Adavale draws strong backing for next chapter of Parkes gold story

• Adavale receives firm commitments for a $4.65m placement
• Existing and new strategic investors back the next Parkes work program
• Resource drilling and a November scoping study lead the priorities

Special Report: Adavale Resources has received firm commitments for a $4.65 million placement to accelerate exploration and development work at its belt-scale Parkes gold-copper project in central New South Wales.

Adavale Resources (ASX:ADD) attracted support from a combination of existing shareholders and new strategic investors, including its cornerstone investor, for the two-tranche raising priced at 3c per share.

The backing comes after a busy 20 months in which the company has built a 383,000oz gold Mineral Resource inventory at Parkes, anchored by the historic London-Victoria gold mine. 

“The support reflects the significant progress Adavale has made over the past 20 months, from acquiring the Parkes Project with no JORC Resource to assembling a 383koz gold inventory across a contiguous belt-scale landholding in the heart of the Lachlan Fold Belt,” Adavale executive chairman and CEO Allan Ritchie said.

“The capital raised will accelerate both resource growth and the completion of our Scoping Study next month, which together form the foundation for the next phase of value creation at London-Victoria and across the broader Parkes Project.”

Read: Gold boom puts Adavale on course to revive forgotten mining district

Backing the next leg at Parkes

The placement comprises up to 155 million new shares at 3c apiece, representing an 11.8% discount to Adavale’s closing share price on October 19.

The first tranche will involve the issue of approximately 91.48 million shares under the company’s existing placement capacity, with settlement scheduled for October 28 and trading expected to begin the following day.

The remaining shares under tranche two are subject to shareholder approval at the company’s annual general meeting, planned for late November.

Directors and management have also subscribed for $120,000 worth of shares under the placement, subject to shareholder approval.

The proceeds are aimed toward several work streams across Parkes, where Adavale is pursuing further gold resource growth while assessing the potential development pathway for London-Victoria.

A key focus will be expansion drilling around the existing London-Victoria resource and nearby satellite deposits, including Calarie.

That follows the company’s September resource update, which lifted London-Victoria’s contained gold to approximately 263,000oz, including 126,000oz in the Indicated category.

The update incorporated an 85-hole drilling program, representing the first standalone drilling campaign at London-Victoria in almost 30 years. 

The Parkes inventory also includes mineral resources at the Victoria South, Armstrongs and Calarie deposits.

Adavale has previously identified six additional near-mine gold targets, giving the company further opportunities to test around its established resource base.

A gold belt with copper credentials

Parkes sits within the Macquarie Arc of the Lachlan Fold Belt, one of Australia’s most significant gold and copper geological provinces.

The Geological Survey of NSW identifies the Macquarie Arc as a major porphyry copper-gold province hosting deposits including Cadia and Northparkes. 

For Adavale, that regional setting offers two complementary exploration avenues.

London-Victoria and its nearby satellite deposits are focused on structurally controlled gold mineralisation, with further drilling aimed at expanding the existing resource inventory and testing extensions around the historic mining area.

The company’s Ashes prospect provides a separate copper-gold exploration opportunity, targeting a potential porphyry-style system.

Previous surface rock-chip sampling at Ashes returned grades of up to 10.65g/t gold, 1.98% copper and 158g/t silver, while geophysical work has identified chargeability anomalies that warrant follow-up.

Those selective surface samples and geophysical responses are being used to guide the next stage of exploration, which is expected to include first-pass drilling, further geophysical surveys and surface geochemistry.

The mix of near-mine gold prospects and earlier-stage copper-gold targets gives Adavale several opportunities to advance across its approximately 610km² Parkes landholding, spanning about 70km of contiguous strike.

November study in sight

Alongside drilling, the placement proceeds will support metallurgical testwork and pre-development activities at London-Victoria.

The company’s scoping study, expected in November, is assessing potential open-pit configurations, project scale, recovery assumptions, permitting requirements and the possible inclusion of Calarie as supplementary ore feed.

The study should provide a clearer picture of the development options available for the resource base, while further drilling and metallurgical work help shape subsequent decisions.

This article was developed in collaboration with Adavale Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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