The Adavale Resources Limited (ASX: ADD) share price has soared into the green today after the company announced a key uranium license update.
The Adavale share price is currently 7.9 cents, up 19.7% on the previous close of 6.6 cents. In early trade, the Adavale share price skyrocketed to 9.4 cents, which was a 42% gain.
Here's what we know.
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What did Adavale announce?
Adavale advised that planned work will commence in October at the company's Lake Surprise uranium project in South Australia.
The Adavale share price jumped immediately at the market open following the news.
There is a selection of works to commence involving high tech mining assessments and sampling regimes. For instance, there is "1,100 line kilometres of ultra high resolution gamma surveying" that is planned at the site to "define known surface anomalies".
Adavale will also conduct geological sampling and analysis of samples to follow up on "historic portable XRF values".
Additionally, the program intends to scope further works to upgrade its "historic exploration", in order to comply with JORC 2012 standards.
Given the 5-year price high that uranium is fetching in the commodity markets at the moment, it's no wonder investors are responding to Adavale's announcement.
Uranium has shot up 63% from about $US30/lb to trade at US$49.40/lb in just over a month. It's as if someone drew a straight line directly north when looking at its chart.
Investors speculating on the uranium story obviously enjoyed the news and are buying Adavale shares in droves today. More than 36.9 million shares changed hands in the first three hours of trading today.
Despite this morning's surge, the Adavale share price is trading below its 12-month high of 11 cents.
What did management say?
Speaking on the results, Adavale's chair, Grant Pierce said:
We are rather excited to be finally preparing for the commencement of this uranium program in South Australia. We have been in a state of readiness for some 6 months but as experienced by many exploration companies in Australia, COVID cross border travel restrictions disrupted the best laid plans. It will be great to see some new results on these licences that show so much promise.
Adavale Resources share price snapshot
The Adavale share price has had a bumpy year to date but is still 56% in the green since 1 January. Even better, it's up 158% over the past 12 months.
Over the past month alone, the Adavale share price has climbed 48%.
These results have far outpaced the S&P/ASX 200 index (ASX: XJO) which is up about 25% over the past year.
