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Adavale Resources Ltd (ASX:ADD) – which to date has been focused on finding nickel and uranium in Tanzania and South Australia respectively – has entered into an all-scrip agreement to acquire what it describes as a ‘transformational’ gold and copper project in New South Wales.
The company has taken on 72.5% of the Parkes Gold and Copper Project, which stretches across a 395 square kilometre tenement in the state’s Lachlan Fold Belt. It’s adjacent to the Northparkes porphyry-hosted copper-gold mine, which holds a resource of 5.2 million ounces of gold and 4.4 million tonnes of copper.
Within the package, one focal asset is the historical London-Victoria gold mine, which has been estimated to hold 3.70 million tonnes at 1.04 grams per tonne for 124,000 ounces.
Crucially, a diamond drill hole completed in the same tenement this month (seeking to test the deposit’s depth potential) revealed a 12-metre thick down-dip extension which was located 250 metres below surface and 150 metres below the bottom of the London-Victoria pit.
In terms of exploration, Adavale is directing its attention to the Ashes prospect – 12 kilometres from Northparkes – which comprises an untested historical rock chip sample geochemical anomaly measuring 200 metres with up to 7.8% copper and 8.8 grams per tonne of gold.
This anomaly is also 200 metres east across strike from a historical IP chargeability anomaly which is yet to be fully resolved.
Adavale executive chairman and CEO Allan Ritchie said the acquisition was an important step for the company.
“We are absolutely thrilled to announce this transformational gold and copper project acquisition with significant upside, located in the Tier 1 jurisdiction of the Lachlan Fold Belt in NSW, near Parkes,” he said.
“The Parkes Project contains four granted licences with advanced gold and copper
prospects and drill-ready targets identified in three of the Licenses. A diamond drill hole was also recently completed with assays currently pending.”
Adavale shares moved up on the news, and at 14:10 AEDT, they were trading at 0.3 cents – a rise of 20% since the market opened.
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