19th Feb 2008 11:41
Albidon Limited19 February 2008 Level 1 ALBIDON 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 4,100t U3O8 TARGET REACHED AS NJAME INFERRED RESOURCE INCREASES TO 3,000t U3O8 Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/2951o_-2008-2-19.pdf HIGHLIGHTS: • An updated Inferred Resource estimate has been completed for the Njame uranium deposit in the Chirundu Joint Venture Project, Zambia: Njame Inferred Resource 8.8 Million Tonnes at 340ppm U3O8 - 100 ppm U3O8 cut-off Containing 3,000 Tonnes of U3O8 (6.6 Mlb U3O8) • The resource comprises the following zones: o Njame North: 6.5Mt @ 355ppm U3O8 2,300T / 5.1mlb U3O8 o Njame East: 1.1Mt @ 340ppm U3O8 375T / 0.8mlb U3O8 o Njame Central: 1.2Mt @ 270ppm U3O8 325T / 0.7mlb U3O8 • This Inferred Resource represents a 25% increase in uranium resources at the Chirundu JV to 4,120t U3O8 (9.1 Mlb). • The updated resource will form part of the current Chirundu Pre-Feasibility Study due for completion in Q1 2008. • Assays for all remaining drill holes are expected in the next month and will be used to re-categorise confidence in the resource. An updated resource statement which will include JORC-Indicated Resources is expected in Q2 2008. • Additional drilling to test for extensions of the Njame East and Njame North zones will commence in Q2 2008. • Subject to necessary Government permits and successful completion of feasibility studies, sales agreements and financing arrangements, the Chirundu Joint Venture is on-track for first uranium production by the end of 2009. NJAME RESOURCE ESTIMATION Albidon's joint venture partner African Energy has completed an updated resourceestimate for the Njame uranium deposit in Zambia (for location refer to Diagram1 in the hyperlink above). The Njame deposit was initially discovered by theItalian petroleum company AGIP in the late 1970's and a JORC-compliant InferredResource was previously announced by African Energy in September 2006. The full drilling programme completed to date at Njame now includes 319 aircore/reverse circulation percussion holes for a total of 17,272m and 35 diamond drillholes for 2,191.4m core (see Diagram 2 in the hyperlink above). Drill sampleswere collected over 1m drill intervals, and were assayed for U and U3O8 usingthe pressed-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). The updated resourceestimate was completed using the Ordinary Kriging method, and classified withreference to the criteria set out in the Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves (JORC Code, December2004). The updated estimate for Njame has outlined a total Inferred Resource of 8.8 Mt@ 340 ppm U3O8 for 3,000t U3O8 (6.6 Mlb). This resource is concentrated in theNjame North deposit, with contributions from the Njame East and Njame Centraldeposits as follows: Deposit Inferred Resource Contained U3O8 Njame North 6.5 Mt @ 355 ppm U3O8 2,300t (5.1 Mlb) Njame East 1.1Mt @ 340 ppm U3O8 375t (0.8 Mlb) Njame Central 1.2 Mt @ 270 ppm U3O8 325t (0.7 Mlb) NJAME TOTAL 8.8 Mt @ 340 ppm U3O8 3,000t (6.6 Mlb) Assay results are still pending from approximately 80 infill drill holes.Results from these holes are expected within a month and will be used to preparean Indicated Resource estimate. THE NJAME URANIUM DEPOSITS The Njame uranium deposits occur in Karoo-aged sediments of the Escarpment GritFormation and are 20km along strike from the Company's Gwabe uranium deposit(Inferred Resource of 4.2Mt @ 267 ppm U3O8 for 2.5 Mlb U3O8 at a 100ppm lowercutoff grade). Mineralisation at Njame forms a series of near-surface tabularbodies which have very shallow angles of dip and which may be amenable toopen-pit mining. The Njame East deposit remains open along-strike and down-dip,whilst the Njame North deposit remains partially open down-dip. Additionaldrilling is required to assess these opportunities for incremental resourceadditions. BACKGROUND The Njame uranium deposit and the Gwabe uranium deposit are locatedapproximately 80km south-east of Lusaka, the capital of Zambia, and form part ofthe Chirundu Joint Venture Project (see Diagram 1 in the hyperlink above).African Energy has earned an initial 30% equity interest in the Project fromAlbidon Limited and is earning a 70% equity interest by completing the ChirunduPre-Feasibility Study. African Energy is currently evaluating the potential for economically viablemining and uranium processing at the Njame and Gwabe deposits as part of theChirundu Pre-Feasibility Study. With the increased Inferred Resource at Njameannounced in this statement, the total Inferred Resource for the Chirunduproject is now 4,120t U3O8 (9.1 Mlb U3O8). The Pre-Feasibility Study is expectedto be finalised by the end of the first quarter of 2008, with a decision toproceed to a full Bankable Feasibility Study (BFS) to be made in the secondquarter. Subject to receiving the necessary government permits and approvals,and subject to completion of successful sales agreements, feasibility studiesand financing arrangements, African Energy considers that the Chirundu projectis on-track for first uranium production by the end of 2009. 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 and Indicated Resources" are to those terms as defined in the JORCCode. Information in this report relating to Mineral Resources has been compiled orreviewed by Dr Frazer Tabeart (a full-time employee of African Energy), MrLauritz Barnes and Mr Michael Dunbar (who are consultants to African Energy).Dr Tabeart and Mr Barnes are members of The Australian Institute ofGeoscientists and Mr Dunbar is a member of The Australasian Institute of Miningand Metallurgy. 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. Mr Barnes and Mr Dunbar have sufficient experiencewhich is relevant to the modelling and resource estimation and to the activitywhich they are undertaking to qualify as Competent Persons under the 2004Edition of the Australasian Code for reporting of Exploration Results, MineralResources and Ore Reserves. Dr Tabeart, Mr Barnes and Mr Dunbar consent to theinclusion 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 at www.albidon.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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