8th May 2008 07:55
Albidon Limited08 May 2008 Level 1 62 Colin StALBIDON LIMITED 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 8th May 2008 To view the full text of this press release, click on the following link: http://www.rns-pdf.londonstockexchange.com/rns/9536t_-2008-5-8.pdf Via electronic lodgement UPGRADE OF NJAME AND GWABE URANIUM RESOURCES TO INDICATED AND INFERRED STATUS HIGHLIGHTS: • A partial conversion of Inferred Resource to Indicated status has been completed for the Njame and Gwabe uranium deposits in the Chirundu Joint Venture Project, Zambia: Njame Deposit Indicated: 3.9 Million Tonnes at 388ppm U3O8 - 100 ppm U3O8 cut-off Inferred: 5.2 Million Tonnes at 275ppm U3O8 - 100 ppm U3O8 cut-off Containing 2,965 Tonnes of U3O8 (6.5 Mlb U3O8) Gwabe Deposit Indicated: 0.9 Million Tonnes at 196ppm U3O8 - 100 ppm U3O8 cut-off Inferred: 4.0 Million Tonnes at 304ppm U3O8 - 100 ppm U3O8 cut-off Containing 1,380 Tonnes of U3O8 (3.0 Mlb U3O8) Note: Appropriate rounding has been applied • The Njame resource comprises the following zones: o Njame North Indicated: 3.9Mt @ 388ppm U3O8 1,530T / 3.4mlb U3O8 Inferred: 2.9Mt @ 255ppm U3O8 750T / 1.6mlb U3O8o Njame East Inferred: 1.1Mt @ 336ppm U3O8 375T / 0.8mlb U3O8o Njame Central Inferred: 1.2Mt @ 267ppm U3O8 310T / 0.7mlb U3O8 • These updated resource statements represent a further 5% increase in uranium resources at the Chirundu JV to 4,345t U3O8 (9.5 Mlb). • Additional infill drilling to convert the entire resource at Njame and Gwabe to Measured and Indicated Resource category is scheduled to commence in Q3 2008 as part of a Bankable Feasibility Study. NJAME RESOURCE ESTIMATION Albidon's joint venture partner African Energy Resources ('AFR') has completedan updated resource estimate for the Njame uranium deposit in Zambia (forlocation refer to Diagram 1 in the hyperlink above). The Njame deposit wasinitially discovered by the Italian petroleum company AGIP in the late 1970'sand a JORC-compliant Inferred Resource was completed by AFR and Albidon inSeptember 2006. The full drilling programme completed to date at Njame now includes 319 aircore/reverse circulation percussion (RC) holes for a total of 17,290m and 35 diamonddrill holes for 2,191.4m core. Drill samples were collected over 1m drillintervals, and were assayed for U and U3O8 using the pressed-pellet XRF method.The entire Njame North, East and Central deposits have been drilled to a 200m x50m grid, with local infill to 100m x 50m and in places to 50m x 50m. Theupdated resource estimate was completed using the Ordinary Kriging method, andclassified with reference to the criteria set out in the Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code,December 2004). The updated estimate for Njame has outlined a total Resource of 9.2 Mt @ 324 ppmU3O8 for 2,965t U3O8 (6.5 Mlb). This resource is concentrated in the Njame Northdeposit, with contributions from the Njame East and Njame Central deposits asfollows: Deposit Indicated Resource Inferred Resource Contained U3O8 Njame North 3.9 Mt @ 388 ppm U3O8 2.9 Mt @ 255 ppm U3O8 2,280t (5.0 Mlb)Njame East 1.1 Mt @ 336 ppm U3O8 375t (0.8 Mlb)Njame Central 1.2 Mt @ 267 ppm U3O8 310t (0.7 Mlb)NJAME TOTAL 3.9 Mt @ 388 ppm U3O8 5.2 Mt @ 275 ppm U3O8 2,965t (6.5 Mlb) GWABE RESOURCE ESTIMATION An updated resource estimate for the Gwabe uranium deposit in Zambia (forlocation refer to Diagram 1 in the hyperlink above) has also been completed. TheGwabe deposit is a greenfields discovery identified from airborne radiometricsurveying undertaken in late 2006, and follow-up soil sampling in February 2007. The full drilling programme comprised 225 vertical aircore/RC holes plus 5diamond holes drilled to a nominal 200m x 50m grid in the mineralised part ofthe surface uranium anomaly. This, combined with local infill to 100m x 50m andin places to 50m x 50m, totals approximately 11,100m drilling. Drill sampleswere collected over 1m drill intervals, and were assayed for U and U3O8 usingthe pressed-pellet XRF method. The updated estimate for Gwabe has outlined a total Resource of 4.9 Mt @ 284 ppmU3O8 for 1,380t U3O8 (3.0 Mlb). This resource is classified with reference tothe criteria set out in the Australasian Code for Reporting of ExplorationResults, Mineral Resources and Ore Reserves (JORC Code, December 2004), asfollows: Deposit Indicated Resource Inferred Resource Contained U3O8 GWABE TOTAL 0.9 Mt @ 196 ppm U3O8 4.0 Mt @ 303 ppm U3O8 1,380t (3.0 Mlb) BACKGROUND The Chirundu Project is one of three joint ventures between Albidon and AfricanEnergy Resources. Albidon owns 100% interest in the Kariba Valley and LuanoValley joint ventures, with AFR sole-funding exploration programs to earn aninitial 30% interest. AFR has now earned a 70% interest in the Chirundu JVproject, having delivered an approved Pre-Feasibility Study Report and IndicatedResource Report, with Albidon holding the remaining 30%. 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 "Inferred and Indicated Resources" are to those terms as defined in the JORCCode. Information in this report relating to Mineral Resources has been compiled by DrFrazer Tabeart (a full-time employee and Managing Director of African Energy)and Mr Lauritz Barnes (who is a consultant to African Energy). Dr Tabeart andMr Barnes are both members of The Australian Institute of Geoscientists. DrTabeart has sufficient experience which is relevant to the style ofmineralisation and type of deposit under consideration and to the activity whichhe is undertaking to qualify as a Competent Person under the 2004 Edition of theAustralasian Code for reporting of Exploration Results, Mineral Resources andOre Reserves. Mr Barnes has sufficient experience which is relevant to themodelling and resource estimation and to the activity which he is undertaking toqualify as Competent Persons under the 2004 Edition of the Australasian Code forreporting of Exploration Results, Mineral Resources and Ore Reserves. DrTabeart and Mr Barnes consent to the inclusion of the data in the form andcontext in which it appears. Information in this report relating to Mineral Resources has been reviewed by MrBrett Gossage and Mr Brian Wolfe. Mr Gossage is the Senior Principal and MrWolfe is a Senior Consultant (Resources) with Coffey Mining Pty Ltd,(independent resource consultants engaged by African Energy). Both Mr Gossageand Mr Wolfe are members of The Australasian Institute of Mining and Metallurgy.Mr Gossage and Mr Wolfe have sufficient experience which is relevant to thestyle of mineralisation and type of deposit under consideration and to theactivity which they are undertaking to both qualify as a Competent Person underthe 2004 Edition of the Australasian Code for reporting of Exploration Results,Mineral Resources and Ore Reserves. Mr Gossage and Mr Wolfe consent to theinclusion of the data in the form and context in which it appears. If you have any queries please contact the Chief Financial Officer, Nicholas Dayor Managing Director, Dale Rogers on +61 8 9211 4600 or email [email protected]. Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen+61 8 9480 2500. 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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