26th Mar 2008 10:17
Albidon Limited26 March 2008 LEVEL 1 62 COLIN ST 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 http://www.rns-pdf.londonstockexchange.com/rns/7824q_-2008-3-26.pdf NEW NICKEL TARGETS FOR DRILLING AT SONGEA, TANZANIA KEY POINTS • An airborne electromagnetic ('EM') survey has identified a number of high priority targets at the Songea Nickel Project in Tanzania. • Several of the EM conductor targets coincide with nickel-copper geochemical anomalies in soils and stream sediments. • The EM conductors and soil nickel anomalies are associated with highly prospective geology that is known from outcrop sampling to contain nickel sulphide minerals. The mineralised rocks at Songea are similar to the host rocks at the Voisey's Bay nickel deposit in Canada. • Albidon's joint venture partner BHP Billiton is undertaking a follow up programme of detailed soil geochemical sampling to generate a priority ranking of the EM targets. • Drilling of the priority targets is scheduled for the next quarter. Airborne EM Geophysical Survey A 'VTEM' airborne electromagnetic survey covering the Songea Project insouthwest Tanzania has been completed by BHP Billiton under the AfricaExploration Cooperation Agreement between Albidon and BHP Billiton (see Diagram1 in the hyperlink attached for location). The VTEM survey totalled 3,016 linekilometres covering 414 km2 over several prospective 'mafic-ultramaficintrusion' complexes as part of the nickel-focused Songea exploration programme.The survey was undertaken to follow up significant Ni and Cu anomaliesidentified in previous stream sediment geochemical sampling undertaken by anAlbidon-BHP Billiton team. The VTEM survey has delineated a number of conductor anomalies at both theLiparamba and Mbinga Prospect areas (see Diagrams 2 and 3 in the hyperlinkattached). EM Targets and Geochemical Anomalies at Songea The high priority 'late-time' EM conductor targets at the Liparamba and MbingaProspects are located mostly within or near the contacts of the prospectiveintrusion rocks covered by the EM survey (see Diagrams 2 and 3 in the hyperlinkattached). Several of the EM conductors are coincident with nickel and coppergeochemical anomalies defined by soil and/or drainage geochemical sampling. AtLiparamba one of the conductors is coincident with a geochemical anomaly definedby assay values of up to 3,500ppm Ni (0.35% Ni) in soil samples (see Diagram 2in the hyperlink attached). At Mbinga, one group of conductor targets is closely associated with a Ni-Cusoil geochemical anomaly located within an 'embayment' at the eastern contact ofthe Mbinga Intrusion (refer to Diagram 3 in the hyperlink attached). Several of the Ni-Cu anomalies are accompanied by Co, Pt and Pd anomalies,supporting the interpretation that the Ni-Cu anomalies reflect nickel sulphidemineralisation. The soil geochemical sampling areas, which have been limited todate, will now be extended on the basis of the latest results. Songea Project Geology and Nickel Sulphides The geology of both the Liparamba and Mbinga target areas is highly prospective.The Liparamba target is a 'noritic intrusion', with a diameter of severalkilometres (see Diagram 2). Mineralogical studies have confirmed the presence ofthe nickel sulphide mineral pentlandite within 'gabbro-norite' and 'olivinegabbro' rocks close to the southwestern contact of the Liparamba intrusion. The Mbinga prospect area is interpreted to represent a multi-chamber 'norite-troctolite' intrusion measuring 9km x 6km in size (see Diagram 3 in thehyperlink attached). Nickel sulphide has been confirmed in outcrop samples fromthe eastern embayment area at Mbinga. The geology of the nickel-bearing rocks at Liparamba and Mbinga is similar tothat of the norite and troctolite rocks that host Vale's (previously Inco's)large massive sulphide nickel orebody at Voisey's Bay in eastern Canada. Forward Programme Detailed soil geochemical sampling and trenching will be undertaken over thepriority EM conductor targets and to extend the small areas covered to date.This work will be accompanied by detailed analysis and interpretation of the EMdata, and these two datasets will then be combined with the aim of definingdrill targets. It is anticipated that drilling will commence in the nextquarter. The airborne survey and ongoing sampling programmes will contribute to BHPBilliton's earn-in expenditure on the Songea Project. BHP Billiton has nominatedfive Prospecting Licenses covering 838 sq. km southwest of Songea as a Targetunder the terms of the Africa Exploration Cooperation Agreement with Albidon.Under this agreement BHP Billiton is sole-funding exploration activities to earnan initial 30% interest by completing expenditures of at least USD$5 million. Information in this report relating to Exploration results is based oninformation compiled by BHP Billiton and reviewed by Mr. John Schloderer (anemployee of Albidon Limited) who is a member of The Australian Institute ofGeoscientists. Mr John Schloderer has sufficient experience which is relevant tothe style of mineralisation under consideration and to the activity which he isundertaking to qualify as a Competent Person under the 2004 Edition of theAustralasian Code for reporting of Exploration Results. Mr. 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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