Albidon trims feasibility study

30/10/2008 Robert Tyerman

Mining hopeful Albidon is boosting nickel output at Munali in Zambia and limiting its feasibility study for the Chirundu uranium project.

Based in Western Australia and quoted Down Under and on AIM, Albidon says ‘global financial instability’ obliged it to review the bankable feasibility on Chirundu, a minority joint venture with Africa Energy Resources. As a result, the joint venture partners have decided to defer the study of the Zambian project, except for the updating of resource estimates at the two deposits there, Njame and Gwabe.

Meanwhile, the company says it has continued to ramp up output from Munali, which produced 5,606 tonnes of concentrate in the three months to September at an average grade of 6.72 per cent nickel. Albidon realised $50 million (£31.2 million) from closing out its nickel hedges and says it is using the proceeds to repay senior debt, as well as receiving an initial $3.1 million (£1.94 million) for July and August deliveries from Munali to China’s Jinchuan Nickel group.

Shares in Albidon have been volatile, soaring to 216.5p in May before collapsing to 12p earlier this month. They now stand at 16.5p, valuing the company at £27 million.

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