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Adavale Resources (ASX:ADD) expands Kabanga Jirani project, Tanzania

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ASX:ADD      MCAP $4.572M
24 January 2023 14:08 (AEST)

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Adavale Resources (ADD) has moved to increase its quality nickel exploration tenure in Tanzania, announcing the strategic expansion of the Kabanga Jirani nickel project.

The company’s wholly-owned subsidiary, Adavale Resources Tanzania, was awarded the Kabanga Southeast Wedge prospecting licence on January 23.

“Adavale’s core strategy to explore its existing licenses whilst in parallel expand its footprint with additional prospective licenses is very much on track,” Adavale Chairman Grant Pierce said.

“The granting of the Southeast Wedge licence and the company’s acquisition in the Luhuma prospect expands the company’s tenure to an unrivalled 1311 square kilometres within the East African nickel belt of Tanzania.”

The new prospecting licence covers an area of 44.83 square kilometres and lies adjacent to Adavale’s Kabanga East and Kabanga Southeast projects.

The company will target anomalies considered prospective for nickel and copper mineralisation in its newest drill programs.

Adavale has also chosen to proceed with the stage two payment to acquire the 65 per cent interest in the Luhuma licenses in the area as per a farm-in agreement finalised on December 15, 2021. The stage two payment includes a US$50,000 (A$71,000) cash payment and US$150,000 worth of Adavale shares.

Under the farm-in deal, Adavale can earn up to 80 per cent of the Luhuma licences through staged payments.

“The company looks forward to an exciting 2023 nickel exploration program, building on the foundations of the 2022 program,” Mr Pierce said.

ADD shares were up 4.55 per cent and trading at 2.3 cents at 2:02 pm AEDT.

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