• Adavale’s fourth hole has intersected a cumulative 21.55m of nickel sulphides, the thickest to date
  • All four diamond holes drilled have intersected sulphides
  • Fifth hole being planned to test the extent of the southwest extension


Adavale is now four for four after yet another drillhole intersected multiple massive and semi-massive nickel sulphide zones at the Luhuma Central prospect, part of the Kabanga Jirani project in Tanzania.

The fourth drillhole (DDLUHC004) in the program intersected four distinct zones of massive, semi-massive and disseminated nickel sulphides ranging in thickness from 1.12m to 7.5m from a depth of 250m to 323m.

Handheld XRF readings – which are not a substitute for lab assays — returned results between 1.40% and 2.70% nickel within the massive sulphides and 0.5% to 0.6% nickel in the disseminated sulphides, Adavale Resources (ASX:ADD) says.

The hole DDLUHC004, which targeted an identified down-hole electromagnetic (DHEM) conductor, returned the greatest cumulative thickness of sulphides to date of 21.55m.

Adding further interest, these zones appear to represent a thickening of the conductor to the south.

While assays are still pending, the result from DDLUHC004 seems to indicate that targeting DHEM conductors might be the key to unlocking the project’s potential.

“We will continue to use DHEM to survey completed drillholes to orientate drilling to target the primary conductor identified at Luhuma Central,” executive director David Riekie says.

“Drillhole DDLUHC005 is currently being planned to test the extent of the SW extension and down dip potential, given the broad zones of mineralisation intersected.

“Drilling is also continuing at HEM2, 10km to the south, with updates expected shortly.”

ADD’s project is adjacent to the Tier-1, high grade Kabanga deposit, one of the largest undeveloped nickel sulphide projects in the world.

Kabanga contains 58Mt of resources at an average nickel grade of 2.62%, up to an even higher equivalent of 3.14% when copper and cobalt credits are included.

It is now part owned by BHP (ASX:BHP). Development of a 30-year, 65,000tpa ni eq operation is underway, with first production anticipated in 2025.


Vectoring in on the prize

Adavale’s started diamond drilling at Luhuma Central in late May as part of a broader 5,000m combined diamond drilling and reverse circulation drill program to test a series of targets generated by the company about the Luhuma Trend.

The Luhuma Trend – which includes Central, HEM 2, HEM 2NE and HEM 2E — is a narrow 15km long belt within Kabanga North East that is characterised by strongly elevated gravity and electromagnetic anomalism.

Adavale’s first diamond hole DDLUHC001 intersected 4.15m of massive sulphides from a depth of 223.35m while DDLUHC002 struck 4.9m of blebby and heavily disseminated nickel sulphide mineralisation with occasional semi-massive veinlets from a depth of 200.7m.

Subsequent preliminary assays returned a 4.13m intersection grading 0.99m from 223.35m – coinciding with the massive sulphide zone – within a broader interval of 12.15m at 0.46% nickel from 221.35m in DDLUHC001 and 4m at 0.52% nickel from 200.55m in DDLUHC002.

Assays are pending for holes 3 and 4. The intersection of massive sulphides in all four completed drillholes indicates that Luhuma Central, which currently has a strike extent of about 200m, remains open.


Nickel in demand

Nickel is very much in demand by electric vehicle manufacturers given its increasing use in batteries with S&P Global forecasting that the battery sector could account for 35% of nickel demand by the end of the decade, up from 5% at the end of 2021.

With many car manufacturers located in Europe, Kabanga Jirani is well-placed to meet nickel demand from the sub-continent given both its proximity and the EU’s reluctance to rely on Russian sources.


More drilling to come

Adavale currently has two rigs operating within the Luhuma trend.

One rig is focused on Luhuma Central step out drilling, to test both depth and strike extensions of the massive nickel sulphide intersections, whilst the multipurpose rig is presently focussed on “deeper” 500m+ high priority targets at HEM2.

In the coming weeks, the company expects to report on visual interpretation from drilling planned holes, aqua regia and full acid digest drillhole assay results, DHEM results, and diamond drilling at HEM2 NE as well as reverse circulation drilling at HEM2 E and HEM4.



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.