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ALBIDON LIMITED (ALB)

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ALBIDON LIMITED (ALB) Events

Company (Stock Code)	Date/Time	Event	Timezone: Australia/Sydney
ALBIDON LIMITED (ALB) The New Nickel Producer	Wed, 22 Oct 2008 4:00pm	ALB - 2008 Australian Nickel Conference - Mr Dale Rogers, Managing Director
ALBIDON LIMITED (ALB)	Tue, 9 Sep 2008 12:00pm	ALB - Africa Downunder Conference Presentation - Mr Dale Rogers, Managing Director
ALBIDON LIMITED (ALB) Nickel Project in Production	Wed, 2 Jul 2008 12:00pm	ALB - Munali Nickel Project Delivers First Concentrate - Mr Dale Rogers, MD
ALBIDON LIMITED (ALB)	Wed, 12 Mar 2008 9:00am	ALB - Significant Uranium Mineralisation at Chisebuka, Zambia - Mr Dale Rogers, MD
ALBIDON LIMITED (ALB)	Fri, 29 Feb 2008 1:30pm	ALB - Additional Nickel Hedging - Mr Dale Rogers, MD
ALBIDON LIMITED (ALB)	Mon, 3 Dec 2007 10:00am	ALB - Munali Nickel Project Update - Mr Dale Rogers, MD
ALBIDON LIMITED (ALB)	Tue, 20 Nov 2007 1:00pm	ALB - Drilling to Commence at Sunnyside Nickel Prospect, Botswana - Mr Dale Rogers, MD
ALBIDON LIMITED (ALB)	Wed, 6 Jun 2007 2:00pm	ALB - Feasibility Study for Zambia Nickel Smelter - Mr Dale Rogers, MD
ALBIDON LIMITED (ALB)	Fri, 25 May 2007 3:00pm	ALB - 2007 AGM Wrap Up - Mr Dale Rogers, MD
ALBIDON LIMITED (ALB)	Mon, 21 May 2007 3:00pm	ALB - Drilling Success Continues at Munali - Mr Dale Rogers, MD
ALBIDON LIMITED (ALB)	Mon, 19 Feb 2007 2:30pm	ALB - Munali Nickel Project and Company Update - Mr Dale Rogers, MD
ALBIDON LIMITED (ALB)	Thu, 29 May 2008 11:00am 09:00am Australia/Perth	Annual General Meeting Kings Park Function Room 1, Kings Park Function Centre, Frasers Avenue, West Perth, Western Australia
ALBIDON LIMITED (ALB)	Mon, 31 Mar 2008 11:00pm	Full Year Results
ALBIDON LIMITED (ALB)	Fri, 14 Sep 2007	Interim Results
ALBIDON LIMITED (ALB)	Thu, 24 May 2007 11:30am	Annual General Meeting King Street Room, Rydges Perth Hotel, Cnr King & Hay Streets Perth WA
ALBIDON LIMITED (ALB)	Mon, 2 Apr 2007	Full Year Results
ALBIDON LIMITED (ALB)	Fri, 20 Oct 2006 12:00am	Annual General Meeting 62 Colin Street West Perth WA
ALBIDON LIMITED (ALB)	Thu, 14 Sep 2006	Interim Results
ALBIDON LIMITED (ALB)	Wed, 31 May 2006 12:00am	Annual General Meeting Ground Floor, 8 Colin Street West Perth WA 6005
ALBIDON LIMITED (ALB)	Thu, 30 Mar 2006 11:00pm	Full Year Results
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ALBIDON LIMITED (ALB)

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PRESENTATION BY DALE ROGERS, MANAGING DIRECTOR OF ALBIDON LIMITED (ALB)

“Africa Down Under Conference Presentation”

http://www.brr.com.au/event/51155

 

TUESDAY, SEPTEMBER 9, 2008, 12:00 PM.

 

            ALB     Thanks, Mark. Every time I stand up, I think, (inaudible) (0:00:03) I have to abbreviate all of that guff and just come back to managing director of Albidon

10                    and talk about the company. I’ll flick through the disclaimer. Outline of the presentation, a bit of a summary corporate-wise of who we are and what our strategies are. Mostly talk about the Munali Nickel Project in Zambia, then some of the organic growth opportunities in front of us at Munali and what we’re doing about them, and then finish off with exploration and a summary at

15                    the end. Our objectives as a company, fourfold there or very simply, I should say our objective is to become a profitable mid-cap mining company. Four ways that we see or four stages in achieving that objective, the first is cash flow at our flagship project, which is Munali in Zambia and that is happening; the second is delivering organic growth around Munali, clearly any further

20                    investment in growth there are a wonderful return on capital; thirdly, continue our exploration, we have a large lease holding in five countries in Africa, probably something that would be rather difficult to replicate as we move forward; and then the last is leverage off our strong position, our operating experience and our knowledge of Africa, and continue the growth of business,

25                    look for opportunities and move forward. Corporate overview, we’re listed both on the AIM and ASX, 171.8 million shares and options, fully diluted. Market cap clearly fluctuating at the moment with the way that nickel stock is moving but probably somewhere in the order of a quarter of a million dollars. Major shareholders down there on the left-hand side, it’s a mixture really of

30                    Australian, London, and some funds coming out of Africa as well. Just rolling on to the Munali Project, Munali is about 60 kilometres south of the capital city of Zambia – a great location and a good country to do business in. Really the project has moved ahead very rapidly from the first resource announced in the beginning of 2005 through a scoping study through the drilling of

35                    Bankable Feasibility Study, further drilling again, project financing, project approvals, negotiating of all of the operating agreements. We commenced clearing the project site late 2006, and really just now at the end of our construction phase. First product was produced just before the half-year right at the end of June of this year. Effectively that’s taken us from first resource

40                    through the first product in just over three years. It’s as fast as I’ve seen the project develop. I’ve been involved in some five or six underground mines and four or five open cuts, and I think it’s a testament not only to the people in Albidon and the people working for us, but also a testament to doing business in Zambia. If we can just click on the animation and get that kicked off, start

45                    off with the ubiquitous Google earth image just to show where we are. We have an operating joint venture with Zinifex in the north at Tunisia, but the majority of our leases are spread through Botswana in the south extending up to Zambia, Mulawi, and Tanzania. As we just zoom in on those areas very quickly to orientate where we are operating, you can see in Zambia we have just to the south of Lusaka, the project there they call Munali. Very large lease holding in Zambia and has been really the focus of our development activities for several years. But outside of that we have two joint ventures in Tanzania, the first to the south in Songea with BHP Billiton we’re free carried. They’re

5                      earning in. Several target areas are identified there, and I’ll come back to that in a moment. Second joint venture with a smaller company, Goldstream or now IMX Resources, I should correct, we’re free carried and there’s been exploration there for several years with Discovery with several holes demonstrating the potential for PGMs in the area. In our own right, we have a

10                    large lease holding in Botswana, Selebi-Phikwe is the largest nickel producing area in Africa. We’ve been focusing on Sunnyside area down to the south and certainly have had some several very good holes in that area. The most significant being some 55 metres at 0.6% nickel and 0.4% copper. We have more recently completed an airborne VTEM survey in that area and

15                    identified several other targets that we’ll be focusing on also. But back to Munali, as I said just, south of Lusaka to about 60 or 65 kilometres (inaudible) (0:05:05), great infrastructure where some 2.5 kilometres off the main (inaudible) (0:05:10), less than an hour outside of the capital city. Hydroelectric scheme is about 35 kilometres from us. Main power lines are

20                    some 12 to 14 kilometres away and the Cape (inaudible) (0:05:23) rail link is about 14 kilometres away from us also, but really is a great location. As we’re zooming you’ll see the road in the foreground, then we move in. On the right-hand side you can see the Munali hills. It’s crossed by a major regional fault structure, which we believe maybe one of the controlling influences of

25                    mineralization in the area. The area where we have been focusing at Munali is an intrusion, about 2.5 kilometres long and some 500 to 700 metres across, oval in shape. The first deposit that we’re developing is the enterprise deposit. As you can see it’s in the southeastern corner. As we rotate around, we’re now looking south, but several other target areas. The Voyager

30                    prospect, we announced the resource there, an Inferred Resource late last year, and further drilling our plan there. Intrepid target at the moment doesn’t have a resource on it but has some 50 or 55 holes with nickel mineralization in it. Clearly, it’s a well-endowed field. We believe that it’s the beginning of further discoveries at Enterprise. However, we were primarily focused on

35                    moving towards cash flow, and indeed that’s been the focus of the company for several years now. Strategically we decided to move ahead as fast as possible to take advantage of the market conditions in terms of nickel price and the commodities. The overall ore body at Enterprise at some 1 kilometre long and at the moment about 500 metres deep, really restricted by the depth

40                    of the drilling. And as we zoom in the development sequence is a box cut and then a twin decline because of the length of the ore body. We have the twin decline arrangement. Then we have time lapse over about of eight- to a nine-year mine life in front of us now. At the moment, we have completed the first two levels both to the north and the south, and our stoping operations,

45                    literally, commencing this week. It’s a relatively simple layout for the mine design with a decline access. In terms of the surface facilities, people will see the box cut, a few photos in the moment that I’ll flick through. In a photo of the box cut you’ll see, and then to the south, the Run of Mine pad so the trucks come up and tip on to that pad and down through a crushing circuit, primary, secondary and tertiary. Across to the right is the screen deck and then moving forward up to the final bin. Further forward again through a dual ball milling arrangement down through the flotation circuits and then out through thickening and pressure filter for the concentrate. Down to the south is the

5                      tailing storage facility. It’s a relatively simple mine land but very effective. Munali project is mechanized mining because of the angle of the ore body, some 75 to 85 degrees on average. It’s uphold benching and long haul open sloping in the broader areas. Conventional sulphide flotation concentrate are producing nickel concentrate with copper, cobalt, platinum, and palladium

10                    credits. Those credits were actually quite important to us. It would add some 20% to our revenue stream. The off take is with the Jinchuan Group and at a mine gate. In other words, Jinchuan are responsible for freight and logistics from the point of exit from -- at the mine. The first ore went into the crushes in April, first ore into the mills was June, as I said earlier, and first product was

15                    right at the end of June. Effectively we achieved mechanical completion towards the end of July 2008, that’s when we took ownership of the plant from the construction manager. Final completion of that contract will be happening in September. Thus far, we’ve been shutting down about a day or a day and a half a week to complete all of the punch list items or all of the

20                    items identified through that mechanical inspection when we took possession. So the operation is right at the point of making the transition literally from a construction site to an operating project. A few photos of the site, in the background you can see the Munali hills on the left, in the top right-hand corner the box cut, and as we zoom in there’s a photo of the -- looking down

25                    the box cut and the entrance to the mine. It starts off with that single decline and then splits into a dual decline, one to the north and one south, which really does give us the opportunity for further expansions. Underground development is being done by Byrnecut, an Australian mining contractor. We chose to purchase the equipment ourselves to give us greater flexibility

30                    moving forward. And Byrnecut, I have to say, is doing a very good job. The mine is certainly running on schedule and progressing very rapidly. Dual incoming power lines, as I said, the hydroelectric scheme is some 30 or so kilometres away from us. These lines we connected to the grid power about 12 months ago. We’re just in the process of finishing off our own dedicated

35                    line direct from the main substation, and so shall with that hydroelectric scheme down to the project area. That will effectively isolate us completely from the grid. Going through the process from the Run of Mine pad and the loader through the crushing circuit and the conveyors, a view looking back down towards the ROM pad, you can see the amount of material that was

40                    stockpiled when this photo was taken, some 2-1/2-old-month of ore were stockpiled at the time. Looking forward at the final bin on the right and further forward at the ball mills, feed conveyors going up to those ball mills and then further on through the circuit, the flotation circuit. It’s a standard three-stage flotation circuit, a very simple metallurgy, through the flotation cells, through

45                    the thickeners and into the con storage shed. We’re using a Larox pressure filter and delivering into that concentrate storage shed underneath it. As I said earlier, the off take is at the mine gate with Jinchuan, which effectively means we have been -- we are anew against some of the, in fact, most of the cost associated with increased transport throughout Africa. In a snapshot of the project, the mine is running on schedule. First concentrate was produced as per the Bankable Feasibility Study scheduled in the middle of the year. Strategically it’s one of very few new nickel sulphide projects throughout the world that’s commencing this year. In fact, as far as I’m aware there are only

5                      two new nickel sulphide projects, Greenfield starting this year. At today’s commodity process, obviously nickel has come down from high, is it or was that some year or year and a half ago. We do the Bankable Feasibility Study at $4.25 a pound, so despite the fact that nickel has come off somewhat, it’s still almost twice what we do to our Bankable Feasibility Study yet, so

10                    everything is relative. It’s a very good margin for us. Indeed we locked in some higher margins through our hedge book. We hedged about within two or three weeks the all-time high in the nickel market. So the hedge position is very strong for us. Looking forward at organic growth at Munali and optimisation studies, the first that we’ve announced is to take the project from

15                    900,000 tonnes up to 1.2 million tonnes per annum, relatively modest capital injection to do so. That then takes the production rate from about 8,500 tonnes per annum up to somewhere between 10,000 and 10,500 tonnes of contained nickel per annum. That increased throughput will be achieved by first quarter of next year, and certainly significantly increases revenue stream

20                    for the project. Two further optimisation studies underway, Voyager right next to the Enterprise deposit, as I said has an inferred resource, will continue drilling, and certainly look to expand that resource, but we’ve moved ahead with the scoping study, and certainly that’s looking very attractive for us. The more significant scoping study is to look at a larger expansion again for the

25                    project. What we have is a resource of some 10-odd million tonnes thus far are identified and an average grade of about 1.2%, but over and above that if we were to lower the cut-off grade, we have a significantly larger resource. So the question for us is what we can do to bring the economies of scale in terms of increased size to bear, lower our cut-off grade, and therefore increase our

30                    resource. Two options that we’re looking at, the first is dense media separation, which is a form of pre-treatment before the material goes into the ore and upgrading. The second is a simple replication of what we have now in terms of increasing the mill capacity. The question really in our mind is which of those two is the better alternative, and that scoping study is coming to a

35                    conclusion. Looking at the Munali resource growth, certainly over the last four years or so, 3-1/2 years that’s been a story of increasing resources, effectively as we have drilled more, we found more. And indeed, moving on through our exploration and what we’re doing throughout all of our leases, firstly, 100% Albidon leases clearly we’ve retained all of the area around

40                    Munali. We are continuing to explore at Intrepid and Defiant, and areas immediately north and south of the Munali intrusion. In Botswana, in our own right, we’ve recently completed a large airborne VTEM survey and identified quite a few very, very good anomalies, and we’re targeting those with RC drilling towards the end of this year. In addition to that, we have some four

45                    significant joint ventures on our leases covering uranium, nickel in Tanzania, PGMs in Tanzania, zinc and lead in Tunisia with OZ Minerals. Looking at Munali first, this is an airborne view looking down at that Munali intrusion. We’ve recently completed Quantec Titan IP survey over Munali, and the objective of that survey was to look at depth extensions, some 200, 300, or 400 metres below surface. The results of that survey, as you can see, to the south of Enterprise and immediately south of Voyager and extending north of Intrepid, some 300 metres below surface, a very good response and that’s encouraged us to mobilize additional rigs to the site to target those deeper

5                      targets through the back-half of this year. That drilling will commence almost immediately, in the next week or two. In Botswana, we recently completed an airborne magnetic survey, VTEM, particularly down to the southern area around Sunnyside and Kgwedi, some excellent results down there. We had been drilling at the Sunnyside project in the bottom right-hand corner, but the

10                    VTEM survey results that we found spread over tens of kilometres have been very strong and throwing up numerous site anomalies that we intend following up through the course of this year and extending into next year. On our uranium joint venture, the northern joint venture at Chirundu, at the moment there’s a Bankable Feasibility Study being undertaken. We are contributing

15                    pro rata in line with our ownership of that project and that bankable feasibility study will be completed in the first half of next year and moving ahead very rapidly. In Tanzania, southern Tanzania in particular, joint venture with BHP Billiton we’re free carried. BHP are planning some drilling towards the back half of this year following approvals and obtaining drill rigs to target projects at

20                    Mbinga and Liparamba in the southern portion of that joint venture area. Then lastly, our zinc targets in Tunisia, OZ Minerals have been very active out there. You can see the terms of the joint venture, again, we’re free carried. Some drilling done at Bou Aouane and one or two very good results more recently drilling completed at Sidi Driss to the north, and again some very,

25                    very good results out there in the north. Follow-up drilling is planned for both of those target areas. So in summary, our ambition always was to build a profitable mid-cap mining company, certainly cash flow from Munali, which is happening and is immediately happening with the first stage of that. We see organic growth at Munali will continue and then we’ll continue to leverage off

30                    our large lease holding, apply our expertise, which is exploration and project development and continue to grow and build the company. Thank you very much.

 

PRESENTATION CONCLUDED

 

 

 

 

Contact brr@brr.com.au for more information

 

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