Ardea Resources Ltd. · ASX:ARL
Ardea Resources — Investor Presentation (September 2017)
22 slides from Ardea Resources's investor presentation, September 2017
Slide 1: Ardea Resources Limited
Ardea Resources Limited Bringing the Developed World’s Largest Cobalt Resource Online Investor Presentation September 2017 1
Slide 2: Disclaimer
Disclaimer Important notice the Company is under no obligation to revise any forward looking statement to This presentation contains general information only and is, or is based upon, reflect events or circumstances after the date of this presentation or to reflect information which has been release
Slide 3: Investment Highlights
Investment Highlights Ardea Resources Limited (ASX:ARL) is a cobalt exploration and development company focussed on developing its 100% owned flagship Kalgoorlie Nickel Project (KNP) Largest Cobalt Resource in the Developed World • 773Mt at 0.05% Co including high-grade Cobalt Zone of 64.4Mt at 0.13
Slide 4: Corporate Snapshot
Capital Structure Shares on Issue 73,207,885 Corporate Snapshot Share Price (11 September 2017) 52 week high / low $0.88 $1.035 / $0.17 Cash $6.6 million Enterprise Value $57.4 million Share price performance and volume since listing (9 February 2017) Unlisted Options $0.25 (IPO) 12.31 million $0.77
Slide 5: Corporate History
Corporate History • Ardea listed in February 2017 as a spin out of Heron Resources Limited, after raising $5.1m at $0.20 per share • At the time of the Prospectus (Nov 2016) gold was the focus but such have been developments in cobalt Ardea has transformed to focus on cobalt • In August 2017 a furth
Slide 6: Peer Comparison
Peer Comparison Project Commodities KNP, WA Co, Ni, Sc Cobalt Zone Co, Ni, Sc Syerston, NSW Co, Ni, Sc Sconi, Qld Sc, Co, Ni Flemington NSW Sc Ownership 100% unencumbered 100% 75% earn-in 100% earn-in Cobalt + nickel Scandium oxide, cobalt + Proposed products Cobalt + nickel sulphate nickel sulphate
Slide 7: Cobalt Market 2017 and Beyond
Cobalt Market 2017 and Beyond Cobalt price 1 Nov 2016 – 5 Sep 2017 Cobalt price 1 Jul 2005 – 5 Sep 2017 Cobalt price (USD/t) • Global cobalt production is currently circa 100,000tpa with prices at US$61,000/t well below 2008 levels of more than US$110,000/t • Politically unstable DRC accounts for ci
Slide 8: KNP Cobalt Zone
KNP Cobalt Zone The KNP is Australia’s and the developed world’s* largest cobalt resource 773 Mt at 0.05 % Co and 0.7 % Ni** 405,000 t contained Co metal 5,600,000 t contained Ni metal View over Goongarrie South and Big Four, looking southeast, showing the extent of the deposit (blue-green = Co >0.0
Slide 9: KNP Cobalt Zone
KNP Cobalt Zone KNP Yerilla KNP • More than $50 million spent historically Vale-Inco and West Heron with circa 400,000 metres of drilling and detailed metallurgical work available • Excellent location, within 150 km of Kalgoorlie, WA • Scandium, PGE, high-purity alumina, chromium by-product potentia
Slide 10: KNP Cobalt Zone
KNP Cobalt Zone • Shallow, lateritic cobalt- nickel deposits within 120m of surface • Open-pit mining provides low strip ratio • Cobalt and nickel in soft, iron-rich clay, free digging • Flat-lying cobalt-nickel mineralisation usually within 50m of surface 10
Slide 11: Scandium Oxide By-Product
Scandium Oxide By-Product • Scandium discovered by Ardea at Goongarrie • Tabular, near-surface bodies grading between 45 South, Black Range, Kalpini and 500 g/t scandium will be mined to access the cobalt and nickel below • Systematic scandium resampling of KNP Cobalt Zone commencing September • Pot
Slide 12: Plan to Fast-Track Development and Add Value
Plan to Fast-Track Development and Add Value • Extra funds will allow streamlining of projects and drilling to upgrade resources and reserves • Expedite DFS by commencing drilling programs now as part of the PFS • Graduation of deposits from Kalpini-Rebecca, Highway, Yerilla camps to KNP Cobalt Zone
Slide 13: Encouraging Flow Sheet Development
Encouraging Flow Sheet Development AIM: to directly supply cobalt Co Ni Sc sulphate and nickel sulphate to battery manufacturers • Open pit, free digging, initial focus on high-grade zones • Compatible processes yield several products for the automotive sector • Acid digestion of cobalt-nickel ore (
Slide 14: Upcoming Catalysts
Upcoming Catalysts Ongoing Upgrading of the KNP Cobalt Zone resources Incorporation of additional resources from Kalpini and other outlying areas October 2017 Definition of scandium and platinoid resources at Black Range • Scandium and platinoid assessment elsewhere ongoing Q1 2018 Completion of the
Slide 15: Why Ardea?
Why Ardea? • Considerable leverage to increasing cobalt and nickel prices • Exceptional liquidity with $76m of shares trading year to date equating to 1.26 times current market cap of $60m • Significant relative value compared to Australian nickel-cobalt-laterite peers • Clear strategy to become a n
Slide 16: Appendix 1: Resource breakdowns
Appendix 1: Resource breakdowns KNP nickel-cobalt mineral resource (JORC 2012) 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 0.05 0.68 254,400 3,600,000 KN
Slide 17: App 1: Resource breakdowns (continued)
App 1: Resource breakdowns (continued) KNP Cobalt Zone nickel-cobalt mineral resource (JORC 2012) Resource Cut-off Size Co Ni Cobalt remodel Area Prospect category (% Co) (Mt) (%) (%) status Goongarrie Goongarrie South Total 0.08 25.3 0.14 0.83 Upgraded Big Four Total 0.08 11.4 0.13 0.71 Upgraded Sc
Slide 18: App 1: Resource breakdowns (continued)
App 1: Resource breakdowns (continued) KNP Cobalt Zone nickel-cobalt mineral resource (JORC 2012) – Compliance Statement COMPLIANCE STATEMENT (JORC 2012 and NI43-101) A competent person’s statement for the purposes of Listing Rule 5.22 has previously been announced by the Company for: 1. Kalgoorlie
Slide 19: App 1: Resource breakdowns (continued)
App 1: Resource breakdowns (continued) Lewis Ponds mineral resource (JORC 2012) Quantity Zn Cu Pb Au Ag Resource Category (Mt) (%) (%) (%) (g/t) (g/t) Indicated Main Zone 5.82 2.1 0.1 1.1 1.5 59 Tom’s Zone 0.54 5.5 0.3 3.8 1.7 172 Total Indicated 6.35 2.4 0.2 1.4 1.5 68 Inferred Main Zone 0.17 1.7 0
Slide 20: Lewis Ponds Bulk Mining Development
Lewis Ponds Bulk Mining Development • Major zinc-gold-silver development project with enormous potential in NSW • Historic resources: 6.62 Mt @ 2.4 % Zn, 1.4 % Pb, 0.2 % Cu, 1.5 g/t Au, and 69 g/t Ag • Bulk mining open pit exploration target: 15-25 Mt @ 2.2-3.7 % Zn equiv* or 1.0-1.5 g/t Au equiv* •
Slide 21: Mt Zephyr Gold Project
Mt Zephyr Gold Project • Exceptional gold exploration ground in WA Mt Zephyr greenstone belt • Greenstone-hosted gold deposits • No gold exploration for over 20 years • Area east of Celia Lineament is highly prospective • Along structure from Mt Morgans, Lake Roe gold deposits • Dunn’s Line analogue
Slide 22: Mt Zephyr Drill Targets
Mt Zephyr Drill Targets Mt Zephyr / Dunns Line Gold • 4km strike of mineralised BIF with old workings • Historic grades of 5-90 g/t Au • Mt Morgan’s analogue, same host rocks • Mt Magnet Hill 50 “Boogardie Breaks” model Dunns Gale Gold • High-grade, extensive, shallow anomaly Gale • Shallow RAB inte
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