The company holds exploration licences with sedimentary uranium potential within the highly prospective Lake Frome Embayment in South Australia. Pic: via Getty Images
Mining
Special Report: Adavale Resources has been granted a key exploration licence (EL6957) in South Australia just as uranium spot prices push past US$80/lb towards new recent highs.
With nuclear energy also crucial to the clean energy transition, Adavale Resources’ (ASX:ADD) move to expand its highly prospective uranium footprint in State’s Flinders Ranges couldn’t come at a better time for the explorer.
EL6957 (formerly ELA 2023/00043) also known as Mundowdna South, is contiguous to and south of the company’s existing Mundowdna licence EL6821.
The new licence covers 591km2, which includes a large recognisable alluvial outwash system shedding from the central northern part of the Flinders Ranges, significantly expands the Mundowdna exploration package and ADD’s overall uranium tenure in South Australia.
The company’s tenement package is near the northern end of the Flinders Rangers, a well-established source of uranium that is mobilised into and eventually deposited into palaeochannel systems by saline groundwater shedding from the Ranges.
These Flinders Ranges palaeochannel systems are host to several world class sandstone uranium deposits such as Beverly, Four Mile, Junction Dam, Gould’s Dam and Honeymoon.
The company says high-resolution satellite imagery, gravity and EM survey data has all highlighted the palaeochannels prospective for uranium exploration.
“This new licence significantly expands our ground holding in a highly prospective uranium province,” ADD executive director David Riekie said.
“A thorough interrogation of the comprehensive, publicly accessible dataset available, has assisted Adavale to identify interpreted palaeochannel systems and refine priority targets within its tenure.
“The outwash and palaeochannel systems shedding from the Flinders Ranges appear to be the most prospective for uranium.
“On this basis, Adavale is confident to progress its exploration plans.”
ADD will now refine and rank priority drill targets based on the current survey data and assess infill gravity and EM survey areas to finalise exploration programs.
The next steps will then be heritage clearances in consultation with Traditional Custodians, finalising exploration and drilling programs and notifying the South Australian Mine Department of intended work programs – and securing approvals.
This article was developed in collaboration with Adavale Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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