22nd May 2006 12:27
Albidon Limited22 May 2006 SUITE 1 HILLWAY HOUSE 141 BROADWAY NEDLANDS 6009ALBIDON LIMITED WESTERN AUSTRALIA ARBN 107 288 755 TEL: +61 8 9389 6300 FAX: +61 8 9389 6400 EMAIL: [email protected] ASX CODE: ALB AIM CODE: ALD http://www.rns-pdf.londonstockexchange.com/rns/3476d_-2006-5-22.pdf URANIUM MINERALISATION CONFIRMED BY DRILLING AT THE NJAME PROSPECT, ZAMBIA HIGHLIGHTS • Significant thickness of uranium mineralisation intersected in initial drilling at Njame North prospect, Kariba Valley: NJN-15D: 10m @ 760ppm equivalent U3O8 from 34m Including: 1m @ 1065ppm equivalent U3O8 from 35m And: 1m @ 2200ppm equivalent U3O8 from 41m • Reconnaissance drilling completed at the Njame North and Njame South prospects, assay results for all drillholes expected in the coming weeks. • Drilling of the Chisebuka and Munyumbwe 'A' Prospects will commence shortly. • The drill program is being funded and operated by Energy Ventures Ltd's (ASX : EVE) subsidiary Africa Energy Resources Pty Ltd (African Energy), under the terms of an option and farm-in agreement covering portions of Albidon Limited's extensive licence holdings in southern Zambia. Drilling Program Update African Energy Resources commenced drilling of the Njame uranium prospectswithin the Albidon Limited joint venture areas on 3 May 2006. The first stage of aircore drilling at Njame North and Njame South prospects hasbeen completed. At Njame North, twenty-one vertical aircore drill holes havebeen drilled for a total of 897m (see Diagram 1 in the hyperlink above). Drillsamples have been assayed using the pressed-pellet XRF method. Significant uranium mineralisation was intersected over a thickness of 10m inthe first drillhole for which assays are available, as shown in the followingtable: HOLE NJN-15D From (m) To (m) Interval U3O8 equivalent 34 44 10m 760 ppmincluding 35 36 1m 1065 ppmand 40 42 2m 1535 ppmincluding 41 42 1m 2200 ppm As previously announced, drilling undertaken by uranium companies in the 1970'sand early 1980's identified uranium mineralisation at Njame North. These recentassay results confirm the previous drilling and the presence of significanturanium mineralisation at Njame North. Samples from all drill holes at the twoNjame prospects have been despatched for assay and results are expected in thecoming weeks. The mineralisation at Njame occurs in a similar geological setting to the nearbyDibwe and Mutanga deposits. These are currently being evaluated by OmegaCorpLimited, who recently announced a series of inferred resources at average gradesof 350 ppm to 430 ppm U3O8. Forward Drilling Program The next stage of work is underway with the following objectives to be achievedover the next month: • Completion of aircore drilling at Chisebuka and Munyumbwe 'A'. • Final assays for all drillholes from Njame North and Njame South. • Final assays for drill samples from Chisebuka and Munyumbwe 'A' prospects. Background Njame is part of the Energy Ventures-Albidon Exploration Agreement area. EnergyVentures Ltd, through it's subsidiary African Energy Resources PL, isundertaking a A$500,000 exploration program over two years to earn an option toenter a Joint Venture with Albidon on one or more project areas. African Energymay earn a 30% interest in each project area by expending A$1 million on theselected project area, and may then proceed to earn a 70% interest by completinga Prefeasibility Study on a JORC Indicated Resource. The Njame Prospect is located approximately 85km south of Zambia's capital cityLusaka (see Diagram 2 in the hyperlink above). Njame is one of a number ofprospects in Zambia's Kariba Valley Uranium District being evaluated under theAgreement with Albidon. The Kariba Valley Uranium district in southern Zambia was identified duringexploration by uranium mining companies, particularly the Italian oil companyAGIP, in the 1970's and early 1980's. During this time a large number ofsandstone-hosted uranium prospects identified by radiometric surveying weremapped and sampled, with some shallow drilling. African Energy's evaluation ofthe historical data related to these programs led to the recognition of fourhigh priority prospects for early drill testing: Njame North, Njame South,Chisebuka and Munyumbwe 'A'. The initial objective of the drill program is toconfirm the historical reports of uranium mineralisation at these prospects,establish initial resources where possible and undertake more thorough testingof major radiometric anomalies identified from earlier surveying. Information in this report relating to exploration results is based on datacompiled by Lauritz Barnes, who is a member of The Australian Institute ofGeoscientists, who acts as a consultant to the Company. Lauritz Barnes hassufficient experience which is relevant to the style of mineralisation and typeof deposit under consideration and to the activity which he is undertaking toqualify as a Competent Person under the 2004 Edition of the Australasian Codefor reporting of Exploration Results, Mineral Resources and Ore Reserves.Lauritz Barnes consents to the inclusion of the data in the form and context inwhich it appears. If you have any queries please contact the Company Secretary, Nicholas Day on+61 8 9389 6300 or email [email protected]. 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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