Welcome to Albidon Limited
Albidon is an Africa-focused exploration and development company with an emphasis on nickel. The Company has spent the past seven years building a large portfolio of nickel sulphide projects ranging from development stage to grass roots exploration. Albidon is currently positioned to make the transition from explorer to miner.
The Company was established in April 2000 and listed on both AIM and ASX stock exchanges in March 2004. The Board and management have a diversity of skills in exploration, mining, metallurgy, concentrate marketing, logistics and project finance in Africa and elsewhere.
Albidon's strategy is threefold: to develop the Munali Nickel Deposit in Zambia; to undertake exploration programs on its large portfolio of nickel, uranium and zinc projects elsewhere in Africa, including joint ventures; and to evaluate new business development opportunities.
The Company's main focus on East Africa is based on the assessment that this region holds the potential to be one of the world's premier nickel mining districts.
Albidon’s development activities have been centered on the Munali Nickel Project in Zambia, where the Company completed a positive Bankable Feasibility Study in July 2006. Construction of the mine has commenced, with commissioning of the processing plant and first deliveries of concentrate in the first half of 2008. Exploration drilling is ongoing, with the aim of expanding the nickel resource base in the Munali district.
Munali (100% Albidon) is located approximately 60 kilometres south of Zambia's capital city Lusaka. The Munali project area comprises the Enterprise Deposit and a number of other nickel prospects in the Munali Intrusion, the most advanced of which is the Voyager prospect along strike to the north of Enterprise.
A positive Bankable Feasibility Study was completed in July 2006 and site works commenced in September, following receipt of all required approvals. A capital raising was completed in October 2006 to provide US$35 million of equity finance for the project funding. The European Investment Bank and Barclays Capital have been mandated to provide up to US$60 million of senior debt financing.
A life-of-mine concentrate offtake contract and US$25 million offtake financing agreement were signed in December 2006 with Jinchuan Group, which is China 's leading producer of nickel, cobalt and platinum group metals. The relationship with Jinchuan will underpin the development of the Munali project.
The project is scheduled for construction through 2007, with commissioning
and first production of nickel concentrates expected in mid 2008.
The other projects are at an early stage of exploration, where prospects range in degree of maturity from mineralized drill intersections, such as the recent high grade platinum discovery at Luwumbu in Tanzania, to large licence holdings which cover prospective ground with identified targets that have not yet been drilled, such as the Songea nickel project in Tanzania.
The Company believes the east African projects have potential for discovery of substantial nickel sulphide deposits, and further that they represent a unique regional exploration opportunity in a relatively unexplored segment of the globally significant geological province that hosts the Voisey's Bay deposit in Canada and large Kabanga deposit in Tanzania.
Albidon's large licence holdings in southern and eastern Zambia also have potential for substantial uranium deposits, as confirmed by the recently announced Indicated Resource for Njame North Prospect, part of a joint venture being funded by African Energy Resources.
