Adavale Resources targets extensive uranium deposits on Eyre Peninsula

Adavale Resources (ASX: ADD) has applied for a large uranium project area east of Ceduna, along the Eyre Peninsula in South Australia.

The four exploration licence applications (ELAs) cover 2,446 square kilometres and were selected following an extensive review of the region’s known palaeochannel systems.

They target sandstone-hosted uranium mineralisation, which may also be associated with basement-intersecting faults and buried uranium-enriched granites of the underlying and adjacent Hiltaba Suite.

The granites are interpreted to be the source of the high-grade Yarranna deposit that sits within the Narlaby palaeochannel sequence and has previously returned assays of up to 3,550 parts per million uranium oxide.

Expanded regional focus

Executive director David Riekie said the new project area would expand Adavale’s regional uranium focus and provide a solid foundation for future exploration.

“These ELAs represent a timely and strategic expansion in a region which has demonstrated high-grade uranium intersections at Narlaby and other systems shedding from the Hiltaba granites,” he said.

“We anticipate the Ceduna region of the Eyre Peninsula will become an important addition to our expanding exploration plans.”

Advanced project

The advanced Yarranna uranium project is currently owned by Canadian company ISOenergy after being discovered by Carpentaria Exploration in the 1980s.

Carpentaria completed air-core and mud rotary drilling across the project area, which resulted in the intersection of significant mineralisation including 4m at 859 ppm uranium oxide from 67m, 1m at 1,400 ppm uranium oxide from 69m and 1m at 3,550 ppm uranium oxide from 66m.

The mineralisation was found to be associated with the Narlaby palaeochannel.

Mr Riekie said there was potential for economic uranium mineralisation to be discovered within Adavale’s ELAs, where historical drilling has been limited.

Additional drilling

Mr Riekie said work at the new ELAs would commence after drilling programs at the company’s Marree Embayment and MacDonnell Creek projects, also in South Australia.

Earlier this month, Adavale identified new targets for uranium deposition following a maiden multi-technique exploration program at Marree Embayment.

The targets have been earmarked as a priority for a new round of drilling, which is being planned alongside associated heritage clearance surveys.

“The positive outcomes generated by this exploration program indicated a uranium-rich palaeo drainage system,” Mr Riekie said.

“Collectively, this data has identified a significant basement structure at depth which appears to be a large trap site for ancient uraniferous groundwaters shedding from the adjacent Flinders Ranges.

“This basement structure does not appear to have been previously recognised or drilled and will become a priority uranium exploration focus for us.”