Australian mining company Adavale Resources has, through its subsidiary, secured a prospecting licence at Kabanga Jirani nickel project in Kagera, Tanzania.
The prospecting licence covers an area of 3.74km² and is located within the broad Luhuma trend.
Adavale applied for Luhuma after considering it as a geologically significant addition to its exploration tenure.
The trend has historical results and falls within the broader 15km Luhuma trend, which was discovered by the company.
It is said to have an historical 8.4m intersection of massive sulphide grading with 1.14% concentration of nickel.
The company owns a 65% stake, with rights to own up to 100% interest in the project.
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Despite being small in size, the trend has coincident magnetic and gravity anomaly based on proximal surveys conducted by the company, in addition to historic drillholes undertaken by BHP in the 1990s.
Currently, Adavale plans to drill another hole and conduct downhole electromagnetics (DHEM) and audio magnetotelluric (AMT) surveys at the site.
This will further help the company in assessing the potential step out drilling to fully understand the potential extent of the mineralisation and its orientation.
Adavale Resources chairman Grant Pierce said: “Adavale has from the outset applied for its licences on geological merit rather than nearology alone. The company recognised Luhuma Central as a coveted area, being within favourable lithologies and with demonstrable nickel sulphide mineralisation. It will play a key role in our broader exploration success.
“The granting of Luhuma Central is opportune timing as Adavale has recently recommenced drilling, being a ~5,000m programme and Luhuma Central will definitely feature in this programme.”
Last month, Adavale conducted drilling at the project. New soil anomalies such as coherent copper in soil anomaly of more than 15km strike has been defined. It is located next to elevated nickel and cobalt soil anomalies as well as certain mafic indices.
This result is considered to be significant as the neighbouring Kabanga deposit owned by Lifezone and BHP contains a mineral resource of 58Mt at 2.62% nickel along with 0.35% of copper and 0.19% of cobalt.