13th Dec 2005 09:01
Albidon Limited13 December 2005 Suite 1 Hillway House141 Broadwayalbidon limited Nedlands 6009Western AustraliaARBN 107 288 755 Tel:x+61x8x9389 6300Fax:x +61x8x9389 6400 Email:[email protected] Code: ALBAIM Code: ALD via electronic lodgement High Quality Nickel-Copper-Cobalt-Platinum Concentrate from Enterprise Deposit HIGHLIGHTS • High quality concentrates have been produced by conventional sulphideflotation of Ni-Cu-Co-PGM mineralisation from the Enterprise nickel deposit atMunali in Zambia. • Indicative concentrate specifications are: 12% Ni, 1.5% Cu, 0.7% Co and8.6g/t PGM. • Nickel recovery is greater than 75%, and nickel grade-recoveryperformance has already matched the most optimistic case considered in theScoping Study. • The Fe/MgO ratio is greater than 7.5 which will make the concentrateattractive to flash smelters, particularly those with high-MgO feed. • Considerable scope exists for further improvements in both grade andrecovery for all metals and optimisation testwork is under way. • Discussions on offtake contracts for Enterprise concentrate havecommenced with a number of smelting groups. Metallurgical Testwork The first stage has been completed of a program of metallurgical testwork aspart of the Feasibility Study for development of the Enterprise deposit at theMunali Nickel Project in Zambia. The testwork has focused on conventionalsulphide flotation of composite samples made up of carefully selectedmineralisation from Enterprise (6.93Mt @ 1.4% Ni, Indicated and InferredResource containing 97,000 tonnes of nickel). Results to date have matched the most optimistic expectations outlined in theApril 2005 Munali Scoping Study. Typical concentrate specifications aresummarised in the following table: Ni % Cu % Co % Pd g/t Pt g/t Fe% MgO% Concentrate 12.0 1.5 0.70 6.7 1.9 34.3 4.5 Grade Recovery % 75.0 95.3 80.0 72.3 57.1 ---- ---- Feed Grade 1.35 0.14 0.08 0.91 0.25 29.0 11.1 These results indicate that a commercially attractive concentrate can beproduced by straightforward sulphide flotation in a simple processing plant. Inaddition to the excellent grade-recovery performance for nickel, there will beimportant by-product credits for copper, cobalt, platinum and palladium. Thehigh ratio of Fe to MgO is an important feature of Enterprise sulphideconcentrates and this is expected to be of interest to flash smelters,particularly those whose feed is dominated by high-MgO concentrates. No deleterious or penalty elements have been identified in any of the analyticalwork completed to date. Forward Metallurgical Program Metallurgical testwork and mineralogical studies are continuing with thefollowing objectives: • Optimisation of grind size. • Increased recovery of nickel from intermediate products and tailings. • Optimisation of the recovery of copper, cobalt, platinum and palladium based on the flotation parameters that yield the optimal nickel recovery. • Investigate the scope for further increases in the Fe/MgO ratio while maintaining the optimal nickel float performance. • Closed circuit testing. • Variability testing. Discussions with Smelting Companies Expressions of interest have been received from a number of nickel smeltingcompanies in Africa, Australia, Asia and Europe. Several of these groups havecompleted site visits to the project. Discussions are continuing with thesecompanies in order to identify the concentrate offtake arrangement that will bemost beneficial to Albidon. Feasibility Study The metallurgical testwork forms a key part of the ongoing Feasibility Study forthe development of the Enterprise deposit. Progress reports on additionalcomponents of the Feasibility Study will be announced in the very near future. If you have any queries please contact the Company Secretary, Nicholas Day on+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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