AMERSTERDAM (ResourceInvestor.com) -- Australian mineral company...

AMERSTERDAM (ResourceInvestor.com) -- Australian mineral company Albidon Ltd. [ASX:ALB; AIM:ALD] has stepped up its work on its JV uranium project in Zambia.

The company is implementing a three-fold strategy, targeting the development of the Munali Nickel Deposit in Zambia; undertaking exploration programs on its large portfolio of nickel, uranium and zinc projects elsewhere in Africa, including joint ventures; and evaluating new business development opportunities.

At the same time, Albidon is banking on its success story of the nickel project in Zambia, where it completed a positive Bankable Feasibility Study in August 2006. The implementation of the project has started, with the construction of the mine, while first deliveries of nickel concentrate are expected in the first half of 2008.

The company was able to raise capital in October 2006 to provide US$35 million of equity financing for project funding. The European Investment Bank and Barclays Capital have been mandated to provide up to US$60 million of senior debt financing. Offtake agreements have already been signed, while at the same time in December 2006, a US$25 million offtake financing agreement was signed with Jinchuan Group, which is China's leading producer of nickel, cobalt and platinum group metals.

However, based on its licenses, the company also has some other priorities set, largely the development of its Zambian uranium potential. In cooperation with its joint-venture partner African Energy Resources [ASX:AFR], which is a subsidiary of Energy Ventures Limited [ASX:EVE], Albidon has approved a Pre-Feasibility Study (PFS) to evaluate the commercial development of uranium reserves at its Zambian Njame deposit. At the same time, a PFS has been approved by both for the Zambian Gwabe prospect in the Chirundu Project.

This decision was made based on the results of a Scoping Study by Albidon done at Njame and drilled mineralization at Gwabe. Albion reiterated that success is expected, as the Scoping Study has shown the potential for an economically viable project using proven technology and benchmarked costs. In its report, the mineral developer indicated that the base case for the Study is 1.4 million pounds of U3O8 annual production over an initial five-year mine plan using a uranium price of US$65/lb.

The results of the PSF are expected to be presented by the end of December 2007. Overall costs of the PSF are set at A$1.5 million, which includes metallurgical testwork, engineering and drilling to upgrade the resource status.

African Energy and Albidon have entered into an agreement for the exploration and development of a number of uranium and coal prospects that have been identified on Albidon’s acreage in Zambia. African Energy has agreed, based on the JV contract, that it will spent around A$500,000 within two years to maintain an option to enter a Joint Venture on one or more project areas.

African Energy has to date nominated two projects for farm-in: the Chirundu JV and the Kariba Valley JV. If successful and commercially feasible, African Energy will be able to earn a 30% interest in each of these project areas by expending A$1 million on the selected project area. If the PFS is successful, African Energy will also gain a 70% interest. This was set by Albion so the company could focus its operations on its other nickel based projects in South Africa.

Albidon has already in the last months reported a discovery of a significant thickness of uranium mineralisation in initial drilling at Njame North prospect in the Chirundu JV Project, where an inferred resource (JORC compliant) of 5.5 million tonnes a 400 parts per million (ppm) U3O8 has now been defined, equal to about 4.8 million pounds U3O8. Njame North remains open in several directions and further drilling is planned for 2007.

During 2006, African Energy drilled the Njame uranium prospects within the Albidon joint venture areas. This identified a mineral resource at Njame North, where two layers of near-surface sandstone-type uranium mineralisation was confirmed. An Inferred Resource of 5.5 million tonnes at 400 ppm U3O8 for 2,200 tonnes U3O8 (with a cut-off grade of 200 ppm U3O8) is estimated for Njame North and verified by independent consultants RSG Global.