High-grade zinc confirmed at Nefza project

Albidon and Zinifex, the joint venture partners have identified high-grade zinc at the Nefza project in Tunisia. The Nefza project is part of a joint venture agreement signed in December 2006 by Albidon and Zinifex Limited for exploration and development of the Company’s Nefza and Haffouz zinc projects in Tunisia.

Highlights

• An initial drilling program intersected 8.1m @ 11.7% Zn at Khatkhadha within the historic Bou Aouane mining district, confirming the prospectivity of the region for high grade zinc deposits.

• A second hole drilled 800m to the southeast of Khatkhadaha intersected 21.4m @ 2.4% Zn and 1.7% Pb, confirming that zinc-lead mineralisation at Bou Aouane is laterally extensive.

• Assays are awaited for five additional drill holes at Bou Aouane, and drilling has also commenced at the El Haouaria zinc prospect.

The Bou Aouane prospect area is a historical zinc mining centre which closed in 1986. Government reports from 1988 describe remnant mineralisation remaining after the mine closed. In particular the reports refer to a (non-JORC) ‘resource’ at Khatkhadha, which has yet to be confirmed by the joint venture.

The objective of the drilling program was to confirm the thickness and grade of zinc mineralisation reported in previous drilling at Khatkhadha and to provide reconnaissance drill coverage of the adjoining area. The program was directed towards locating zinc mineralisation where grade is controlled by a favourable combination of fault structures and geology. Complete assays have been received for drill holes BADD001 to BADD005 and partial results for BADD006. Results are awaited for holes BADD007 to 11.

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. These 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 sufficient resource defined. Additional drilling is planned within the Khatkhadha mineralised area.

BADD003 was a re-drill of BADD001 which intersected significant mineralisation but with very poor recovery. Results for BADD001 are superseded by BADD003 and are not reported. Drill hole BADD006 intersected 56.7 m @ 1.6% Zn and 1.1% Pb (from 99m), including 21.3 m @ 2.4% Zn and 1.7% Pb from 99m. This confirms 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. Step-out drilling 300m to the northeast of Khatkhadha has been recently completed (BADD007-011) and assay results are pending.