24th Oct 2007 07:00
Albidon Limited24 October 2007 Level 1 62 Colin St West Perth 6005ALBIDON LTD 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 24 October 2007 Market release via electronic lodgement http://www.rns-pdf.londonstockexchange.com/rns/2490g_-2007-10-24.pdf URANIUM EXPLORATION DRILLING ACCELERATED IN ZAMBIA HIGHLIGHTS • A 4,000m drilling programme has commenced at the Chisebuka uranium prospect in the Kariba Valley JV to evaluate high-grade surface uranium mineralisation. • This programme will complement the ongoing Chirundu JV drill programmes at Njame and Gwabe, for which resource estimates will be available in November and December, respectively. Chisebuka Drilling Programme Albidon's joint venture partner African Energy Resources ("AFR") has commenced a4,000m reverse circulation ("RC") drilling programme at the Chisebuka uraniumprospect in the Kariba Valley JV (refer to Diagram 1 in hyperlink above forlocation) to evaluate previously reported high-grade surface uraniummineralisation (see Diagram 2 in hyperlink above). An initial programmecomprising a minimum of 40 drill holes for up to 4,000m on a nominal 400m x 100mgrid has been planned. To date, 13 drill holes have been completed for 1,091m.Assays from these first 13 drill holes are expected in late November. Forward Programme With the commencement of the Chirundu JV Pre-Feasibility Study, there arecurrently two drill rigs in operation on joint venture projects with a thirdbeing mobilised from South Africa. AFR intends to maintain a two-rig programmethroughout 2008, an increase on the single rig deployment for most of 2007. The following programme is scheduled over the next six months: Lake Kariba JV • Initial assays from the Chisebuka drilling programme are expected in late-November. • On completion of the drilling programme at Chisebuka, and subject to the commencement of seasonal rains, the drill rig will mobilise to Namakande to commence reconnaissance drill testing of uranium targets. This drill rig has been secured for the entire 2008 field season. Chirundu JV • An initial resource estimate is expected for the Gwabe uranium deposit in November. • An updated inferred resource estimate is expected for the Njame uranium deposit in December. • A programme of infill RC drilling is underway at the Njame uranium deposit as part of the Pre-Feasibility Study announced in September. This programme has been designed to increase confidence in the mineral resource. • A diamond drill rig is being mobilised from South Africa to provide additional drilling capacity at Njame. Diamond drill core from this rig will be used to provide samples for metallurgical test work. • On completion of the Njame infill programmes, both drill rigs will mobilise to Gwabe to undertake infill drilling for resource detailing and to provide samples for metallurgical test work. • On completion of the Gwabe resource infill drilling, the RC rig will return to Njame to continue exploration drilling to test for extensions to the known mineralisation, with an emphasis on the north-east zone. • The Pre-Feasibility Study is scheduled for completion in February 2008. Background The Njame uranium deposit and the Gwabe uranium mineralisation are locatedapproximately 80km south-east of Lusaka, the capital of Zambia, and form part ofthe Chirundu Joint Venture Project. The JV tenements are owned by Albidon, andAfrican Energy has earned a 30% equity interest in the Chirundu Project and canincrease this to 70% equity interest by completing a Pre-Feasibility Study on anIndicated Resource. The Chisebuka and Namakande uranium prospects are situated approximately 120kmsouth-west of Lusaka within the Kariba Valley Joint Venture Project. The JVtenements are owned by Albidon, and African Energy can earn a 30% equityinterest in the Chirundu Project by completing expenditure of A$1 million on theProject, and can increase this to 70% equity interest by completing aPre-Feasibility Study on an Indicated Resource. 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 Resources" and "Indicated Resources" are to those terms as definedin the JORC Code. Information in this report relating to Exploration results, Mineral Resources orOre Reserves is based on information compiled by Dr Frazer Tabeart (an employeeof African Energy Resources Limited) who is a member of The Australian Instituteof Geoscientists. Dr Tabeart has sufficient experience which is relevant to thestyle of mineralisation and type of deposit under consideration and to theactivity which he is undertaking to qualify as a Competent Person under the 2004Edition of the Australasian Code for reporting of Exploration Results, MineralResources and Ore Reserves. Dr Tabeart consents to the inclusion of the data inthe 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. See Diagram 1 in Hyperlink Above: Location of Albidon Limited's uranium jointventure projects in Zambia. See Diagram 2 in Hyperlink Above: Drill hole locations at the Chisebuka uraniumprospect, Kariba Valley JV, Zambia, showing locations of rock-chip sampling andground radiometric anomalies. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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