9th Aug 2005 11:29
Albidon Limited09 August 2005 Suite 1 Hillway House 141 Broadway ALBIDON LIMITED Nedlands 6009 Western Australia ARBN 107 288 755 Tel: +61 8 9389 6300 Fax:x +61 8 9389 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/8913p_-2005-8-9.pdf Infill Drilling Further Confirms Continuity of the Massive Sulphide Zone at theMunali Nickel Deposit, Zambia HIGHLIGHTS • Sixty five new drillholes have been completed within the Munali Deposit. • Assay results for 13 resource infill drillholes have been received and these confirm the continuity of massive and semi-massive nickel sulphide mineralisation. • The drill intersections include: Hole ID Interval (m) Ni % Cu % Co % PGM g/t MAD066 8.4 1.23 0.18 0.07 0.95 MAD073 5 2.09 0.28 0.12 1.11 MAD074 8 1.77 0.23 0.09 1.18 MAD075 11 1.45 0.21 0.09 1.11 MAD077 15 1.89 0.28 0.13 0.94 MAD089 9.6 1.27 0.15 0.07 0.77 • Additional assay results are expected within the next month. • A step-out drill program is being fast-tracked with the aim of extending the deposit which remains open along strike and down dip. Drilling Program Sixty five additional drillholes have been completed in the Munali Ni-Cu-Co-PGMsulphide deposit, located in southern Zambia (see Figure 1). The objective ofthe drill program is to confirm the grade, thickness and continuity ofmineralisation in the deposit (now named "Enterprise Zone"), with the aim ofimproving the resource classification (currently Inferred Resource of 4.1Mt @1.35% Ni and 0.95g/t PGM for 55,500 tonnes of contained nickel metal). The resource infill drilling program forms a major part of the Feasibility Studycommenced at Munali in April 2005 and the objective of the drilling is toconvert as much of the resource as possible into the Indicated category. Results The results reported here are mostly for drillholes completed in the relativelynear-surface portion of the Enterprise Zone, where the nickel sulphidemineralisation is thinner and lower grade than in the bulk of the deposit. Thenickel grades and widths intersected to date have been in line withexpectations. Of the 13 holes being reported, 12 intersected significant mineralisation,confirming the continuity of the main mineralized sulphide breccia unit along akey geological contact within the Munali Intrusion. The drilling intersectionsand assay data are listed in Table 1 and illustrated in Figure 2, and drillcollar details are summarised in Table 2. 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. The Main Zone is the focus of the Feasibility Study and the currentdrill program, however it is clear there are a number of additional mineralisedunits in the hangingwall above this zone. The hangingwall units are geologically distinct and typically have lower nickelcontent and higher platinum and palladium content than the Main Zone. Theexpanded drilling and assay database will be used to evaluate the hangingwallunits which are not included in the current resource estimate. Table 1: Drill Intersections and Assay Results (using a 0.7% Ni cutoff,minimum intersection thickness of 2.5m and weighted by density) Hole From To Interval (m) Zone Ni% Cu% Co% PGM g/t MAD066 251 259.4 8.40(6.4) Main Zone 1.23 0.18 0.07 0.95MAD067A 421 424.11 3.10(2.4) Main Zone 0.88 0.15 0.06 0.70MAD068 492.52 495.3 2.78(2.1) Main Zone 1.29 0.13 0.07 0.49MAD071 67 78 11.00(8.4) Main Zone 0.94 0.15 0.05 1.35MAD073 109 114 5.00(3.8) Main Zone 2.09 0.28 0.12 1.11MAD074 74 82 8.00(6.1) Main Zone 1.77 0.23 0.09 1.18MAD075 135 146 11.00(8.4) Main Zone 1.45 0.21 0.09 1.11MAD076 109 112 3.00(2.3) Hanging Wall Zone 1.45 0.09 0.07 1.20MAD076 125 128 3.00(2.3) Main Zone 1.19 0.20 0.06 1.09MAD077 102 117 15.00(11.5) Main Zone 1.89 0.28 0.13 0.94MAD078 28 32 4.00(3.1) Hanging Wall Zone 0.75 0.11 0.05 1.01MAD078 47 57 10.00(7.7) Main Zone 0.90 0.06 0.04 0.54MAD079 24 31 7.00(5.4) Hanging Wall Zone 0.78 0.09 0.04 0.84MAD079 95 100 5.00(3.8) Hanging Wall Zone 0.72 0.07 0.04 0.90MAD079 117 122 5.00(3.8) Main Zone 1.30 0.10 0.07 1.21MAD089 18 26 8.00(6.1) Hanging Wall Zone 1.00 0.30 0.06 2.92MAD089 87.4 97 9.60(7.4) Main Zone 1.27 0.15 0.07 0.77 Note: Estimated true thicknesses are listed in brackets. 'PGM' is Pt+Pd Assay results for the next batch of drillholes are expected in the next fewweeks. Forward Drilling Program Drilling is continuing with two rigs operating on site. The forward program willinclude completion of the resource infill drilling in the central and deeperportions of the Enterprise Zone, and also a 'step-out' drilling campaign toextend the resource which is currently open along strike and down dip. Infilldrilling is expected to be completed in August and all assays are expected to beavailable in September. Feasibility Study In addition to the drilling program a comprehensive metallurgical testworkprogram is under way to identify the optimal bulk concentrate that can beproduced by conventional sulphide flotation of Munali mineralisation. Flotationtestwork has commenced on a number of composite samples and the results of thesetests will be announced when key milestones have been achieved. Key New Appointments Following the recent appointment of the Munali Project Manager withresponsibility for directing the Feasibility Study, Mr R Potts will resign asExecutive Chairman and will continue in the position of non-executive Chairman,with an ongoing role on the Feasibility Study Steering Committee. New Exploration Tenements in the Munali District Two new Prospecting Licences over an area in excess of 25,000 sq km have beengranted (Mugoto and Namwala licences). These tenements cover the continuation ofthe regionally prospective Munali Fault Zone to the east and west of Munali. A major program of geophysical exploration and drilling is being planned forthese new tenements as well as the existing Munali and Kabeswa licences, withthe objective of adding to the nickel resource base. This program is expected tocommence in the last quarter of 2005. 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 Table 2: Drillhole collar positions, orientations and drillhole type ('DDH'refers to diamond drillholes and 'RC' denotes reverse circulation drillholes). Hole_ID Easting Northing RL Depth Hole Type Dip Azimuth MAD066 621324.9 8239425 1097.25 315.2 DDH -60 030 MAD067A 621471.8 8239199 1098.24 432.6 DDH -60 030 MAD068 621383.5 8239207 1096.57 582.2 DDH -60 030 MAD071 621706.7 8239366 1106.4 120 RC -60 030 MAD072 621726.7 8239401 1107.25 80 RC -60 030 MAD073 621879.9 8239266 1107.96 130 RC -60 030 MAD074 621899.9 8239301 1109 90 RC -60 030 MAD075 621751 8239283 1106.44 162 RC -60 030 MAD076 621766 8239309 1107.11 140 RC -60 030 MAD077 621800.6 8239289 1107.54 140 RC -60 030 MAD078 621830.6 8239341 1108.8 66 RC -60 030 MAD079 621729.3 8239326 1106.5 140 RC -60 030 MAD089 621889.9 8239284 1108.24 111 DDH -60 030 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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