SYDNEY, AUSTRALIA: Adavale Resources Limited (ASX: ADD) has announced the acquisition of a 100% interest in the exploration license EL6553, increasing its uranium license holdings to an impressive 2,058 square kilometers.
The newly acquired license covers 456 square kilometers and is strategically located adjacent to the company’s existing Mundowdna South and Lake Surprise Uranium Project licenses.
Historical exploration efforts on EL6553 have uncovered numerous anomalous uranium target areas, with notable drill intercepts including 1.0 meter at 263 parts per million equivalent uranium oxide (eU3O8) and 0.65 meters at 235ppm eU3O8.
The license area encompasses the Eyre and Namba Formations, known for their sedimentary roll-front uranium deposits, akin to the nearby Beverley and Honeymoon uranium deposits.
Adavale’s exploration endeavors will focus on the pathfinder uranium results previously achieved at the MacDonnell Creek and Geoge Creek prospects. Field exploration activities are set to commence in April, targeting the prospective paleochannel system identified within the Mundowdna Uranium Project area.
In a move to strengthen its financial position, Adavale has successfully reduced its debt from $580,000 to $330,000 following the repayment of 25 Convertible Notes upon maturity.
David Riekie, Adavale’s Executive Director, expressed optimism about the acquisition, stating, “This represents an exciting opportunity for the company. The acquisition of EL6553, with its demonstrated paleochannels and evidence of elevated uranium occurrences, aligns with our strategic goal to capitalize on under-explored areas. The initial exploration was halted due to the Fukushima incident in 2011, and we are now poised to follow up on these clearly defined targets, providing a significant boost to our 2024 uranium exploration programs.”
The acquisition agreement with Kilonova Metals Pty Ltd is detailed in a binding Heads of Agreement, marking a pivotal step for Adavale Resources in securing a robust future in uranium exploration.