London-Victoria Gold Project Hosts 115,000oz Inferred Resource at 0.95g/t Au

Adavale’s Maiden Resource Marks a Milestone

Adavale Resources Limited (ASX: ADD) has delivered a significant milestone with the announcement of a maiden independent JORC 2012 Inferred Mineral Resource Estimate (MRE) for its London-Victoria Gold Project in New South Wales. The estimate, prepared by Derisk Geomining Consultants, defines 3.8 million tonnes at 0.95 grams per tonne gold, equating to 115,000 ounces of contained gold at a 0.25 g/t cut-off.

Within this, a higher-grade subset of 3.14 million tonnes at 1.06 g/t gold for 107,000 ounces lies within a conceptual shallow open pit, no more than 100 metres below the existing pit floor. This resource is particularly notable given the project’s historical production of approximately 145,000 ounces at a head grade of 1.5 g/t Au, mined and processed up to 1996.

Resource Potential and Expansion Plans

The resource remains open both along strike and at depth, with several historical drill intercepts outside the current resource model due to wide drill spacing. Adavale’s board has endorsed a cut-off grade of 0.5 g/t Au for economic assessment, which yields a robust contained gold figure of 107,000 ounces. The company plans a shallow reverse circulation (RC) drilling campaign from the pit floor to test extensions and expand the resource base.

Executive Chairman and CEO Allan Ritchie emphasised the value of the maiden resource in the context of record-high gold prices exceeding AU$5,000 per ounce. He highlighted the project’s strategic location with existing processing infrastructure nearby, offering multiple pathways to monetise the resource efficiently.

Geological and Historical Context

The London-Victoria deposit is situated within the Lachlan Fold Belt’s prolific Parkes district, a region known for significant gold and copper mineralisation. The deposit comprises four historically mined open pits, Victoria, Shaws, London, and Majors, where gold mineralisation is structurally controlled along a sediment-volcanic contact and associated shear zones.

Historical mining by BHP Gold and Hargraves Resources produced 145,000 ounces at a respectable 1.5 g/t Au grade. The presence of a historical gold processing plant adjacent to the pit adds operational leverage for future development.

Technical and Classification Considerations

The resource estimate is classified entirely as Inferred, reflecting limited documentation and verification of historical drilling and sampling data, particularly from the BHP Gold/Newcrest era. Derisk Geomining Consultants noted the absence of detailed QA/QC records and the need for further data validation. Bulk density assumptions and metallurgical recoveries carry some uncertainty, although previous mining demonstrated recoveries above 85% for oxide mineralisation.

Despite these limitations, the geological interpretation is robust, supported by extensive drilling data and a conceptual open pit optimisation using a conservative gold price of AU$4,500 per ounce. The company anticipates converting a portion of the Inferred resource to Indicated status with additional drilling and data collection.

Next Steps and Market Implications

Adavale is preparing a resource extension drilling program aimed at expanding the maiden resource and advancing the project towards future production. An Exploration Target outlining potential additional tonnage and grade outside the current resource area is expected shortly, signaling further upside.

With gold prices at historic highs and the project’s advantageous location and infrastructure, the London-Victoria resource positions Adavale to unlock significant value. Investors will be watching closely as the company moves from resource definition to resource growth and potential development pathways.