Adavale Resources joins the South Australian uranium club
Special Report: Adavale Resources has put the finishing touches on an exploration program across recently granted ground at Mundowdna and Mundowdna South where uranium is present in historical rock chip data.
Adavale’s (ASX:ADD) tenement package in South Australia 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.
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 the Honeymoon project being revived by Boss Energy (ASX: BOE).
ADD has been building a large prospective uranium portfolio in South Australia following the recent grant of exploration licence EL6957 (Mundowdna South), covering 591km2.
Mundowdna South is within 20km of the change from a narrow channel shedding from the ranges into a broad fluvial outwash (palaeochannel) system.
Significant uranium is present in historical rock chip data over the area, but limited drilling has occurred in the past, leaving the area largely unexplored.
The explorer has now finalised an upcoming program, which will utilise existing pastoral tracks to identify near surface uranium across the interpreted palaeochannel system.
ADD executive director David Riekie says the company is now well positioned to fast-track the project and identify those areas that offer the highest level of uranium prospectivity.
“This program is an exciting entry towards unlocking the prospectivity of Adavale’s tenure at Mundowdna and Mundowdna South,” Riekie says.
“The two licences encapsulate 1,305km2 within which the company has recently identified a broad series of potential palaeochannel systems shedding from the Flinders Ranges.
“Adavale is now well positioned to quickly progress this project at a time when the uranium price has increased from US$40/lb to over US$100/lb in the past six months, placing it as a key solution to global decarbonisation.”
The explorer plans to conduct soil, rock chip, gravity and gamma surveys in a 3-4 week program.
Around 800 soil samples and ground gravity readings will be collected along existing pastoral tracks, chosen based on their orientations that cut across the palaeochannel systems within the two Mundowdna licences.
In addition to the collection of this soil and gravity data, gamma surveys will be conducted along all pastoral tracks covering the interpreted palaeochannel systems, which can then be correlated with the regional geophysical data (including the satellite data used in 2023).
Results from these three surveys will provide information on the presence of near surface mineralisation and the location of older buried palaeochannels.
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.