- Adavale Resources (ADD) confirms uranium mineralisation at its Lake Surprise project in South Australia
- The company has received results from its initial reconnaissance drilling program in February involving 56 holes for 742 metres
- The drilling intersected anomalous uranium contained within a “complex braided stream environment”, though investors seem unimpressed with the results
- The company is now planning geophysics work to cover both the drilled area and three other prospects to calibrate the drill results achieved
- Adavale Resources shares are down 15.79 per cent to 1.6 cents per share at 10:35 am AEDT
Adavale Resources (ADD) has tumbled on the ASX despite confirming uranium mineralisation at its Lake Surprise uranium project in South Australia.
The company on Friday reported the results from an initial reconnaissance drilling program undertaken in February.
The program involved 56 holes drilled for 742 metres, drilled at a cost of roughly $70,000.
Through the work, Adavale aimed to penetrate the silcrete horizons and test a prospect zone identified during previous exploration that displayed a helium anomaly, surface gamma anomaly and rock chip data.
The drilling encountered a series of “braided channels”, confirming the pre-drill interpretation that the area was part of a “broad delta-like fan system”.
ADD also intersected anomalous uranium with associated gamma anomalies and indicated an increase in the concentration of anomalous readings.
Adavale said the program confirmed the need to isolate the braided channel geometry to target higher-grade mineralised zones.
“The results of this low-cost reconnaissance drilling program have provided significant technical data for Adavale to plan the next program,” Adavale Executive Director David Riekie said.
“We will use this knowledge to plan geophysics to better map the target horizons and support future drilling.”
The executive also noted drilling was cheaper than anticipated and demonstrated the broader paleochannel system was host to targeted uranium mineralised channels.
The company is now planning geophysics work to cover the drilled area, as well as the Canegrass, Jubilee and Mookwarinna prospects to calibrate the drill results achieved.
Adavale Resources shares are down 15.79 per cent to 1.6 cents per share at 10:35 am AEDT.