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The Namakande Prospect comprises six ground radiometric anomalies which are being evaluated through a programme of reconnaissance geological mapping, geochemical soil sampling, rock-chip sampling and gamma-ray scintillometer surveying.

Assay results for the geochemical soil and rock-chip samples finalised to date have confirmed the presence of highly elevated uranium levels over a considerable area at the Namakande E target.

Peak assay values for rock-chip samples at Namakande E include values of 623 ppm U3O8, 464 ppm U3O8, 443 ppm U3O8, 393 ppm U3O8 and 250 ppm U3O8.

These samples occur over a strike length of greater than 1,400m, with supporting scintillometer readings extending the anomaly for a total strike-length of approximately 1,700m.

RC drill testing of the Namakande E target will commence once the drilling programme at the nearby Chisebuka prospect has been completed.

Kariba Valley JV Project: Namakande geochemical soil sampling and rock-chip assay results 

The Namakande uranium prospect in the Kariba Valley JV occurs 75km to the south-west of Albidon’s Njame uranium deposit, and some 25km north-east of the Company’s Chisebuka uranium prospect (Diagram 1). Namakande comprises a cluster of six ground radiometric anomalies (Namakande targets A through F) which were defined over Escarpment Grit Formation sediments by the Italian petroleum company AGIP in the late 1970’s (Diagram 2).

Albidon’s joint venture partner African Energy Resources (“AFR”) is evaluating these six targets through a programme of geological reconnaissance mapping, ground radiometric (gamma-ray scintillometer) surveys, geochemical soil sampling and rock-chip sampling. The reconnaissance geological mapping and scintillometer surveys have confirmed the presence of radiometric anomalies overlying coarse clastic sediments which are interpreted to be of Karoo age and likely to belong to the Escarpment Grit Formation.  

Assays for geochemical soil samples collected on a nominal 400m x 100m grid over targets A, D, E and F have been received. Coherent uranium in soil anomalism has been detected at the Namakande A, Namakande E and Namakande F targets, in all cases coincident with ground radiometric anomalies. Further soil sampling is required at Namakande A to assess the full extent of the uranium anomalism.

Namakande E Target 

The Namakande E target comprises two sub-anomalies as defined by ground radiometric surveying and confirmed by African Energy’s scintillometer survey (Diagram 3). Geochemical soil sampling on a 400m x 100m grid has confirmed the presence of elevated uranium in soil levels over the entire length of the southern sub-anomaly, with peak values up to 63 ppm U3O8 in soil and general values in the 12 ppm U3O8 to 49 ppm U3O8 range over an area measuring at least 1600 m long and over 100m wide (Diagram 4). Rock-chip assays from sporadic outcrop in the area of the soil anomaly has confirmed the local presence of moderate to high grade uranium in bedrock over a strike-length of 1400m. Peak values for the rock-chip samples include assays of 623 ppm U3O8, 464 ppm U3O8, 443 ppm U3O8, 393 ppm U3O8 and 250 ppm U3O8. Assay results for all rock-chip samples are available in the attached document.

Forward Programme at Namakande 

Site preparation for a nominal 400m x 100m drilling programme at Namakande E will commence in November.

On completion of the current drilling programme at Chisebuka, and subject to the commencement of seasonal rains, the drill rig will mobilise to Namakande to commence reconnaissance drill testing of the Namakande E target. This drill rig has been secured for the remainder of 2007 and for the entire 2008 field season and will be used throughout the Company’s Zambian projects. 

Field evaluation of the Namakande A, B, C and F targets is scheduled for November. The evaluations will determine what further sampling is required at these areas to define drilling targets for 2008.

Background 

The Chisebuka and Namakande uranium prospects are situated approximately 120km south-west of Lusaka within the Kariba Valley Joint Venture Project. The JV tenements are owned by Albidon, and African Energy can earn a 30% equity interest in the Kariba Valley Project by completing expenditure of A$1 million on the Project, and can increase this to 70% equity interest by completing a Pre-Feasibility Study on an Indicated Resource.

The Njame uranium deposit and the Gwabe uranium mineralisation are located approximately 80km south-east of Lusaka, the capital of Zambia, and form part of the Chirundu Joint Venture Project. The JV tenements are owned by Albidon, and African Energy has earned a 30% equity interest in the Chirundu Project and can increase this to 70% equity interest by completing a Pre-Feasibility Study on an Indicated Resource.

The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’) sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The information contained in this announcement has been presented in accordance with the JORC Code and references to “Inferred Resources” and “Indicated Resources” are to those terms as defined in the JORC Code.  

Information in this report relating to Exploration results, Mineral Resources or Ore Reserves is based on information compiled by Dr Frazer Tabeart (an employee 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.

If you have any queries please contact the Chief Financial Officer, Nicholas Day or Managing Director, Dale Rogers on +61 8 9211 4600 or email nickd@albidon.com

Albidon’s nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen +61 8 9480 2500.

Additional information may also be viewed on Albidon’s website at www.albidon.com
http://www.albidon.com