09/12/2005 - 10:53

Albidon's resources jump 75%

09/12/2005 - 10:53

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Perth-based nickel explorer Albidon Ltd has announced a 75 per cent increase in the resource at its Enterprise deposit in Zambia.

Albidon's resources jump 75%

Perth-based nickel explorer Albidon Ltd has announced a 75 per cent increase in the resource at its Enterprise deposit in Zambia.

The company's current metal inventory includes 97,000 tonnes of nickel and 223,000 ounces of platinum group metals.

In October Albidon agreed to raise $13 million through a placement pitched at 62 cents per share to fund a feasibility study at the Munali nickel project and to accelerate its drilling and exploration program. The feasibility study considered the development of a 500,000 to 750,000 tonne underground mine.

 

The ASX announcement is below:

Large Increase in Enterprise Nickel Resource to 97,000 Tonnes of Nickel Metal

HIGHLIGHTS

- Infill and extensional drilling has significantly increased the mineral resource at the
Enterprise deposit to 6,930,000 tonnes @ 1.4% Ni and 1.0g/t PGM (Indicated and
Inferred Resources, JORC classification).
- The current metal inventory is 97,000 tonnes of contained nickel and 223,000 ounces
of contained PGM, representing an increase of 75% over the Inferred Resource
estimate announced in April 2005.
- The current resource estimate does not include the recently discovered Voyager
zone.
- The Enterprise deposit remains open down dip and along strike to the north.
Ongoing drilling is expected to yield further increases in the resource.
- This large resource increase is likely to have a substantial positive impact on the
project economics. The scale of the project is now under review.
- Progress reports on metallurgical testwork and other aspects of the Feasibility Study
on the Enterprise deposit will be announced in the coming weeks.

Mineral Resource Estimate for Enterprise Nickel Deposit

A revised resource estimate has been calculated for the Enterprise deposit based on drilling
completed during 2005 at the Munali Nickel Project, Zambia. This is made up of 40 cored drill holes
(for a total of 12,720 metres) and 59 reverse circulation (RC) holes (for a total of 9,800 metres).
Drilling has been directed at the volume of the Enterprise deposit defined by the previously
announced Inferred Resource estimate, with the objective of improving the classification to
Indicated Resource.

The new resource is based on the breccia and massive sulphide zones near the southeastern
contact of the Munali Intrusion. The modelled resource extends for over 800m along strike and
600m down dip within a continuous structural zone. The deposit is open along strike and down dip
and drilling is continuing. It is noted that the current resource estimate excludes the new Voyager
Nickel Prospect which is also still being drilled.

An external audit has been conducted by Resource Evaluations Pty Ltd. The audit included a site
visit and review of: drilling and sampling procedures; sample preparation laboratory; assay
techniques and QA/QC of data and analytical standards. The resource model and classification of
the resource following JORC guidelines was also completed by Resource Evaluations Pty Ltd's
Principal Geologist, Mr P. Payne.

Forward Drilling Program

Drilling is continuing at Enterprise which remains open along strike and down dip. This work is
expected to lead to an additional updated resource estimate prior to completion of the Feasibility
Study in the first half of 2006.

Drilling is also continuing at the Voyager Prospect, some 800m to the north of Enterprise, and in the
500m long un-drilled area between the two deposits, which are geologically very similar.

Feasibility Study

The substantially increased resource estimate of 97,000 tonnes of Ni metal will underpin the next
stage of the Enterprise Feasibility Study and is expected to have a positive impact on project
economics. A progress report on results of the metallurgical testwork program and other
components of the Feasibility Study will be announced in the coming weeks.

 

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