13th Mar 2008 07:00
Albidon Limited13 March 2008 LEVEL 1 62 COLIN ST WEST PERTH 6005 WESTERN AUSTRALIA ARBN 107 288 755 ALBIDON LIMITED TEL: +61 8 9211 4600 FAX: +61 8 9211 4699 EMAIL: [email protected] ASX CODE: ALB AIM CODE: ALD 13 MARCH 2008 SHAREHOLDER UPDATE KEY POINTS • There has been press speculation that a major shareholder in Albidon may be looking to sell shares. • Albidon is continuing to develop the Munali Nickel Project, along with its extensive portfolio of exploration and development projects in southern Africa, as outlined below. Press speculation regarding possible sale by major shareholder Albidon is aware that there has been speculation in today's press (AustralianFinancial Review page 32, the Age online and the Sydney Morning Herald online)that Albidon's largest shareholder, African Lion, may be looking to sell itsshareholding in Albidon. African Lion holds approximately 20.5% of Albidon.Albidon will inform shareholders and the market as and when it becomes aware ofany further material information. Munali Nickel Project Albidon's main asset is the 100% owned Munali Nickel Project located in Zambia.A summary of the Project is provided below: • Development ore production from the Enterprise Mine commenced in late January 2008 two months ahead of schedule; • Underground development rates are exceeding targets; • First ore into the concentrator is expected toward the end of April two months ahead of schedule; and • First cash flow is expected in May. In addition, a number of growth options are being considered for the Projectincluding: • Implementation of a low cost, incremental mill expansion in excess of 1 mtpa; • Mining of various hanging wall surfaces of the Enterprise deposit not included in the Reserve; • Installation of a dense media separation plant to remove waste prior to milling reducing the cutoff grade of the ore that can be economically mined and processed. This would possibly result in an increase in the nickel tonnes produced per annum and also the overall contained nickel tonnes in the resource; • Development of the Voyager deposit; and • Continued drilling of two prospects to the north of Voyager being Intrepid and Defiant. Albidon also owns an extensive portfolio of exploration projects in northern andsouthern Africa including a 70% interest in a number of uranium joint ventureswith African Energy Resources (ASX:"AFR") in southern Zambia. Current InferredResources at the Chirundu Uranium Joint Venture stand at 4,120t of U3O8 (9.1 MlbU3O8) as announced on the 7th of March. This comprises two deposits: the GwabeDeposit with an Inferred Resource of 4.2Mt @ 267 ppm U3O8 for 2.5 Mlb U3O8, andthe Njame deposit with an Inferred Resource of 8.8Mt @ 340 ppm U3O8 for 6.6 MlbU3O8, both at a 100ppm lower cutoff grade. A Pre-feasibility Study on the Njameand Gwabe deposits is nearing completion. 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 "Indicated" and "Inferred Resources" are to those terms as defined in theJORC Code. Information in this report relating to Exploration results, Mineral Resources orOre Reserves is based on information compiled by Dr Frazer Tabeart (an employeeand the Managing Director of African Energy Resources Limited) who is a memberof The Australian Institute of Geoscientists. Dr Tabeart 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. Dr Tabeart 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, NicholasDay or Managing Director, Dale Rogers on +61 8 9211 4600 or [email protected]. Additional information may also be viewed on Albidon's website atwww.albidon.com. Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen+61 8 9480 2500. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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