6th Sep 2007 07:00
Albidon Limited06 September 2007 Level 1 62 Colin St West Perth 6005ALBIDON LTD 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 6 September 2007 Market release via electronic lodgement http://www.rns-pdf.londonstockexchange.com/rns/3981d_-2007-9-6.pdf PRE-FEASIBILITY STUDY TO COMMENCE ON NJAME AND GWABE URANIUM PROJECTS, ZAMBIA HIGHLIGHTS: • The Board of joint venture partner African Energy Resources Limited ("AFR ") has approved a Pre-Feasibility Study ("PFS") to evaluate the commercial development of uranium mineralisation at the Njame deposit and Gwabe prospect in the Chirundu Project, Zambia. • Decision to proceed with PFS follows a Scoping Study by AFR based on the current reported resource at Njame and recently drilled mineralisation at Gwabe. • The Scoping Study demonstrated the potential for an economically viable project using proven technology and benchmarked costs. • Base case for the Study is 1.4 Mlb U3O8 annual production over an initial five year mine plan using a uranium price of USD65/lb. • The Pre-Feasibility Study will commence immediately and is expected to be completed by the end of December 2007. • The forecast cost of the Pre-Feasibility Study is AUD1.5 million, which includes metallurgical testwork, engineering and drilling to upgrade the resource status. Background African Energy Resources is exploring for uranium on a number of Albidon'smineral tenements in southern Zambia (see diagram 1 and 2 in the hyperlinkabove). The exploration program, which is sole-funded and operated by AFR, hasidentified a JORC Inferred Resource at the Njame deposit and more recentlyidentified a new uranium discovery at the Gwabe prospect, approximately 20km tothe north. Both areas are located within the Chirundu Project, and are subjectto a joint venture recently signed by Albidon and AFR. Albidon currently holds a70% interest in the joint venture. 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" and "Indicated Resources" are to those terms as definedin 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 Limited) who is a member of The Australian Instituteof Geoscientists. Dr Tabeart has sufficient experience which is relevant to thestyle of mineralisation and type of deposit under consideration and to theactivity which he is undertaking to qualify as a Competent Person under the 2004Edition of the Australasian Code for reporting of Exploration Results, MineralResources and Ore Reserves. Dr Tabeart consents to the inclusion of the data inthe form and context in which it appears. If you have any queries please contact the Chief Financial Officer, Nicholas Dayor the Managing Director, Dale Rogers on +61 8 9211 4600 or [email protected]. Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen +61 8 94802500. 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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