Nickel sulphide exploration company Adavale Resources (ASX:ADD) has exercised its option to acquire 65% of the Luhuma Nickel Project located adjacent to its Kabanga Jirani Nickel Project in Tanzania.
The company executed a binding farm-in agreement in December 2021 to earn up to 80% interest in the Luhuma licences including prospecting licence (PL) 11692/2021, and 11693/2021.
Following recently completed exploration activities on the Luhuma farm-in tenements, which identified multiple drill targets, Adavale decided to proceed with the stage two payment to acquire 65% interest in the licences.
This payment consists of a US$50,000 cash payment, as well as US$150,000 worth of Adavale shares calculated based on the volume weighted average price (VWAP) for the 5 days preceding the issue of shares.
The Luhuma farm-in licences cover 99km-square over the Luhuma trend, which is considered prospective for mafic, and ultramafic intrusions. Adavale considers these licences and key areas, as it continues to build its presence in the East African Nickel Belt.
In addition Adavale reports it has been granted PL 12175/2023, which covers an area of 44.83km-square across the Southeast Wedge prospect at the Kabanga Jirani Nickel project.
Commenting on the stage two payment and the granted PL, Adavale Resources Chairman Grant Pierce says: “Adavale’s core strategy to explore its existing licences whilst in parallel expand its footprint with additional prospective licences is very much on track.
“Adavale’s core strategy to explore its existing licences whilst in parallel expand its footprint with additional prospective licences is very much on track”
The granting of the Southeast Wedge licence and the company’s acquisition in the Luhuma prospect expands the company’s tenure to an unrivalled 1,311km-square within the East African Nickel Belt of Tanzania.
The company looks forward to an exciting 2023 nickel exploration program, building on the foundations of the 2022 program.”
Adavale reports PL 12175/2023 is contiguous with its Kabanga East and Kabanga Southeast projects. Furthermore, the Southeast Wedge completes coverage over a cluster of coincident gravity and heli-electromagnetic anomalies identified by the company in 2022. These anomalies are considered prospective for nickel and copper mineralisation, and will be targeted in future drilling programs.
The company also notes these anomalies are located along strike from drillhole RCDDKE006 which was drilled to a depth of 500m in late 2022, with assays pending.
Adavale Resources is a nickel sulphide exploration company that wholly owns the Kabanga Jirani Nickel Project in Tanzania. Kabanga covers 9 granted licences over an area of about 1,212km-square, with the 6 southernmost licences located near the Kabanga Nickel Deposit, which hosts a Mineral Resource Estimate (MRE) of 58 million tonnes @ 2.62% nickel (Ni).
The company also holds exploration licences for the Lake Surprise Uranium Project in South Australia.