01/07/2008 - 13:17

Albidon steps into producer ranks

01/07/2008 - 13:17

Bookmark

Save articles for future reference.

West Perth-based Albidon Ltd has made the transition to nickel producer following the production of first concentrate at its Munali project in Zambia, with cash flow starting next month.

West Perth-based Albidon Ltd has made the transition to nickel producer following the production of first concentrate at its Munali project in Zambia, with cash flow starting next month.

The company announced today that it had produced its first nickel-copper-cobalt-PGM (platinum metal group) concentrate which was delivered to the storage shed last Friday.

The concentrate is now being stockpiled ahead of collection for smelting by China's largest nickel producer, Jinchuan Group.

Albidon said it will now focus on ramping up to full production of 1.2 million tonnes per annum from the Enterprise mine, which will generate between 10,000 to 10,500tpa of nickel concentrate.

Full production is anticipated to be achieved early next year.

Below is the full announcement:

Albidon's 100% owned Munali Nickel Project is located approximately 60 kilometres south of Zambia's capital city Lusaka. Following a positive Bankable Feasibility Study completed in July 2006, initial site works commenced upon receipt of all required approvals in September 2006. Underground development intersected the Enterprise orebody in January 2008.

Achievement of Key Project Milestones and Production of First Concentrate at Munali

Production of nickel ore from the Enterprise orebody commenced in January 2008, some two months ahead of schedule. The mined ore stockpile is now sufficient for approximately three months of processing through the mill and concentrator circuit at Munali.

Hot commissioning of the crushing circuit, which commenced in April 2008, was completed with Albidon taking possession of the crushing circuit from the construction contractor in May 2008.

Hot commissioning of the mills and flotation circuit commenced in mid-June, with concentrate first processed through the flotation circuit and thickeners last week. First concentrate was processed through the Larox filter and delivered to the storage shed on Friday 27th June.

This schedule has met the overall project target of first concentrate production in June/July 2008, as originally envisaged when the Project was approved for development in September 2006.

Production of first concentrate at Munali is an exceptional achievement and heralds the beginning of a new phase for Albidon as a nickel producing company, with cash flow commencing next month.

Forward Program

The focus at Munali is now to build up to full production of 1.2Mtpa of ore from the Enterprise mine to generate between 10,000 tpa and 10,500 tpa of nickel in a high quality Ni-Cu-Co-PGM concentrate. It is anticipated that full production at this expanded rate will be achieved in early 2009.

Mine and concentrator optimisation studies will be carried out on an ongoing basis as the Company builds up to full production at Munali.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options