Adavale Turns A$900k Deal into 115,000oz Gold Resource in Just Nine Months

• Adavale Resources acquired the Parkes gold-copper project nine months ago for A$900,000, rapidly establishing a maiden JORC resource of 115,000 ounces at the brownfields London-Victoria site, a former BHP gold mine
• Executive Chairman Allan Ritchie and newly appointed Managing Director David Ward lead a skin-in-the-game team with directors holding over 5% of the company and taking remuneration almost exclusively in shares, backed by cornerstone investor Gleneden with 20%
• Phase 1 drilling at London-Victoria delivered standout results including 48m at 0.82 g/t with high-grade zones of 25m at 1.2 g/t, located 100m below the existing pit, with Phase 2 drilling currently underway
• The company employs a dual-strategy approach: brownfields development at London-Victoria targeting near-term production through tolling agreements or in-situ processing, while systematically exploring greenfields targets for epithermal and porphyry discoveries
• Low holding costs on uranium and nickel assets, operational mill on-site, proximity to Alkane's Tomingley processing facility (50km), and recent discovery of historic BHP grade control maps provide multiple pathways to value creation

Adavale Resources Limited (ASX: ADD) represents a strategic entry point for investors seeking exposure to Australian gold exploration with a clear pathway to near-term production. In a comprehensive interview, Executive Chairman and CEO Allan Ritchie, alongside newly appointed Managing Director David Ward, outlined the company's progress at the Parkes Project in New South Wales, a portfolio centered on the London-Victoria brownfields opportunity and complemented by greenfields exploration targets. The discussion provides insight into how a disciplined team with aligned incentives is systematically advancing a former BHP asset acquired just nine months ago, while maintaining optionality across multiple geological settings in the prolific Lachlan Fold Belt.

Corporate Structure and Aligned Incentives

Adavale's corporate structure distinguishes it from typical junior explorers through meaningful insider ownership and minimal cash compensation. Ritchie emphasised this alignment: 

"All of the directors and officers in the company, the four of us, have bought on the market, acquired over 5% of the company. Most of us take our directorship package in shares only. I take a modest amount as the executive chairman and CEO just in shares." 

This structure ensures capital preservation, with funds directed toward ground activities rather than administrative overhead.

The company secured cornerstone investment from Gleneden, who holds 20% of Adavale. Ritchie described Gleneden as "a very successful backer of numerous mining stocks and real specialists over decades." This backing provides both capital stability and strategic guidance from an investor with a proven track record in the Australian resources sector.

The London-Victoria Acquisition: Value Creation in Nine Months

The Parkes Project acquisition exemplifies opportunistic dealmaking in the junior exploration space. Adavale acquired the project for A$900,000 in an all-scrip transaction from the same vendor who supplied Waratah Minerals' Spur project two years earlier.  Waratah Minerals’ subsequent performance - growing from a small-cap to over A$150 million market capitalization - validates the vendor's asset quality.

Within months of acquisition, Adavale established a maiden JORC resource of 115,000 ounces (107,000 ounces at higher cutoff grades) at London-Victoria. Ritchie noted the value creation: 

"If you think about the buy price, the amount of ounces we created, we created some significant value there." 

The speed of resource definition - combined with immediate commencement of drilling programs - demonstrates the team's operational efficiency and geological understanding.

Technical Progress: Structural Understanding Drives Targeting

David Ward's appointment as Managing Director brings direct historical knowledge of London-Victoria, having worked for the previous operator during his early career as a geologist. This institutional memory, combined with modern exploration techniques, is unlocking the deposit's potential.

Ward explained the technical approach: 

"We've actually got a specialist structural geologist to come in. He's used some pit mapping and some new technology that we're using on some of the drill holes in order to create a three-dimensional structural model which we're using now to validate by drilling some more holes in a specific area around the southern part of the pit."

The structural work identified a parasitic fold on the east limb of a larger anticline, with dextral strike-slip shearing overprinting the fold structure. This understanding provides predictive capability for mineralization continuity. 

A significant discovery during due diligence was historic BHP grade control data. Ward described the find: "We've actually discovered hand-drawn - coloured with pencils - old-school, grade control maps. Hundreds of them. That takes the data that we have in the pit from 25m spacing to 5m spacing." This granular data set, currently being digitised, provides unprecedented understanding of mineralization controls within the existing pit.

Interview with Allan Ritchie, CEO & David Ward, MD of Adavale Resources

Phase 1 Drilling Results and Phase 2 Program

Adavale's Phase 1 drilling program consisted of 14 holes totalling approximately A$350,000 - demonstrating cost-effective exploration execution. The program's standout result came from the final hole. Ward recounted: 

"Hole 14 intersected 48m at 0.82g/t with a high-grade portion of 25m at 1.2g/t about 100m vertically below the pit on the southern end of the deposit."

Significantly, this intersection occurred well outside the existing resource envelope, indicating substantial expansion potential. 

Phase 2 drilling, currently underway with similar budget allocation, follows a dual-pronged strategy. Ward explained: 

"We're following up on that hole 14 and the structural geology model in the southern part of the pit, getting some extra data in and around that, but then we're trying to expand out from that point as well. By the time we get to Christmas, we would have done probably another 13 or 14 drill holes in that area."

The company employs cost-effective reverse circulation (RC) drilling augmented with downhole televiewer technology - effectively creating "a digital version of an oriented core hole" at percussion drilling costs. This approach maximises geological information extraction while maintaining capital efficiency.

Near-Term Production Pathway

London-Victoria's infrastructure and regulatory position provide multiple pathways to cash flow generation. The existing pit currently operates as a quarry, removing road base from the eastern wall - effectively pre-stripping waste for future mining operations. Ward noted: 

"The mill that was operating at the time is still operating. They're just doing something else with it, they're disc crushing lime instead of rock with gold in it. So they're mining, they're ready, the mill's going 24/7."

For early production, Adavale identified tolling opportunities at Alkane Resources' Tomingley processing facility, located 50km away via newly constructed roads.

The company plans metallurgical testing and scoping studies in late 2026, following a Phase 3 drilling program. Ward assessed the processing requirements: 

"It looks very much mineralogically like the Tomingley deposit just up the road. Metallurgically we think that it should be very amenable to a standard run-of-the-mill simple CIL plant."

Greenfields Exploration Strategy

Beyond London-Victoria, Adavale holds five greenfields exploration licenses targeting epithermal and porphyry-style mineralization. The company employs systematic, cost-effective techniques including grid-based geochemical surveys, induced polarization (IP), and magnetics - methods championed by respected explorers in the region. Ritchie outlined the approach: 

"We're using modern techniques, grid-based geochemical surveys. It's a much lower cost approach. We'll do some IP and magnetic survey, some cheap geophysics as well to then vector into potential drill targets."

The Ashes prospect demonstrates this strategy's potential, with surface samples returning up to 10 grams per ton gold with associated silver. 

Capital Allocation and Cost Management

Adavale's operational efficiency stems from disciplined capital allocation and minimal corporate overhead. Phase 1 and Phase 2 drilling programs each cost approximately A$350,000 all-in - enabling multiple drill campaigns annually without significant dilution. 

The company maintains low holding costs on uranium and nickel assets acquired during previous cycles, positioning for commodity price recoveries without current capital demands. Ritchie emphasised the efficiency: 

"Our corporate costs are very low. We're securing the maximum bang for buck. There's no lifestyle company here. Our reward is from share price performance."

The Investment Thesis for Adavale Resources

• Aligned Management Team: Directors own over 5% of shares, take remuneration almost exclusively in equity, and maintain minimal corporate overhead, ensuring capital flows to exploration and development activities rather than salaries
• Asset Acquisition at Significant Discount: A$900,000 all-scrip acquisition delivered 115,000-ounce maiden JORC resource within months, demonstrating multiple times value creation relative to purchase price
• High-Grade Extension Confirmed: Hole 14 intersected 48m at 0.82 g/t gold (including 25m at 1.2 g/t) located 100m below existing pit and outside current resource envelope, indicating substantial expansion potential
• Former BHP Asset with Infrastructure: London-Victoria benefits from historic exploration data (including detailed grade control maps), existing pit access, operational nearby mill, and proven geological model from previous mining operations
• Cost-Effective Exploration Execution: A$350,000 drill programs delivering 13-14 holes demonstrate capital efficiency, while downhole televiewer technology provides core-hole quality data at RC drilling costs
• Systematic Greenfields Discovery Potential: Five exploration licenses in Lachlan Fold Belt targeting epithermal and porphyry systems using proven low-cost methodologies, with surface samples at Ashes returning up to 10 g/t gold
• Rapid Execution Capability: Team delivered JORC resource, completed geophysical surveys, executed drilling programs, and made 20+ site visits within nine months of acquisition, demonstrating operational velocity

Australia's junior gold explorers are experiencing renewed investor attention as elevated gold prices (exceeding $4,000 per ounce) converge with demonstrated pathways to near-term production through tolling arrangements and brownfields development. The Lachlan Fold Belt - hosting world-class deposits including Cadia-Ridgeway and Northparkes - continues attracting major miner partnerships, validating regional prospectivity. 

Adavale's London-Victoria asset exemplifies this opportunity: a former BHP operation with proven geology, existing infrastructure, and proximity to processing facilities.

TL;DR: Executive Summary

Adavale Resources has rapidly advanced the former BHP London-Victoria gold mine from A$900,000 acquisition to 115,000-ounce JORC resource and high-grade drill intercepts (48m at 0.82 g/t, 100m below pit) within nine months. Led by an aligned management team holding over 5% equity and compensated exclusively in shares, the company is executing cost-effective drilling programs while maintaining optionality across greenfields porphyry and epithermal targets in the prolific Lachlan Fold Belt, supported by 20% cornerstone shareholder Gleneden.

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