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Highlights
- Adavale Resources acquires 72.5% of the Parkes Gold and Copper Project in New South Wales.
- The project is adjacent to the Northparkes copper-gold mine, holding a resource of 5.2 million ounces of gold and 4.4 million tonnes of copper.
- Shares rise 20% following the acquisition news.
Adavale Resources Ltd (ASX:ADD), known for its focus on nickel and uranium exploration in Tanzania and South Australia, has made a significant move by entering into an all-scrip agreement to acquire a majority stake in what it calls a "transformational" gold and copper project in New South Wales. The company has secured 72.5% ownership of the Parkes Gold and Copper Project, located within the Lachlan Fold Belt—a region renowned for its mineral wealth.
The project spans 395 square kilometers and is strategically positioned next to the Northparkes copper-gold mine, a major operation with substantial resources, including 5.2 million ounces of gold and 4.4 million tonnes of copper. This proximity enhances the potential for discovery and development, given Northparkes’ successful track record in the region.
Key Assets and Exploration Potential
A focal point of the newly acquired project is the London-Victoria gold mine, a historical asset estimated to contain 124,000 ounces of gold. Recent drilling efforts on the tenement have uncovered promising extensions of the deposit. A diamond drill hole completed earlier this month revealed a 12-meter thick down-dip extension, located 250 meters below surface and 150 meters beneath the bottom of the London-Victoria pit. This discovery suggests significant depth potential for the project.
Exploration is also intensifying at the Ashes prospect, situated just 12 kilometers from Northparkes. This prospect features a 200-meter geochemical anomaly with rock chip samples showing impressive grades of 7.8% copper and 8.8 grams per tonne of gold. Furthermore, the area is located near a historical IP chargeability anomaly, which has yet to be fully explored, offering additional upside potential.
Market Reaction and Company Outlook
The announcement of the acquisition has been well-received by investors, with Adavale’s shares rising 20% to 0.3 cents by 14:10 AEDT. Adavale’s executive chairman and CEO, Allan Ritchie, expressed confidence that this acquisition marks a significant step forward for the company, positioning it in a highly prospective and strategically important area of the Australian mining sector.
