24th Apr 2008 07:00
Albidon Limited24 April 2008 ALBIDON LIMITED LEVEL 1 62 COLIN ST WEST PERTH 6005 WESTERN AUSTRALIA ARBN 107 288 755 TEL:+6189211 4600 FAX: +6189211 4699 EMAIL:[email protected] ASX CODE: ALB AIM CODE: ALD 24th April 2008 Via electronic lodgement AFRICAN ENERGY RESOURCES COMMITS TO BANKABLE FEASIBILITY STUDY ON THE CHIRUNDU URANIUM PROJECT, ZAMBIA HIGHLIGHTS: • Albidon's joint venture partner African Energy Resources ('AFR') has approved the Pre-Feasibility Study Report for the Chirundu Uranium JV Project. • Resource upgrades to the Njame and Gwabe uranium deposits to Indicated Resource category have been prepared and are undergoing final peer review by independent experts. Once these resource updates are complete, African Energy's equity in the Chirundu JV will increase to 70%. • AFR's Board has committed to a Bankable Feasibility Study ('BFS') for Chirundu, and a detailed scope and budget for the BFS is now being prepared. • A programme of sterilisation drilling over the planned processing plant site, heap-leach pad and waste dump sites has commenced. CHIRUNDU URANIUM PROJECT FEASIBILITY STUDY UPDATE The Pre-Feasibility Study on the Chirundu Uranium JV project has been completedby Albidon's joint venture partner African Energy Resources ('AFR'). The finalreport from this study has been approved by the Directors of African Energy, andhas been delivered to Albidon for review. Drilling and assay data from the Pre-Feasibility programme have been used toprepare new resource estimates for both the Njame and Gwabe deposits, portionsof which will be upgraded to the Indicated Resource category. These resourceestimates are currently under independent expert review and will be announcedonce finalised. Under the terms of the joint venture agreement, AFR's interestin the project will increase to 70% on completion of the Pre-Feasibility Studyand delivery to Albidon of an associated Indicated Resource Report. The Pre-Feasibility Study has confirmed that commercially viable mining ofuranium from the Chirundu Project is possible under projected uranium price,capital cost and operating cost scenarios. The Directors of African Energy haveresolved to commit to a Bankable Feasibility Study to further evaluate theChirundu Uranium JV Project for its future financing. A detailed scope andbudget for the BFS is currently in preparation. Further details on the key results from the Pre-Feasibility Study and a summaryof the Bankable Feasibility Study will be released in due course. Background As outlined above, AFR currently holds a 30% interest in the Chirundu JVproject, with Albidon owning the remaining 70%. AFR will increase it's equity toa 70% interest upon delivering the Board approved Pre-Feasibility Study Reportand the soon to be completed Indicated Resource Report. The total Inferred Resource for the Chirundu project is 4,120t U3O8 (9.1 MlbU3O8). The Pre-Feasibility Study was based on the construction of a centraluranium processing facility at the Njame deposit to treat both Njame ore anduranium loaded resin products derived from a Remote Ion-Exchange (RIX) facilitylocated at Gwabe. 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. 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, 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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