Albidon extends massive sulphide zone at Munali09:13, Friday, 3...

Albidon extends massive sulphide zone at Munali
09:13, Friday, 3 December 2004

Sydney - Friday - December 3: (RWE Australian Business News) -
Albidon Ltd reports six additional cored drillholes have been completed
in the second phase of a program to define the grade and thickness
distribution of nickel-copper-cobalt-platinum sulphide mineralisation in
the Munali nickel deposit, located in southern Zambia.

All drillholes intersected massive to semi-massive sulphides
ranging in thickness between 5m and 20m.

Drillhole MAD055 was designed to confirm the characteristics of
mineralisation in the vicinity of previously reported drillhole MAD050.

The MAD055 intersection was located about 10m up-dip from
MAD050, and recorded 34.9m at 1.76pc Ni, 0.26pc Cu, 0.08pc Co, 1.17g/t
PGM, including 7.7m at 2.2pc Ni, 0.23pc Cu, 0.10pc Co, 1.57g/t PGM.

Drillholes MAD052-054 and 056A are located on an approximate 40m
grid and have been successful in demonstrating continuity of thickness
and grade of mineralisation in this zone of the deposit, where there had
been no previous drilling.

MAD051 has substantially extended the known mineralisation
down-plunge to the northwest.

Directors say the drill results continue to validate Albidon's
geological model for Munali.

The model envisages a series of higher-grade zones or 'shoots'
developed along favourable structures within the broader mineralised
system identified over a strike length of 2.5 kilometres.

The immediate objective is to define a sufficient tonnage to
develop a mining operation on the 'shoot' that is providing the focus
for the current drilling program.

Shares in Albidon last traded at 50c.

ENDS

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