Albidon confirms high-grade zinc

Africa-focused mineral explorer and developer Albidon says that drilling has confirmed high-grade zinc at its Nefza project in Tunisia.

The AIM-quoted company, which is based in Western Australia, reports that initial drilling at Khatkhadha in the project’s Bou Aouane mining district has intersected 8.1 metres with 11.7 per cent zinc. According to Albidon, a second hole to the south-east of Khatkhadha showed 21.4 metres with 2.4 per cent zinc and 1.7 per cent lead.

Also listed Down Under, the company is making progress with a uranium project at Njame in Zambia, where it is simultaneously involved in a nickel joint venture at Munali. Last month Albidon raised £5 million by issuing shares to ZCCM, its Munali partner.

Recommended by Growth Company Investor at 37p in May 2006, Albidon shares now trade at 136p, up 2p this morning, valuing the company at nearly £213 million. Some profit taking would be prudent but it is worth holding onto a chunk for possible longer-term gains.

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