14th Sep 2005 11:00
Albidon Limited14 September 2005 Suite 1 Hillway House 141 Broadway Albidon limited Nedlands 6009 Western Australia ARBN 107 288 755 Tel:x+61x8x9389 6300 Fax:x +61x8x9389 6400 Email: [email protected] ASX Code: ALB AIM Code: ALD via electronic lodgement Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/2416r_-2005-9-14.pdf Discovery of New Zone of Massive Sulphide Mineralisation at the Munali NickelDeposit, Zambia HIGHLIGHTS • A new zone of massive sulphide nickel mineralisation has been discovered 800 metres to the north of the Enterprise Zone of the Munali deposit. • The new zone has identical geology to Enterprise, suggesting there is potential for substantial additional tonnages of nickel mineralisation. • The drill intersections in the new discovery zone include: Hole ID Interval (m) Ni % Cu % Co % PGM g/t MAD146 5 1.02 0.11 0.07 0.55 MAD147 20 1.15 0.16 0.07 1.58 including 9 1.49 0.21 0.09 1.76 • The newly discovered zone is also similar to the MAD29 massive sulphide area 700m to the north, further highlighting the extent of massive nickel sulphides within the Munali Intrusion. • Ongoing Feasibility Study drilling at the Enterprise Zone of the Munali Deposit is continuing to confirm the geology, grade and thickness of the resource. Assay results have now been received for the most recently completed Enterprise drillholes including: Hole ID Interval (m) Ni % Cu % Co % PGM g/t MAD083 9.00 1.71 0.14 0.09 1.12 MAD094 8.35 1.17 0.08 0.06 0.97 MAD105 5.40 1.69 0.14 0.08 0.90 MAD108 4.16 2.16 0.35 0.12 1.60 MAD109 6.05 1.74 0.23 0.10 1.58 MAD110 6.09 1.70 0.18 0.09 1.17 MAD113 11.00 1.14 0.14 0.06 0.98 MAD121A 9.00 1.44 0.18 0.08 1.08 MAD123 8.00 1.12 0.15 0.07 1.18 • The forward program will include drilling to follow up the newly discovered northern zone as well as in the Enterprise Zone which remains open along strike and down dip. New Discovery A reconnaissance drilling program has discovered a new zone of massive sulphidenickel mineralisation located approximately 800m to the north of the Munalideposit (see Figures 1 and 2; the new zone is illustrated in Figure 1 as the 'Northwestern Target Zone' in the hyperlink above). The program was designed tolocate new zones of mineralisation similar to the Enterprise Zone at Munali andwas targeted on the basis of geology and geophysical data. In particular, the drilling was focussed on an extensive zone of gossandevelopment that has received only minimal drilling in the past. Gossan outcropsmark the locations where sulphide mineralisation extends to the land surface andis exposed to weathering processes. Gossans extend over a distance of 800m inthis northern zone (Figure 1 in the hyperlink above). In addition to testing the gossan zone, the drill program was designed to testthe idea that the northern zone is an extension of the Enterprise Zone,separated from the latter by a fault structure (see Figure 1 in the hyperlinkabove). Results Assay data are available for the first three drillholes completed in thenorthern zone and these are summarised in Tables 1 and 2 in the hyperlink above.Key points to note are as follows: • The geology of the new zone is identical to that at Enterprise, some 800m to the south, with similar style, grade and thickness of mineralisation. • The new zone also has similar geology to the previously drilled massive sulphide mineralisation in the MAD029 area, approximately 700m to the north. • Similar massive sulphide mineralisation has now been confirmed in three zones along the southern contact of the Munali Intrusion, over a total distance of 2.3 kilometres. Ongoing Drilling at the Enterprise Zone of the Munali Deposit Infill drilling is continuing in the Enterprise Zone at Munali with theobjective of improving the resource estimate as part of the Feasibility Study.Assay data have been received for an additional 38 drillholes and these aresummarised in Table 1 in the hyperlink above. Drillhole location information islisted in Table 2 in the hyperlink above. The drill results continue to validate Albidon's geological model for theEnterprise Zone and the broader Munali Intrusion. The model recognises a highgrade zone ('Main Zone') developed along an internal contact within theIntrusion. This zone is open down dip and along strike and it is clear from thenew discovery to the north that the mineralisation is developed on a scale ofkilometres. Forward Drilling Program Drilling is continuing with two rigs operating on site. The forward program willinclude: • Completion of the resource infill drilling in the Enterprise Zone; • 'Step-out' drilling to extend the Enterprise resource which is currently open along strike and down dip; • Follow-up drilling to delineate the size of the newly discovered northern zone. 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 TheAustralian 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. If you have any queries please contact the Chief Financial Officer, Nicholas Dayon +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:
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