Historic BHP data gives Adavale a golden boost
Adavale Resources (ASX: ADD) has uncovered major gold resource growth potential at its London-Victoria pit in NSW using historic BHP (ASX: BHP) grade control data.
The data highlighted thousands of drill holes from within the site’s mined pit, dating from the late 1980s to early 1990s, with peak grades of up to 37.4g/t of gold confirmed in historical grade control drilling.
Integrated with new structural mapping undertaken by independent structural geologist Ian E. Nelson, the mineral system has been assessed as significantly larger and more complex than previously modelled.
The study identified a major east-dipping shear corridor as the primary structural control on mineralisation, hosting intense veining and alteration consistent with shear-related gold emplacement.
These insights substantially enhance the potential beyond the existing mineral resource estimate (MRE) of 3.14mt at 1.06g/t of gold for 107,000oz.
Adavale managing director David Ward says the completed study comes after BHP first mined the site 30 years ago.
“Together with the recently acquired high-density grade control data, this body of work represents a step-change in our understanding of the controls on gold mineralisation,” he said.
“It has identified clear vectors for resource expansion and highlights the strong potential for additional mineralised shoots both at depth and along strike.”
Adavale executive chairman and chief executive Allan Ritchie says the study results have fundamentally reshaped the scale and strategic importance of the site.
“We now have a clear roadmap for how this asset can grow and an incredible technical team capable of executing it,” he said.
“The opportunity ahead of us is now much larger than previously recognised. We are confident that [Mr Ward’s] extensive experience and track record of success across the Lachlan Fold Belt will translate this new technical understanding into meaningful value creation.”
Adavale is on schedule to commence a targeted drilling program in the coming weeks, designed to directly test the newly defined high-priority zones.