Ardea Resources Ltd. · ASX:ARL
Ardea Resources — Shareholder Meeting (November 2019)
34 slides from Ardea Resources's shareholder meeting presentation, Nov 27, 2019
Slide 1: Ardea Annual General Meeting Presentation
For personal use only 27 November 2019 – Ardea Annual General Meeting Presentation Presented by Andrew Penkethman
Slide 2: Disclaimer
Disclaimer For personal use only Important notice This presentation contains general information only and is, or is based upon, information which has been released to ASX or is contained in the Ardea Resources Limited (Ardea or the Company) prospectus dated 9 November 2016 (including supplementary p
Slide 3: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure, as at 25 November 2019 Experienced & dedicated management team with global experience in the Shares on Issue 117,300,435 resources sector, from corporate fundraising, exploration, discovery, Share Price $0.80 feasibility studies, developmen
Slide 4: Well funded West Australian-focused developer and explorer
For personal use only Ardea is a well funded West Australian-focused developer and explorer with a clear strategy ✔ Godolphin IPO executed as foreshadowed, >$7M raised From 2020, the three pronged strategy reverts back to the core West Australian Kalgoorlie Nickel Project (KNP) tenements Compa
Slide 5: Ardea Project Portfolio
Ardea Project Portfolio For personal use only Ardea is a West Australian-focused developer and explorer DEVELOPING the GNCP First drilling at Mulga Plum imminent and programs planned for 2020 on the Bardoc Tectonic Zone EXPLORING the KNP for gold and nickel Ardea over 3,500 sqkm tenure in Western Au
Slide 6: Ardea's flagship is Australia's premier Nickel Cobalt Project
For personal use only Ardea’s flagship is Australia’s premier Nickel Cobalt Project 6
Slide 7: The Kalgoorlie Nickel Project
The Kalgoorlie Nickel Project For personal use only • Kalgoorlie Nickel Project (KNP) has a globally significant nickel and cobalt resource of 773Mt at 0.7% Ni and 0.05% Co* – 5.6 million tonnes contained Nickel – 405,000 tonnes contained Cobalt • The Goongarrie Nickel Cobalt Project (GNCP) is part
Slide 8: KNP is globally significant
KNP is globally significant For personal use only Source: SNL database & Ardea Company data (KNP only). * Nickel equivalents defined using the following values (9 July 2019, US$ price): Ni ($12,646.50/t), Co ($26,647/t), Cu ($5,808.50/t). Ni equivalent grade (Ni eq. %) = Ni(%) + 2.107xCo(%) + 0.459x
Slide 9: KNP and GNCP are world class and largest in Australia
KNP and GNCP are world class and largest in Australia For personal use only Source: SNL database & Ardea Company data (KNP & GNCP only). * Nickel equivalents defined using the following values (9 July 2019, US$ price): Ni ($12,646.50/t), Co ($26,647/t), Cu ($5,808.50/t). Ni equivalent grade (Ni eq.
Slide 10: Goongarrie Nickel - Cobalt Project Highlights
Goongarrie Nickel - Cobalt Project Highlights For personal use only The GNCP is part of the largest Nickel Cobalt Resource in the developed world^ +20km Goongarrie Nickel Cobalt Project, part of the KNP • Potential multi-decade producer of high-quality nickel and cobalt • 100% nickel and cobalt offt
Slide 11: GNCP Advances in 2019 – Materials
GNCP Advances in 2019 – Materials For personal use only • Block modelling completed – 2018 resource estimates confirmed – Waste and Geomet material types further defined – Predominately free-dig with minor D&B in known hard zones (caprock and ferricrete) – Scandium estimated in new block models • Mi
Slide 12: GNCP Advances in 2019 – Approvals
GNCP Advances in 2019 – Approvals For personal use only • Community consultation throughout year, GNCP embraced • Reports finalised and ready for statutory approvals submission when the decision is made • Water sampling completed, focussed on pit-dewater sources – moderate salinity borefields identi
Slide 13: GNCP Advances in 2019 – Approvals
GNCP Advances in 2019 – Approvals For personal use only Activities undertaken to minimise project footprint: • Back filling of open pits • Sourcing neutraliser from open pit mining • Sourcing process water from pit dewatering • Extensive Flora and Fauna surveys undertaken across the project area 13
Slide 14: Thick, high-grade, single ore type, low strip ratio
Thick, high-grade, single ore type, low strip ratio For personal use only 14 14
Slide 15: Nickel Block Model – Cross Section 6669600mN
Nickel Block Model – Cross Section 6669600mN For personal use only Well understood mineralogy with consistent nickel and cobalt grades Large scale, long-life open pit mining potential 15
Slide 16: GNCP Material Source, Type and Quality
GNCP Material Source, Type and Quality For personal use only The high quality of Goongarrie ore is the key to project success: • Controls on mineralisation are well understood by applying Ardea’s quality geomet analysis • Ardea piloting studies completed in 2018 • High levels of nickel and cobalt, w
Slide 17: World-Class Mining Standards, Location & Infrastructure
World-Class Mining Standards, Location & Infrastructure For personal use only • Kalgoorlie, Western Australia offers world-class infrastructure in an established mining district – Over 125 years of mining in the region – Nil sovereign risk, very strong Local Government support – Goongarrie only 80 k
Slide 18: The Nickel Market – Reserve Life of Major Battery Minerals
The Nickel Market – Reserve Life of Major Battery Minerals For personal use only 350 • High levels of most battery minerals but not nickel 300 • Declining nickel reserves 250 • Growing nickel demand expected 200 to result in rising prices Years 150 • Not a matter of if, but when! 100 • Nickel suppli
Slide 19: Nickel Market Growth
Nickel Market Growth For personal use only Nickel Production and Consumption CAGR +5.8% • Production and consumption growth 2,500 have been increasing over the last Production (kt) five years. 2,000 Consumption (kt) • Market size doubled between 1995 Chinese Boom 2000-15 CAGR +3.1% and 2016, i.e. ~2
Slide 20: Projected Nickel Demand from Energy Revolution
Projected Nickel Demand from Energy Revolution For personal use only • Current nickel market size ~2.5 million tonnes pa • Depending on the scenario for the EV/SSB rate of adoption, nickel volumes to meet additional demand vary between 750,000 tonnes and 2 million tonnes pa • Nickel demand from EV/S
Slide 21: Exceptional greenfields opportunities in Eastern Goldfields
For personal use only Exceptional greenfields opportunities in well established host structures within the Eastern Goldfields 21 Drilling the Mount Zephyr project, northern Eastern Goldfields, February 2019
Slide 22: 2019 Exploration Program
2019 Exploration Program For personal use only 3,500km2 of 100% controlled tenure in one of Australia’s premier gold and nickel sulphide provinces Initial drilling completed at Bardoc Tectonic Zone (BTZ) confirms gold mineralisation potential with multiple targets Drilling confirms gold minera
Slide 23: Bardoc Tectonic Zone (BTZ)
Bardoc Tectonic Zone (BTZ) For personal use only One of the major gold-bearing structures of the WA Goldfields runs through the GNCP ~350 km long gold-producing regional shear / fault system (~65km controlled by Ardea) Hosts multiple historic gold mining centres Contiguous with Boulder-Lefro
Slide 24: BTZ - GNCP Advances in 2019 – Site layout and gold studies
BTZ - GNCP Advances in 2019 – Site layout and gold studies For personal use only • East side of the GNCP nickel deposit is proposed area for mine waste landforms and infrastructure, zone of extensive historic gold workings associated with the Bardoc Tectonic Zone (BTZ) – Initial gold targeting compl
Slide 25: Godolphin Resources (ASX Code: GRL) IPO closes early
For personal use only Godolphin Resources (ASX Code: GRL) IPO closes early Anticipated to list on ASX 18 Dec 2019 25 Examining historic mine workings at Lewis Ponds, NSW
Slide 26: Spinning out NSW assets to focus on WA Nickel & Gold
Spinning out NSW assets to focus on WA Nickel & Gold For personal use only • Ardea have delivered on the Godolphin spin-out & will reward Ardea shareholders through the in- specie share distribution. • 3,216km2 of 100% controlled, highly prospective tenure within the Lachlan Fold Belt (LFB) NSW. • 4
Slide 27: Investment Summary
Investment Summary For personal use only Goongarrie is Australia’s premier nickel-cobalt project Globally significant mineral resource in an infrastructure rich and stable jurisdiction provides ability to increase production from multiple processing hubs within the KNP Up to 100% off-take is availab
Slide 28: For further information regarding Ardea
For further information regarding Ardea, For personal use only please visit www.ardearesources.com.au 28 APPENDICES
Slide 29: A High Quality Nickel and Cobalt Project
A High Quality Nickel and Cobalt Project For personal use only Outstanding results delivered from PFS* and Expansion Studies completed in 2018: PFS of 1Mtpa and 1.5Mtpa base case over a 25-year mine life 1.0Mtpa 1.5Mtpa 2.25Mtpa completed Status PFS PFS ES Expansion study of 2.25Mtpa with a 25-y
Slide 30: Our Flagship Goongarrie Nickel - Cobalt Project
Our Flagship Goongarrie Nickel - Cobalt Project For personal use only Continuous nickel - cobalt mineralisation Insert picture of Goongarrie exceeding 15 km at Goongarrie Goongarrie JORC Resource 215.6 Mt at 0.71% nickel and 0.06% cobalt* Reserves optimised for 25 year mine life only, less than 20%
Slide 31: APPENDIX – Goongarrie Nickel Cobalt Project Resources
APPENDIX – Goongarrie Nickel Cobalt Project Resources For personal use only Summary of total mineral Nickel Cobalt Project area, comprising resources at Goongarrie Hill, Goongarrie South, resources within the Goongarrie Big Four, and Scotia Dam (14 March 2018). ( ) Camp Domains Cut-off Resource Size
Slide 32: APPENDIX – Reserves Defined for Goongarrie Nickel Cobalt Project
APPENDIX – Reserves Defined for Goongarrie Nickel Cobalt Project For personal use only Goongarrie Nickel Cobalt Project, Ore Reserves based on 25 year mine life at 1.5 Mtpa. Size Cobalt Nickel Deposits Class (Mt) (%) (%) Goongarrie South Proven 8.95 0.10% 0.96% Probable 17.26 0.09% 0.79% Total 26.22
Slide 33: APPENDIX – KNP Resource Breakdown
APPENDIX – KNP Resource Breakdown For personal use only KNP nickel-cobalt mineral resource (JORC 2012), Ardea Annual Report 2017 Quantity Cobalt Nickel Contained Contained Resource Category (Mt) (%) (%) cobalt (t) nickel (t) Measured 9.6 0.10 1.02 9,700 98,800 Indicated 232.9 0.06 0.75 141,200 1,759
Slide 34: APPENDIX – Godolphin Resource Inventory
APPENDIX – Godolphin Resource Inventory For personal use only Summary of Mineral Resources (JORC (2012)) contained within Godolphin tenements, Godolphin Prospectus 29 October 2019 Project Tonnes Au Ag (g/t) Zn Pb Cu AuEq Contained Contained (Mt) (g/t) (%) (%) (%) (g/t) Au (Moz) AuEq^ (Moz) Mt Aubrey
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