Adavale’s South Australian uranium exploration drive kicks off

Maiden uranium exploration at Adavale’s Mundowdna and Mundowdna South exploration projects in South Australia completed ahead of schedule
Program to helping to determine drill targets
Clearances being sought for next stage of exploration

Special Report: Maiden reconnaissance uranium exploration at Adavale Resources’ Mundowdna and Mundowdna South licences in South Australia is complete, with assays pending.

Adavale Resources (ASX:ADD) is likely hoping that strong results from this initial program will set the tone for further exploration over its extensive uranium tenure in the state, where it has six licences – including the recently acquired EL6553 – covering 2058km2 in the northern Flinders Ranges.

Interest in the uranium potential of the region has been strong given that it is positively covered with ancient river channels known as paleochannels and buried valley systems cut into bedrock (paleovalleys) that are known to host significant sandstone-uranium deposits.

There’s also little doubt that uranium is present given the major deposits in the region such as BHP’s Olympic Dam – the world’s largest uranium deposit – plus Honeymoon well, Four Mile, Goulds Dam, Lyndhurst, Mount Gee and Yarramba.

ADD already has plenty of evidence that its licence package hosts a significant paleochannel system.

The acquisition of historical airborne electromagnetic survey data, flown low and with 400,000 data points, provides a clearer picture of the prospective paleochannel systems at Mundowdna and Mundowdna South.

Adavale Resources ASX ADD — Overview of interpreted palaeodrainage and palaeochannels with completed transects for soil, gamma and gravity program. Soil locations denoted by yellow dots. Pic: Adavale Resources

Successful program marks start of uranium campaign

Initial exploration at Mundowdna and Mundowdna South includes gravity and gamma spectrometer surveying as well as the collection of 760 soil and rock chip samples along ~80km of existing pastoral tracks.

Gravity surveying was carried out to map subtle density contrasts that potentially reflect buried palaeochannel systems while the gamma spectrometer survey will quantify surface radiation levels.

Meanwhile, soil sampling is capable of measuring very low levels of uranium and other indicator metals at surface while rock chips can be used to uranium levels within known regional anomalies.

Assays for the sampling are expected in early June while results from the gravity survey are due within two weeks.

“The Mundowdna and Mundowdna South reconnaissance programs marked the start of a busy uranium exploration program for the company,” executive director David Riekie said.

“I congratulate the field crew on an excellent job by completing the program in half the anticipated time.

“The geophysical data is now being processed and we look forward to interpreting it with the soil results in early June. Drilling targets will be determined shortly afterwards.”

ADD is currently progressing the clearances process for the next stage of exploration, which will include drilling.

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.