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Adavale Resources Limited (ASX:ADD) - The East African Nickel Belt.


Coffee with Samso Episode 151 is with David Riekie, Executive Director - Adavale Resources Limited (ASX: ADD)


Focusing on a discovery in the East African Nickel Belt.


David Riekie, the Executive Director of Adavale Resources brings us the latest activities with the company.


The company is currently completing a fund raising exercise and it gives current shareholders a great opportunity to participate. There appears to be a lot of exploration activities happening in the coming months.


Location of the East African Nickel Belt with geological setting
Location of the East African Nickel Belt with geological setting. (Source:[1] )

David gives us a breakdown on what is happening with Adavale as they move into another period of exploration activities. As the company moves into the next phase of exploration, David explains why the East African Nickel Belt is important, and why Adavale will be benefiting from the lack of historical exploration.



As I decipher the conversation, I feel that Adavale is benefiting from a dominant land holding in this nickel belt. There are not too many stories where a small cap company is holding this position.


The nearest analogy for me is when the Yamarna Greenstone Belt was predominantly controlled by Gold Road Resources Limited. They held a similar dominant position like Adavale. That land holding has now allowed the company to be the owner of over 9M ounces of gold.


Previous Videos with Adavale Resources Limited








Chapters:

00:00 Start

00:20 Introduction

01:05 Updates about fundraising.

02:45 Follow up on plans from previous discussion.

04:45 Explanation on conceptual model of EM signatures in Kabanga.

08:39 Interpreting the images from the presentation.

11:56 Is the East African Nickel Belt a belt worth looking at?

14:42 Comments on BHP investing in the Kabanga project.

17:34 Thoughts on comparison to Gold Road.

19:32 Is this the start of a consolidation period of producers in the base metals space?

23:03 Comments on being in a belt that is not well explored.

26:11 Thoughts on the Nickel market.

30:18 News flow for Adavale.

32:03 Prediction on discovery holes.

34:02 Why Adavale?

36:13 Conclusions


PODCAST




Reference :

  1. Evans, D.M. & Hunt, Jp & Simmonds, John. (2016). An Overview of Nickel Mineralisation in Africa with Emphasis on the Mesoproterozoic East African Nickel Belt (EANB). Episodes. 39. 319-333. 10.18814/epiiugs/2016/v39i2/95780.



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This is a good time to download the first Ebook (FREE) from Samso as it is all about VMS (Volcanogenic Massive Sulfides).


About David Riekie

Executive Director


David is an experienced director in the capacity of both Executive and Non-Executive roles of ASX listed companies. His career has spanned multiple continents. Within Africa Namibia, Tanzania, Eritrea, South Africa, DRC and Mozambique are notable. He has overseen exploration and resource development, scoping and feasibility studies, production optimisation, stakeholder engagement, acquisition programs and expansion initiatives.


David most recently has served on the Boards of remote power generation and energy solutions specialist Zenith Energy Limited (ASX: ZEN) and independent uranium producer Paladin Energy Limited (ASX: PDN). David also served as interim CEO to Poseidon Nickel Limited (ASX: POS).


David holds a Bachelor of Economics and a Graduate Diploma of Accounting from Flinders University and has been a member of the Australian Institute of Chartered Accountants since 1986.


About Adavale Resources Limited (ASX: ADD)

Adavale Resources Limited (ADD) holds 100% of the Kabanga Jirani Nickel Project (“the Project”) consisting of six granted licences and one application covering nearly 1145km2. These licences are adjacent and along strike from the world’s largest undeveloped nickel sulphide resource, namely The Kabanga Deposit which contains a measured, indicated and inferred resource of 58Mt @ 2.62% Ni (Barrick and Glencore, 2014).


The ADD licences are located along a trend of mafic/ultramafic intrusions known as the Kabanga Musongati belt and contain Nickel Sulphide ores and PGE concentrations.



Adavale Resources Limited also holds 100% of the Lake Surprise Project with three exploration tenements covering nearly 396 km2 within part of the highly prospective sedimentary uranium province within the northern part of the Lake Frome Embayment.

These tenements lie within a flat, semi-arid landscape located just to the north of the Flinders Range in South Australia. These include EL 5892 comprising 92km2 , EL 5893 comprising 167km2 and EL 5644 of 137km2. These are known as the:

  1. Jubilee Prospect

  2. Mookwarinna Prospect

  3. Canegrass Swamp Prospect


The Lake Surprise Project Area is located in South Australia, 550km north of Adelaide, and 70km East of Marree. The company holds 3 tenements, EL5892, EL5893, and EL5644 with a total area of 396 km2. Adavale explored the original tenements in this area between 2007 and 2011 with 486 holes drilled in that period.

 

Disclaimer


The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer.



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