Adavale Resources (ASX:ADD) is looking to expand its uranium portfolio in South Australia through the acquisition of a single wholly owned interest in tenement EL6553 from Kilonova Metals.
Adavale, which has a $6.09 million market capitalisation says the tenement, which covers a total landholding of 456km-square, is proximal to its Mundowdna South and Lake Surprise Uranium project licences, and increases Adavale’s uranium licence holdings to 2,058km-square.
Historical exploration on EL6553 has identified numerous anomalous uranium target areas, including drill intercepts which have returned up to 263 parts per million (ppm) eU3O8.
The licence also covers the Eyre and Namba Formations where sedimentary roll-front uranium deposits are known to form, including the nearby Beverley and Honeymoon uranium deposits.
Field exploration activities will begin in April over the ‘prospective’ palaeochannel system identified at the Mundowdna Uranium Project area. The company will also work to confirm target areas on the new tenement to feed into the preparation of an exploration program.
Adavale Executive Director David Riekie says: “Following the recent acquisition of a significant historical EM dataset and extensive reprocessing over our Mundowdna South EL, the company has been assessing a variety of strategic and proximal acquisitions that have demonstrated potential to host similar prospective palaeochannel systems.
We consider this acquisition represents an exciting opportunity for the company in that it has demonstrated palaeochannels containing ample evidence of elevated uranium occurrences.
We also believe the area to be under-explored as the initial exploration of the area was abruptly halted following the Fukushima incident in Japan in 2011. We can now capitalise on this earlier exploration and follow up on these clearly defined targets. We see this as a huge boost to our upcoming 2024 uranium exploration programs.”
Meanwhile, the company has reduced its debt position from $580,000 to $330,000 following repayment of 25 convertible notes at its maturity date.
Adavale Resources is a mineral explorer focused on nickel and uranium.
Write to Adam Drought at Mining.com.au
Images: Adavale Resources
