced of which is theVoyager prospect along strike from Enterprise. A revised JORC-compliant resource estimate has been prepared by ResourceEvaluations Pty Ltd for the Enterprise Deposit including additional drillingcompleted during the period from April 2006 to July 2007. Based on revisedmining costs and an updated long term Nickel price the cutoff grade for theresource has been reduced from 0.7% Ni to 0.6% Ni to better reflect the size ofthe zones that can be economically extracted. Table 1: Enterprise Deposit September 2007 Resource Estimate > 0.6% NiClass Tonnes Grade Metal Ni % Cu % Co % Pd g/t Pt g/t PGM g/t Ni T PGM OzIndicated 7,540,000 1.3 0.2 0.07 0.6 0.3 0.9 96,600 209,500Inferred 1,580,000 1.0 0.1 0.06 0.5 0.2 0.7 15,400 33,500Total 9,120,000 1.23 0.2 0.07 0.6 0.3 0.9 112,000 243,000 The shallow drilling resulted in a substantial increase in confidence in theearly stoping levels of the Indicated Resource. A number of additionalstructures in the upper zones of the resource were also identified with thisdata now being used for detailed mine planning and incorporated into the revisedprobable reserve. In addition to the location of the main ore zone, overall thegrade in the shallow portion of the resource is slightly higher than previousmodels have estimated at a comparative cut off grade. The updated resource includes an additional 33 drill holes or 10,400 metres ofadditional drilling. The resource is based on the breccia and massive sulphide zones at the southeastern corner of the Munali Intrusion. The modelled resource extends for over1 km along strike towards Voyager, and 600m down dip within a continuousstructural zone (see Diagram 2 in the hyperlink above). The Enterprise Deposithas not been fully closed off along strike to the north and down dip. This resource estimate excludes the Voyager prospect which is currently beingestimated and will be reported in the near future. Forward Programme • Complete the construction of the Munali concentrator plant - scheduled for mid 2008 • Continue development of the Enterprise Decline. The target is to intersect the first production levels in early 2008, in time for the commissioning of the concentrator in mid 2008 • Complete initial resource estimate on the Voyager prospect. • Continue drilling within the Munali Intrusion to test geophysical anomalies • Continue a systematic programme of gyroscopic surveys of the exploration drill holes If you have any queries please contact the Chief Financial Officer, Nicholas Dayor Managing Director, Dale Rogers on +61 8 9211 4600 or email [email protected]. Albidon's nominated adviser is RFC Corporate Finance Ltd,contact Stephen Allen +61 8 9480 2500. Additional information may also be viewed on Albidon's website atwww.albidon.com 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 "Indicated" and "Inferred Resources" are to those terms as defined in theJORC Code. Information in this report relating to Mineral Resources has been eithercompleted by or reviewed by Mr Mike Dunbar, who is a full time employee of theMitchell River Group and a consultant to the Company, who is a member of TheAustralasian Institute of Mining and Metallurgy or Mr Paul Payne of ResourceEvaluations Ltd who is a member of The Australasian Institute of Mining andMetallurgy. Mr Dunbar and Mr Payne have 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. Mr Dunbar and Mr Payne consent to theinclusion of the data in the form and context in which it appears. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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