• Step out drilling at Kabanga Jirani project flags 340m+ nickel sulphide mineralisation
  • Assays have been received for 2 out of 5 holes
  • Project is adjacent to Tier 1 Kabanga deposit part owned by BHP
  • The Luhuma Central strike extend remains open both to the north and south


Adavale Resources has intersected over 340m of nickel sulphide mineralisation in the fifth drill hole at the Luhuma Central prospect of its Tanzanian Kabanga Jirani project.

The company is currently focused on both its Kabanga Jirani project and 2 Farm-in ‘Luhuma’ licences adjacent and along strike from 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. 

Adavale Resources’ (ASX:ADD) Luhuma Central step out drilling is part of 5,000m combined diamond (DD) and reverse circulation (RC) drill program designed to test a series of targets within the Kabanga Jirani project.


Fifth consecutive successful drill hole

To date, all five drill holes have intersected significant massive and/or semi-massive sulphide mineralisation.

The latest drill hole, DDLUHC005, intersected a 15.6m (downhole) zone of semi-massive and heavily disseminated nickel sulphides including thin massive sulphide veins between 408m to 423.6m as well as 327.7m (downhole) of medium to coarse-grained sulphides.

Handheld XRF readings – which are not a substitute for lab assays — returned results between 1.40% and 2.70% Ni within the massive sulphides and 0.5% to 0.6% Ni in the disseminated sulphides.

“A fifth consecutive drill hole with sulphide mineralisation is a great outcome,” ADD executive director David Riekie said.

“What is particularly gratifying is the strike extent being open to both the North and South and drill testing of this is imminent.”

ADD has also received assay results for the first two Luhuma Central drill holes – DDLUHC001 and DDLUHC002.

The 4.13 m massive sulphide intersection achieved by DDLUHC001 from 223.35m returned a weighted average grade of 1.03% nickel, 0.04% copper, 0.17% cobalt and 400ppb combined platinum, palladium and gold.

Meanwhile, initial assay results for drill hole DDLUHC005 are expected within 3 to 4 weeks.


Ground EM survey planned

The company currently has two drill rigs operating within the Luhuma trend – one diamond rig has been focused on Luhuma Central testing for both depth and strike extensions of the massive nickel sulphide mineralisation.

The second, a multipurpose rig has just completed and cased a deeper priority diamond hole at HEM2.

This rig has now been re-configured to RC and will begin a series of RC holes designed to test several coincident gravity and EM geochemical anomalies at HEM4.

Downhole EM (DHEM) surveys are ongoing, and a ground Electromagnetic (EM) survey is now planned at Luhuma Central prior to drilling for north and south strike extensions.

Riekie said that ground EM will be used to trace the interpreted mineralisation over the full 1- 1.5km strike extent at Luhuma Central.



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.