How Adavale’s 115koz Gold Resource and Historic Mine Licence Could Transform Parkes
Adavale Resources has announced a maiden JORC 2012 Inferred Mineral Resource of 115,000 ounces of gold at its London-Victoria Gold Mine and secured a strategic exploration licence containing the high-grade Koh-I-Noor mine. A $3.238 million capital raise will accelerate drilling and exploration across its Parkes Project.
- Maiden JORC 2012 Inferred Mineral Resource Estimate of 115koz Au at London-Victoria
- Drilling program extended to 14 holes targeting resource expansion and upgrade
- Strategic exploration licence EL9785 granted, including historic high-grade Koh-I-Noor mine
- High-grade rock chip assays up to 22.2g/t Au at Parkvale South Prospect
- Successful $3.238 million capital raising to fund accelerated exploration
Maiden Resource Milestone at London-Victoria
Adavale Resources Limited (ASX, ADD) has taken a significant step forward in its exploration journey with the announcement of a maiden JORC 2012 Inferred Mineral Resource Estimate (MRE) at the London-Victoria Gold Mine in New South Wales. The resource totals 115,000 ounces of gold, with a higher-grade core of 3.14 million tonnes at 1.06 grams per tonne gold, equating to 107,000 ounces. This estimate, prepared by Derisk Geomining Consultants, is based on extensive historical drilling data and highlights the deposit’s near-surface potential within a conceptual open-pit envelope.
The deposit remains open along strike and at depth, offering promising upside for resource expansion. Adavale has already commenced a maiden reverse circulation drilling program, initially planned for 10 holes but extended to 14, aimed at both increasing the resource size and upgrading its classification. Early visual inspections confirm that the drilling is intersecting the targeted mineralised zones, with assay results expected in the coming quarter.
Strategic Licence Acquisition and Exploration Targets
Beyond London-Victoria, Adavale has reinforced its position in the Lachlan Fold Belt by securing exploration licence EL9785, which includes the historic Koh-I-Noor mine. This underground mine is renowned for exceptionally high-grade gold veins, historically producing gold at grades up to 43.8 grams per tonne. The licence grant not only expands Adavale’s footprint but also provides access to a site with significant untapped potential, as evidenced by recent drone photogrammetry mapping and pending assay results from rock chip samples.
Exploration efforts at the Parkes Project are gathering momentum, with high-grade rock chip results of 22.2 grams per tonne gold recorded at the Parkvale South Prospect, marking the highest assay to date for the company. Additionally, reprocessed geophysical data at the Ashes Prospect has identified a strong chargeability anomaly, interpreted as a sulphide-rich core, which historical drilling failed to adequately test. Soil sampling further supports the presence of a porphyry copper-gold system, drawing parallels to nearby world-class deposits.
Corporate Developments and Capital Raising
Adavale has strengthened its board with the appointment of David Ward as Non-Executive Technical Director. Ward brings over 25 years of exploration and mining experience, including leadership roles at Bacchus Resources and Newcrest Mining, enhancing the company’s technical and operational capabilities as it advances its projects.
Financially, the company completed a 1-for-20 share consolidation and successfully raised $3.238 million through a placement led by sophisticated and strategic investors. These funds are earmarked to accelerate drilling programs at London-Victoria and Parkes, support further prospect reconnaissance, and cover working capital and corporate costs. At quarter-end, Adavale held cash reserves of approximately $201,000, with exploration expenditure totaling $263,000 for the period.
Outlook and Exploration Focus
Adavale’s systematic and multi-pronged exploration approach across its tenements in the Lachlan Fold Belt is positioning the company for potential resource growth and value creation. The combination of maiden resource definition, strategic licence acquisition, and promising early-stage targets like Parkvale South and Ashes Prospect underscores the prospectivity of the region. Meanwhile, uranium and nickel projects remain on hold pending market conditions and regulatory approvals.
With gold prices strengthening and a robust exploration pipeline, Adavale is poised to deliver further news flow in the coming quarters as drilling results and additional assays come to hand. The company’s focus on upgrading resource classifications and expanding known mineralisation will be key to unlocking the full potential of its assets.
Bottom Line?
Adavale’s maiden resource and strategic licence acquisition set the stage for a pivotal exploration phase, with upcoming drilling results poised to shape its growth trajectory.
Questions in the middle?
- Will upcoming assay results confirm extensions and upgrades to the London-Victoria resource?
- How will exploration at the historic Koh-I-Noor mine influence Adavale’s project valuation?
- What is the timeline and likelihood for uranium permit approvals and nickel market recovery?