Mustang good to see you back again, and each to their own of...

Mustang good to see you back again, and each to their own of course. As you well know we're only just getting started in Kabanga and there is an enormous amount of targets and ground to cover still. We just need to get more drill-bits into the ground!

You must admit though with rising Nickel prices, scarcity of large supplies (according to this article and BHP), Electric Vehicles becoming mainstream, and Adavales neighbour being a monster Nickel mine in a known fertile region for minerals, it makes Adavale (with its tiny market cap) a compelling and appealing speculative add?

@Gowatch great article. Here is a working link and some of the content is below

Click here
https://tinyurl.com/mup4asxn

Previously explored by mining giants Glencore and Barrick, who pumped more than 600,000m of drilling into Kabanga before relinquishing it in the downturn, the mine is regarded as the largest undeveloped nickel suphide resource in the world, containing 58Mt of ore at a grade of 2.62%, the equivalent of 1.86Mt of nickel metal.

The orebody is so large Kabanga compares its main, 1.2km deep orebody to four Eiffel Towers.

With a potential mine life of over 30 years and nickel prices hitting ~11-year highs of just under US$22,000/t on Wednesday, it is not hard to see why BHP is interested.

It is not BHP’s first rodeo in Tanzania. In fact BHP ran geophysical surveys on ground held by a nearby ASX-listed junior back in the 1990s.

Adavale Resources (ASX:ADD)executive director David Riekie, whose $18 million ASX-listed small cap controls around 1200km2 of exploration licences immediately next to Kabanga in Tanzania’s Karagwe-Ankolean belt, says the deal demonstrates the massive potential of the new mining district.

“I think it sends a very strong signal,” he said. “I think it’s really positive for us, the fact that it’s now recognising Tanzania as a destination of opportunity.

“It’s what we’ve thought for a while, but it needs to be reflected in market activities which is what we’re seeing now.”

Riekie said companies like BHP will have to look further afield to find new sources of nickel sulphides given the rarity of large fields globally.

“So further afield was Canada, further afield is Tanzania, there’s probably going to be other places,” he said.

“But again, there’s (only) a few spots in the world where you see these rich nickel sulphide opportunities.

“One of them is Western Australia, one of them’s Canada, the other one we’re going to see is going to be in Tanzania.”