Adavale leases approved

ADAVALE Resources shares leapt around 70% in early trade after the explorer revealed the Tanzanian government had approved its Kabanga North and North East concessions, giving it over 400sq.km in a prospective nickel province.
Adavale leases approved Adavale leases approved Adavale leases approved Adavale leases approved Adavale leases approved

Kabanga.

Haydn Black

Reporter

Previously owned by BHP, Adavale's leases are covered with airborne radiometric surveys that defined several walk-up historical targets, adjacent to Kabanga, described as one of the world's largest undeveloped high-grade nickel sulphide resources of 58 million tonnes at 2.62% nickel.
 
The awards come less than two months after the minnow submitted applications for the areas, a swift approval given the Tanzanian government has done a lot to disincentivise investment over the past five years at it revised its mining code. 
 
The government stripped Glencore and Barrick Gold of the Kabanga project in 2018, part of a move that cancelled 11 retention licences in the nation, including Indiana Resources' undeveloped Ntaka Hill nickel project - something that is now heading to arbitration. 
 
ASX-listed Jervois Mining swiftly applied for the Kabanga area, and submitted a revised offer under a contested tender process in January, describing the wider area as one of the world's great nickel-cobalt basins.
 
Adavale, which is now headed up by former Freeport McMoRan bigwig Louis Clinton, clearly sees nearology potential, describing its new leases as offering a significant opportunity for the company as it pivots from South Australian uranium to ‘new energy metals' as Asia and Africa.
 
The junior is planning near-term field work to assess the existing targets. 
 
It is also talking with potential JV partners to help fund the work, hoping the "exceptional" low-impurity nickel located in nearby areas will be attractive to funders, and the mineralisation is repeated within its areas.
 
Adavale shares were up 60% at A4c in midday trade, valuing the company at $4.7 million. Its shares peaked at a five-year high of 5.9c in January.