EMAIL ALERTS

The Nefza Project is located in north-western Tunisia between the Atlas Mountains and the Mediterranean Sea. The project is covered by an Exploration Permit over an area of 3,069 sq km about 80 km to the west of Tunis and is served by excellent infrastructure.

The licence contains large areas of carbonate rocks containing signifi cant zinc-lead prospects that supported substantial past mining operations, and a series of volcanic and intrusive rocks that are associated with significant gold-copper mineralisation.

From mid 2005, Albidon embarked on an evaluation of the zinc-lead potential of the Nefza licence area with the aim of prioritising targets for geophysical surveys and drill testing. The key results of work to date are:

• Recognition of the potential for large 'carbonate-replacement' zinc deposits of similar character to the large Jinding deposit in Yunnan, China (approx. 140Mt @ 8% Zn, 1.5% Pb).
• Substantial amounts of near-surface mineralisation remain at some of the old zinc mines, most signifi cantly at Bou Aouane.
• Extensive Zn-Pb anomalies defi ned by stream sediment and soil sampling, identifying target areas related to major structures in zones extending from known deposits.

Fieldwork in 2007 focused on geophysical surveys (IP and gravity) along the main prospect trends with additional detailed mapping and geochemical sampling. Eleven drillholes were completed at Bou Aouane and one drillhole at El Haouria.

The objective of the drilling programme was to confi rm the thickness and grade of zinc mineralisation reported in previous drilling at Khatkhadha and to provide reconnaissance drill coverage of the adjoining area. The programme was directed towards locating zinc mineralisation where grade is controlled by a favourable combination of fault structures and geology.

Drill hole BADD003 was drilled within the reported Khatkhadha mineralisation and intersected 5.5m at 3.9% Zn and 0.1% Pb from 15m down hole, and 8.1m @ 11.7% Zn and 0.6% Pb from 21.4m down hole. These intervals are separated by 1.4m of core loss (see table). The drill results support the reports of a remnant mineralised body at Khatkhadha. The mineralisation is near-surface and may be accessed by an open pit were a suffi cient resource defi ned. Additional drilling is planned within the Khatkhadha mineralised area in 2008.

Drill hole BADD006 intersected 56.7m @ 1.6% Zn and 1.1% Pb (from 99m), including 21.3 m @ 2.4% Zn and 1.7% Pb. This confi rms that zinc-lead mineralisation at Bou Aouane is laterally extensive. Further drilling would be required to assess the thickness, grade and continuity of the system.

Drilling at the EL Haouaria prospect commenced in late 2007 and one hole was completed. EHDD001 intersected 11.35m (135.65-146.4) @ 2.3% Zn. There appears to have been little exploration away from the outcropping mineralisation that was mined at El Haouaria. The style and setting of mineralisation ('stratabound') are similar to Bou Aouane and hold the potential for discovery of more substantial and higher grade resources than recorded in the historical reports.

Continued drilling is planned on the Nefza licence for 2008 to test the Sidi Driss, Gantra, Bou Aouane and El Haouaria prospects.

• 2,787m of drilling has been completed at the Sidi Driss and Gantra targets, with drilling continuing at the El Haouaria prospect.
• Numerous low grade narrow intercepts were encountered in drillhole SDDD - 006 at Sidi Driss with the best intersection being 5.2m @ 2.03% Zn, 1.8% Pb, from 69.8m.

The permit has signifi cant potential for secondary zinc-oxide mineralisation, comparable to the Skorpion deposit in Namibia and the Mae Sod deposit in Thailand. At Jebel Trozza, previous drilling carried out by Albidon in 2002 intersected signifi cant zinc oxide mineralisation, with a best result of 6.08m @ 17% Zn (although core recovery was only 2.38m for this section of the drill hole).

As a follow up, 432.2m of drilling was completed in 2005 to test the nearsurface zinc oxide potential north of the previous drilling. Signifi cant zinc oxide mineralisation was intersected in the target position, with a best result of 2.65m at 7.7% Zn from 59.9m in JTD006.

The sulphide target at Jebel Touila was tested by 546.3m of drilling during 2005, down-plunge of old mine workings in the axial zone of a fault-controlled fold-structure. TOD002 intersected 4m at 6.5% Zn and 1.1% Pb from 171.6m including 0.8m at 26.4% Zn and 4.8% Zn. The follow-up hole was abandoned due to poor ground conditions, but the results confi rmed the existence of high-grade stratabound-replacement zinc mineralisation of an economically attractive style.

Exploration work is planned to recommence in 2008 with completion of geophysical surveys (IP and gravity) and additional geochemical sampling and mapping to defi ne drill targets.