Adavale Resources (ASX: ADD) has reported assay results from a further five drillholes completed at the London-Victoria gold mine in the Lachlan Fold Belt region of New South Wales.

The program comprised four reverse circulation holes and one diamond drillhole for a total of 1,156 metres. It returned an intercept of 19 metres at 4.0 grams per tonne (g/t) gold, including 1.0 metre at 52.6 g/t, together with continued broad gold intercepts below the existing 1.5-kilometre-long open pit.

“This is an exceptional result for London-Victoria. A broad intersection of 19m at 4.00 g/t gold, including 4.0m at 15.02 g/t, is significant in its own right, and its location well outside the existing mineral resource envelope makes it particularly important,” managing director David Ward said.

“The current 115,000 ounce mineral resource estimate is based entirely on historical drilling and contains none of the 85 drillholes now completed by Adavale.

“With assay results from only five holes remaining from the current resource drilling program, we are approaching the point where this substantially expanded dataset can be incorporated into an updated geological model and mineral resource estimate.”

Mr Ward said the upcoming mineral resource estimate will provide the first comprehensive measure of the impact of Adavale’s drilling, as the current estimate has not yet incorporated any of the company’s 85 completed drillholes.

“This new high-grade intersection, together with the broad and consistent mineralisation encountered throughout the program, reinforces the opportunity to materially advance the scale and economics of the London-Victoria gold deposit,” he said.

The high-grade intersection lies well outside the modelled limits of the current London-Victoria mineral resource estimate, and Mr Ward said its position shows that significant high-grade mineralisation continues beyond the area defined by the historical drilling used in the existing resource estimate.

After the final assays are received and validated, the full Adavale drilling dataset will be incorporated into an updated geological interpretation and mineral resource model. Completion of the updated London-Victoria mineral resource estimate is targeted in the coming weeks.

ADD was up 14.3% to 4.0 cents. The company had a market capitalisation of $13.79 million.

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