30th Oct 2008 07:35
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ALBIDON LIMITED |
Level 1 |
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62 Colin St |
|
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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 www.albidon.com |
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Market release |
via electronic lodgement |
30 September 2008
http://www.rns-pdf.londonstockexchange.com/rns/0121H_-2008-10-30.pdf
QUARTERLY ACTIVITIES REPORTFor the period ended 30 September 2008
HIGHLIGHTS:
Production ramp-up continued at the Munali Nickel Project with 5,606 tonnes of concentrate produced at an average grade of 6.72% Ni.
Initial sales proceeds of US $3.1M were received in October 2008 from Jinchuan for July and August deliveries.
The company closed out its nickel hedging positions in October 2008 realising US $50m. The majority of these proceeds will be used to repay senior debt.
At the Selebi-Phikwe project in Botswana, results were received for the 4,000 line km airborne VTEM survey with several strong conductors identified
Munali processing plant see picture in the Hyperlink above
Concentrate Storage Shed see picture in the Hyperlink above
Corporate
The cash position at 30 September 2008 was US $11.7 million.
The company made a final draw-down of US $10m under the Barclay's senior debt facility. The proceeds from the draw-down will fund completion of the process facility, infrastructure and provide working capital.
Mr Len Troncone was appointed Chief Financial Officer during the quarter. Mr Troncone is a finance executive with over 25 years experience in senior corporate and operational roles in a range of industries.
Mr Kevin Hart was appointed Company Secretary. Mr Hart is a Chartered Accountant with over 20 years experience in accounting and the management of administration of public listed companies in the mining and exploration industry.
Mr. Grant Pierce was appointed General Manager - Munali. Mr. Pierce is a qualified mining engineer with over 23 years experience in both open pit and underground operations, 10 years of which have been in Africa having worked in Tanzania for 8 years and the Democratic Republic of Congo for 2 years. Mr. Pierce has held senior management positions including Operations Manager for the first major gold mine in Tanzania, the Golden Pride Project with Resolute (Tanzania) Limited and, more recently, as Executive General Manager for Africa Resources Limited in the Democratic Republic of Congo. Mr. Pierce is responsible for the Munali Nickel Project operations, completion of mill commissioning and mine production ramp-up.
The company mourned the death of former Chairman Richard (Dick) Potts on Sunday 28 September 2008. Dick made a significant contribution to the company during his time as Chairman.
Outlook
Commissioning of the Munali concentrator is expected to be completed in the December 2008 quarter. Ramp-up of mine production is continuing.
Munali Nickel Project, Zambia
Albidon Limited 100%
Project Activities on Site at Munali
Mining
The mine development advance rates remain on target.
Mine development has advanced on the North and South declines with low grade development ore being accessed from the 1040, 1020 and 995 levels. Accelerating decline development in the Southern ore zone together with level development on the 995 ore drives is in progress.
The mined ore grades achieved from development in the transitional zone at the top of the Enterprise Deposit have been lower than anticipated. This ore was sourced from the 1040 and 1020 levels in the Northern zone. Grade variability in the Northern transitional ore zones has been partly attributed to mining dilution which the company has addressed.
Grades achieved from development have trended higher as the depth has increased from the 1040 level to the 995 level. The resource grades from the uppermost levels of the Enterprise Deposit are less than those at depth.
Selective stoping of higher grade ore on the south 1040 and 1020 levels commenced in late September. Stoping on the 995 level, being the base of the transition zone and top of the higher grade main zone of primary ore, has commenced.
The focus for mining is now to advance decline development and stoping rates to deliver higher grade primary ore to the ROM stockpile. Ore blend into the concentrator is approximately 20% stoping ore and 80% development ore. This is expected to reverse over the next two quarters with a corresponding increase in milled grades.
Processing
Final completion of the construction contract was achieved in September. The construction contractor, GRD Minproc, demobilized and a number of minor "punch list" items are being addressed as part of the plant's scheduled maintenance programme.
Commissioning of the processing facility commenced mid-year utilizing mineralized waste initially. The mill ramp up is proceeding to expectations with nameplate capacity (75ktpm) already being exceeded on a number of occasions without any discernable problems. Mill throughput also ramped up towards the nameplate capacity from 25kt in July to 55kt in August and 67kt in September.
Optimisation of process control is progressing with the on-stream analyser and on-site laboratory now functional in October. The focus at Munali remains to increase the processing facility throughput to nameplate capacity at 900ktpa initially. Following this, the expanded target is 1.2Mtpa throughput
Total ore delivered to the run-of-mine stockpile during the period amounted to 202,591 tonnes with 149,074 tonnes milled at an average head grade of 0.53% Ni.
A total of 5,606 tonnes of concentrate averaging 6.72% Ni was produced during the quarter.
Flotation Cell see picture in the Hyperlink above
Site Services and Infrastructure:
The Kafue river crossing of the Project's dedicated 33kV power line has occurred which now provides a more reliable power source to the operation. This is a major milestone for the project as the reliability of the power supply has improved markedly.
Additional bores were required to provide a consistent flow of water for processing. This programme has now been completed.
Buildings on site are either complete or nearing completion.
Munali Exploration
Diamond drilling (2091m) targeting several geophysical anomalies around the main Munali gabbro was completed in the quarter. No significant nickel intersections were encountered.
Ground EM surveys are ongoing 2km northwest of Munali where another gabbro intrusive system has been identified.
Uranium Projects, Zambia - Chirundu Joint Venture
Albidon Limited 30% operated by African Energy Resources Limited ('AFR') under an Exploration Agreement
The scoping of all aspects of the Bankable Feasibility Study (BFS) to evaluate the Njame and Gwabe deposits in the Chirundu V was completed during the quarter.
Current global financial instability has resulted in a decision by JV participants to defer further work on the BFS apart from updating the resource estimate and some metallurgical test work.
Nickel Projects, Tanzania
Albidon Limited 100%, currently funded and operated by BHP Billiton to earn an initial 30% interest under the Africa Exploration Co-operation Agreement
Drilling on the Songea JV with BHP Billiton is waiting on drilling permits. The planned 3000m drill program has been postponed until 2009.
The first two applications at IIagala were approved by the Ministry. The license area lies between the Xstrata Kabanga nickel project and Goldstream's Mibango Cu-Ni PGM prospect on Lake Tanganyika. Soil survey programs are being planned to follow-up historical reports of nickel and copper in soil greater than150ppm Ni and 150ppm Cu over 10 kms of strike length with highs up to 3% Ni and 1% Cu.
Nickel Projects, Botswana
Selebi-Phikwe Nickel-Copper Project
Albidon Limited 100%
Interpretation was completed on the 4000line km airborne VTEM survey and several new conductive targets identified. Field work is ongoing. The Sunnyside West target shows coincident Ni in soils, exposed dunites, strong magnetics and a ground IP anomaly. Drilling on the Sunnyside West target is planned for early 2009.
Nickel Projects, Malawi
Mpemba Project
Albidon Limited 100% diluting to 25%, currently funded and operated by MM Mining plc
Two IP surveys were completed over Mpemba Hill and Likabula. Soil and petrology samples were submitted for analysis and four trenches excavated for further sampling.
Luwumbu Platinum Project
Goldstream Mining NL 90%, Albidon Limited 10%
Reconnaissance mapping and sampling is ongoing.
Zinc Projects, Tunisia
Fernana-Nefza Zinc-Lead and Copper-Gold Project
Albidon Limited 100%, funded and operated by Zinifex Limited to earn an initial 51% interest under an option and farm-in agreement
Drilling at Gantra and Sidi Driss completed for the year. Significant intercepts for the quarter include:
|
Gantra |
GADD002 |
111 |
113.9 |
2.9 |
2.84%Pb, 2.23%Zn |
|
Sidi Driss |
SDDD006 |
73 |
75 |
2 |
6.38%Pb, 3.47%Zn, 6.8 ppmAg |
*1.0% Zn cutoff
Dale Rogers
Managing Director
Full details for all projects including location maps, tenement schedules and technical descriptions may be found on the Albidon website at www.albidon.com
The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the 'JORC Code') sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The information contained in this announcement has been presented in accordance with the JORC Code and references to "Indicated" and "Inferred Resources" are to those terms as defined in the JORC Code.
Information in this report relating to exploration results is based on data compiled by Mike Dunbar (a full time employee of the Mitchell River Group) and John Schloderer (a full time employee of Albidon), who are both members of The Australasian Institute of Mining and Metallurgy. Mr. Dunbar and Mr. Schloderer have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Dunbar and Mr. Schloderer consent to 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, Len Troncone or Managing Director, Dale Rogers on +61 8 9211 4600 or email lent@albidon.com.
Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Steve Allen +61 8 9480 2500.
Appendix 5B
Mining Exploration Entity Quarterly Report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
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Name of entity |
|
ALBIDON LIMITED |
|
ARBN |
Quarter ended ("current quarter") |
|
|
107 288 755 |
30 September 2008 |
Consolidated statement of cash flows
|
Cash flows related to operating activities |
Current quarter US$'000s |
Year to date US$'000s |
|
|
1.1 |
Receipts from product sales and related debtors |
- |
- |
|
1.2 |
Payments for: administration development production exploration and evaluation |
(1,618) (2,782) (4,090) (973) |
(5,388) (24,452) (4,090) (3,224) |
|
1.3 |
Dividends received |
||
|
1.4 |
Interest and other items of a similar nature received |
72 |
325 |
|
1.5 |
Interest and other costs of finance paid |
0 |
(1,817) |
|
1.6 |
Income taxes paid |
- |
- |
|
1.7 |
Other (provide details if material) |
2 |
2 |
|
Net Operating Cash Flows |
(9,389) |
(38,644) |
|
|
Cash flows related to investing activities |
|||
|
1.8 |
Payment for purchases of: prospects equity investments other fixed assets |
(447) - (14,484) |
(447) - (49,423) |
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1.9 |
Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets |
- - 2 |
- - 2 |
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1.10 |
Loans to other entities |
- |
- |
|
1.11 |
Loans repaid by other entities |
- |
- |
|
1.12 |
Recognition of Security Deposits as Cash |
- |
- |
|
Net investing cash flows |
(14,929) |
(49,868) |
|
|
1.13 |
Total operating and investing cash flows (carried forward) |
(24,318) |
(88,512) |
|
1.13 |
Total operating and investing cash flows (carried forward) |
(24,318) |
(88,512) |
|
Cash flows related to financing activities |
|||
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1.14 |
Proceeds from issues of shares, options, etc. |
405 |
20,780 |
|
1.15 |
Proceeds from sale of forfeited shares |
- |
- |
|
1.16 |
Proceeds from borrowings |
22,131 |
64,001 |
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1.17 |
Repayment of borrowings |
- |
- |
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1.18 |
Dividends paid |
- |
- |
|
1.19 |
Cost of share issue |
- |
(34) |
|
Net financing cash flows |
22,536 |
84,747 |
|
|
Net increase (decrease) in cash held |
(1,782) |
(3,765) |
|
|
1.20 |
Cash at beginning of quarter/year to date |
13,535 |
16,614 |
|
1.21 |
Exchange rate adjustments to item 1.20 |
0 |
(1,096) |
|
1.22 |
Cash at end of quarter |
11,753 |
11,753 |
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
|
Current quarter US$'000s |
||
|
1.23 |
Aggregate amount of payments to the parties included in item 1.2 |
222 |
|
1.24 |
Aggregate amount of loans to the parties included in item 1.10 |
- |
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1.25 |
Explanation necessary for an understanding of the transactions |
|
|
Salaries and Directors fees paid to Executive and Non-Executive Directors of the Company, for the period aggregated US$140,186. Administrative and technical services provided by Mitchell River Group Pty Ltd, a company in which Mr. A Cooke is a Director, for the period aggregated US$69,278. Executive services provided by Hartree Pty Ltd, a company in which Mr. A Cooke is a director, for the period aggregated US$2,735. Consultancy fees and reimbursements of bona fide expenses provided by Mineral Commerce Services, a company in which Mr C DeGuingand is a director, for the period aggregated US$9,856. |
||
Non-cash financing and investing activities
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2.1 |
Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows |
|
Nil |
|
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2.2 |
Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest |
|
Nil |
Financing facilities available
|
Amount available US$'000s |
Amount used US$'000s |
||
|
3.1 |
Loan facilities Secured Lenders Subordinated Lenders Leased Equipment *Represents loan facilities prior to US $50m hedge book close out. |
80,000 20,000 18,000 |
80,000 20,000 12,000 |
|
3.2 |
Credit standby arrangements |
- |
- |
Estimated cash outflows for next quarter
|
US$'000s |
||
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4.1 |
Exploration and evaluation |
1,121 |
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4.2 |
Development |
4,863 |
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Total |
5,984 |
Reconciliation of cash
|
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. |
Current quarter US$'000s |
Previous quarter US$'000s |
|
|
5.1 |
Cash on hand and at bank |
3,643 |
785 |
|
5.2 |
Deposits at call |
7,166 |
11,767 |
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5.3 |
Bank overdraft |
- |
- |
|
5.4 |
Term deposits |
944 |
983 |
|
Total: cash at end of quarter (item 1.22) |
11,753 |
13,535 |
|
Changes in interests in mining tenements
|
Tenement reference |
Nature of interest (note (2) |
Interest at beginning of quarter |
Interest at end of quarter |
||
|
6.1 |
Interests in mining tenements relinquished, reduced or lapsed |
||||
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6.2 |
Interests in mining tenements acquired or increased |
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
|
Total number |
Number quoted |
Issue price per security (see note 3) |
Amount paid up per security (see note 3) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total number |
Number quoted |
Issue price per security (see note 3) |
Amount paid up per security (see note 3) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
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7.1 |
+ Preference securities (description) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
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7.2 |
Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
7.3 |
+Ordinary securities |
165,160,902 |
165,160,902 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
|
7.4 |
Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs |
150,000 30,000 |
150,000 30,000 |
A$2.60 A$1.05 |
A$2.60 A$1.05 |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
7.5 |
+Convertible debt securities (description) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
7.6 |
Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
7.7 |
Options (description and conversion factor) |
6,242,667 |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
|
7.8 |
Issued during quarter |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
7.9 |
Exercised during quarter |
150,000 30,000 |
Exercised at A$2.60 each Exercised at A$1.05 each |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
|
7.10 |
Expired during quarter |
200,000 230,000 |
Exercisable at A$2.80 each were cancelled Exercisable at A$3.22 each were cancelled |
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7.11 |
Debentures (totals only) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
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7.12 |
Unsecured notes (totals only) |
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Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
Sign here:
Company Secretary
Print name: Kevin Hart
Date: 30/10/2008
Notes
1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities: The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards: ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
== == == == ==
Related Shares:
ALD.L