Completion of Placement, Parkes Acquisition and Site Visit
Released
Released
Announcement PDF
ASX ANNOUNCEMENT
28 January 2025
ASX: ADD
Completion of Placement, Parkes Project Acquisition
and Site Visit
KEY HIGHLIGHTS
•
Completion of the acquisition of a 72.5% interest in the Parkes Gold-Copper
Project (“Parkes Project”).
•
A 354.15km2 tenement holding, encompassing a geological setting that is
considered highly prospective for structurally controlled gold and gold rich
porphyry copper-gold mineralisation.
•
The Parkes Project is located at the intersection of the crustal-scale Lachlan
Transverse Zone structural corridor with Early Ordovician-age Macquarie Arc
Volcanics.
•
The Project is adjacent to the giant Northparkes porphyry-hosted copper-gold
mine (5.2Moz Au & 4.4Mt Cu) [ASX:EVN] and in a similar tectono-stratigraphic
setting to the world-class Cadia-Ridgeway copper-gold porphyry deposits (35Moz
Au & 7.9Mt Cu) [ASX:NEM].
•
The key Project asset is the former London-Victoria gold mine located in EL 7242,
which contains a remnant (unmined) Historical Estimate of 124koz Au**
•
EL7242 was recently successfully renewed until 7 November 2030.
•
The Adavale team and the Vendor have conducted a geological reconnaissance to
the Project to inspect London Victoria drill core, meet with local landholders and
geological consultants and also to carry out some initial rock chip sampling.
•
Completion of the placement allows Adavale to progress exploration at a number
of target prospects within the Project and focus on upgrading the London-Victoria
Historical Resource to a JORC compliant Mineral Resource.
•
Directors and Officers co-invest ~$100,000 (over 6%) of the Placement.
**Cautionary Statement: Readers are cautioned that the Historical Estimate for the London-Victoria deposit referred to in this
Announcement is not reported in accordance with the JORC 2012 Code. A Competent Person has not undertaken sufficient work to classify
the Historical Estimate as a Mineral Resource in accordance with the JORC 2012 Code. Nothing has come to the attention of Adavale that
causes it to question the accuracy or the reliability of the former owner’s Historical Estimate. However, Adavale has not independently
validated the former owner’s estimate and therefore is not to be regarded as reporting, adopting or endorsing the estimate. Following
evaluation and further exploration work, it is uncertain whether it will be possible to report the Historical Estimate as a Mineral Resource in
accordance with the JORC 2012 Code. The Historical Estimate has been reported in accordance with ASX Listing Rule 5.12. Refer to ASX
announcement dated 29 November 2024 further information.
Directors & Officers
ALLAN RITCHIE
NIC MATICH
www.adavaleresources.com
AdavaleL
Executive Chairman & CEO
LEONARD MATH
JOHN HICKS
CFO & Company Secretary
Non-Executive Director
Adavaleresources
Non-Executive Director
Investors@adavaleresources.com
+61 2 8003 6733
Adavale Resources Limited
Level 2, 49 Oxford Close
West Leederville, WA, 6007
\
Adavale Resources Limited (ASX:ADD) (“Adavale” or the “Company”) is pleased to announce
the successful completion of a 72.5% interest acquisition in the Parkes Gold and Copper Project (the
“Project”), located in the Lachlan Fold Belt of NSW, Australia.
The Project comprises four exploration tenements for a total area of 354.15km2, that are prospective
for orogenic, epithermal and gold-rich porphyry-style copper-gold deposits. The Project area is located
within the prolific gold and copper producing Macquarie Arc portion of the Lachlan Fold Belt in central
NSW. The Exploration Licences (‘EL’s’) are situated where Early Ordovician-aged Junee-Narromine
Volcanic Belt rocks of the western part of the Arc are intersected by the crustal-scale structural
corridor of the Lachlan Transverse Zone (‘LTZ’). Significantly, the LTZ is host to Tier 1 gold and copper
mines, such as Northparkes (5.2Moz Au & 4.4Mt Cu) and Cadia Ridgeway (35.1Moz Au & 7.9Mt Cu)
where it intersects Macquarie Arc rocks (Figure 1).
Commenting on the developments, Adavale Resources Executive Chairman and CEO, Mr
Allan Ritchie, stated: “The successful completion of the acquisition and placement mark a pivotal
step forward to advancing our activity with this world-class asset. The Vendor and the Adavale team
along with our very experienced Lachlan Fold Belt geologists have just returned from an initial field
trip and we are incredibly excited to start our exploration efforts at our highly prospective Parkes
Project. We are very grateful to the shareholders for their continued support, Adavale’s Directors and
Officers have also co-invested a further ~$100,000 (6%) in this placement and we look forward to
providing regular updates from the Lachlan Fold Belt throughout the program ahead.”
Figure 1: Map of the central New South Wales Lachlan Fold Belt
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The Parkes Project’s most advanced prospect is the former London-Victoria Gold Mine which saw
estimated historical production by BHP Gold and Hargraves Resources of 200,000 to 250,000 ounces
at a head grade of 1.5-2g/t Au. A non-JORC Historical Estimate of 3.7Mt at 1.04 g/t Au for
123.8koz Au is defined for London-Victoria (refer to Cautionary Statement1 below).
At London-Victoria, it is intended to utilise the existing drillhole database, augmented by a small
number of new and well-targeted deeper holes, to estimate a Mineral Resource. This opportunity
comes at relatively low cost and at a time of record gold prices. The London-Victoria Mine is located
on EL7242 which has recently been successfully renewed until 7 November 2030.
The map of the Lachlan Fold Belt area in NSW (Figure 1) shows the location of Adavale’s newly
acquired mineral tenure relative to significant copper and gold deposits, the Lachlan Transverse Zone
and Ordovician volcanic belts of the Macquarie Arc Group. Note the Project’s proximity adjacent to
the Northparkes mine at the intersection of the Lachlan Transverse Zone with the Junee-Narromine
Volcanic Belt.
Adavale Visits Parkes Project
As soon as the Project acquisition was completed the Adavale Executive Team and very experienced
Lachlan Fold Belt consultant geologist Barry Willott immediately carried out some initial
reconnaissance field investigation on the Project. This was conducted alongside the Vendor and local
geologists, as well as meeting some of the landholders to establish positive relationships where
several important targets exist across our Exploration Licences. At present, our team have completed
limited initial rock chip sampling at several prospects on the various Exploration Licences. In addition,
the drill core from hole AEIDD001 completed in November 2024 by the Vendor has now been
inspected by the Adavale team and assay results are expected this quarter2. This initial field visit has
been a valuable exercise for the Adavale team to familiarise themselves with the Project, so that
planning for future comprehensive exploration programs can now proceed in earnest.
1 **Cautionary Statement: Readers are cautioned that the Historical Estimate for the London-Victoria deposit referred to in this Announcement is not
reported in accordance with the JORC 2012 Code. A Competent Person has not undertaken sufficient work to classify the Historical Estimate as a Mineral
Resource in accordance with the JORC 2012 Code. Nothing has come to the attention of Adavale that causes it to question the accuracy or the reliability
of the former owner’s Historical Estimate. However, Adavale has not independently validated the former owner’s estimate and therefore is not to be
regarded as reporting, adopting or endorsing the estimate. Following evaluation and further exploration work, it is uncertain whether it will be possible
to report the Historical Estimate as a Mineral Resource in accordance with the JORC 2012 Code. The Historical Estimate has been reported in accordance
with ASX Listing Rule 5.12. Refer to ASX announcement dated 29 November 2024 further information.
2
ASX Announcement (29 November 2024) – “Transformational Gold & Copper Project Acquisition in Lachlan Fold Belt.
3
Figure 2: Recent drill core laid out for the Adavale teams’ inspection.
On the first day of the field trip the Adavale team inspected and DGPS surveyed the location of the
recent drillhole collar (AEIDD001) (refer Figure 3, 4 and 5). This hole was completed to intersect at
the northern end and below the pit of the historic London Victoria Mine (EL7242). Adavale considers
there is ample scope to continue exploration work at London Victoria, including further drilling, with
the goal initially build upon and then re-estimate the remnant (unmined) resources at the mine to
comply with the Australian JORC Standards.
Additionally, Adavale visited some of the prospective targets on both areas at the Front Gate (EL8831)
and No Mistake (EL8830) Exploration Licences where detailed exploration programs leading to drilling
at various prospects is anticipated.
Figure 3 & 4: DGPS surveying of recent drillhole AEIDD001, London Victoria pit and processing plant in background
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Figure 5: Satellite image of the historic London-Victoria pit showing AEIDD001’s collar location and drillhole trace.
Placement and Results of General Meeting
As announced on 19 December 2024, Adavale Resources held a General Meeting on 16 January 2025
at 8:00am (AWST) to seek shareholder approval for fourteen (14) resolutions – primarily relating to
the acquisition of a 72.5% interest in the Parkes Gold-Copper Project, as well as completing the
Placement to professional and sophisticated investors including a co-investment by Directors and
Officers of approx. $100,000 (6%) of the placement.
Next Steps
•
Target assessment and prioritisation at known prospects to enable planning of comprehensive
field exploration programs on the Parkes Project.
•
Receive the assay results from the recent diamond drillhole (AEIDD001) completed at London
Victoria Mine.
•
Upgrade the London Victoria Historical Resource to a JORC compliant Mineral Resource
(EL7242).
•
Identify any additional prospective targets at both the northern and eastern areas of Front
Gate (EL8831) licence as well as the No Mistake tenement (EL8830), along with assessment
of targets on the recently granted, Exploration Licence The Dish (EL9711).
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Figure 6: Anticipated Exploration Schedule for Parkes Gold-Copper Project
This announcement is authorised for release by the Board of Adavale Resources Limited.
Further information:
Allan Ritchie
Executive Chairman and CEO
Adavale Resources
E: investor@adavaleresources.com
P: +61 2 8003 6733
Jane Morgan
Media and Investor Inquiries
Jane Morgan Management
E: jm@janemorganmanagement.com.au
P: +61(0) 405 555 618
ASX Announcement Reference
29 November 2024: Transformational Gold and Copper Project Acquisition
The company confirms that it is not aware of any new information or data that materially affects the
information included in the original market announcements. The Company confirms that the form and
context in which the Competent Person’s findings are presented have not been materially modified
from the original market announcement.
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ABOUT ADAVALE RESOURCES
Exploring for Gold and Copper in the NSW Lachlan Fold Belt, Uranium in South Australia, and Nickel
Sulphide in Tanzania.
The Parkes Project
Adavale Resources Limited (ASX:ADD)
holds a 72.5% interest in the Parkes Gold
and Copper Project, consisting of four
granted exploration licences that are
highly prospective for Au-Cu, primarily
due to their location adjacent the giant
Northparkes copper-gold mine and
encompassing the Ordovician-aged rocks
of the Macquarie Arc, within the crustalscale structure of the Lachlan Transverse
Zone (LTZ) that contain both Northparkes
and the world-class Cadia gold-copper
Mine.
South Australian Uranium Portfolio
Adavale also holds seven granted
exploration licences that are prospective
for their sedimentary uranium potential
within the northern part of the highlyprospective Northern outwash from the
Flinders Ranges in South Australia, as
well as four exploration licences east of
Ceduna on the Eyre Peninsula,
increasing Adavale’s uranium tenement
holdings including to include uranium
rights to 4,959km2.
The Kabanga Jirani Nickel Project
Adavale also holds the Kabanga Jirani
Nickel Project, a portfolio of twelve highly
prospective granted licences along the
Karagwe-Ankolean belt in Tanzania. The
nine southernmost licences are proximal
to the world class Kabanga Nickel Deposit
(87.6Mt @ 2.63% Ni Eq). Adavale holds
100% of all licences except for two
licences that are known as the LuhumaFarm-in, which are held at 65%, adding a
further 99km2 and bringing the portfolio to
1,315km2. Adavale’s licences were
selected
based on their
strong
geochemical and geophysical signatures
from the previous exploration undertaken
by BHP.
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