28th Oct 2005 07:01
Albidon Limited28 October 2005 SUITE 1 HILLWAY HOUSE 141 BROADWAY NEDLANDS 6009 WESTERN AUSTRALIAALBIDON LIMITED ARBN 107 288 755 TEL:+61.8.9389 6300 FAX:+61.8.9389 6400 EMAIL:[email protected] ASX Code: ALB AIM Code: ALD WWW.ALBIDON.COM Market release via electronic lodgement QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2005 HIGHLIGHTS Focused Exploration • New massive sulphide zone discovered 800m to the north of the Enterprise Deposit at the Munali Nickel Project in Zambia; • Ongoing drilling continues to yield high grade nickel intersections confirming the resource continuity of the Enterprise Deposit which remains open along strike and down dip; and • Reconnaissance drilling at Mpemba in Malawi confirmed extensive areas of low-grade nickel mineralization. Joint Venture Activity • Exploration Agreement established with Energy Ventures Limited to explore Albidon's uranium and coal prospects in Zambia; • Initial drill-testing of geophysical targets commenced at Tati in Botswana, results are pending; • An extensive airborne electromagnetic survey was completed with Joint Venture partner BHP Billiton over a selected portion of the Company's extensive tenement holdings adjacent to the Selebi-Phikwe nickel mining district in Botswana; • Large-scale stream sediment geochemical surveys have commenced over broad target zones at the Songea nickel project in southwestern Tanzania; and • Albidon has now earned a 100% interest in the Trozza zinc project in Tunisia from JV partner BHP Billiton. Corporate • A$13 million was raised in October 2005 through a placement of shares to institutional investors in UK, Canada and Australia for the purpose of accelerating the development and exploration programs at Munali and elsewhere; • Issued 300,000 unlisted options (exercisable at AUD$0.60 on or before 30 April 2008); and • Cash position at 30 September 2005 (before the placement described above) was A$1.968m. Outlook • Assay results for 25 additional drillholes from Munali due in the next few weeks; • Completion of Enterprise resource infill drilling for the Feasibility Study; • Results to be available for first phase of metallurgical testwork at Enterprise; • Resource extension and exploration drilling at Enterprise and at the new discovery zone to the north; • Assay results due for drill samples at the Tati nickel prospects in Botswana; • Interpretation and follow-up of the results of the airborne electromagnetic survey at Selebi-Phikwe; • Ongoing drilling to extend the Nkenja platinum zone in Tanzania; and • Start-up of exploration operations on Albidon's uranium prospects by Energy Ventures Limited. 1. Munali Nickel-Copper-Cobalt-Platinum Project, Zambia Albidon Limited 100% Discovery of New Zone of Massive Sulphide Nickel Mineralisation A reconnaissance drilling program has resulted in the discovery of a new zone ofmassive sulphide mineralization 800m to the north of the Enterprise Deposit atMunali. The drill program was designed to test a zone of gossans (weatheredsulphides) and geophysical targets for mineralization similar to the Enterprisezone. The geology and mineralization intersected in the new zone is identical to thatat the Enterprise Deposit some 800m to the south, and is also similar to thepreviously drilled massive sulphide mineralization in the MAD29 areaapproximately 700m to the north. Massive sulphide mineralization has now beenconfirmed in three zones along the western contact of the Munali Intrusion, overa total distance of 2.3 kilometres. Drilling is continuing with the objective of outlining the overall extent ofnickel mineralization at the new discovery. Munali (Enterprise Deposit) Feasibility Study Drilling The resource infill drilling program at Enterprise is nearing completion. Anadditional 38 drillholes were completed during the quarter (results publishedpreviously) and these have been successful in confirming the geological modelfor nickel mineralization and the continuity of high grade mineralization in theEnterprise Deposit. On completion of the infill drill program in the next quarter an extensionaldrilling campaign has been planned to increase the Enterprise resource, whichremains open along strike and down dip. The infill and extensional drilling datawill be used to prepare an updated resource estimate in the next quarter. Metallurgy Twenty sulphide flotation tests have been completed under a range of laboratoryconditions and the results of these are now being compiled. A summary ofprogress will be available in the next quarter. 2. Tati and Selebi-Phikwe Nickel-Platinum Projects, Botswana Tati Project Joint Venture with Gallery Gold Limited A reconnaissance drill program has commenced with the objective of testing anumber of geophysical targets in the Tekwane and Kismet prospect areas at Tati.Detailed results and assays will be available in the next quarter. Selebi-Phikwe Project: Albidon Limited 100%, currently funded and operated by BHP Billiton under theExploration Cooperation Agreement (originally operated by WMC) Airborne electromagnetic surveying was completed over two areas of highlyprospective terrain to the west and east of the Selebi-Phikwe nickel miningdistrict in Botswana. The survey covered an area of some 3,000 square kilometersand was designed to identify conductor targets in favourable geological settingsthat have received only minimal previous exploration despite their closeproximity to Africa's largest nickel mines. Interpretation and follow-up of the survey is under way. Confirmed targets willbe covered by ground geophysical surveys and geochemical sampling with the aimof defining drill targets. 3. Songea Nickel-Platinum Project, Tanzania Albidon Limited 100%, currently funded and operated by BHP Billiton under theExploration Co-operation Agreement An extensive stream sediment and soil geochemical sampling program has commencedover several tenements at Songea to assess the nickel and platinum potential ofbroad zones containing prospective gabbro intrusions that show evidence of thedevelopment of magmatic nickel sulphides. Some 1,300 samples will be collected and the program is expected to be completedabout mid-way through the next quarter. 4. Malawi Nickel-Platinum Projects Mpemba Project Albidon Limited 100% Assay results have been received for 18 reconnaissance drill holes completed totest an extensive soil geochemical anomaly at Mpemba Mountain. The drill resultsconfirm the presence of widespread mineralization, however this is limited tovery low grades (maximum values are 0.3% Ni and 0.2% Cu). The Mpemba drill results are being compiled with data on Albidon's otherprospects in Malawi to determine the next step for the overall program. 5. Nefza Copper-Gold Project, Tunisia Albidon Limited 100% Work during the quarter focused on an assessment of the zinc potential of theNefza Exploration Permit where a number of high grade deposits have previouslybeen mined. Field evaluation of these and other zinc prospects is planned to coincide withresumption of the copper-gold exploration program at Kef El Agueb and elsewherenext quarter following the seasonal scaling back of activities during the periodof high summer temperatures in Tunisia. 6. Trozza Zinc Project, Tunisia Joint Venture with BHP World Exploration Inc (BHP Billiton) Albidon has now earned 100% interest in the Trozza zinc project from JV partnerBHP Billiton (BHPB retains a 2.5% NSR royalty). The forward exploration programwill be planned in conjunction with the forthcoming field assessment of the zincpotential at Nefza as described above. Albidon intends to focus its efforts on the Company's nickel projects so afarm-out or spin-out will be considered for the Trozza and Touila zinc projects,as well as the Nefza copper-gold and zinc prospects. 7. Uranium Exploration Agreement, Zambia Exploration Agreement with Energy Ventures Limited Albidon has entered into an agreement with Energy Ventures Limited (EVE) for theexploration and development of a number of uranium and coal prospects that havebeen identified on the Company's tenements in Zambia. Under the Agreement major exploration programs will commence immediately withA$500,000 to be spent by EVE within two years to maintain an option to enter aJoint Venture on one or more project areas. Following these programs EVE may earn a 30% interest in each project areaselected by it for farm-in by expending A$1 million on the selected projectarea, and may then proceed to earn a 70% interest by drilling up a JORCIndicated Resource and completing a Prefeasibility Study. The Agreement enables Albidon to remain focused on developing its nickelprojects in southern Africa while adding value to its tenements through thefunding and expertise provided by EVE as a specialist energy explorationcompany. Donal Windrim Managing Director Full details for all projects including location maps, tenement schedules andtechnical descriptions may be found on the Albidon website at www.albidon.com Information in this report relating to exploration results is based on datacompiled by Donal Windrim who is employed by the Company and Mike Dunbar, aconsultant to the Company. Donal Windrim and Mike Dunbar have sufficientrelevant experience to qualify as Competent Persons under the 2004 Edition ofthe Australasian Code for reporting of Exploration Results, Mineral Resourcesand Ore Reserves. Donal Windrim and Mike Dunbar consent to the inclusion of thedata in the form and context in which it appears. If you have any queries please contact the Chief Financial Officer and CompanySecretary, Nicholas Day on +61 8 9389 6300 or email [email protected] Appendix 5B Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001. Name of entity ALBIDON LTD ARBN Quarter ended ("current quarter") 107 288 755 30 September 2005 Consolidated statement of cash flows Cash flows related to operating activities Current quarter Year to date $AUD'000 $AUD'000 1.1 Receipts from product sales and related debtors 0 01.2 Payments for: (a) administration (175) (997) (b) development (c) production (d) exploration and evaluation (3,460) (6,150)1.3 Dividends received 0 01.4 Interest and other items of a similar nature 40 171 received1.5 Interest and other costs of finance paid 0 01.6 Income taxes paid 0 01.7 Other (provide details if material) 0 0 (3,595) (6,976) Net Operating Cash Flows Cash flows related to investing activities1.8 Payment for purchases of: (a) prospects 0 0 (b) equity investments 0 0 (c) other fixed assets (3) (43) 1.9 Proceeds from sale of: (a) prospects 0 0 (b) equity investments 0 0 (c) other fixed assets 0 0 1.10 Loans to other entities 0 (1153)1.11 Loans repaid by other entities 196 1961.12 Recognition of Security Deposits as Cash 0 0 Net investing cash flows 193 (1,000)1.13 Total operating and investing cash flows (3,402) (7,976) (carried forward) 1.13 Total operating and investing cash flows (carried (3,402) (7,976) forward) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 0 01.15 Proceeds from sale of forfeited shares 0 01.16 Proceeds from borrowings 0 01.17 Repayment of borrowings 0 01.18 Dividends paid 0 01.19 Cost of share issue (72) (72) Net financing cash flows (72) (72) Net increase (decrease) in cash held (3,474) (8,048) 1.20 Cash at beginning of quarter/year to date 5,407 9,8831.21 Exchange rate adjustments to item 1.20 35 1331.22 Cash at end of quarter 1,968 1,968 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the relatedentities Current quarter $AUD'000 1.23 Aggregate amount of payments to the parties included in item 1.2 994 1.24 Aggregate amount of loans to the parties included in item 1.10 967 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 $79,851.77 Administrative services were provided by Mitchell River Group Pty Ltd, a company in which Mr A Cooke, Dr D Windrim and Mr C Burton are directors, for the period aggregated $130,680.12 Executive services and reimbursements of bona fide expenses provided by Hartree Pty Ltd, a company in which Mr A Cooke is a director, for the period aggregated $33,130.25 Executive services and reimbursements of bona fide expenses provided by Lion Manager Pty Ltd, a company in which Mr M Brook is a director, for the period aggregated $16,194.11 Reimbursements of bona fide expenses provided by Mineral Commerce Services Pty Ltd, a company in which Mr C De Guingand is a director, for the period aggregated $5,409.14 At the end of the quarter the Company had on loan $AUD 967,626.94 to Mr Brian Rudd as part of the purchase of a Schramm 685 drilling rig. During the quarter $AUD $195,921.93 of the loan has been repaid. The rig is owned and operated by Brian Rudd and held under trust by Albidon Zambia Limited. Rudd is an experienced operator of drilling services in Africa. The rig is to be used at the Company's Munali site in Zambia. The loan bears an interest rate of 7%. Until the loan is repaid, Albidon will deduct against the loan 28% of the amounts payable for Rudd's drilling services. The intention of all parties is to move the loan into a company called Capital Drilling Zambia Ltd in which Mr C Burton has a 25% indirect interest. Mr C Burton is a director of the parent company of Capital Drilling Zambia Ltd. Drilling services provided by Capital Drilling Zambia Ltd to the Company aggregated $782,743.76. Non-cash financing and investing activities 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 Nil2.2 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 Amount used $AUD $AUD3.1 Loan facilities 0 0 3.2 Credit standby arrangements 0 0 Estimated cash outflows for next quarter $AUD'0004.1 Exploration and evaluation 1,933 4.2 Development 0 Total 1,933 Reconciliation of cash Reconciliation of cash at the end of the quarter Current quarter Previous quarter(as shown in the consolidated statement of cashflows) to the related items in the accounts is as $AUD'000 $AUD'000follows. 5.1 Cash on hand and at bank 1,968 3,4375.2 Deposits at call 0 05.3 Bank overdraft 0 05.4 Term deposits 0 1,970 Total: cash at end of quarter (item 1.22) 1,968 5,407 Changes in interests in mining tenements Tenement reference Nature of interest Interest at Interest at beginning of end of (note (2) quarter quarter6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining PLLS260 (Zambia) 100% subsidiary 0% 100% tenements acquired or increased PLR2766/05 (Tanzania) 100% subsidiary 0% 100% Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rightstogether with prices and dates. Total Number Issue price per security (see note 3) Amount paid up per number quoted security (see note 3) 7.1 Preference +securities (description)7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions7.3 +Ordinary 68,368,000 48,885,800 securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs7.5 +Convertible debt securities (description)7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted7.7 Options 9,100,000 Number Exercise $ Expiry (description 5.0m USD$0.20 30/06/06 and 2.8m AUD$0.60 30/06/07 conversion 0.3m AUD$0.60 30/04/08 factor) 1.0m AUD$0.60 30/06/087.8 Issued during Number Exercise $ Expiry quarter 0.3m AUD$0.60 30/04/087.9 Exercised during quarter7.10 Expired during quarter7.11 Debentures (totals only)7.12 Unsecured notes (totals only) Compliance statement 1 This statement has been prepared under accounting policies whichcomply with accounting standards as defined in the Corporations Act or otherstandards acceptable to ASX (see note 4). 2 This statement does give a true and fair view of the mattersdisclosed. Sign here: Company secretary Print name: Nicholas Day Date: 28/10/2005 Notes 1 The quarterly report provides a basis for informing the market howthe entity's activities have been financed for the past quarter and the effecton its cash position. An entity wanting to disclose additional information isencouraged 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 inrespect of interests in mining tenements acquired, exercised or lapsed duringthe reporting period. If the entity is involved in a joint venture agreementand there are conditions precedent which will change its percentage interest ina mining tenement, it should disclose the change of percentage interest andconditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up isnot required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting forExtractive Industries and AASB 1026: Statement of Cash Flows apply to thisreport. 5 Accounting Standards ASX will accept, for example, the use ofInternational Accounting Standards for foreign entities. If the standards useddo not address a topic, the Australian standard on that topic (if any) must becomplied with. == == == == == This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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