1st May 2007 07:01
Albidon Limited01 May 2007 Level 1 62 Colin St West Perth 6005 Western AustraliaALBIDON LTD ARBN 107 288 755 Tel:x+61x8x9211 4600 Fax:x +61x8x9211 4699 Email:xinfo@albidon.com ASX Code: ALB AIM Code: ALD To view the full release including the associated diagrams, please follow the link below; http://www.rns-pdf.londonstockexchange.com/rns/8411v_-2007-5-1.pdf Market release via electronic lodgement Via electronic lodgement NEW URANIUM TARGETS CONFIRMED BY SOIL SAMPLING AT THE GWABE PROSPECT, ZAMBIA HIGHLIGHTS • Geochemical soil sampling and scintillometer surveys have confirmed the presence of uranium anomalies at the Gwabe Prospect in the Chirundu JV, Zambia (JV operated by African Energy Resources, "African Energy"). • Reconnaissance geological mapping at Gwabe confirmed the presence of sandstones and shales similar to those which host mineralisation at the Njame North uranium deposit, 15km to the southwest. • Drilling at Gwabe is scheduled to commence next month. GEOCHEMICAL SOIL SAMPLING RESULTS, GWABE PROSPECT(Albidon Limited 100%, African Energy earning 30%) A geochemical soil sampling survey undertaken at the Gwabe Prospect hasconfirmed the presence of uranium anomalies in soils overlying prospective Karoosedimentary rocks. The Gwabe uranium anomaly was identified by an airborne radiometric surveycompleted in December 2006 as part of a regional exploration program which isdesigned to develop a pipeline of high quality uranium targets for fieldevaluation and drill testing. Field inspection of the 6km long Gwabe uranium anomaly identified a welldeveloped soil horizon overlying gently dipping sandstones and shales. These areinterpreted to be the along-strike extension of the Escarpment Grit Formationwhich hosts mineralisation at the Njame North uranium deposit (Inferred Resourcecontaining 4.8 million lb U3O8) some 15km to the southwest, and the nearby Dibweand Mutanga uranium deposits owned by Omega Corp (over 13 million lb U3O8 inInferred Resources). Albidon's JV partner African Energy has completed a program of hand-heldscintillometer and geochemical soil sampling across the Gwabe airborneradiometric uranium anomaly, along 500m spaced lines (see Diagram 1 below).Scintillometer readings, averaged over a minimum of thirty readings werecollected every 25m along the lines, with results confirming the position of theuranium anomaly originally identified by the airborne survey. Bulk soil samples were collected every 50m along the survey lines fromapproximately 30cm below the surface and were assayed for uranium by x-rayfluorescence (XRF). Assay results from the geochemical soil sampling show a verygood correlation with the uranium anomalism detected by the airborne radiometricsurvey (see Diagram 2). Peak values of 39 ppm U3O8 were recorded in the soil samples with a backgroundbelow detection limit (i.e. less than 5 ppm U3O8). Soil samples containinggreater than 10 ppm U3O8 correlate very well with the peaks of the airborneradiometric uranium anomaly. Reconnaissance aircore drill testing is nowrequired to assess the nature and geometry of the sub-surface geology and todetermine if bedrock uranium mineralisation is present below these surfaceanomalies, and at what depth. (see Diagram 1. Gwabe airborne radiometric anomaly (uranium channel) and soilsample location points in hyperlink above) (see Diagram 2. Gwabe uranium anomaly showing image of gridded geochemical soilsampling results, sample location points and overlay of uranium contourscalculated from the airborne radiometric survey in hyperlink above) FORWARD EXPLORATION PROGRAM The 2007 field exploration campaign has commenced, with the program initiallyfocused on drill testing of the Gwabe uranium anomaly target, followed byextensional drilling along strike and down dip from the Njame North resource. African Energy is anticipating delivery in Zambia this month of its purposebuilt RC exploration drill rig, which is expected to commence the drillingprogram on the Chirundu and Kariba Valley joint venture projects in the nextmonth. Initial assay results from the drilling program are expected to beavailable in June/July. The planned program will concentrate on the following programs and objectives: • Drilling to test the uranium radiometric targets identified at Gwabe, scheduled to commence within the next few weeks. • Soil geochemical sampling and ground radiometric surveys at Chisebuka and Namakande in the Kariba Valley JV. • Additional drilling at the Njame North deposit aimed at determining the extent of the uranium mineralisation. • Drilling of any confirmed uranium targets at Chisebuka. • Drilling of any confirmed uranium targets at Namakande. • Additional regional airborne radiometric surveys over selected portions of the Company's extensive tenement holdings. BACKGROUND The Chirundu and Kariba Valley Projects are nominated joint venture projects onAlbidon's tenements within the Exploration Cooperation Agreement ("ECA") betweenAlbidon and African Energy. Under the ECA African Energy may earn a 30% interestin the projects by sole funding AUD $1 million on each selected project area,and may then proceed to earn a 70% interest by completing a Prefeasibility Studyon a JORC Indicated Resource. Refer to Diagram 3 for location of the Chirunduand Kariba Valley JV areas and the surrounding Area of Mutual Interest ("AMI")for the ECA. (see Diagram 3 Location of Albidon's uranium projects in the Karoo sediments ofZambia in the hyperlink above) 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 "Inferred Resources" are to those terms as defined in the JORC Code. Information in this report relating to Exploration results, Mineral Resources orOre Reserves is based on information compiled by Dr Frazer Tabeart (an employeeof African Energy Resources (Guernsey) Limited) who is a member of TheAustralian Institute of Geoscientists. Dr Tabeart has sufficient experiencewhich is relevant to the style of mineralisation and type of deposit underconsideration 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. Dr Tabeart consentsto the inclusion of the data in the form and context in which it appears. By order of the BoardAlbidon Limited If you have any queries please contact the Chief Financial Officer, Nicholas Dayor Managing Director, Dale Rogers on +61 8 9211 4600 or email nickd@albidon.com. Additional information may also be viewed on Albidon's website atwww.albidon.com Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen+61 8 94802500. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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