Slide 1: RIU Explorers Conference, 19 February 2020
RIU Explorers Conference, 19 February 2020 The faceted multi- coloured jewels represent Presented by Andrew Penkethman the rich heart of WA and its diverse character in terms of landscape, minerals, and where Ardea projects are focused
Slide 2: Disclaimer
Disclaimer 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 prospectuses dated 18 N
Slide 3: Ardea is a well funded Western Australian-focused developer and explorer with a clear strategy
Ardea is a well funded Western Australian-focused developer and explorer with a clear strategy Goongarrie is the Developed World’s premier nickel-cobalt project (GNCP) – Globally significant mineral resource on granted mining leases – Leverage off Western Australia’s world class safety, environmenta
Slide 4: Corporate Snapshot
Corporate Snapshot Board and Executive Management Team Capital Structure, as at 18 February 2020 Katina Law Actively involved in the mining industry for over 25 years in corporate Shares on Issue 117,300,435 Non-Executive Chair and site based roles across several continents, including senior positio
Slide 5: Ardea Project Portfolio
Ardea Project Portfolio Ardea is a West Australian-focused developer and explorer DEVELOPING the GNCP First drilling completed at Bardoc Tectonic EXPLORING Zone and additional programs planned the KNP for nickel and gold Ardea controls over 4,900km2 of tenure in Western Australia Historic database b
Slide 6: Ardea's flagship is Australia's premier Nickel Cobalt Project
Ardea’s flagship is Australia’s premier Nickel Cobalt Project Poised for ethical supply of Critical Minerals for the EV market Ardea pilot nickel sulphate 6 crystal production
Slide 7: The Kalgoorlie Nickel Project
The Kalgoorlie Nickel Project • 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 of the broader KNP, wi
Slide 8: Goongarrie Nickel-Cobalt Project
Goongarrie Nickel-Cobalt Project 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 • 1.0Mtpa base case PFS – low CAPEX start-up with robust project
Slide 9: Kalgoorlie Nickel Project – Ni, Co and Au
Kalgoorlie Nickel Project – Ni, Co and Au (looking north – with GNCP in the foreground. Note the scale and location) Ardea tenure in red BTZ gold controlling structures Ni >0.5% grade shell
Slide 10: Kalgoorlie Nickel Project – Ni, Co and Au
Kalgoorlie Nickel Project – Ni, Co and Au (looking south – with GNCP in the foreground. Note the scale and location) BTZ gold controlling structures Ardea tenure in red Ni >0.5% grade shell
Slide 11: GCNP Approvals & Materials Status
GCNP Approvals & Materials Status Status and progress towards Project Approvals • Community consultation current with GNCP embraced • All GNCP resources on granted mining leases with Regional Native Title agreement in place for continued grant of development tenure • Environmental Reports finalised
Slide 12: GNCP Materials Status
GNCP Materials Status • Block modelling completed GS, BF & SD • Mine scheduling completed GS, BF & SD – Grades >1.1% Ni & 0.1% Co during Payback Period – Resource modelling current on Goongarrie Hill • Additional high grade mill feed identified at (BF) Goongarrie Hill, Highway and Siberia North to m
Slide 13: Thick, high-grade, single ore type, low strip ratio
Thick, high-grade, single ore type, low strip ratio Well understood mineralogy with consistent nickel and cobalt grades Large scale, long-life open pit mining potential* * Refer to Ardea ASX releases: *Goongarrie Nickel Cobalt Project, PFS study, 28 March 2018, Goongarrie Expansion Study, 24 July 20
Slide 14: GNCP Material Source, Type and Quality
GNCP Material Source, Type and Quality 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 have confirmed on-specification nickel & cobalt sulphate • Scandium credit po
Slide 15: World-Class Mining Standards, Location & Infrastructure
World-Class Mining Standards, Location & Infrastructure • Kalgoorlie, Western Australia offers world-class infrastructure in an established mining district – Over 125 years of mining in the region – Lowest sovereign risk, very strong Local Government support – Goongarrie only 80 km north on the main
Slide 16: The Nickel Market – Reserve Life of Major Battery Minerals
The Nickel Market – Reserve Life of Major Battery Minerals 350 • High levels of most battery minerals but not nickel 300 • Declining nickel reserves 250 • Future nickel production not expected to keep up with 200 growing demand, driven mainly Years by the battery sector. 150 • Not a matter of if, bu
Slide 17: Projected Nickel Demand from Energy Revolution
Projected Nickel Demand from Energy Revolution • 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/SSB is expected to far
Slide 18: EV/SSB Evolution & Industry Wide Investment
EV/SSB Evolution & Industry Wide Investment • The number of lithium ion battery megafactories in the pipeline has reached 115 versus 63 a year ago* • China is the global leader in the battery revolution and take up of new technology with the rest of the world playing catch up • China is now home to
Slide 19: Australia Shifts Towards Electrified Vehicles
Australia Shifts Towards Electrified Vehicles www.thedriven.io • It’s quite clear that the Australian auto market has started the shift towards electrified vehicles and away from Internal Combustion Engines (without incentives)! • The entire market is down substantially in terms of sales this year,
Slide 20: GNCP – Ticking all the Boxes
GNCP – Ticking all the Boxes The GNCP is Australia’s premier nickel cobalt project ✔ Infrastructure rich location with road, rail & power infrastructure ✔ Development on track with all resources on granted mining leases ✔ Best in class ore type | goethite, with pilot plant Ni & Co sulphate produced
Slide 21: Exceptional greenfields opportunities in well established host structures
Exceptional greenfields opportunities in well established host Lady Isobel structures within the Kalgoorlie Nickel Project and Eastern Goldfields 21
Slide 22: Exploration Upside
Exploration Upside >4,900km2 of 100% controlled tenure in one of Australia’s premier gold and nickel sulphide provinces Extensive tenure position provides multiple strategic options Priority on flagship GNCP Undertaking nickel sulphide and gold exploration with major focus within and adjacen
Slide 23: Bardoc Tectonic Zone (BTZ)
Bardoc Tectonic Zone (BTZ) 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-Lefroy Fault (hosts Kalgoor
Slide 24: Investment Summary
Investment Summary GNCP and broader KNP offers unrivalled nickel and cobalt scale optionality in the hands of a junior resources company Globally significant mineral resource in an infrastructure rich and stable jurisdiction provides ability to increase production from multiple processing hubs for t
Slide 25: APPENDICES
For further information regarding Ardea, please visit www.ardearesources.com.au The faceted multi- APPENDICES coloured jewels represent the rich heart of WA and its diverse character in terms of landscape, minerals, and where Ardea projects are focused
Slide 26: A High Quality Nickel and Cobalt Project
A High Quality Nickel and Cobalt Project Outstanding results delivered from PFS* and Expansion Studies completed in 2018: PFS of 1Mtpa and 1.5Mtpa base case 1.0Mtpa 1.5Mtpa 2.25Mtpa over a 25-year mine life completed Status PFS PFS ES Expansion study of 2.25Mtpa with a No. Trains 1 1 1 25-year m
Slide 27: Our Flagship Goongarrie Nickel - Cobalt Project
Our Flagship Goongarrie Nickel - Cobalt Project Ni >0.5% grade shell ARL Tenements 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% of Goongarrie resource utilised at this scale (40.1 Mt at 0.82% Nickel & 0.09% Cobalt*)
Slide 28: APPENDIX – Goongarrie Nickel Cobalt Project Resources
APPENDIX – Goongarrie Nickel Cobalt Project Resources 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 Cobalt Nickel Contain
Slide 29: APPENDIX – Reserves Defined for Goongarrie Nickel Cobalt Project
APPENDIX – Reserves Defined for Goongarrie Nickel Cobalt Project* 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 0.10% 0.85% Big Four
Slide 30: APPENDIX – KNP Resource Breakdown
APPENDIX – KNP Resource Breakdown 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 1,759,700 Inferred 530.5 0.
Slide 31: Ardea share price and volume for the 12 months to 12 February 2020
Ardea share price and volume for the 12 months to 12 February 2020