Adavale Resources picks up strategic uranium licence in South Australia
Historical exploration flagged up to 263ppm eU308
New 40 hole drilling program planned
Special Report: Adavale Resources has completed the acquisition of a strategically significant uranium tenement, comprising two areas adjacent to and east of both the company’s existing Mundowdna South and Lake Surprise projects.
EL6553, a 456km2 tenement, covers the Eyre and Namba Formations where sedimentary roll-front uranium deposits are known to form including the nearby Beverley and Honeymoon uranium deposits.
There’s also been historical exploration on the tenement with numerous anomalous uranium target areas identified including drill intercepts of 1 metre at 263ppm eU3O8 and 0.65m at 235ppm eU3O8.
An exploration program is currently being finalised which will focus around the uranium results previously achieved at MacDonnell Creek and George Creek prospects.
Looking for economic uranium
Adavale Resources’ (ASX:ADD) 100% owned tenure in the Marree Embayment now sits at 2258km2 , making it one of the largest public-listed licence holders in the region – plus it has also applied for a large uranium project area east of Ceduna in South Australia, covering 2446km2.
“The completion of the acquisition provides a pathway for Adavale to discover an economic uranium deposit following historical results achieved at the MacDonnell Creek and George Creek prospects,” ADD executive director David Riekie said.
“EL6553 has demonstrated palaeochannels containing ample evidence of elevated uranium occurrences.”
Pic: Exploration Licence areas for Adavale (blue), Kilonova’s EL6553 (red) over 2 separate Licence areas. Source: ADD.
Drilling program in the works
Despite the region’s prospectivity, the market’s response to Fukushima and the subsequent curtailment of Japan’s nuclear reactor fleet stopped exploration dead in its tracks 13 years ago.
But spot prices are back around US$85/lb, levels strong enough to support new operators and drive a return to early stage uranium exploration in South Australia, the only Aussie jurisdiction to current host uranium mining.
“We also believe other parts of the defined palaeochannel remain underexplored as the initial exploration of the area was abruptly halted following the fall in the uranium price during 2011,” Riekie said.
“We can now capitalise on this earlier exploration and follow up on these clearly defined targets.
“The exploration program for our uranium prospects is currently being finalised, which will include a drilling program of up to 40 holes.”
Heritage clearance surveys are now being finalised, along with finalisation of drilling programs at the Marree Embayment project to test for uranium redox boundaries at MacDonnell Creek and surrounds.
This article was developed in collaboration with Adavale Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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