Adavale Resources (ASX:ADD) has intersected ‘high-grade’ gold outside the existing mineral resource at its London-Victoria Gold Mine in New South Wales, ahead of an update targeted for the current quarter.
Hole ALRC076 returned 19m @ 4 grams per tonne gold (Au) from 148m, including 16m @ 4.65g/t Au from 151m and 4m @ 15.02g/t Au from 162m. The latter interval contains 1m @ 52.6g/t Au from 164m.
The company says the intersection is well outside the modelled limits of the current inferred mineral resource, in an area that remains open at depth, along strike, and parallel to the known system.
The existing estimate comprises 3.8 million tonnes @ 0.95g/t Au for 115,000 ounces, based entirely on historical drilling. It does not include any of the 85 holes completed by Adavale since it acquired the project.
Managing Director David Ward says ALRC076 could have a material bearing on the pending update.
“A broad intersection of 19m @ 4.00g/t Au, including 4m @ 15.02g/t Au, is significant in its own right, and its location well outside the existing mineral resource envelope makes it particularly important,” Ward says.
Adjacent hole ALRC077 returned 29m @ 0.9g/t Au from 147m, including 9m @ 1.43g/t Au from 167m, supporting the width and continuity of the mineralised system near ALRC076.
Further north, ALRC078 intersected 50m @ 0.58g/t Au from 119m, including 15m @ 0.93g/t Au, while ALRC079 returned several zones including 14m @ 0.83g/t Au from 115m and 20m @ 0.56g/t Au from 142m.
Assays have now been received from 80 of Adavale’s 85 holes. Results from three reverse circulation and two diamond holes remain pending before the expanded dataset is incorporated into a new geological model and updated mineral resource estimate.
Adavale says it also plans metallurgical test work and preliminary scoping studies to assess potential development pathways.
Write to France Pinzon at Mining.com.au
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