Adavale Secures 72.5% of Parkes Project, Raises $1.675 Million for Exploration
Adavale Resources has completed the acquisition of a 72.5% stake in the Parkes Gold and Copper Project and secured $1.675 million in funding to accelerate exploration, including promising drilling results at the historic London-Victoria Gold Mine.
- Completed acquisition of 72.5% interest in Parkes Gold and Copper Project
- Raised $1.675 million via placement to fund exploration and drilling
- Diamond drilling indicates potential 12m down-dip extension at London-Victoria mine
- Uranium exploration progressing with heritage survey completed and drilling planned
- Executive Chairman Allan Ritchie leads strategic growth and exploration efforts
Strategic Acquisition in a Tier 1 Mining Jurisdiction
Adavale Resources Limited (ASX:ADD) has marked a significant milestone with the completion of its acquisition of a 72.5% interest in the Parkes Gold and Copper Project, located in the Lachlan Fold Belt of New South Wales. This region is renowned for hosting some of Australia's most prolific gold and copper mines, including the adjacent Northparkes and Cadia-Ridgeway operations.
The Parkes Project encompasses four exploration licences covering 395 square kilometres, strategically positioned along the Lachlan Transverse Zone, a crustal-scale structural corridor known for its Tier 1 mineral deposits. This acquisition positions Adavale to tap into a highly prospective geological setting with substantial upside potential.
Focus on London-Victoria Gold Mine and Drilling Success
Recent diamond drilling completed in November 2024 has revealed a potential 12-metre thick down-dip extension of the mineralisation, located some 250 metres below surface and 150 metres beneath the previous pit bottom. The drill core exhibits quartz-carbonate veining and alteration consistent with known ore zones, with assay results pending. This discovery could materially enhance the resource base if confirmed.
Capital Raising Fuels Exploration Momentum
To support its ambitious exploration agenda, Adavale successfully raised $1.675 million through a placement to professional and sophisticated investors. Notably, the company's directors and officers co-invested over $100,000, underscoring management's confidence in the project’s potential.
Funds raised will primarily accelerate drilling and resource definition at London-Victoria, aiming to upgrade the historical resource to JORC-compliant status. Additionally, exploration activities will extend to other promising prospects within the Parkes tenements, such as Ashes, Myalls, Corner, Parkvale, Cunich, and Birthday Mine, many of which have yielded high-grade polymetallic rock chip samples but remain largely untested by drilling.
Advancing Uranium Exploration in South Australia
Beyond gold and copper, Adavale is progressing its uranium exploration portfolio in South Australia. A cultural heritage survey at the MacDonnell Creek project has been completed, clearing the way for a planned 2,000-metre aircore drilling program scheduled for the second quarter of 2025. This will be the first drilling at the prospect since 2011 and aims to test extensions of known mineralisation within paleochannel systems.
Adavale now holds approximately 4,959 square kilometres of uranium tenements in the highly prospective Marree Embayment region, making it one of the largest public-listed licence holders in this domain. The company has opted not to proceed with acquiring uranium rights at the Wirrulla Project, focusing instead on its existing tenements.
Corporate Developments and Financial Position
Executive Chairman and CEO Allan Ritchie, who transitioned to the role in October 2024, has been pivotal in steering the company through this transformative phase. Adavale maintains a strong balance sheet following the completion of the placement, with cash reserves of approximately $355,000 at quarter-end and access to an additional $175,000 in undrawn standby financing.
The company reported exploration and evaluation expenditure of $433,000 during the quarter, reflecting active investment in advancing its projects. Directors’ remuneration and participation in the placement further align management’s interests with shareholder value creation.
Looking ahead, Adavale plans to deliver regular updates on exploration progress, assay results, and resource development milestones, which will be critical in validating the potential of the Parkes Project and its uranium assets.
Bottom Line?
Adavale’s recent acquisition and capital raise set the stage for a pivotal exploration phase that could redefine its resource base and market standing.
Questions in the middle?
- When will assay results from the November 2024 diamond drilling at London-Victoria be released, and what grades might they reveal?
- How quickly can Adavale upgrade the historical London-Victoria resource to JORC-compliant status and commence resource definition drilling?
- What are the exploration timelines and potential scale for the uranium drilling program at MacDonnell Creek and other South Australian tenements?
