Adavale has pulled the trigger on nickel sulphide exploration at the Luhuma licences in Tanzania after meeting all conditions relating to its farm-in agreement.

Work is now underway on ground-based such as soil sampling, down-hole electromagnetic and gravity surveys while ground-based or airborne EM surveys will also feature in the target generation and refinements for our future drilling programs.

This comes after Adavale Resources (ASX:ADD) paid the vendor US$12,500 and shares worth a further US$25,000 for each of the two licences, which are next to its existing Kabanga nickel project.

“This is a great outcome for Adavale as the exclusive access to explore the Luhuma Licences is considered a key addition to Adavale’s immediate and medium term exploration strategy,” executive director David Riekie said.

“The Luhuma Farm-In Licences are considered very prospective as they contain the Luhuma intrusion, a known mineralised intrusion, enabling us to extend our exploration footprint to capture the area which includes the 8km Luhuma corridor.

“This “corridor” was identified as part of our 2021 exploration program and will feature heavily in our 2022 exploration program.”

Luhuma farm-in licences

The licences cover about 99sqkm and are located around the historical LUH06 drill hole that intersected a mineralised layered mafic-ultramafic intrusion that returned 1.1% nickel over 8.4m in massive sulphides within the Karagwe-Ankole Belt.

Little modern exploration has been conducted at Luhuma since the late 1990’s when BHP terminated their activities in Tanzania due to the conflict in neighbouring Burundi. Just recently, the world’s biggest miner re-entered the region via an investment in Kabanga Nickel’s Kabanga project, the largest undeveloped nickel sulphide project globally which also happens to be Adavale’s neighbour. (insert link:

Historical work includes a reconnaissance stream sediment sampling program by the United Nations Development Program between 1974 and 1979 as well as regional airborne GEOTEM, stream sediment, soils and rock chip sampling surveys completed by BHP.

With the initial payment made, Adavale must now spend at least US$500 per square kilometre on exploration over the next 12 months.

The company can then proceed with the right to earn 65% interest in the licences by paying on a per licence basis to the vendor US$25,000 in cash and US$75,000 in shares while continuing the minimum exploration expenditure requirements.

The third stage will see Adavale increase its stake in the licences to 80% by paying per licence a further US$50,000 in cash and US$112,500 in shares while the final stage gives the company the right of first refusal to match any third-party offers to buy out the remaining 20%.




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.