Adavale Resources (ASX:ADD) drills 47m at 0.68g/t under London-Victoria

Two rigs running, 26 holes at the lab and a mid-Q3 resource update now in view.

Adavale Resources (ASX:ADD) has dropped another batch of assays from its London-Victoria gold drillout in the NSW Lachlan Fold Belt, and the picture below the historic open pit keeps getting wider rather than narrower. Thirteen new reverse circulation holes have come back, including a 47m intercept at 0.68g/t gold from 121m in ALRC056 and a 28m hit at 0.62g/t in ALRC058.

These 13 holes account for 2,751m of the 14,155m drilled to date, with assays from a further 26 holes already lodged at the laboratory. Two rigs remain active on site, one on RC and one on diamond core.

The setup investors should care about is fairly simple. Adavale is systematically infilling and extending a known deposit to feed an updated Mineral Resource Estimate, now guided to mid-3Q CY26. Everything in today’s release either supports that timeline or quietly improves the odds the update lands bigger than the existing 115koz Inferred base.

Wide southern intercepts are doing the heavy lifting on resource growth

The most important pattern in today’s results is the consistency of broad intercepts in the southern part of the deposit. ALRC056 returned 47m at 0.68g/t, ALRC058 delivered 28m at 0.62g/t and a separate 23m at 0.87g/t, and ALRC059 added 19m at 1.36g/t from 149m. These are the kind of true widths that move a Mineral Resource Estimate materially, not the narrow high-grade shoots that excite traders but barely shift tonnage.

The northern part of the system continues to show discrete higher-grade lodes, with ALRC029 hitting 4m at 3.60g/t. That dual character matters because it gives Adavale two distinct mining narratives. There is a bulk-tonnage open pit story to the south and a higher-grade selective story to the north.

The metallurgy result is the quiet good news in this release

Buried below the assay tables is preliminary sighter testwork on three composite samples that returned 24-hour cyanide recoveries of around 81 to 83% on the two higher-grade composites. Reagent consumption was low across all three, with sodium cyanide and lime use below 0.55kg per tonne. For a deposit being lined up for scoping studies, those numbers are about as friendly as preliminary metallurgy gets.

We think the market underrates how much this de-risks the eventual development story. A deposit that leaches cleanly with conventional chemistry at low reagent rates is a deposit that can be financed. The lower-grade southern composite only recovered around 68%, so variability work on diamond core will need to confirm the headline numbers.

What the MRE update actually needs to deliver

The existing London-Victoria Mineral Resource sits at 3.8Mt at 0.95g/t for 115koz at a 0.25g/t cut-off, dating back to May 2025. With 14,155m of new drilling poured into a deposit that previously carried only an Inferred classification, the Q3 update needs to do two things to re-rate the stock.

First, it needs to grow contained ounces meaningfully, ideally by extending the deposit south where the broad intercepts are landing. Second, it needs to move a chunk of the existing tonnage into the Indicated category, because a deposit you can study economically is worth more than one you cannot.

The Investors Takeaway for Adavale Resources

From here, the Adavale story compresses into a single catalyst. The mid-3Q CY26 Mineral Resource update needs to grow contained ounces and lift confidence categories enough to justify the 14,000-plus metres of drilling thrown at this deposit. With 26 holes still at the lab and two rigs turning, plenty of fresh data is still to flow.

Our concern is the usual junior explorer problem. Resource growth without a clear path to funded development just creates the next capital raise rather than the next re-rating, so investors will want to track cash position alongside the geology. For more coverage of ASX-listed gold explorers, browse our archive at stocksdownunder.