Albidon

Africa-focused mineral explorer and developer Albidon has followed confirmation of high-grade zinc at Nefza in Tunisia with encouraging drilling results from its Njame uranium prospect in Zambia.

Based in Western Australia and quoted on AIM, the company says Njame assays include 17 metres at 835 parts per million of U308, 13 metres at 587 parts per million and six metres at 602 parts per million. Albidon, at which Placer Dome Asia Pacific veteran John Shaw replaces Dick Potts as chairman in May, says it hopes to finish a pre-feasibility study on Njame and another deposit, Gwabe, in the Chirundu joint venture in Zambia by April and aims to produce a formal resource estimate for Njame in the second quarter of this year.

Last month, the company, also involved in the Munali nickel joint venture in Zambia, said initial drilling in Tunisia at Khatkhadha in the Bou Aouane district of the Nefza project had intersected 8.1 metres with 11.7 per cent zinc. According to Albidon, a second hole to the south-east of Khatkhada showed 21.4 metres with 2.4 per cent zinc and 1.7 per cent lead.

Shares in cash-hungry Albidon, which recently raised £5 million from Munali partner ZCCM and another £8 million at 165p from Chinese mining group Jinchuan, have risen from 37p, at which Growth Company Investor recommended them in 2006, to 165.5p today, 6.5p off yesterday’s 172p peak.

Partial profit-taking looks prudent.

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