5th Dec 2007 12:25
Albidon Limited05 December 2007 Albidon limited level 1 62 colin street west perth WA 6005 Australia Telephone: +61 89211 4600 Facsimile: +61 8 9211 4699 Email: [email protected] Website: www.albidon.com ABN 86 107 288 755 ASX Code: ALB AIM Code: ALD RESOURCE ESTIMATE FOR THE GWABE URANIUM DEPOSIT, ZAMBIA Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/2366j_-2007-12-5.pdf HIGHLIGHTS: • An initial resource estimate has been completed for the Gwabe uranium deposit in the Chirundu joint venture project, Zambia: Inferred Resource 4.2 Million Tonnes at 267ppm U3O8 - 100 ppm U3O8 cut-off Containing 1,120 Tonnes of U3O8 (2.5 Mlb U3O8) • This inferred resource represents a 50% increase in uranium resources at the Chirundu JV to 3,320t U3O8 (7.3 Mlb). • These new resources will form part of the current Chirundu Pre-Feasibility Study in which the Gwabe deposit is intended to be mined as a satellite operation to the base facility at the nearby Njame Deposit. The study is due for completion in Q1 2008. • The mineralisation is located close to surface at depths of between 3m and 29m from surface. • Additional drilling at the Njame deposit has been completed, and an updated resource estimate is being prepared. GWABE RESOURCE ESTIMATION Albidon's Joint Venture partner African Energy Resources ("AFR") has completedits initial resource estimation for the Gwabe uranium deposit in Zambia (forlocation refer to Diagram 1 in the hyperlink above). The Gwabe deposit is agreenfields discovery identified from airborne radiometric surveying undertakenin late 2006, and follow-up soil sampling in February 2007. Initial aircore andreverse circulation percussion (RC) drill testing commenced in May 2007,followed immediately by infill and extensional drilling. The full drilling programme comprised 161 vertical aircore/RC holes drilled to anominal 200m x 50m grid in the mineralised part of the surface uranium anomaly,with a total of approximately 8,800m drilling completed in three phases (referto Diagram 2 in the hyperlink above). Drill samples were collected over 1mdrill intervals, and were assayed for U and U3O8 using the pressed-pellet XRFmethod. Assay results were announced on 19th July, 23rd August and 19th October2007. A resource estimate has been completed on the Gwabe project using both ordinarykriging and inverse distance squared methods, with both producing statisticallyidentical results. The resource estimation methodology and classificationcomplies with the JORC Code and has been independently reviewed by Coffey MiningPty Ltd. An Inferred Resource has been estimated for the deposit of 4.2Mt at a grade of267ppm U3O8 for 2.5 Mlb of contained U3O8 (1,120 tonnes) at a 100ppm lowercutoff grade. THE GWABE URANIUM DEPOSIT The Gwabe uranium deposit occurs in Karoo-aged sediments of the Escarpment GritFormation and is 20km along strike from the joint venture's Njame uraniumdeposit (5.5Mt @ 400ppm U3O8 for 4.8 Mlb U3O8 at a 200ppm lower cutoff grade).Uranium mineralisation at Gwabe is hosted in oxidised, coarse grainedsandstones, grits and pebble conglomerates which overlie a non-mineralised,reduced silty-shale horizon (refer to Diagram 3 in the hyperlink above). Themineralisation dips very gently to the south-east, is located close to thesurface, at between 3m and 29m depth, and appears to be spatially related to aninferred WNW trending sub-vertical fault. Where the mineralisation approachesthe surface, uranium grades are lower. This reduction in grade may be due tosurface oxidation and leaching processes related to weathering. BACKGROUND The Gwabe uranium deposit and the Njame uranium deposit are locatedapproximately 80km south-east of Lusaka, the capital of Zambia, and form part ofthe Chirundu Joint Venture Project (refer to Diagram 1 in the hyperlinkabove).). African Energy has earned an initial 30% equity interest in theProject from Albidon Limited and is earning a 70% equity interest by completingthe Chirundu Pre-Feasibility Study. The Chirundu Pre-Feasibility Study commenced in September 2007 and is scheduledfor completion 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 is based oninformation compiled by Dr Frazer Tabeart (a full-time employee of AfricanEnergy) and Mr Lauritz Barnes (who is a consultant to African Energy) who aremembers of The Australian Institute of Geoscientists. Dr Tabeart and Mr Barneshave sufficient experience which is relevant to the style of mineralisation andtype of deposit under consideration and to the activity which they areundertaking to qualify as Competent Persons under the 2004 Edition of theAustralasian Code for reporting of Exploration Results, Mineral Resources andOre Reserves. Dr Tabeart and Mr Barnes consent to the inclusion of the data inthe form and context in which it appears. Information in this report relating to Mineral Resources has been reviewed by MrBrett Gossage. Mr Gossage is the Senior Principal with Coffey Mining Pty Ltd,(independent resource consultants engaged by African Energy) and is a member ofThe Australasian Institute of Mining and Metallurgy. Mr Gossage 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. Mr Gossage 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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