11th Mar 2008 07:00
Albidon Limited11 March 2008 Level 1 62 Colin St West Perth 6005 Western Australia ARBN 107 288 755Albidon Limited Tel: +61 8 9211 4600 Fax: +61 8 9211 4699 Email: [email protected] ASX Code: ALB AIM Code: ALD http://www.rns-pdf.londonstockexchange.com/rns/7950p_-2008-3-11.pdf 11th March 2008 Via electronic lodgement NEW DRILL RESULTS CONFIRM DISCOVERY OF SIGNIFICANT URANIUM MINERALISATION AT CHISEBUKA PROJECT, ZAMBIA HIGHLIGHTS: • Assays have been received for the remaining 30 drill holes from the initial 35 drill hole programme of widely-spaced RC drilling at Chisebuka within the Kariba Valley Joint Venture. • The new results confirm the discovery of significant grades and thicknesses of sandstone-type uranium mineralisation. Mineralisation is near surface and likely to be amenable to open pit extraction. • Two parallel mineralised zones have been identified, with strike lengths of up to 800m. Both zones remain open along strike. Additional RC drilling is scheduled to commence in the second quarter of 2008, after the seasonal rains have ceased. • Significant assays are detailed below: CHI007* 7m @ 445 ppm U3O8 from 11m including 2m @ 762 ppm U3O8 from 11m and 2m @ 642 ppm U3O8 from 16m CHI004 2m @ 740 ppm U3O8 from 66m CHI026 7m @ 465 ppm U3O8 from 57m CHI025 7m @ 260 ppm U3O8 from 92m CHI024 7m @ 208 ppm U3O8 from 60m CHI031 11m @ 175 ppm U3O8 from 60m CHI015 4m @ 228 ppm U3O8 from 76m * denotes results previously released to the market • The Chisebuka uranium discovery is located approximately 75km to the south-west of the Njame uranium deposit which is currently being evaluated as part of the Chirundu Pre-Feasibility Study. • Under the development model being evaluated for the Chirundu Project, Chisebuka would be within economic trucking distance to form part of the project resource base. CHISEBUKA URANIUM PROJECT DRILLING UPDATE Albidon's joint venture partner African Energy has received final assay resultsfrom the initial phase of reverse circulation (RC) drill testing of theChisebuka uranium anomaly in the Kariba Valley Joint Venture Project in Zambia(for location refer to Diagram 1 in the hyperlink above). An initial RC drillingprogramme of 35 drill holes for a total of 3,079m was completed at Chisebuka inlate 2007 to evaluate a series of linear ground radiometric anomalies associatedwith high-grade surface uranium mineralisation. Previous rock-chip sampling undertaken by African Energy (reported in August2007) had confirmed the presence of high-grade uranium mineralisation at surfacewith 11 of 46 samples exceeding 100ppm U3O8, and with a peak value of 4,823ppmU3O8. All of the 11 samples with greater than 100ppm U3O8 were coarse-grainedgritty sandstones which are interpreted to be part of the Karoo-aged EscarpmentGrit Formation. This is the equivalent geological position to the JV partners'Njame uranium deposit, some 75km along-strike to the east. A programme of RCdrilling on a nominal 400m x 100m gird was undertaken to test these anomalies.Due to the locally steep topography, some of the planned drill holes could notbe drilled. Assay results have now been received for all holes in the initial 35 drill holeprogramme (refer to Diagram 2 and Table 1 for drill hole collar locations in thehyperlink above). Significant assays are listed in the following table, with afull assay list in Table 2: CHISEBUKA SIGNIFICANT DRILL ASSAY RESULTS Hole ID From (m) To (m) Interval (m) Equivalent U3O8 (ppm) CHI004 61 64 3 242 CHI004 66 68 2 740 CHI007* 11 18 7 445 CHI007* including 11 13 2 762 and 16 18 2 642 and 21 22 1 416 CHI010* 69 70 1 557 CHI015 76 80 4 228 CHI017 30 31 1 322 and 93 100 7 131 CHI023 and 84 85 1 488 and 87 88 1 355 CHI024 and 60 67 7 208 CHI025 and 45 46 1 566 and 92 99 7 260 CHI026 and 57 64 7 465 CHI029 50 51 1 623 and 62 64 2 394 CHI030 and 61 67 6 122 CHI031 60 71 11 175 * denotes data previously released to market Mineralisation at Chisebuka occurs in two parallel zones, denoted by both theground radiometric data and by the drill results themselves (see Diagram 2 inthe hyperlink above). Significant thicknesses and grades of mineralisation occurover at least 800m of strike in the northern zone of mineralisation and at least400m in the southern zone. Both remain open along strike to the northeast.Preliminary geological mapping indicates that these two mineralised zones arelikely to represent a single mineralised system which is repeated by faulting. Anorth block-down normal fault has been interpreted between the two systems. FORWARD DRILLING PROGRAMME Additional RC drilling will be carried out at Chisebuka after the seasonal rainscease in 2008. Due to the relatively steep nature of the ground, a track-mounteddrill-rig is being sourced for this work to provide more flexibility with collarlocations. Discussions with several drilling companies are well advanced, and itis expected that drilling will recomence at Chisebuka in the second or thirdquarter of 2008. BACKGROUND The Chisebuka uranium prospect is located approximately 120km south-west ofLusaka, the capital of Zambia, and forms part of the Kariba Valley Joint VentureProject (see Diagram 1 in the hyperlink above). African Energy may earn a 30%equity interest in the Kariba Valley Project from Albidon by completingexpenditure of AUD $1 million on the Project, and can increase this to 70%equity interest by completing a Pre-feasibility study on an Indicated Resource. Chisebuka is situated 75km to the south-west of the Njame Uranium deposit whichis currently being evaluated through a Pre-Feasibility Study. The joint venturepartners are evaluating the potential for economically viable mining and uraniumprocessing at the Njame and Gwabe deposits as part of the ChirunduPre-Feasibility Study. The total resource for the Chirundu project is 4,120tU3O8 (9.1 Mlb U3O8). The Pre-Feasibility Study is expected to be finalised bythe end of the this month, with a decision to proceed to a full BankableFeasibility Study (BFS) to be made in the second quarter. Subject to receivingthe necessary government permits and approvals, and subject to completion ofsuccessful sales agreements, feasibility studies and financing arrangements, itis possible the Chirundu project could yield first uranium production by the endof 2009. The Pre-Feasibility Study is based on the construction of a central uraniumprocessing facility at the Njame deposit to treat both Njame ore and uraniumloaded resin products derived from a Remote Ion-Exchange (RIX) facility atGwabe. Chisebuka is considered to lie within economic trucking distance of theproposed Njame uranium processing facility for transport of loaded resins. 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. Table 1: List of RC drillhole collar coordinates (WGS84 UTM35S) Hole ID Easting WGS84 Northing Elevation/m Dip Azimuth Max Depth/m UTM35s WGS84 UTM35SCHI001 605,691 8,159,000 650 -90 70CHI002 605,743 8,158,965 636 -90 82CHI003 606,143 8,159,083 631 -90 88CHI004 606,456 8,159,353 634 -90 106CHI005 606,483 8,159,277 630 -90 106CHI006 606,536 8,159,198 630 -90 106CHI007 606,780 8,159,562 651 -90 82CHI008 606,823 8,159,486 658 -90 94CHI009 607,120 8,159,772 655 -90 82CHI010 607,083 8,159,841 658 -90 95CHI011 607,309 8,160,264 704 -90 70CHI012 607,262 8,160,352 698 -90 58CHI013 606,900 8,160,157 730 -90 52CHI014 607,224 8,160,414 710 -90 115CHI015 607,375 8,160,135 679 -90 94CHI016 605,788 8,158,873 636 -90 82CHI017 606,222 8,158,527 642 -90 118CHI018 606,256 8,158,454 628 -90 100CHI019 606,311 8,158,370 612 -90 70CHI020 606,966 8,158,853 612 -90 94CHI021 606,916 8,158,932 626 -90 94CHI022 606,854 8,159,029 626 -90 82CHI023 607,304 8,159,051 599 -90 94CHI024 607,260 8,159,140 634 -90 94CHI025 607,237 8,159,191 641 -90 112CHI026 607,600 8,159,331 610 -90 82CHI027 607,103 8,159,400 626 -90 64CHI028 607,353 8,160,072 678 -90 64CHI029 606,085 8,159,134 648 -90 76CHI030 606,745 8,159,640 650 -90 106CHI031 607,076 8,159,847 653 -60 300 105CHI032 605,693 8,159,012 627 -60 300 82CHI033 606,078 8,158,364 629 -90 90CHI034 606,161 8,158,221 621 -90 70CHI035 606,613 8,158,587 605 -90 100 Table 2. List of all assay results for Chisebuka RC drill holes. All assays by pressed pellet XRF. Assays for holes previously announced are denoted by HOLE ID* Hole ID From (m) To (m) Interval (m) Equivalent U3O8 (ppm) CHI001 NSI CHI002 57 58 1 354 CHI003 77 78 1 350 CHI004 61 64 3 242 CHI004 66 68 2 740 CHI004 70 71 1 195 CHI004* 96 97 1 216 CHI004* and 103 104 1 198 CHI004* and 105 106 1 319 CHI005* 75 76 1 238 CHI005* and 79 81 2 255 CHI005* and 86 89 3 197 CHI006 NSI CHI007* 11 18 7 445 CHI007* including 11 13 2 762 CHI007* and 16 18 2 642 CHI007* and 21 22 1 416 CHI007* and 75 76 1 216 CHI008 44 46 2 221 CHI008 and 69 73 4 149 CHI009 NSI CHI010* 69 70 1 557 CHI010* and 76 77 1 213 CHI010* and 80 82 2 286 CHI011 6 9 3 165 CHI011 and 38 40 2 141 CHI012 34 35 1 128 CHI013* 39 40 1 153 CHI014 89 92 3 117 CHI015 76 80 4 228 CHI015 and 82 84 2 145 CHI016 NSI CHI017 30 31 1 322 CHI017 and 54 56 2 150 CHI017 and 83 84 1 256 CHI017 and 93 100 7 131 CHI017 and 108 111 3 229 CHI018 23 26 3 164 CHI018 and 32 36 4 142 CHI018 and 83 84 1 224 CHI019 NSI CHI020 NSI CHI021 NSI CHI022 NSI CHI023 16 20 4 140 CHI023 and 69 70 1 189 CHI023 and 78 81 3 203 CHI023 and 84 85 1 488 CHI023 and 87 88 1 355 CHI024 8 10 2 251 CHI024 and 33 34 1 237 CHI024 and 41 42 1 171 CHI024 and 47 49 2 175 CHI024 and 60 67 7 208 CHI025 29 30 1 152 CHI025 and 45 46 1 566 CHI025 and 54 56 2 266 CHI025 and 69 71 2 209 CHI025 and 84 85 1 320 CHI025 and 92 99 7 260 CHI026 48 50 2 212 CHI026 and53 55 2 286 CHI026 and 57 64 7 465 CHI026 and 71 72 1 237 CHI027 NSI CHI028 51 52 1 173 CHI029 50 51 1 623 CHI029 and 62 64 2 394 CHI030 44 46 2 199 CHI030 and 58 59 1 223 CHI030 and 61 67 6 122 CHI031 60 71 11 175 CHI031 and 85 86 1 271 CHI031 and 93 95 2 261 CHI032 NSI CHI033 63 64 1 207 CHI034 NSI CHI035 NSI This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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