Perth, Mar 7, 2008 (ABN Newswire) - Albidon Limited (ASX: ALB)(AIM: ALD)(PNK: ABIDF) Report assays have been received for all remaining drill holes from the resource delineation drilling programme at the Njame Uranium Prospect, Zambia.
These results confirm the grade, thickness and continuity of the uranium mineralisation and have increased the drilling density in the central area of the deposit to that required for a resource re-classification to JORC-Indicated Resource category.
Significant assays received for these drill holes are detailed below:
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NJN137 13m @ 346 ppm U3O8 from 29m
NJN141 17m @ 835 ppm U3O8 from 23m
NJN143 6m @ 602 ppm U3O8 from 35m
NJN144 5m @ 595 ppm U3O8 from 35m
NJN155 13m @ 587 ppm U3O8 from 42m
NJN156DD 7.7m @ 493 ppm U3O8 from 41m
NJN167 6m @ 549 ppm U3O8 from 26m
NJN168 7m @ 510 ppm U3O8 from 25m
NJN180DD 3.8m @ 713 ppm U3O8 from 35m
NJN184 4m @ 626 ppm U3O8 from 36m
NJN186 5m @ 498 ppm U3O8 from 25m
NJN186DD* Twinned 5.4m @ 495 ppm U3O8 from 27m
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* core hole drilled to twin NJN186 for
comparison of grades
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An updated resource calculation for the Njame uranium deposit is in progress. A new resource statement in the JORC-Indicated Resource category is expected in Q2 2008.
The Pre-Feasibility Study on the Njame and Gwabe deposits in the Chirundu Joint Venture are on schedule for completion by the end of Q1 2008.
Subject to necessary Government permits and finalisation of sales and financing arrangements, the Chirundu joint venture remains on-track for first uranium production by the end of 2009.
NJAME URANIUM PROJECT INFILL RESOURCE DRILLING UPDATE
Assay results have been received for all remaining resource delineation drilling at the Njame Uranium Prospect in southern Zambia (for location see Diagram 1). The Njame deposits contain Inferred Resources of 8.8Mt @ 340 ppm U3O8 for 6.6 Mlb U3O8 at a 100ppm lower cutoff grade and form nearsurface tabular bodies hosted by Karoo-aged sandstones.
The drilling programme completed to date at Njame includes 319 aircore/reverse circulation percussion holes for a total of 17,272m and 35 diamond drill holes for 2,191.4m core (see Diagram 2). Drill samples were collected over 1m drill intervals, and were assayed for U and U3O8 using the pressed-pellet XRF method. The entire Njame North, East and Central deposits have been drilled to a 200m x 50m grid, with local infill to 100m x 50m and in places to 50m x 50m.
Resource modelling is currently in progress to prepare an Indicated Resource estimate. This is expected to be completed in the early part of Q2 2008.
Significant mineralised intersections from the recently received assay data relating to approximately 100 drill holes are given in the table below:
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Hole ID From To Interval Equiv.
(m) (m) (m) U3O8(ppm)
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NJN137 29 42 13.0 346
NJN137DD 30.0 40.7 10.7 287
NJN140 28 39 11.0 282
NJN141 23 40 17.0 835
NJN141DD 30.8 41.3 10.5 288
NJN142 31 42 11.0 259
NJN143 35 41 6.0 602
NJN143DD 34.0 43.0 9.0 255
NJN144 35 40 5.0 595
NJN152 21 27 6.0 255
NJN155 42 55 13.0 587
NJN156DD 41 48.6 7.6 493
NJN166DD 41.8 43.5 1.7 1,059
NJN167 26 32 6.0 549
NJN168 25 32 7.0 510
NJN180DD 35.0 38.8 3.7 713
NJN184 36 40 4.0 626
NJN186 25 30 5.0 498
NJN186DD 26.6 32.0 5.4 495
NJN202DD 50.0 52.9 2.9 621
NJN217DD 38.0 50.2 12.2 150
NJN221DD 31.3 32.3 0.9 1,970
NJN251 20 21 1.0 1,725
NJN253 18 30 12.0 142
NJN278 48 59 11.0 151
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THE NJAME URANIUM DEPOSITS
The Njame uranium deposits are hosted in Karoo-aged sediments of the Escarpment Grit Formation and are 20km along strike from the Company's Gwabe uranium deposit (see Diagram 1, Inferred Resource 4.2Mt @ 267 ppm U3O8 for 2.5 Mlb U3O8 at a 100ppm lower cutoff grade). Mineralisation at Njame forms a series of near-surface tabular bodies which have very shallow angles of dip and which may be amenable to open-pit mining. The Njame East deposit remains open along-strike and down-dip, whilst the Njame North deposit remains partially open down-dip. Additional drilling is planned to assess potential resource extensions.
BACKGROUND
The Njame uranium project is located approximately 75km south of Lusaka, the capital of Zambia, and forms part of the Chirundu Joint Venture Project (see Diagram 1). The JV is being funded and operated by Albidon's joint venture partner African Energy Resources ("AFR"). AFR has earned a 30% equity interest in the Chirundu Project by completing expenditure of AUD $1 million on the Project, and can increase this to 70% equity interest by completing a Pre-feasibility study on an Indicated Resource.
The joint venture is currently evaluating the potential for economically viable mining and uranium processing at the Njame and Gwabe deposits as part of the Chirundu Pre-Feasibility Study. The total resource for the Chirundu project is 4,120t U3O8 (9.1 Mlb U3O8). The Pre-Feasibility Study is expected to be finalised by the end of March 2008, with a decision to proceed to a full Bankable Feasibility Study (BFS) to be made in the second quarter. Subject to receiving the necessary government permits and approvals, and subject also to completion of successful sales agreements, feasibility studies and financing arrangements, it is possible the Chirundu uranium project could be brought into production by the end of 2009.
Information in this report relating to Exploration results, Mineral Resources or Ore Reserves is based on information compiled by Dr Frazer Tabeart (an employee and the Managing Director of African Energy Resources Limited) who is a member of The Australian Institute of Geoscientists. Dr Tabeart has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Tabeart consents to the inclusion of the data in the form and context in which it appears.
