10th Jan 2008 07:00
Albidon Limited10 January 2008 Level 1ALBIDON LIMITED 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 http://www.rns-pdf.londonstockexchange.com/rns/4735l_-2008-1-10.pdf HIGH-GRADE URANIUM INTERSECTIONS EXTEND KNOWN MINERALISATION IN DRILLING AT THE NJAME EAST PROSPECT, CHIRUNDU JV PROJECT, ZAMBIA HIGHLIGHTS: • Assay results from reverse circulation (RC) drilling at the Njame East Prospect have confirmed the presence of a new zone of sandstone-hosted uranium mineralisation which is adjacent to the existing Inferred Resource at Njame North. • Assays have been received for the first 19 drill holes from the initial 23 drill-hole programme of RC drilling and include the highest grade drill intersections recorded to date. • Significant assays received for these 19 drill holes are detailed below: NJE019 5m @ 2,389 ppm U3O8 from 68m including 3m @ 3,792 ppm U3O8 from 69m NJE018 7m @ 807 ppm U3O8 from 70m including 2m @ 2,255 ppm U3O8 from 70m NJE016 8m @ 409 ppm U3O8 from 34m including 2m @ 1,068 ppm U3O8 from 34m NJE004 7m @ 405 ppm U3O8 from 54m including 4m @ 566 ppm U3O8 from 57m NJE002 20m @ 277 ppm U3O8 from 41m including 4m @ 721 ppm U3O8 from 44m NJE013 8m @ 324 ppm U3O8 from 59m including 1m @ 1,785 ppm U3O8 from 59m • An updated resource model for the Njame North uranium deposit is in progress. Results from the Njame East drill-holes will now be included in this modeling. • Additional RC drilling at Njame East will commence after the seasonal rains in late Q1/early Q2 2008. • The new zone of mineralisation at Njame east is open along strike (both to the NE and SW towards Njame North) and both up and down dip. • The Njame East mineralisation is immediately adjacent to the Njame North uranium deposit. Albidon's Joint Venture partner African Energy is currently evaluating Njame North and the nearby Gwabe deposit (combined Inferred Resources of 3,320t U3O8) through a Pre-Feasibility Study, (PFS) due for completion in Q1 2008. Any additional resources from Njame East will be incorporated into the PFS. NJAME URANIUM PROJECT DRILLING UPDATE Assay results have been received by Albidon's joint venture partner AfricanEnergy Resources ("AFR") from its initial phase of reverse circulation (RC)drill testing of the Njame East uranium prospect in the Chirundu Joint VentureProject in Zambia (for location refer to Diagram 1 in the hyperlink above). Aninitial RC drilling programme of 23 drill holes for a total of 1,670m has beencompleted at Njame East (Table 1) to evaluate potential extensions of the knownuranium mineralisation discovered at the Njame North deposit, where an InferredResource containing 2,200t U3O8 has been previously defined (Diagram 2 in thehyperlink above). Assay results for the first 19 holes have confirmed thepresence of sandstone hosted uranium mineralisation with potentially economicgrades and thickness. Significant assays are listed in the following table: Hole ID From (m) To (m) Interval (m) Assay (ppm equiv U3O8) NJE001 No significant intersection NJE002 41 61 20 277 including 44 48 4 721 NJE003 No significant intersection NJE004 54 61 7 405 including 57 61 4 566 NJE005 No significant intersection NJE006 34 44 10 266 including 39 44 5 370 62 65 3 208 NJE007 No significant intersection NJE008 49 54 5 310 NJE009 48 49 1 214 NJE010 No significant intersection NJE011 44 45 1 258 NJE012 57 58 1 240 64 67 3 169 NJE013 58 67 8 324 including 59 60 1 1,785 NJE014 No significant intersection NJE015 No significant intersection NJE016 34 42 8 409 including 34 36 2 1,068 NJE017 51 58 7 180 NJE018 70 77 7 807 including 70 72 2 2,255 NJE019 68 73 5 2,389 including 69 72 3 3,792 including 71 72 1 9,650 Note: No upper cut-off limit has been applied to these assay results. The uranium mineralisation at Njame East is hosted by clastic sediments similarto those at the nearby Njame North deposit and further drilling is required todetermine the finite extent of mineralisation. Assay results from the drillingto date at Njame East will be incorporated into an updated resource model forthe Njame North/East deposits. Resource modeling is in progress and is expectedto take approximately one month to complete. FORWARD DRILLING PROGRAMME The average depth to the top of the uranium mineralisation at Njame East isgenerally over 35m. The mineralisation at Njame East appears to have no surfaceexpression visible in radiometric survey data, suggesting that the radiometricsurveys are only effective in locating mineralisation in the near-surfaceenvironment (i.e. less than 35m cover). This discovery of "blind" mineralisationproves the potential for further mineralisation in areas proximal to theexisting Inferred Resources at Njame North. Further drilling to test theseproximal areas is being planned. Additional drilling will also be undertaken at Njame East to define the extentof potentially economic mineralisation. This drilling will commence as soon asaccess conditions permit after seasonal rains have ceased. BACKGROUND The Njame uranium project is located approximately 75km south-east of Lusaka,the capital of Zambia, and form part of the Chirundu Joint Venture Project (seeDiagram 1 in the hyperlink above). African Energy has earned an initial 30%equity interest in the Chirundu Project from Albidon Limited by completingexpenditure of AUD $1 million on the Project, and can increase this to a 70%equity interest by completing a Pre-Feasibility Study on an Indicated Resource.A Pre-Feasibility Study on the Njame and Gwabe uranium deposits is due forcompletion in the first quarter of 2008. 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 Table 1: List of Njame East RC drill-hole collar coordinates (WGS84 UTM35S), all holes drilled vertically. Hole ID Easting Northing Elevation/m Max Depth/m NJE001 681,933 8,219,079 449 45 NJE002 681,868 8,219,225 444 70 NJE003 681,523 8,219,530 445 52 NJE004 681,765 8,219,183 449 76 NJE005 681,727 8,219,220 448 76 NJE006 681,901 8,219,197 442 70 NJE007 681,831 8,219,260 443 70 NJE008 681,787 8,219,151 451 70 NJE009 681,820 8,219,103 451 70 NJE010 681,943 8,219,155 448 70 NJE011 681,737 8,219,076 446 70 NJE012 681,693 8,219,104 443 76 NJE013 681,655 8,219,153 455 76 NJE014 681,614 8,219,191 448 76 NJE015 681,769 8,219,053 454 67 NJE016 681,662 8,219,004 442 70 NJE017 681,627 8,219,037 454 70 NJE018 681,584 8,219,076 448 84 NJE019 681,546 8,219,108 449 96 NJE020 682,234 8,219,158 82 NJE021 682,158 8,219,233 439 70 NJE022 682,078 8,219,301 442 94 NJE023 681,985 8,219,381 445 70 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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