Coffee with Samso: Finding nickel sulphide in Tanzania - Adavale Resources

Like any other industry, when the market is hot, great assets become hard to acquire. Adavale Resources Limited (ASX:ADD) has its assets next to one of the largest undeveloped nickel assets in the world, with similar geology and geophysical signatures. CEO Allan Ritchie shares with us the long journey of the company to get to where it is now. There is no hiding from the fact that this is an early stage play but I can sense excitement in the tone of his voice and a good dose of bravado about the project. What he did not say on camera is that management is driven by capital appreciation as they are not paid large amounts of salary. Their reward is in the shares that they own. It is not about burning cash with large salaries. This is a great strategy and one that is not seen in many ASX companies. Global law firm Clyde & Co advised UK mining company Kabanga Nickel on a binding framework agreement with the Government of Tanzania for the development of the Kabanga Nickel Project. According to its website, the Kabanga Nickel Project is in the northwest of Tanzania and is touted as a multi-billion-dollar project. It hosts an in-situ mineral resource of 58 million tonnes at 2.62% nickel, containing more than 1.52 million tonnes (3.30 billion pounds) of nickel, a key ingredient for the making of electric vehicles. Kabanga will support a mine life of at least 30 years with further exploration potential. Adavale has found itself at the right phase of a rising market. I recall my conversation with Scott Williamson on Producing Nickel for the EV Revolution - Blackstone Minerals Ltd (ASX:BSX), where he shared with us that nickel buyers are feeling the rate of demand rising faster than anticipation by the market. This is a great situation for the likes of Adavale as they move into discovery mode. Of course, this does not mean that discovery is guaranteed but as we have discussed in many previous episodes of Coffee with Samso, exploration is all about good management, funding and good assets. The rest is a game of lottery. I feel that Adavale ticks all the boxes required. Now it is time to roll up their sleeves and put in the hard work and engage the truth machine. Allan outlines a strong strategy and the milestones are there to be achieved. There is no hiding his expectation and with a market capitalisation of A$20 million in a strong market, the discovery would give shareholders many things to cheer about in the near future. PODCAST: This is a good time to download the first Ebook (FREE) from Samso as it is all about VMS (Volcanogenic Massive Sulphides). About Allan Ritchie CEO, Adavale Resources Allan Ritchie graduated from the University of Technology in Sydney in 1986 with a Bachelor of Business and subsequently attained a post-graduate Diploma in Applied Finance from the Financial Services Institute of Australia. His distinguished career spans 30 years in both the energy and resources sectors, in investment banking and leadership roles in both private and publicly listed companies. He currently serves as non-executive director of ASX-listed Hydrocarbon Dynamics Limited (HCD:ASX) and has previously served as executive director and deputy CEO of HK-listed energy group EPI Holdings Limited (0689.HKEX). Ritchie’s investment banking background includes structuring commercial transactions in the energy and resources sector. Senior roles include positions within Westpac, ANZ Bank, HSBC and BNP Paribas in Australia, London, New York and Asia Pacific. His career achievements have been recognised several times in BRW’s annual poll of bankers. About Adavale Resources Adavale Resources Limited holds 100% of the Kabanga Jirani Nickel Project consisting of six granted licences and one application covering nearly 1145sqkm. These licences are adjacent and along strike from the world’s largest undeveloped nickel sulphide resource, namely the Kabanga Deposit which contains a measured, indicated and inferred resource of 58 million tonnes at 2.62% Ni (Barrick and Glencore, 2014). The ADD licences are along a trend of mafic/ultramafic intrusions known as the Kabanga Musongati belt and contain nickel sulphide ores and PGE concentrations. Adavale Resources also holds 100% of the Lake Surprise Uranium Project being three exploration tenements covering nearly 396sqkm within part of the highly prospective sedimentary uranium province within the northern part of the Lake Frome Embayment. These tenements lie within a flat, semi-arid landscape just to the north of the Flinders Ranges in South Australia. These include EL 5892 comprising 92sqkm , EL 5893 comprising 167sqkm and EL 5644 of 137sqkm. These are known as the: Jubilee Prospect, Mookwarinna Prospect and Canegrass Swamp Prospect. The Lake Surprise Project Area is in South Australia, 550km north of Adelaide, and 70km east of Marree. Adavale explored the original tenements in this area between 2007 and 2011 with 486 holes drilled in that period. Please let us know your thoughts and send us any comment to info@Samso.com.au. Remember to Subscribe to our YouTube Channel, Samso Media and our mail list to stay informed and make comments where appropriate. Other than that, you can also give us a Review on Google. For further information about Coffee with Samso and Rooster Talks visit: www.samso.com.au Samso is primarily a consulting company that delivers digital information to the market in terms of creating organic content. Samso simplifies your story to customers or investors. Samso creates organic content for you to engage your audience and BRAND yourself to them. Samso provides bespoke research and presentation for clients to engage their customers or investors. Organic content allows audiences to feel a real sense of sincerity when you share your business strategy, allowing your business to stand out among the sea of social media traffic. Working with Proactive Group allows exposing our Insights to over 1.2 million monthly unique views internationally. Samso has nearly 30 years of experience in developing business ideas and concepts in the Australasian region. Samso has worked primarily in the mineral resources industry, capital markets and corporate finance. Noel Ong is the founder of SAMSO.   Disclaimer Samso and affiliated companies accept no responsibility for any claim, loss or damage as a result of information provided or its accuracy. The information provided is general in nature, not financial product advice, see a financial expert before making any investment decision. Your personal objectives, financial situation or needs have not been taken into consideration. There may be a conflict of interest present with commercial arrangements with companies and/or stock held. Samso or an associate may receive a commission for funds raised.