Adavale Resources (ASX:ADD) advances London Victoria with deeper intercepts and Phase 3 drilling underway

David Ward, Managing Director of Adavale Resources joins MarketOpen today to discuss the latest Phase 2 drilling results at the London Victoria Gold Mine, the confirmation of mineralisation continuity below the existing pit, and how the commencement of Phase 3 drilling shapes the company’s next stage of resource growth.

What do the final Phase 2 drilling results change in your understanding of the London Victoria system?

The final Phase 2 results give us stronger confirmation that the mineralised system continues below the existing pit and extends beyond parts of the current Mineral Resource footprint, with multiple holes intersecting gold zones outside the existing model and at depth.

We saw standout intercepts such as 28m at 1.53g/t Au and 21m at 1.40g/t Au, and several of these intervals sit partly or almost entirely outside the current Mineral Resource area.

The key point for investors is that multiple Phase 2 holes intersected mineralisation outside the existing Mineral Resource envelope, which directly supports resource growth potential.

The program also validated the structural model that guides our targeting, which improves drill placement discipline as we move into the next stage of work.

How should investors interpret the fact that several intercepts sit outside the current Mineral Resource area?

Where drilling intersects mineralisation outside the current Mineral Resource boundary, it provides a direct pathway to resource expansion through additional drilling and updated modelling rather than relying on conceptual upside alone.

In this program, holes such as ALRC019, ALRC021, ALRC026 and ALRC023 intersected mineralised zones either partly or fully outside the existing estimate, and in some cases at grades above the local resource grade range previously modelled.

These results are not infill in nature but step beyond the current resource limits, which supports an increase when the model is updated, that changes the starting point for the next round of estimation work and gives clearer direction for Phase 3 drill targeting.

What operational role does Phase 3 drilling now play following these results?

Following the Phase 2 results, Phase 3 drilling now moves the project into an active resource growth phase. The program is designed to accelerate Mineral Resource expansion by systematically following up the validated structural and mineralisation model, with an expanded program of an initial ~6,000 metres already underway and focused immediately below the existing pit floor.

Phase 2 drilling tested approximately 150 metres of strike with ~25-metre hole spacing, representing only around 10% of the 1.5-kilometre open pit strike length. Phase 3 builds directly on this foundation, scaling up drilling to test a much larger portion of the known mineralised strike.

This shift transforms the Phase 2 results from a static dataset into a forward-moving operational program, actively converting geological confidence into tangible resource growth.

How does the company’s current work program reduce geological and targeting risk going forward?

The current work program materially reduces geological and targeting risk by moving from interpretation-led targeting to a validated, data-driven framework.

Recent drilling results, integrated with the structural interpretation, have confirmed the key controls on gold mineralisation. This validation means follow-up drilling can now be designed within a tested geological model, rather than relying on less proven assumptions.

In parallel, the program incorporates downhole televiewer structural data allowing ongoing refinement of the structural model using new data. Each dataset is progressively integrated into the evolving model and used to directly inform near-term drill planning.

Importantly, the work streams are deliberately sequenced so that each stage feeds into the next. This iterative approach steadily reduces targeting uncertainty, improves drill efficiency, and increases confidence in subsequent drilling decisions.

How should investors view the link between these drilling results and the company’s near term development positioning at London Victoria?

The release links the Phase 2 drilling success and the commencement of Phase 3 directly with the company’s brownfields near term production opportunity at the London Victoria Gold Mine, while also noting the recent $5.15 million placement that was supported by investors.

The results demonstrate continuity beneath the pit and resource growth potential, and the funding support provides capacity to advance the next drilling stage already in progress.

Adavale Resources has confirmed mineralisation continuity and expansion potential with active drilling and fresh capital to advance the asset and that combination supports forward work without a pausing to raise capital between result and follow up.

Execution focus shifts to model driven expansion drilling

At London Victoria, the Company is now executing a model-driven growth strategy that leverages validated structural interpretation and drilling results to underpin an expanded Phase 3 drilling program. The program is specifically designed to test extensions below and along strike of the existing open pit.

As outlined by David Ward, Managing Director, the workflow is centred on systematically converting demonstrated continuity and out-of-resource intercepts into updated geological models and tightly targeted drilling metres. This disciplined, step-by-step approach is intended to deliver sequential and sustainable growth in the mineral resource base.

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