18th Sep 2006 09:18
Albidon Limited18 September 2006 Level 1 62 Colin Street West Perth 6005ALBIDON LIMITED Western Australia ARBN 107 288 755 Tel:x+61x8x9211 4600 Fax:x +61x8x9211 4699 Email:[email protected] ASX Code: ALB AIM Code: ALD via electronic lodgement http://www.rns-pdf.londonstockexchange.com/rns/0747j_-2006-9-18.pdf Resource Estimate for Njame North Uranium Deposit, Zambia HIGHLIGHTS O An initial resource estimate has been completed for the Njame North uranium deposit in the Kariba Valley, Zambia: Inferred Resource 5.5 Million Tonnes at 400 ppm U3O8 - 200 ppm U3O8 cut-off Containing 2,200 Tonnes of U3O8 (4.8 Mlb U3O8) O The mineralisation is open along strike and at depth with good potential for expansion of the resource. O Uranium mineralisation occurs in two sub-horizontal layers, and is of the style referred to as sandstone-type uranium. O The mineralisation is mostly located within 50m of surface. O Scoping studies of metallurgy and processing options for the Njame North mineralisation will commence in the next quarter. O Initial drilling of the analogous Chisebuka prospect will commence later this month, as soon as a drill rig can be mobilised. O Large scale airborne radiometric surveys will commence in the next quarter over a number of new targets in the prospective Karoo basins covered by the JV tenements. INTRODUCTION African Energy Resources Limited ('African Energy'), a subsidiary of EnergyVentures Limited, has completed a drilling program at the Njame North uraniumprospect. The drill program was funded and operated by African Energy under theterms of an option and farm-in agreement with Albidon Limited over portions ofAlbidon's licence holdings in southern Zambia. RESOURCE ESTIMATION The drilling program comprised 47 vertical aircore holes on a nominal 200m x 50mgrid with a total of approximately 2,000m drilling completed in two phases (seeDiagram 1 in the above hyperlink). Drill samples were collected over 1m drillintervals, and were assayed using the pressed-pellet XRF method. Assay resultswere announced on 26th July and 6th September 2006. A resource estimate has been completed on the Njame North project using theinverse distance squared method. The resource estimation methodology andclassification has been independently audited by RSG Global and complies withthe JORC Code. NJAME URANIUM DEPOSIT Uranium mineralisation at Njame North occurs within a series of sediments thatare part of the prospective Upper Karoo Basin. Five different sediment sequenceshave been defined on the basis of detailed drill chip logging and surfacemapping (Sequences F1 to F5). Mineralisation occurs in two layers which aregenerally parallel to the boundaries between the sequences noted above. Thethickest, most consistent and highest grade mineralisation is located in thelower layer within the F2 sequence (see Diagram 2 in the above hyperlink). Thismineralised unit attains thicknesses of up to 17m. An Inferred Resource has been estimated for the deposit of 5.5Mt at a grade of400ppm U3O8 for 4.8 Mlb of contained U3O8 at a 200ppm lower cutoff grade. PROJECT BACKGROUND The Njame deposit is located approximately 85km south of Zambia's capital cityLusaka. Njame is one of a number of prospects in Zambia's Kariba Valley UraniumDistrict being evaluated under an Agreement between Albidon and African Energy.Energy Ventures Limited, through African Energy Resources, has now earned theright to enter a Joint Venture with Albidon Limited on one or more project areasby exceeding its minimum expenditure requirement of A$500,000 under the optionand farm in agreement. African Energy may earn a 30% interest in each projectarea by expending AUD $1 million on the selected project area, and may thenproceed to earn a 70% interest by completing a Prefeasibility Study on a JORCIndicated Resource. The Joint Venture forms part of African Energy's wider Karoo Basin UraniumProject that covers prospective areas in Botswana, Zambia, Zimbabwe and Malawi(see Diagram 3 in the above hyperlink). A number of substantial uraniumdeposits and prospects occur throughout the Karoo Basins in this area, includingKayelekera (Paladin Resources Ltd) in Malawi, Kanyemba in Zimbabwe andDibwe-Mutanga (Omega Corp Ltd) in Zambia. 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" are to those terms as defined in the JORC Code. Information in this report relating to exploration results is based on datacompiled by Mr Mike Dunbar, (who is a full time employee of the Mitchell RiverGroup and a consultant to African Energy Resources Pty Ltd), and who is a memberof The Australasian Institute of Mining and Metallurgy, and Dr Frazer Tabeart(who is a full time employee of Geogen Consulting and a consultant to AfricanEnergy Resources Pty Ltd), and who is a member of The Australian Institute ofGeoscientists. Dr Tabeart and Mr Dunbar have sufficient experience which isrelevant to the style of mineralisation and type of deposit under considerationand to the activity which they are undertaking to qualify as Competent Personsunder the 2004 Edition of the Australasian Code for reporting of ExplorationResults, Mineral Resources and Ore Reserves. Dr Tabeart & Mr Dunbar consent tothe inclusion of the data in the form and context in which it appears. Information in this report relating to Mineral Resources has been eithercompleted by or reviewed by Dr Julian Verbeek of RSG Global Ltd. who is a memberof The Australasian Institute of Mining and Metallurgy. Dr Verbeek 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. DrVerbeek consents to the inclusion of the data in the form and context in whichit appears. If you have any queries please contact the Company Secretary, Nicholas Day on+61 8 9211 4600 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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