21st Apr 2008 07:00
Albidon Limited21 April 2008 LEVEL 1 62 COLIN STALBIDON LIMITED WEST PERTH 6005 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 document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/7211s_-2008-4-21.pdf 21 April, 2008 NEW JOINT VENTURE EXPANDS BOTSWANA NICKEL PROJECTS HIGHLIGHTS • Albidon has signed a Joint Venture Agreement with IAMGOLD under which the Company may earn up to 80% interest in nickel exploration projects at Maitengwe in eastern Botswana. • The joint venture covers the Maitengwe Greenstone Belt which has not yet been subjected to intensive modern nickel exploration. • Maitengwe is located on a major regional structure that localises substantial nickel deposits at Hunters Road and Damba to the east. • The joint venture further expands Albidon's extensive tenement interests in Botswana, following the Company's recent discovery of nickel at Sunnyside to the south. • Field operations will commence with soil geochemical sampling in June of this year. Joint Venture with IAMGOLD Albidon has signed a Joint Venture Agreement ('JV') with IAMGOLD for theexploration and development of nickel and other metals on IAMGOLD's tenementscovering the Maitengwe Greenstone Belt in eastern Botswana (see Diagram 1 in thehyperlink above). The JV continues the Company's strategy of securing access tolarge areas of ground that is prospective for nickel but has not been adequatelyexplored. The JV tenements add considerably to Albidon's holdings of prospective nickelground in Botswana (see Diagram 1 in the hyperlink above). The terms of theJoint Venture agreement are summarised below. Nickel Prospectivity of Maitengwe Greenstone Belt The Maitengwe Greenstone Belt is located in eastern Botswana and is one of anumber of greenstone areas that make up large parts of Botswana, South Africaand Zimbabwe. These greenstone belts contain the majority of nickel resources insouthern Africa, including those at Selebi-Phikwe and Tati in Botswana, andBindura in Zimbabwe (see Diagram 1 in the hyperlink above). The greenstone areas include Albidon's 100% owned Sunnyside prospect wheredrilling by the Company has confirmed a nickel discovery in an explorationprogram that is ongoing. Drilling is also planned at Albidon's nearby Kgwedi andLipadi nickel prospects in the coming months (see Diagram 1 in the hyperlinkabove). An important feature of the Maitwngwe Greenstone Belt is its location on a majorregional geological structure that appears to localize substantial nickelmineralization at the Hunter's Road and Damba deposits to the east in Zimbabwe(see Diagram 1 in the hyperlink above). This is a positive feature becausestructures such as these are of fundamental importance in the formation of largenickel deposits. Terms of the Joint Venture Albidon has the right to earn interests in the JV tenements from IAMGOLD byfunding exploration and development activities, as follows (in US dollars): • Expenditure of $75,000 within 12 months to maintain an exclusive option to earn a farm-in interest in the tenements. • Additional expenditure of $325,000 within 3 years to earn a 50% farm-in interest. • If IAMGOLD elects not to participate then Albidon may earn an additional 20% for a total 70% interest by completing further exploration expenditure of $400,000 within 4 years of commencement. • Albidon may earn an additional 10% for a total of 80% interest by completing a Pre-feasibility Study if IAMGOLD elects not to fund its 30% interest. • Thereafter the partners to fund the JV activities in proportion to their respective interests or convert to a 1.5% NSR royalty if their interest falls below 10%. Forward Program for Maitengwe The exploration program planned for the coming months will include a review ofIAMGOLD's existing database, regional geochemical sampling and geologicalevaluations aimed at defining zones of interest for more detailed sampling andgeophysics, as warranted. 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. Information in this report relating to exploration results is based on datacompiled by John Schloderer an employee of the Company, who is a member of TheAustralasian Institute of Mining and Metallurgy. John Schloderer 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. John Schlodererconsents to the inclusion of the data in the form and context in which itappears. 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 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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