Adavale Resources (ASX:ADD) has applied for an exploration licence (ELA 2023/00043), which is contiguous to and south of its existing licence EL6821.
The area applied for covers 591km-square and ‘importantly’ includes a ‘large’ recognisable alluvial outwash system shedding from the central part of the Flinders Ranges.
The new licence will take Adavale’s tenure from 1,078km-square to 1,669km-square.
The $9.85 million market capitalisation company plans to begin preparing for exploration programs of ‘larger-scale’ and cost-effective assessments, alongside access to the priority areas within the system for local heritage clearances, subject to the approval of the new licence.
Commenting on the application, Adavale Resources Executive Director David Riekie says: “The Mundowdna South licence is a very strategic addition to Adavale’s current uranium exploration footprint in South Australia.
“The Mundowdna South licence is a very strategic addition to Adavale’s current uranium exploration footprint in South Australia“
It will enable the company to systematically explore the large palaeochannel system that extends north-west from the central part of the Flinders Ranges, which are considered to be the parental source of uranium occurrences in the region.
The palaeochannel system, which is interpreted to extend over 40km, will be a focus of our exploration.”
Mundowdna was originally acquired based on the geological and geophysical similarities to Lake Surprise. Recent drilling conducted by Adavale at Lake Surprise has uncovered uranium in the palaeochannel system.
The Palaeochannel system that flowed through the Mundowdna South licence application area and the associated sediments deposited in the area are the target for future exploration.
Adavale Resources is a nickel sulphide focused explorer, which wholly owns the Kabanga Jirani Nickel Project covering 1,216km-square in Tanzania. The company also has farmed-in 2 other licences adding a further 99km-square to its portfolio.
As of 30 June 2023, the company had $1.07 million cash and cash reserves at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Adavale Resources
