Adavale Resources (ASX: ADD) has completed the acquisition of 100% interests in the EL6553 exploration licence in South Australia from Kilonova Metals.
The EL is a strategically significant tenement, comprising two areas located adjacent to and east of both the company’s existing Mundowdna South and Lake Surprise project areas, respectively.
The acquisition comes as debate rages about expanding uranium mining in Australia and nuclear energy dominates discussion leading up to the next Federall election.
“The completion of the acquisition provides a pathway for Adavale to discover an economic uranium deposit following historical results achieved at the MacDonnell Creek and George Creek prospects," Executive Director, David Riekie, said.
"EL6553 has demonstrated palaeochannels containing ample evidence of elevated uranium occurrences. We also believe other parts of the defined palaeochannel remain under- explored as the initial exploration of the area was abruptly halted following the fall in the uranium price during 2011. We can now capitalise on this earlier exploration and follow up on these clearly defined targets.
“The exploration programme for our Uranium prospects is currently being finalised, which will include a drilling programme of up to 40 holes. I look forward to sharing the details of this exploration program in the coming days.”
EL6553 covers 456 sq. km across two parts, with the first part called Mundowdna South east adjacent to Mundowdna South and the other portion, MacDonnell Creek, to the east of the company’s Lake Surprise Uranium Project.
Adavale’s 100% owned tenure in the Marree Embayment now sits at 2,258 sq. km, making it one of the largest public-listed licence holders in the region.
The company has also applied for a large uranium project area east of Ceduna in South Australia, covering 2,446 sq. km,
Historical exploration drilling and heliborne electromagnetic surveys completed by Cauldron Energy in the late 2000’s suggests the presence of significant palaeochannel that remains to be fully explored within the project area.
Next steps
- Heritage clearance surveys are being finalised
- Finalisation of drilling programs at the Marree Embayment Project to test for uranium redox boundaries at MacDonnell Creek and surrounds.
