Strategic Expansion Brings Historic High-Grade Mine Under Adavale's Control
Adavale Resources (ASX:ADD) has secured exploration license EL9785, a 17.24km² strategic addition adjacent to its existing Parkes Project in the gold and copper-rich Lachlan Fold Belt of New South Wales. This acquisition bolsters Adavale's already substantial 371km² footprint in this highly prospective region.
The centerpiece of this new tenement is the historic Koh-I-Noor mine, which previously produced high-grade gold from quartz veins with remarkable head grades reaching 43.8 g/t Au. Mining operations at Koh-I-Noor extended to a relatively modest depth of 304 meters, suggesting significant potential for deeper mineralisation.
Even the mine's tailings demonstrated substantial value, having been reprocessed to yield 545 ounces of gold at an average grade of 2.5 g/t Au – highlighting the richness of the original deposit and the potential for additional gold recovery from previously discarded material.
"The successful granting of EL9785 further demonstrates Adavale's commitment to gold and copper exploration in the Lachlan Fold Belt of NSW. The historical high-grade production from Koh-I-Noor highlights the potential of the new tenement, with the team confident that both desktop and field work will lead to further exploration success and potential further mining activity."
— Allan Ritchie, Executive Chairman and CEO
Positioned in World-Class Mining Territory
Adavale's expanded Parkes Project sits in premium geological real estate, overlaying large sections of the highly prospective Macquarie Arc Volcanics within the Lachlan Fold Belt. This geological formation hosts some of Australia's most impressive gold-copper operations:
| Nearby Mine | Gold Resource | Copper Resource |
|---|---|---|
| Cadia Ridgeway | 35.1 Moz Au | 7.9 Mt Cu |
| Northparkes | 5.2 Moz Au | 4.4 Mt Cu |
The company has secured land access to begin immediate geological mapping and geophysical targeting at the Koh-I-Noor site to determine the extent of potential gold mineralisation beyond the historic workings.
Understanding Quartz Vein Gold Deposits: What Investors Should Know
Quartz vein gold deposits like Koh-I-Noor are among the world's most economically significant gold deposit types. These deposits form when gold-bearing fluids circulate through fractures in the earth's crust, depositing gold in quartz veins.
For investors, these deposits offer several advantages:
- High grades: Quartz vein deposits often contain exceptionally high gold grades, as evidenced by Koh-I-Noor's 43.8 g/t Au historical production.
- Mining efficiency: The concentrated nature of the gold in defined veins can lead to more targeted, cost-effective mining.
- Potential for depth extensions: Many quartz vein systems extend far deeper than initial mining activities, offering substantial expansion potential.
- Simple processing: Gold from quartz veins is typically free-milling, meaning extraction can be relatively straightforward compared to complex, refractory ores.
The fact that Koh-I-Noor's mining stopped at just 304 meters depth is particularly significant. Many similar deposits in Australia and globally extend to depths of 1,000 meters or more, suggesting substantial untapped potential beneath the historic workings.
Comprehensive Exploration Pipeline Underway
Adavale is pursuing multiple exploration initiatives at the Parkes Project, with several near-term catalysts for investors to monitor:
| Exploration Activity | Status | Timeline |
|---|---|---|
| Ashes-Myalls geochemical survey | 279 soil samples and 19 rock chips collected | Results assessment in progress |
| Parkvale South geochemical survey | Planning stage | Dependent on rock chip sampling results |
| Maiden drilling program | Planning underway | Finalisation expected Q2 CY2025 |
| London-Victoria Exploration Target | Development in progress | Based on recent JORC 2012 MRE |
| Additional prospect reconnaissance | Planning stage | Includes No Mistake, The Dish, and Front Gate areas |
The company's exploration strategy is methodical and multi-faceted, designed to generate a pipeline of targets across its extensive land package before committing to its maiden drilling program in the coming months.
Investment Thesis: Multiple Pathways to Value Creation
Adavale Resources gold mine acquisition presents a compelling investment opportunity based on several key factors:
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Proven high-grade gold territory: The historical production at Koh-I-Noor (up to 43.8 g/t Au) demonstrates the exceptional gold endowment of the company's tenements.
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Strategic location: Positioned in the same geological setting as world-class mines like Cadia Ridgeway (35.1Moz Au) and Northparkes (5.2Moz Au).
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Extensive land package: With over 371km² of highly prospective ground, Adavale has established itself as a major player in one of Australia's premier mining districts.
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Multiple commodity exposure: Beyond its NSW gold-copper assets, Adavale maintains a diversified portfolio with uranium projects in South Australia and nickel exploration in Tanzania's East African Nickel Belt.
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Clear pathway to drilling: With geochemical surveys completed and results pending, the company is advancing toward its maiden drilling program in Q2 2025.
Why Investors Should Follow Adavale Resources
Adavale offers exposure to one of Australia's most productive gold and copper provinces through a strategic land position adjacent to world-class mines. The recent Adavale Resources gold mine acquisition of the Koh-I-Noor mine site – with its proven high-grade gold production – provides an immediate, high-potential exploration target with demonstrated mineralisation.
The company's methodical approach to exploration, building from geochemical surveys toward a targeted drilling program, demonstrates a disciplined path to potential discovery. Meanwhile, its diversified portfolio across gold, copper, uranium, and nickel provides investors with exposure to multiple commodities vital to both traditional industries and the energy transition.
With numerous exploration activities already underway and results pending, Adavale is positioned for a catalyst-rich period ahead, potentially offering significant revaluation opportunities as it advances toward drilling its high-priority targets.
Key Takeaway:
Adavale Resources has positioned itself as a significant player in the world-class Lachlan Fold Belt, with its latest Adavale Resources gold mine acquisition bringing a historically productive high-grade gold mine under its control. With a substantial 371km² land position surrounding proven multi-million-ounce deposits, and multiple exploration programs advancing toward a Q2 2025 drilling campaign, Adavale offers investors leveraged exposure to discovery potential in one of Australia's premier gold-copper provinces.
Want to Capitalise on Adavale's Historic Gold Mine Acquisition?
To learn more about Adavale Resources' strategic expansion in the gold-rich Lachlan Fold Belt, including their acquisition of the historic high-grade Koh-I-Noor mine with its impressive 43.8 g/t Au head grades, visit the company's ASX announcements page. Stay informed about their comprehensive exploration pipeline and investment potential as they advance toward their maiden drilling program. Click here to access Adavale's latest investor updates and position yourself for this exciting development in one of Australia's premier gold-copper provinces.
