Adavale Resources hits strong evidence of nickel sulphides in Tanzania
Nickel sulphide is the type of nickel mineralisation easier made EV battery compatible
Source: Unsplash
Mentioned
KEY POINTS
- Adavale Resources kicks off 2023 with strong evidence of nickel sulphide mineralisation
- Absolute confirmation from testwork is still pending
- The company’s project is located in Tanzania, increasingly warm to foreign investment and projects
ASX-listed nickel explorer Adavale Resources (ASX:ADD) confirmed on Friday discovering host nickel sulphide rock in its latest drill run at its 100% owned Kabanga Jirani Project.
Located in Tanzania, a jurisdiction warming to foreign investment and development following the inauguration of leader Samia Suluhu Hassan, the project is a nickel sulphide play specifically, which is a different type of in-ore nickel mineralisation to that of nickel laterite.
For an explainer on what that all means, you can read Market Index’s nickel guide for 2023 here.
In short: nickel sulphides are more readily transformed into materials for Electric Vehicle (EV) batteries.
What did Adavale drill?
The company used a Diamond Drill (DD) rig to complete drill testing four holes for a combined 1,471m depth at three different prospect targets: HEM 2, HEM 4 and HEM 9 respectively.
“Whilst exploratory drilling of targets within Adavale’s 1,311km2 of tenure is still in its early stages, both drill holes at HEM 2 are considered the most promising to date, intersecting rock types that typically host nickel sulphide deposits,” Adavale CEO David Riekie said.
HEM 2 of most interest
The HEM 2 target is most promising, according to the company. It “intersected rock types over broad intervals that host nickel sulphide deposits.”
“The drilling provided a clear indication that the potential to host a more “primitive” nickel sulphide rich ultramafic component exists at HEM 2 at depth and further to the east from the area currently drilled,” Riekie added.
Further results are underway, as well as soil geochemistry tests ahead of the company’s 2023 drill run.
Diamond Drilling explainer
A DD rig is so named for the earth boring drill bit in question is tipped with diamond and shaped in such a way whole hard-rock cylindrical cores are trapped in a chamber that is then returned to surface.
DD drilling can typically go deeper than Reverse Circulation (RC) drills, which collect rock chips in a chamber from underground.
When you picture rows and rows of cores lined up in a warehouse somewhere: that’s from a DD rig.
Adavale's one year charts. Shareholders sold off the stock today, perhaps due to the confusing language used in today's announcement regarding the discovery of host rocks. Is it an over-reaction?
