New licence acquisition increases Adavale Resources’ uranium footprint by 29% to 2657km2
EL6890 is contiguous to company’s existing Mundowdna and Lake Surprise project areas
It covers exploration opportunity identified between the two project areas
Special Report: With uranium continuing to inspire investors, Adavale Resources has moved to expand its footprint for the energy metal with the acquisition of an exploration licence in South Australia.
The 599km2 licence EL6890 is contiguous to the existing Mundowdna and Lake Surprise (EL5893) project area and increases the company’s land holding by 29% to 2657km2.
It comes a little over a month since the acquisition of the 456km2 EL6553 licence in late March and highlights just how keen Adavale Resources’ (ASX:ADD) is to lock up ground over highly prospective paleochannels and paleovalleys known to host significant sandstone-uranium deposits.
Historical airborne electromagnetic survey data over Mundowdna South and Mundowdna confirmed a significant paleochannel system is present at those licences, while the company’s reconnaissance drilling has proven that uranium is present at Lake Surprise.
It comes as uranium continues to trade above the US$90/lb mark, highlighting ongoing concerns about tight near-term supply and the expectation US President Joe Biden will sign off on a bill to ban imports of nuclear fuel from Russia.
Strategically significant acquisition
ADD’s move to execute a binding heads of agreement with Coast Exploration to acquire EL6890 (The Hook) is seen as strategically significant as the licence is contiguous to its existing Mundowdna and Lake Surprise project areas.
Executive director David Riekie said the licence encompassed the exploration opportunity the company had identified between the two project areas, highlighting the continuation of the palaeochannel systems shedding off the northern Flinders Ranges.
EL6890 in black. Pic: Adavale Resources
The Hook contains the prospective Paleogene-aged Eyre and Neogene-aged Namba Formations that are the host sequences to several sedimentary roll-front uranium occurrences including the Beverley, Beverley Four Mile, and Honeymoon Well uranium mines.
These formations are the principal target for uranium mineralisation within the project area.
“With the results from our recently completed maiden Mundowdna program due over the coming weeks, we are adopting a systematic exploration approach designed to pinpoint the areas of greatest prospectivity for drilling. We intend to scale up our exploration effort over the coming months to encompass the whole of Adavale’s uranium tenement package,” he added.
“We are also delighted to advise that the Kilonova transaction has gone unconditional, which has enabled Adavale to secure the consulting services of two quality uranium specialists in Terry Topping and Andy Rust to assist with the next stages of our uranium exploration in South Australia.”
Next steps
The company is currently preparing comprehensive follow-up programs that will include the Kilonova ground.
It will also plan drilling to determine uranium mineralisation potential.
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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