Adavale Resources (ASX:ADD) grows gold resource 44% to 166koz Au
Adavale Resources has entered into agreements to acquire a package of exploration licences and a mining licence contiguous to its existing Parkes Project in New South Wales.
The acquisition includes the Calarie Gold Resource and increases the company’s combined JORC compliant resources to 4.67Mt @ 1.11g/t Au for 165,796oz Au.
The transaction also expands Adavale’s Parkes Project tenure to more than 610km² across approximately 70km of contiguous strike along the Parkes Thrust.
Highlights
- 100% scrip acquisition of 3 exploration licences and 1 mining licence.
- Combined JORC compliant resources total 4.67Mt @ 1.11g/t Au for 165,796oz Au.
- London Victoria Resource totals 3.8Mt @ 0.95g/t Au for 115,000oz Au.
- Calarie Resource totals 0.87Mt @ 1.83g/t Au for 50,796oz Au.
- Acquired tenure is held with clean title, 100% ownership and no NSR attached.
Adavale has entered into three agreements to acquire exploration licences EL8555, EL8580 and EL9741, together with mining licence ML739, with the acquisition including an established inferred gold resource of 0.87Mt @ 1.83g/t Au for 50,796oz and materially consolidating the company’s landholding across the broader Parkes mineralised belt.
Following completion of the acquisition, the combined JORC compliant resources will total 4.67Mt @ 1.11g/t Au for 165,796oz, comprising the London Victoria Resource of 3.8Mt @ 0.95g/t Au for 115,000oz and the Calarie Resource of 0.87Mt @ 1.83g/t Au for 50,796oz, with the announcement stating that Calarie is located 21km south west of the London Victoria Resource.
The company highlighted drilling results from Calarie including 17m @ 5.7g/t Au from 34m, including 9m @ 8.9g/t Au from 35m, 14m @ 3.4g/t Au from 112m and 5m @ 13.5g/t Au from 143m, while historical drilling results highlighted in the announcement include 16m @ 15.9g/t Au from 98m and 5m @ 8.1g/t Au from 126m.
Adavale Managing Director David Ward said the acquisition complements the existing London Victoria Project.
“The inclusion of the Calarie Gold Resource is complementary to the existing London–Victoria Project, increasing Adavale’s global gold resources to 166koz. Importantly, Calarie delivers a high-grade resource on a granted Mining Licence and is located within close trucking distance of London–Victoria, providing potential future development and operational synergies.”
The announcement states that the Parkes Thrust is a major structural feature that separates different Ordovician and Silurian rock sequences, with gold mineralisation directly associated with the Parkes Thrust generally described as structurally controlled or orogenic gold.
The acquisition also includes regional prospects identified by the company as Armstrongs, Nibblers Hill, Waterhouse and Toss of a Penny.
At London Victoria, planned work includes brownfields drilling, metallurgical testing, preliminary scoping studies and geophysical surveys, while at Calarie the company plans to assess magnetic surveys, undertake detailed review and interpretation, and complete follow up RC and or diamond drilling.
Across the broader Parkes Project, planned activities include geophysical surveys, surface geochemistry programs and first pass drilling.
Completion of the acquisition remains subject to shareholder approval, regulatory approvals, third party approvals and other conditions precedent outlined in the transaction agreements.