Advale Resources Ltd (ASX:ADD) Accelerating Resource Growth at London-Victoria Gold-Copper Project

26 March 2023

Price Sensitive Announcement $

Highlights:

• Initial 6,000m RC Program expanded at London-Victoria, building on recent results confirming grade and continuity
• Second RC drill rig secured to accelerate an expanded and continuous drilling program focused on growing the existing 115kOz JORC Mineral Resource at London-Victoria
• First assay results expected in April, with a steady flow of results anticipated thereafter
• Victoria South Prospect along strike to the south of London-Victoria interpreted as an extension of the known mineralisation to the existing 115kOz Au MRE
• Drone magnetic survey footprint to be enlarged at London-Victoria and surrounds to refine structural targets
• Further ground magnetics and soil sampling programs imminent at Ashes to support target generation

Overview:

Adavale Resources Limited (ASX:ADD) has announced progress on its Parkes Gold-Copper Project 6,000m drilling campaign which is now being expanded and accelerated (Figure 1).

Drilling activities at the London-Victoria Gold Mine are continuing to build strong momentum, with the current program ongoing and designed to systematically expand the existing 115kOz JORC 2012 Inferred Mineral Resource Estimate (MRE). The Company has secured a second drill rig to accelerate progress, supporting a larger and more continuous program of model-driven drilling.

Recent drilling has delivered strong results, reinforcing confidence in the geological model and highlighting the potential for further resource growth both along strike and at depth. This program aligns with Adavale’s strategy of delivering value through disciplined, data-driven exploration. Assay results from the current phase of drilling are expected following Easter, with results to be reported on a continuous basis as they are received.

In parallel, the Company is expanding its geophysical survey area, with a plan to extend the current drone magnetic survey over the broader London-Victoria Project area. At the Ashes Prospect, expanded magnetic geophysics and soil sampling programs are in the final stages of planning, extending the previous surveys into the new tenure recently acquired from Alkane (ASX:ALK) with the view to refine targets associated with previously identified IP anomalies and high-grade surface rock chip sampling.

The Company is also evaluating the potential to extend mineralisation south of the London-Victoria Pit toward the Victoria South Prospect, with a review of historical surface and drilling data underway within this emerging structural corridor. Victoria South is located directly along strike from the London-Victoria Open Pit and has the potential to represent a shallow, unmined of the current Mineral Resource. Interpretation of regional magnetic data indicates
the prospect is likely hosted within the same mineralised shear zone and represents a repeated and favourable position on a parasitic fold. This is interpreted as the now fourth occurrence in an equally spaced series of structurally controlled mineralised horizons. This highlights strong potential for near-mine resource growth.

Brownfields Activities – London-Victoria Gold Mine

• Brownfields drilling
  o Systematic “drillout” underway to expand and upgrade existing mineralisation and support ongoing Mineral Resource growth.
• Metallurgical testing
  o Preliminary metallurgical sighter test work to assess recoveries and support future development studies.
• Preliminary scoping studies
  o Early-stage technical and economic assessments to evaluate development pathways and inform project prioritisation.
• Geophysical surveys
  o High-resolution airborne geophysics to refine structural interpretation, improve targeting accuracy and prioritise follow-up drilling

Victoria South Prospect

Ongoing review and compilation of historic data is continuing; historic soil auger sampling at the Victoria South Prospect identified a coherent gold anomaly with peak result of 600ppb Au; these are very good results for soils. A review of historic drilling at the Victoria South Prospect is underway.

The position and size of the soil surface anomaly is consistent with the footprints seen over the main London-Victoria Pit. Victoria South is along strike to the south of the main pit and interpreted as an extension of the known mineralisation encompassed by the existing 115kOz MRE.

Greenfields Exploration – Regional Targets

• Geophysical surveys
  o Extension of high-resolution magnetics at Ashes, into the newly acquired exploration tenure to assist target generation associated with the IP anomalism and high-grade
  surface sampling.
• Surface geochemistry
  o Extension of systematic soil and rock-chip programs at Ashes, into the newly acquired exploration tenure to generate new anomalies and rank targets for drilling.
• First-pass drilling
  o Initial drill testing of priority greenfields targets generated from geophysics and geochemistry to pursue new discoveries.

Company Notes:

Adavale Resources Managing Director, Mr. David Ward, commented:
“We are seeing a very consistent picture emerging at London-Victoria, where drilling continues to validate both the grade and continuity of the mineralised system. Importantly, we are now transitioning into a more systematic model-driven phase of resource drilling, using the growing geological and drilling dataset to target extensions to the resource.”

“With a current 115,000oz resource defined over only a shallow portion of the overall system, the focus of this expanded drilling program is to continue growing the resource base along strike and at depth. The addition of a second rig will allow us to accelerate this process and maintain strong news flow as results are delivered.”

Adavale Resources Executive Chairman and CEO, Mr. Allan Ritchie, commented:
“This is exactly the type of momentum we set out to deliver at Parkes – combining a high-quality brownfields asset with systematic exploration to unlock scale. The results to date at London-Victoria are demonstrating the potential for meaningful resource growth, while our broader landholding provides multiple additional avenues for discovery.”

“With drilling accelerating, strong funding in place and a pipeline of catalysts including assays, geophysics and regional targeting, Adavale is well positioned to deliver sustained news flow and continue building value across the Parkes Gold-Copper Project.”

Full ASX Announcement: Advale Resources Full ASX Announcement