Adavale Resources (ASX:ADD) has indicated its desire to build a continuous suite of uranium projects across northern South Australia, attaining a licence over territory close to its current Mundowdna South and Lake Surprise plays.
The licence – EL6553 – comprises 456 square kilometres of land where numerous anomalous uranium targets have already been identified, and brings Adavale’s total portfolio up to 2,058 square kilometres, making it one of the largest publicly listed licence holders in the region.
On Tuesday, Adavale announced its entrance into a binding Heads of Agreement (HoA) with Kilonova Metals Pty Ltd to acquire the licence, where previous drilling work has shown intercepts such as 1 metres at 263 parts per million eU3O8 (radiometric equivalent U3O8, or triuranium octoxide), and 0.65m at 235ppm eU3O8.
Executive Director, David Riekie said the acquisition was based on examination of Adavale’s current holdings and assessments of where else similar mineralisation could be found.
“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,” he said.
“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.”
Adavale is trading at 0.6c.