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Tagged with: Albidon

Mar 2004 - Albidon Limited

Albidon Limited (ALB) – An Advanced Nickel – PGM float in Southern Africa

  • The IPO Offer : Albidon Limited (ALB) offered a subscription of 20m shares at 50c to raise up to A$10m in an AIM listing and an additional 10m shares at 50c to raise up to A$5m in an ASX listing at the same time (the minimum subscription is 20m to raise $10m). ALB’s IPO is to develop its existing portfolio of relatively advanced nickel - PGM exploration projects in Eastern and Southern Africa, and copper-gold & zinc-oxide projects in North Africa.
  • Albidon have delineated an “S” shaped Ni-PGM sulphide trend through Eastern and Southern Africa which can be correlated with the global “Grenville Trend”. The “Grenville Trend” is based on a comparison with the host rocks of Voisey Bay in the Middle Proterozoic – a geological era well known for hosting a number of the world’s famous metallogenic provinces. ALB’s Ni-PGM sulphide trend starts at Barrick/Falconbridge’s Kabanga Nickel project in Tanzania, and passes through Malawi and Zambia before reaching the Tati area of Botswana.
  • ALB have established a number of projects along the trend and explored them to some degree since 2000 to result in projects that range in maturity from delineated resources through drill-ready to almost virgin ground. The most advanced project is Munali, about 60km south of Lusaka in Zambia which has an existing resource over its SE corner, (that may still require further interpretation) with encouraging intersections such as 15.5m (~7m true width) at 2.1%Ni and 2.6g/t PGM.
  • There are three joint ventures namely with Gallery Gold in the Tati Ni-PGM region of Botswana (which has aeromag completed and delineated targets), with WMC Resources over Mpemba Ni-PGM in Malawi, and with BHP Billiton over Trozza (Zn) in Tunisia. Munali Ni-PGM has also been a joint venture, with the Lion Selection Group’s African Lion Limited, who is the major shareholder in Albidon.
  • ALB also has a copper-gold project and zinc project in Tunisia, which like the other targeted project areas was delineated on the basis of adequate infrastructure, relative political stability, attractive fiscal regimes and demonstrated geological prospectivity.

Nov 2006 - Albidon Limited

Albidon Limited (ALB) – Bringing Munali Into Production at 9,000tpa Ni and ~US$2/lb Cash Operating Costs

  • In the 2.5 years since its IPO in March 2004, Albidon has significantly advanced its main project of Munali Nickel (with Copper, Cobalt and PGE credits) in Zambia. Recently completing the BFS and receiving all the required Zambian approvals for construction and production from the mine at an estimated 900,000tpa to produce 9,000tpa Ni for at least 10 years from mid-2008 at cash operating costs of ~US$2/lb (ERA’s cost estimates are : Operating ~US$1.80/lb,C1~US$1.65/lb,C3~US$2.35/lb).
  • Albidon is currently cutting the box-cut for the portal to develop the underground mine at Munali, and expected to finalise its offtake agreements and financing of the ~US$65m project capex during the current quarter to December 2006.
  • The discovery at Munali is still being extended and has almost reached 110,000t of contained nickel. Due to nearby exploration similarities and potential extensions to the existing mineralisation, Munali may become a Tier 1 discovery (the most sought after by the major companies with a potential profit of >US$1bn).
  • Albidon’s next most advanced project appears to be Njame Uranium, also located in Zambia and immediately SW of Munali. Already a resource of 2,200t U3O8 has been delineated at Njame North, and it appears to have a similar style of banded mineralisation in sandstones to Paladin’s Kayelekera Project further northeast.
  • Although the next most likely mine after Njame at this stage appears to be its Luwumbu Platinum JV with Goldstream and Lonplats, Albidon’s holding is being gradually diluted down to effectively a 3% royalty. However, Albidon does have a number of other exploration prospects that are showing potential in the East African S-shaped nickel belt that passes from Tanzania through to Botswana.

Mar 2008 - Albidon Limited

Albidon Limited (ALB) –Munali Heading For Production from April 2008

  • The appointment of Byrnecut using drilling jumbos has resulted in Albidon exposing the main orebody at Munali in January 2008 (two months ahead of schedule) and it now expects to start feeding ore through the mill in April 2008.
  • The plant at Munali is expected to produce ~9,000tpa Ni (with copper, cobalt platinum and palladium credits), based on a plant design capacity of 900,000tpa. However, 1mtpa appears to be achievable, and the plant has been designed for expansion, which could result in a treatment rates potentially >1.1mtpa.
  • A resource has now been established at Voyager (adjacent west on strike to the main Enterprise orebody) and the understanding of the mineralisation and orebody infers that further extensions to the orebody are possible, especially at depth, such that Munali could still become a Tier 1 orebody (worth >US$1bn).
  • Albidon’s next most advanced Project appears to be its Njame Uranium JV, also located in Zambia and immediately SW of Munali. It appears to have a similar style of banded mineralisation in sandstones to Paladin’s Kayelekera Project further northeast, and is currently undergoing a PFS scheduled for completion in MQ08.
  • Although BHPB pulled out of the Selebi-Phikwe JV in Botswana because it did not meet their potential orebody parameters, ALB has identified a number of targets such as Sunnyside that appear to have Selebi-Phikwe type signature structures.
  • Albidon has a number of other joint ventures throughout Africa in which material progress is being made, with BHPB continuing to focus on Songea Nickel in Tanzania, and Zinifex making encouraging progress with intersections such as 8m @ 11.7%Zn within the historic Bou Aouane mining district at Nefza, Tunisia.

Oct 2008 - Albidon Limited

Albidon Limited (ALB) – Increasing Munali’s Production beyond 10,000tpaNi

  • Albidon’s share price closed at A$0.56 on 10 October 2008, only 6c higher than its 50c listing price in March 2004. During the past 4 ½ years, Albidon discovered one of the world’s lowest cost nickel mines in Zambia, financed, constructed and brought it into stoping production by September 2008. Even at the current nickel price of US$5.2/lb, Albidon has an NPV 3 x its current share price, at A$1.70/share.
  • Albidon has announced an expansion from 0.9mtpa to 1.2mtpa using the available capacity in the circuit, being the flash flotation (expected 16% to 20% recovery) and additional tanks, raising nickel production to ~10,000tpaNi from MQ 2009.
  • Although the initial stoping grades appear likely (as expected) to average ~1%Ni, the southern end of the orebody appears to be much richer (at ~2% to 3%Ni) being different nickel mineralisation (similar to PAN’s Savannah) comprising of small country-rock breccia fragments in massive nickel (that may plunge northwards).
  • ALB is undertaking a number of studies aimed at increasing production, such as DMS of the lower grade 0.3% to 0.5%Ni fraction (doubles the grade before adding it to the main mill feed), sinking a decline into Voyager (and probably linking to Enterprise North for greater flexibility), and examining possible open-cuts at Intrepid and elsewhere on the current northern extremities of the intrusion.
  • There appears to be increasing evidence that the intrusion and the orebody plunges under limestone cover to the north. Recent geophys has identified possible deeper extension targets to the north and a possible faulted block to the south, both of which are expected to be drilled during December Quarter 2008.

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