Adavale Resources (ASX:ADD) is looking to capitalise on a ‘strong’ uranium price environment after finalising its initial 2024 South Australia uranium exploration program.
The $7.3 million market capitalisation company says the upcoming program will include soil/rock chip, gravity, and gamma surveys over a 3 to 4 week period at the recently granted Mundowdna and Mundowdna South tenements, where a number of ‘extensive’ palaeochannels have been interpreted.
Adavale reports the program will aim to assess the potential of these channel systems to host uranium mineralisation.
The company notes that notice of entry submissions will soon confirm the start dates for exploration.
Executive Director David Riekie says the company is well positioned to quickly progress the project and identify areas that offer the highest level of uranium prospectivity.
“This program is an exciting entry towards unlocking the prospectivity of Adavale’s tenure at Mundowdna and Mundowdna South. The two licences encapsulate 1,305km-square within which the company has recently identified a broad series of potential palaeochannel systems shedding from the Flinders Ranges.
Significant uranium is present in historical rock chip data over the area but limited drilling has occurred in the past, leaving the area largely unexplored.
An increase in the uranium price from US$40/lb to over US$100/lb in the past 6 months places uranium as a key solution to global decarbonisation.”
Adavale Resources is a nickel sulphide explorer that holds a 100% interest in the Kabanga Jirani Nickel Project, a portfolio of 12 ‘highly prospective’ granted licences covering a land area of 1,216km-square along the Karagwe-Ankolean belt in Tanzania.
The company also holds exploration licences which have potential for uranium potential within the northern part of the ‘highly prospective’ Lake Frome Embayment in South Australia.
As of 30 September 2023, Adavale Resources had $2.182 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Adavale Resources
