7th Mar 2008 07:00
Albidon Limited07 March 2008 Level 1 62 Colin St 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 7th March 2008 Via electronic lodgement http://www.rns-pdf.londonstockexchange.com/rns/5834p_-2008-3-7.pdf FURTHER HIGH GRADE URANIUM DRILL INTERSECTIONS AT NJAME, ZAMBIA HIGHLIGHTS: • Assays have been received for all remaining drill holes from the resource delineation drilling programme at the Njame Uranium Prospect, Zambia. • These results confirm the grade, thickness and continuity of the uranium mineralisation and have increased the drilling density in the central area of the deposit to that required for a resource re-classification to JORC-Indicated Resource category. • Significant assays received for these drill holes are detailed below: NJN137 13m @ 346 ppm U3O8 from 29mNJN141 17m @ 835 ppm U3O8 from 23mNJN143 6m @ 602 ppm U3O8 from 35mNJN144 5m @ 595 ppm U3O8 from 35mNJN155 13m @ 587 ppm U3O8 from 42mNJN156DD 7.7m @ 493 ppm U3O8 from 41mNJN167 6m @ 549 ppm U3O8 from 26mNJN168 7m @ 510 ppm U3O8 from 25mNJN180DD 3.8m @ 713 ppm U3O8 from 35mNJN184 4m @ 626 ppm U3O8 from 36mNJN186 5m @ 498 ppm U3O8 from 25mNJN186DD* Twinned 5.4m @ 495 ppm U3O8 from 27m * core hole drilled to twin NJN186 for comparison of grades • An updated resource calculation for the Njame uranium deposit is in progress. A new resource statement in the JORC-Indicated Resource category is expected in Q2 2008. • The Pre-Feasibility Study on the Njame and Gwabe deposits in the Chirundu Joint Venture are on schedule for completion by the end of Q1 2008. • Subject to necessary Government permits and finalisation of sales and financing arrangements, the Chirundu joint venture remains on-track for first uranium production by the end of 2009. NJAME URANIUM PROJECT INFILL RESOURCE DRILLING UPDATE Assay results have been received for all remaining resource delineation drillingat the Njame Uranium Prospect in southern Zambia (for location see Diagram 1 inthe hyperlink above). The Njame deposits contain Inferred Resources of 8.8Mt @340 ppm U3O8 for 6.6 Mlb U3O8 at a 100ppm lower cutoff grade and formnear-surface tabular bodies hosted by Karoo-aged sandstones. The drilling programme completed to date at Njame includes 319 aircore/reversecirculation percussion holes for a total of 17,272m and 35 diamond drill holesfor 2,191.4m core (see Diagram 2 in the hyperlink above). Drill samples werecollected over 1m drill intervals, and were assayed for U and U3O8 using thepressed-pellet XRF method. The entire Njame North, East and Central depositshave been drilled to a 200m x 50m grid, with local infill to 100m x 50m and inplaces to 50m x 50m (see Diagram 2 in the hyperlink above). Resource modelling is currently in progress to prepare an Indicated Resourceestimate. This is expected to be completed in the early part of Q2 2008. Significant mineralised intersections from the recently received assay datarelating to approximately 100 drill holes are given in the table below, with afull list of all drill holes and mineralised intersections provided in Appendix1: Hole ID From (m) To (m) Interval (m) Equiv. U3O8 (ppm) NJN137 29 42 13.0 346 NJN137DD 30.0 40.7 10.7 287 NJN140 28 39 11.0 282 NJN141 23 40 17.0 835 NJN141DD 30.8 41.3 10.5 288 NJN142 31 42 11.0 259 NJN143 35 41 6.0 602 NJN143DD 34.0 43.0 9.0 255 NJN144 35 40 5.0 595 NJN152 21 27 6.0 255 NJN155 42 55 13.0 587 NJN156DD 41 48.6 7.6 493 NJN166DD 41.8 43.5 1.7 1,059 NJN167 26 32 6.0 549 NJN168 25 32 7.0 510 NJN180DD 35.0 38.8 3.7 713 NJN184 36 40 4.0 626 NJN186 25 30 5.0 498 NJN186DD 26.6 32.0 5.4 495 NJN202DD 50.0 52.9 2.9 621 NJN217DD 38.0 50.2 12.2 150 NJN221DD 31.3 32.3 0.9 1,970 NJN251 20 21 1.0 1,725 NJN253 18 30 12.0 142 NJN278 48 59 11.0 151 THE NJAME URANIUM DEPOSITS The Njame uranium deposits are hosted in Karoo-aged sediments of the EscarpmentGrit Formation and are 20km along strike from the Company's Gwabe uraniumdeposit (see Diagram 1 in the hyperlink above, Inferred Resource 4.2Mt @ 267 ppmU3O8 for 2.5 Mlb U3O8 at a 100ppm lower cutoff grade). Mineralisation at Njameforms a series of near-surface tabular bodies which have very shallow angles ofdip and which may be amenable to open-pit mining. The Njame East deposit remainsopen along-strike and down-dip, whilst the Njame North deposit remains partiallyopen down-dip. Additional drilling is planned to assess potential resourceextensions. BACKGROUND The Njame uranium project is located approximately 75km south of Lusaka, thecapital of Zambia, and forms part of the Chirundu Joint Venture Project (seeDiagram 1 in the hyperlink above). The JV is being funded and operated byAlbidon's joint venture partner African Energy Resources ("AFR"). AFR has earneda 30% equity interest in the Chirundu Project by completing expenditure of AUD$1 million on the Project, and can increase this to 70% equity interest bycompleting a Pre-feasibility study on an Indicated Resource. The joint venture is currently evaluating the potential for economically viablemining and uranium processing at the Njame and Gwabe deposits as part of theChirundu Pre-Feasibility Study. The total resource for the Chirundu project is4,120t U3O8 (9.1 Mlb U3O8). The Pre-Feasibility Study is expected to befinalised by the end of March 2008, with a decision to proceed to a fullBankable Feasibility Study (BFS) to be made in the second quarter. Subject toreceiving the necessary government permits and approvals, and subject also tocompletion of successful sales agreements, feasibility studies and financingarrangements, it is possible the Chirundu uranium project could be brought intoproduction by the end of 2009. 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. Appendix 1: List of Njame drill-hole collar coordinates and assays, all holesdrilled vertically. This table contains locations and assay data for all holes not previouslyreleased to the market. Hole ID From (m) To (m) Interval Equivalent Northing Easting (m) U3O8 (ppm) WGS84 WGS84 utm35s utm35sNjame Central Percussion holesNJC022 NSI 8,217,215 680,479NJC023 NSI 8,217,278 680,419NJC027 NSI 8,217,430 680,237NJC028 NSI 8,217,466 680,197NJC033 NSI 8,216,959 680,160Njame East Percussion holesNJE001 NSI 8,219,079 681,933NJE003 NSI 8,219,530 681,523NJE014 56 57 1 108 8,219,191 681,614NJE020 NSI 8,219,158 682,234NJE022 NSI 8,219,301 682,078NJE023 NSI 8,219,381 681,985NJN278 39 42 3 170 8,219,201 682,037 and 48 59 11 151 8,219,201 682,037NJN279 Hole abandoned 8,219,230 682,008NJN280 NSI 8,219,267 681,967NJN281 NSI 8,219,300 681,931NJN282 NSI 8,219,330 681,898NJN283 NSI 8,219,367 681,859Njame North Percussion holesNJN137 21 23 2 141 8,218,875 680,860 and 25 26 1 124 8,218,875 680,860 and 29 42 13 346 8,218,875 680,860NJN140 8 9 1 150 8,218,879 680,924 and 14 18 3 125 8,218,879 680,924 and 28 39 11 282 8,218,879 680,924NJN141 23 40 17 835 8,218,852 680,958NJN142 31 42 11 259 8,218,817 680,999NJN143 19 20 1 188 8,218,783 680,964 and 35 41 6 602 8,218,783 680,964NJN144 24 31 7 189 8,218,814 680,931 and 35 40 5 595 8,218,814 680,931NJN152 9 10 1 103 8,218,982 680,814 and 15 16 1 108 8,218,982 680,814 and 17 18 1 196 8,218,982 680,814 and 21 27 6 255 8,218,982 680,814NJN153 28 29 1 108 8,218,798 680,720 and 30 35 5 124 8,218,798 680,720NJN154 36 38 2 170 8,218,762 680,758NJN155 42 55 13 587 8,218,737 680,794 and 59 62 3 113 8,218,737 680,794 and 64 66 2 146 8,218,737 680,794NJN157 45 50 5 182 8,218,674 680,872 and 52 53 1 108 8,218,674 680,872NJN158 41 43 2 226 8,218,624 680,843 and 51 53 2 127 8,218,624 680,843NJN159 45 49 4 215 8,218,654 680,816NJN164 39 41 2 321 8,218,654 680,733 and 49 50 1 1050 8,218,654 680,733 and 53 54 1 251 8,218,654 680,733NJN166 6 7 1 255 8,218,909 680,960 and 41 43 2 489 8,218,909 680,960NJN167 26 32 6 549 8,218,954 680,918NJN168 25 32 7 510 8,218,986 680,880NJN175 18 19 1 369 8,218,900 681,059NJN176 3 4 1 151 8,218,934 681,105 and 30 31 1 528 8,218,934 681,105NJN177 7 9 2 129 8,218,969 681,060 and 26 28 2 470 8,218,969 681,060NJN179 17 20 3 311 8,219,033 680,978 and 36 37 1 443 8,219,033 680,978NJN181 20 21 1 228 8,219,096 680,903 and 29 32 3 329 8,219,096 680,903NJN183 34 36 2 298 8,219,101 680,973 and 37 38 1 114 8,219,101 680,973NJN184 36 40 4 626 8,219,070 681,020NJN185 23 24 1 105 8,219,036 681,055 and 26 31 5 207 8,219,036 681,055 and 43 45 2 228 8,219,036 681,055NJN186 1 8 7 130 8,219,002 681,088 and 25 30 5 498 8,219,002 681,088NJN189 33 34 1 472 8,219,084 681,154NJN190 TBA 8,219,114 681,119NJN211 30 33 3 226 8,218,849 681,205NJN222 21 27 6 232 8,218,570 680,598 and 33 34 1 113 8,218,570 680,598 and 39 44 5 231 8,218,570 680,598NJN224 13 16 3 236 8,218,635 680,519 and 25 27 2 229 8,218,635 680,519NJN227 NSI 8,218,761 680,367NJN229 NSI 8,218,823 680,288NJN230 23 24 1 161 8,218,937 680,319 and 26 29 3 269 8,218,937 680,319NJN231 7 9 2 198 8,218,875 680,387NJN234 TBA 8,218,949 680,457NJN236 20 21 1 141 8,218,885 680,534 and 38 41 3 166 8,218,885 680,534NJN239 31 34 3 331 8,218,865 680,713NJN241 30 31 1 116 8,218,964 680,597 and 33 34 1 367 8,218,964 680,597 and 35 36 1 101 8,218,964 680,597NJN243 NSI 8,219,026 680,522NJN245 NSI 8,219,093 680,441NJN246 NSI 8,219,166 680,508NJN247 NSI 8,219,134 680,547NJN249 NSI 8,219,073 680,624NJN250 19 20 1 106 8,219,032 680,655NJN251 20 21 1 1725 8,219,008 680,699 and 27 29 2 132 8,219,008 680,699NJN253 18 30 12 142 8,218,941 680,777NJN254 10 12 2 113 8,219,050 680,803 and 17 18 1 159 8,219,050 680,803 and 24 26 2 276 8,219,050 680,803 and 29 30 1 120 8,219,050 680,803NJN255 15 16 1 168 8,219,082 680,765NJN257 NSI 8,219,147 680,688NJN258 NSI 8,219,179 680,650NJN260 NSI 8,219,287 680,676NJN261 NSI 8,219,255 680,714NJN263 18 19 1 106 8,219,191 680,791NJN264 16 17 1 109 8,219,159 680,829NJN273 NSI 8,219,312 680,958NJN274 26 27 1 251 8,219,280 680,996 and 33 36 3 182 8,219,280 680,996Njame North Diamond Drill holesNJN137DD 22.00 24.00 2.00 134 8,218,871 680,861 and 30.00 40.70 10.70 287 8,218,871 680,861 and 42.30 44.91 2.61 121 8,218,871 680,861NJN141DD 30.80 41.30 10.50 288 8,218,851 680,963NJN143DD 3.80 4.40 0.60 164 8,218,774 680,964 and 5.40 6.00 0.60 117 8,218,774 680,964 and 20.80 21.40 0.60 267 8,218,774 680,964 and 34.00 43.00 9.00 255 8,218,774 680,964 Includes zone of core lossNJN147DD 37.80 38.20 0.40 259 8,218,807 680,867NJN156DD 40.97 48.66 7.69 493 8,218,705 680,840 Includes zone of core lossNJN163DD 21.85 24.80 2.95 306 8,218,678 680,686NJN165DD 36.00 41.00 5.00 279 8,218,609 680,770NJN166DD 7.00 8.40 1.40 233 8,218,908 680,962 and 41.80 43.50 1.70 1059 8,218,908 680,962NJN169DD 7.59 8.33 0.74 113 8,219,022 680,846 and 17.66 20.00 2.34 543 8,219,022 680,846NJN178DD 20.30 23.00 2.70 435 8,219,004 681,008NJN180DD 35.00 38.78 3.78 713 8,219,066 680,941 and 41.00 42.00 1.00 118 8,219,066 680,941NJN186DD 1.40 2.00 0.60 151 8,219,004 681,091 and 26.60 32.00 5.40 495 8,219,004 681,091NJN188DD 30.40 31.10 0.70 101 8,219,046 681,187NJN195DD 45.00 46.00 1.00 209 8,219,150 681,153NJN202DD 30.40 31.80 1.40 252 8,219,252 681,097 and 50.00 52.91 2.91 621 8,219,252 681,097NJN209DD 17.30 18.85 1.55 784 8,218,894 681,146NJN217DD 38.00 50.20 12.20 150 8,218,662 680,939NJN221DD 31.36 32.30 0.94 1970 8,218,533 680,642NJN223DD 17.00 20.00 3.00 203 8,218,598 680,558NJN225DD 14.30 15.00 0.70 114 8,218,665 680,481NJN248DD NSI 8,219,096 680,586NJN252DD 20.20 24.00 3.80 215 8,218,972 680,744 Includes zone of core lossNJN256DD 24.50 25.50 1.00 112 8,219,115 680,726NJN259DD NSI 8,219,206 680,607NJN265DD 4.40 5.20 0.80 213 8,219,132 680,874 and 21.80 22.17 0.37 313 8,219,132 680,874 and 23.00 24.00 1.00 134 8,219,132 680,874NJN266DD 12.40 12.94 0.54 153 8,219,238 680,892 and 14.40 14.66 0.26 103 8,219,238 680,892NJN272DD 35.50 36.00 0.50 102 8,219,351 680,920NJN275DD 15.00 21.00 6.00 145 8,219,245 681,038 and 42.74 43.74 1.00 1375 8,219,245 681,038 This information is provided by RNS The company news service from the London 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