Adavale Resources Limited

Thanks, Carl. Great event here for the Denver Gold Group. So you'll see here, just jumping straight into it, this is Adavale Resources. So in the last 20 months, we've acquired this project; this is the flagship site that you can see on screen. So we've gone from zero to 383,000 ounces in 20 months since acquisition. So that is from accommodation of our own drilling and mineral resource estimate updates and some work from the team in acquisitions, where we've acquired a really dominant land package in what we call the Parkes Thrust.

So this is the London Victoria Gold Mine. So this is a BHP gold open pit. So BHP mined this from 1988 through to 1996. And they took 155,000 ounces at 1.5 grams per tonne from this open pit. So you can see there, it's quite shallow. It's only 50 meters deep in the foreground there, and that pit is 1.5 kilometers long.

One of the key things that you can see here, and this is a key asset for the company, is that when the site was sold, when the gold price went sub $400, this site was purchased by a limestone miner. So in the left-hand side of the screen, you can see there is the process plant. It's a 550,000 tonne per annum process plant that was built by BHP Gold. So that is still operating. It's just been repurposed to crush limestone. So that is a bit of a key for us.

Also in the middle of the pit there, you can see that there is some mining going on on the right-hand side of the pit. So the ore deposit, gold deposit dips to the east, and that is effectively a cutback for us. So this is the existing landowner. This is not us. The existing landowner have been mining that for road base, road base only. And then, so the existing landowner has the rights to open-pit mine and process 24/7 from this site. So these are key environmental triggers that have been met already for this project.

So here is our standard disclaimer, which you could see on our website. So just the corporate overview. So you can see there that we've got about 400 million shares on offer. So a market cap of well under 20 million US, 20 million Aussie. So at 20 million Aussie we are well placed for some upside with some advancement for this project.

So there we are. We have the team. So our executive chairman, Alan Ritchie, and Nick Matich do not take cash as payment for their services. They just take shares. So you can see that we're well placed and aligned with shareholders for moving forward. And that gives some real growth to the story. So we're aligned with that growth.

So you can see we've got a cornerstone investor there at 20%. Directors and officers have 6.4% of the company at this stage. So some of the other larger ones there, the Collerie, which is part of the acquisition where we've taken up the whole southern strike of the Parkes Thrust. We'll go into that in a minute. Agricultural Equity Investments was the vendor of the project. This is the same vendor as the Spur Project into Waratah Minerals, if we're looking in central New South Wales. And then you'll see West Lime is the landowner for the site, and you'll see Alkane there with 1.4%. So Alkane came onto the register as an acquisition of some more tenure in the area, and I'll show you that in a second.

So we're in New South Wales. In Australia, New South Wales, this is the Lachlan Fold Belt. So this is one of the premier geological jurisdictions in Australia. This area in those green shapes there are the Ordovician volcanic sequences of the Lachlan Fold Belt. You can see this hosts Cadia Mine. That hosts North Parkes Mine, Tomingley, Peak Hill, McPhillamys, and Lake Cowal. So these are big scale. This is elephant country. So you can see, just west of Sydney. You go an hour west of the Cadia Mine, and you'll see that's where we're placed. So you can see in the orange there, this is the current Adavale tenure for this site.

So talking about how many large players there are in the area, you can see this is just a bit of a snapshot of who is operating in this area. So we have large companies doing deals, joint ventures with juniors in the area, Anglo, Newmont, Goldfields, and so on. And you can see there Alkane and Mandalay; that was a merger of equals. So that Alkane now is a $3 billion company. Evolution, of course; some of the largest players in the Australian gold market, gold and copper market are in this space. So there on the bottom right, you'll see, so New South Wales is in that space. And in New South Wales, there's been a recent investment from the Pentagon office for some strategic capital into the Sillastein Project just to the west of us.

So this is a bit of a story about how we got to that 383,000 ounce resource. So you can see this is where we started. This was the original acquisition for those four licenses. London-Victoria Mine was within that. So this was our original acquisition just 20 months ago. Then we added to that with a few of our own pegging. And then from there, we did a deal with Alkane, 100% in shares. So this has added some resource, some new tenure to the south of London-Victoria and a long strike to the north at a prospect called Ashes.

And then the final acquisition we've done just not that long ago was that OMX transaction that took in Kaleri, and that tied up the entire southern strike of that Parks Thrust. So you can see that we've got a line there. What we call the Parks Thrust is the right-hand side of that image. So that Parks Thrust takes in Domingue and Peak Hill. The northern half of the Parks Thrust is Alkane. It's where Alkane started. And we now hold the whole southern strike of that Parks Thrust. And then just last week, we did a resource update. So that is 332,000 ounces just for that London-Victoria area, and then another 51,000 ounces at Kaleri as part of that acquisition.

So there's a consolidated tenure map for that whole Parks area. You can see that there's really only four players there now. So we are the only one that is below $3 billion market cap in that space. Alkane, Evolution, Fortescue, and now Adavale. So you can see on the right-hand side of the screen, there are the two main brownfield sites, London-Victoria and Kaleri. They're about 20 kilometers apart, and each of those green points are prospective zones for some greenfields upside.

So just getting on to the resource, this is the London-Victoria Mine. So the big red, long London-Victoria deposit, that is that 1.5 kilometer long open pit that was mined previously by BHP Gold. So that resource we've just taken from 115,000 ounces to 263,000 ounces, and then we've included Armstrong's and Victoria South. Armstrong's was actually part of an acquisition that we picked up recently. It was just off to the west of the license, and Victoria South we'll go into in a minute. So there it is, a third of a million ounces in that there already, and we've got to that in just 20 months from the original acquisition.

So this is the mine site. This is the process plant that was built by BHP Gold. So in the background there, you can see that square shape. That is the old tailings dam. It has not had a lift on it, so there's plenty of space there to be had from the tailings perspective, and this is the process plant. So this runs as a bit of a video. There it is spinning, 550,000 tons per annum process plant built and operated by BHP Gold. There's the CIL circuit in the background. The CIL circuit hasn't been used for 27 years but is in pretty good condition.

And then the other aspect to this site is you can see that there's some triples in the background, some road trains. So the existing landowners use this mill to process lime from another site. So all of this infrastructure is there and available, and the development approval to process 24/7 and open pit mine is available for this site and already been ticked off. So you can see this is not a virgin open wheat paddock where all of these environmental hurdles need to be jumped. This is actually done all for us.

Just getting onto a bit of the geology. The left-hand side of the screen, this is where we started. So we did a couple of rounds of drilling, starting about a year ago. So on the left-hand side, you can see those drill holes at the top in the fainter lines. This is the BHP drilling data that we used to create that original 115,000 ounce resource, and this is our drilling. So that 28 meters at 1.5 is about 50 meters below that pit, straight down the shear zone. 25 meters at 1.2. This is at the southern end of the pit, and at the northern end of the pit, you can see those 13 meters at nearly 10, 11 at 5, 10 at 2; these are all drilling that was done. Those two left-hand side ones was drilling done by BHP that were left there and are exposed in the bottom of the pit. It was just there ready for us to get stuck back into it.

So this is some more of the drilling. So the work that we'd done at the north and south of that open pit gave us the confidence to fill in the gap in between. So there on the right-hand side, all of those drill holes is just Adavale drilling. It's the first time anyone has drilled on this site for 30 years. So we've filled in that space to 25-meter spacing. There you can see this is a representative section for one of the drill holes that we actually put out late in the drilling program. We got 19 meters at 4 grams per tonne which included 4 at 15. So you can see that that gold-bearing shear zone is open at depth and just continues on. So that drilling that we've done is added to that resource. Half of that resource is now indicated category, so we can move from there into a scoping study in the near future, in the next month or so.

So looking west again, this is the long section. That line there, that one-mile-long open pit, is the 115,000 ounce resource that we'd completed just based on the historic drilling from BHP. No one had touched it for 30 years, and then this is now where we're at. So that resource there has got to 281,000 ounces just for that open pit, and includes a bit of what we see on the left-hand side, Victoria South. So that black line that is pointed out as the pit shell, all of the resources underneath that line are not included in our resource estimate. The resource estimate is just within that 400... $4,200 ounce pit shell. So there's more upside to be had below that pit.

You can see there's not many holes drilled beneath that. That red patch on the left-hand side is one of the deeper holes we drilled into the system. That was a diamond hole that we drilled late in the drilling program, which is that hole there you can see in cross-section, 21 meters at 2.3 grams per tonne. So you can see that that falls outside of the existing pit shell. So that is outside of the current resource. So this just provides upside into the future for further underground additions to that existing resource down dip.

So then taking a step out from that London-Victoria area. So you can see the open pit there. That's that one mile long, 1.5 kilometer long open pit. And each of those wide parts of the pit, the three wide points, are boudins along a shear zone. So we know from the geological studies and the structural geology studies that those boudins will continue along strike, and we'll get repeats, parallel repeats on the west and east side. So the left-hand side's green there, that is gold in soil anomalies. Victoria South there has already got a few drill holes in it, so there's an 18,000 ounce resource. Armstrong's, which was part of one of our acquisitions, on the left-hand side there, that is another 51,000, 52,000 ounces defined by gold in soil anomalies and then drilled on. The green numbers there on the right-hand side are the corresponding drill holes that have been drilled in there.

So the reason why these things weren't collected by BHP at the time, the blue line on the right-hand side was the BHP gold mining license. So that mining license did not include these surrounding exploration areas. So you can see that there's plenty of opportunity to take our existing one-third of a million ounce resource that's in that field of view, and then increase that to a significantly higher number without too much trouble.

So just looking at Victoria South again, this looks like it is directly along strike to the south. This is the historic drilling for Victoria South. So at the time, this was drilled in 1996. They only drilled 60 meters deep because the gold price was 400 bucks. So the only reason why they did that is because they didn't think that they could make money out of 1.5 gram dirt below 50 meters. So obviously there's a really good opportunity for us to add more resources just by drilling down dip of that existing shear zone with that mineralization. And there on the right-hand side, our chairman's favorite number is 6 meters at 41 grams per tonne. So you do get some really high-grade stuff within this deposit. We're looking forward to following up on this prospect in the next couple of months.

So that was London-Victoria. Moving 20 kilometers south within that acquisition area, this is the Kalvie mining license. So this is a granted mining license. So we acquired this in an all-share transaction. And this is 51,000 ounce resource at 1.83. So you can see it's very shallow. There's some really high grades in there. There's a hole right in the middle of that, which is 16 at 16. So there's anecdotal evidence to suggest there's quite a bit of free gold in this system as well, and visible gold in drill chips. And there's a lot of upside to be had there. So this is only 20 kilometers to the south, and we hope to be including this resource into the scoping study with a view of processing it back at the London-Victoria process center.

So stepping out again. So the left-hand side there, you can see where the Kalvie is. Kalvie is at the south. London-Victoria and Armstrong's, they are 20 kilometers apart. And then you go another 20, 25 kilometers up to the north, still within our leases. You can see we've got some greenfields assets there. This is the Ashes prospect. So on the right-hand side, you can see that those are gold at surface. These are outcropping gold, silver, and copper veins. And this is only just a few kilometers east of the North Parkes Mine. So when you cross over the boundary on the left side, you cross over that line that says Parkes Thrust, you get into the classic porphyry copper-gold, classic elephant country porphyry copper-gold epithermal deposits.

So the line that runs through those gold hits there, that is actually an exploration license boundary. So the right-hand side of that was a lease that we picked up off Alkane. This is how Alkane became one of our shareholders, so that we've acquired that side of it. So you can see the deposit here was crossing the boundary. So we have a great IP anomaly, 30 millivolt IP anomaly right underneath these outcropping veins that has not been effectively drill tested because it was right under an exploration license boundary and has been for many, many years. So we're really looking forward to sticking a few holes into that around Christmas time this year. So some great greenfields targets that will provide a really, really good hit if we can knock a couple of good holes into that.

So then outside of that, those prospects to the north, so on the west side of that line, we've got some great smoke in some of these, that has not been effectively tested with modern exploration. The Corner prospect, Northern Diorite, you can see that there's some really good smoke in some shallow work there. So the Corner prospect, you can pick up a plus 1 gram per tonne rock chip sample there any day of the week. There's other prospects, Koenor, which was a mine that was operated through until 1930, which is not far to the east of London-Victoria itself. It was running up to 43 grams per tonne, not been effectively drill tested with any modern techniques.

So there we have it, 383,000 ounces in 20 months from acquisition to last week. And we've got plenty of upside to be had in the immediate area and plenty of upside to be had in the greenfields prospect areas. Thank you.

Wonderful. [audience applauding] Thanks, David. We don't have time for questions, but great presentation and great story and all the best.

No worries. Thanks, Ralph.