Ardea Resources Ltd. · ASX:ARL
Ardea Resources — IPO Roadshow (January 2017)
48 slides from Ardea Resources's IPO roadshow presentation, January 2017
Slide 1: Investor Presentation January 2017
INVESTOR PRESENTATION January 2017 ASX code: ARL www.ardearesources.com.au
Slide 2: Important Notice and CP statement
Important Notice and CP statement Important notice presentation or to reflect the occurrence of unanticipated events. This presentation contains general information only and is, or is based upon, No stock exchange, regulation services provider, securities commission or other information which has be
Slide 3: Ardea
Ardea the heron (Latin) derived from “ardua” – great and noble Ardea Resources Limited is a focused developer and explorer spinning off from Heron Resources 3
Slide 4: Development projects, 100% owned
Development projects, 100% owned Focusing on the high-grade zones within Australia’s largest cobalt resource Kalgoorlie Nickel Project (KNP) Cobalt Zone, WA Redefining a historic high-grade zinc-gold mine as a bulk-tonnage open pit operation Lewis Ponds Zinc-Gold Project, NSW 4
Slide 5: Ardea – A New ASX-Listed Company
Ardea – A New ASX-Listed Company IPO and capital raising Maximum raising $6,000,000 Share price $0.20 Loyalty options (all shares) 1 for 3 (issued 3 months post listing) Capital structure post-IPO (maximum subscription) In specie distribution shares 41,500,938 (58%) Offer shares 30,000,000 (42%) Clo
Slide 6: Experienced Board & Management Team
Experienced Board & Management Team Katina Law Ian Buchhorn Non-Executive Chairman Non-Executive Director • 25 years’ experience in the mining industry • Mineral economist and geologist with 35 years’ • Financial management positions previously at experience Newmont Mining and LionOre • Currently an
Slide 7: Getting Ardea soaring…
Getting Ardea soaring… • High quality suite of development and exploration assets • Focus on advanced-stage development projects – cobalt and zinc-gold • Immediately progress drilling and feasibility programs • Significant near-term news flow post-listing • Shareholder returns to be maximised by on-
Slide 8: Development projects
Ardea Resources Development projects • KNP Cobalt Zone, WA • Lewis Ponds, NSW 8
Slide 9: KNP cobalt-nickel project
KNP cobalt-nickel project Australia’s and the developed world’s* largest cobalt resource • 805 Mt at 0.05 % cobalt and 0.7 % nickel** 380,000 t contained cobalt metal, 5,600,000 t contained nickel metal. • Focus on the high-grade Cobalt Zone, with 49.7 Mt at 0.12 % cobalt & 0.86 % nickel** 59,640 t
Slide 10: Australia’s largest cobalt deposit…
Australia’s largest cobalt deposit… Table 2 – Ardea Benchmarks, ASX-listed companies ranked by contained cobalt metal Size Co Co metal … by some way. Company (Mt) (%) (kt) Project Mineralisation style 1 Ardea Resources 805 0.05% 386.4 Kalgoorlie Nickel Project, WA Laterite Ni-Co 2 CleanTeq Holdings
Slide 11: KNP – the importance of Australian cobalt
KNP – the importance of Australian cobalt • Cobalt is a major component of all lithium ion batteries – Phones – Computers – Electric and hybrid vehicles – Solar power storage systems • Most cobalt is sourced from the DRC – Local child labour issues highlighted by High-grade cobalt mineralisation, Am
Slide 12: KNP cobalt-nickel project
KNP cobalt-nickel project KNP Yerilla World-significant resource in a stable jurisdiction • Located within 150 km of Kalgoorlie, WA KNP West – All required infrastructure – Active granted mining leases • $50 million previous expenditure by Vale Inco and Heron – 100,000 m drilling KNP East – detailed
Slide 13: KNP Cobalt Zone
KNP Cobalt Zone • Sub-horizontal bodies of cobalt mineralisation at each location • Near surface open-pit mining – low strip ratio – easy digging 13
Slide 14: KNP – Chrysoprase (Australian jade)
KNP – Chrysoprase (Australian jade) • Semi-precious gemstone Genetic association with nickel-cobalt laterite • Five advanced chrysoprase pit projects Run-of-mine chrysoprase: ~$8-20/kg Gem quality: >>$20/kg In situ chrysoprase veins, Goongarrie Hill, KNP • Strong east Asian demand • Ardea is assessi
Slide 15: KNP Cobalt Zone – forthcoming work
KNP Cobalt Zone – forthcoming work Forthcoming work: • Further drill definition of high-cobalt zones is required – Black Range – Goongarrie – Kalpini • Development of metallurgical processes and products for the tech industry • Commencement of a Pre-Feasibility Study (PFS) • Assessment of chrysopras
Slide 16: Development projects
Ardea Resources Development projects • KNP Cobalt Zone, WA • Lewis Ponds, NSW 16
Slide 17: Lewis Ponds zinc-gold deposit, NSW
Lewis Ponds zinc-gold deposit, NSW Historic plant, c.1900 • Major development project with enormous potential • Historic mine site, extensive workings • Several kilometres strike • Broad mineralisation intercepts • Unsampled mineralised drill core Unsampled mineralised drill core • Main resource on
Slide 18: Lachlan Fold Belt NSW
Lachlan Fold Belt NSW One of Australia’s great mineral provinces Project Resource type Resource Au(Eq) Contained gold Cadia Valley global 3,260 Mt @ 0.25 % Cu and 0.42 g/t Au 0.78 g/t 43.7 Moz Cowal global 164.1 Mt @ 0.96 g/t Au 0.96 g/t 5.1 Moz 487.5 Mt @ 0.56 % Cu, 0.18 g/t Au, Northparkes global
Slide 19: Lewis Ponds zinc-gold
Lewis Ponds zinc-gold Lewis Ponds deposit: • 6.6Mt at 1.5g/t Au, 69g/t Ag, 2.4% Zn* which focused on a high-grade underground operation. This need reassessment. Throughout Lewis Ponds licence areas: • Premium exploration potential, Godolphin Fault – 50 km strike – McPhillamy’s (south) to Copper Hill
Slide 20: Lewis Ponds bulk intercepts
Lewis Ponds bulk intercepts • Bulk intercepts from Hole ID East (local) North (local) From (m) To (m) Width (m) Au (g/t) Ag (g/t) Cu (%) Pb (%) Zn (%) ZnEq1 AuEq2 m.ZnEq3 selected historic drillholes TLPD-03 -47 1146 163 250 87 0.44 23 0.06 0.47 1.08 2.4 1.9 210.1 TLPD-04 -61 1316 178 203 25 3.12 10
Slide 21: Lewis Ponds – a bulk tonnage interpretation
Lewis Ponds – a bulk tonnage interpretation To define a new bulk tonnage open-pit operation Planned drill hole locations • Resampling of historic core • New diamond drilling to optimize mineralisation models, geometallurgy studies, structural & geotech studies • Test up-dip ore projections (largely
Slide 22: Lewis Ponds – gold potential
Lewis Ponds – gold potential • Surface mullock sampling around historic Lewis Ponds Main Zone shaft and Tom’s Zone main shaft – 600m apart along strike – distinctive white vuggy quartz-pyrite “sinter” – Up to 12.1 g/t gold and 539 g/t silver – High grade Au-Ag with anomalous As-Sb, epithermal style
Slide 23: Lewis Ponds exploration target
Lewis Ponds exploration target Ardea is evaluating a bulk tonnage open pit operation at Lewis Ponds: Exploration target: 15 – 25 Mt @ 2.2 – 3.7 % ZnEq* or 1.0 – 1.5 g/t AuEq* – strike length >1.15km (between sections 350mN and 1500mN) – using geologically-realistic models – higher grades than simila
Slide 24: Use of funds
Use of funds Sources and Uses of Funds Maximum Subscription (A$) Percentage of Funds Total funds raised from the Offer1 6,000,000 100.00% Allocation of funds (over 2 years) Lewis Ponds (feasibility) 1,400,000 23.3% Mt Zephyr (exploration) 1,400,000 23.3% KNP nickel-cobalt feasibility (including Bard
Slide 25: Indicative IPO Timetable
Indicative IPO Timetable Event Date Lodgement of Prospectus with ASIC 9 November 2016 Opening Date of the Offers 16 November 2016 Closing Date of the Public Offers 20 January 2017 Effective Date of Distribution 3 February 2017 Issue of Shares under the Prospectus 4 February 2017 Despatch of holding
Slide 26: Ardea’s Enterprise Value benchmarks
Ardea’s Enterprise Value benchmarks • Enterprise Value of Ardea ($8.3M) is supported by the KNP alone – Companies with a fraction of Ardea’s resource inventory have EVs of double or more. 26
Slide 27: Timetable for development projects
Timetable for development projects Project Prospect Program Timing (start)* Lewis Ponds, NSW Lewis Ponds & Tom’s gold-zinc Phase 1 – 4 diamond holes, ~830m Mar 2017 Phase 2 – 7 diamond holes, ~1700m May 2017 Metallurgical tests (gravity gold) May 2017 KNP Cobalt Zone, WA Black Range, Goongarrie, Kal
Slide 28: Ardea Resources
Ardea Resources Ardea will create shareholder value through immediate drilling of key targets Significant near-term news flow post-listing • Focus on advanced stage development projects – KNP Cobalt Zone (WA) – Lewis Ponds zinc and gold (NSW) • Experienced team assembled for the task to drive value
Slide 29: Appendices
‘kA Ardea Resources Limited APPENDICES
Slide 30: Exploration projects
Appendix 1 Exploration projects • Mount Zephyr, WA – Gale gold – Dunn’s Line gold – Jones nickel sulphide • Taurus gold, WA 30
Slide 31: App 1: Mount Zephyr Project, WA
App 1: Mount Zephyr Project, WA The Eastern Goldfields of Western Australia: another of Australia’s great mineral provinces Gold Wallaby, Mt Morgans, Sunrise Dam, Kalgoorlie Super Pit, Sons of Gwalia, Kanowna Belle, Wiluna, Norseman, St Ives, Kundana Nickel Mt Windarra, Mt Keith, Kambalda Murrin Mur
Slide 32: App 1: New concepts to test
App 1: New concepts to test • Area east of Celia Lineament is highly prospective at Mt Zephyr: Mt Zephyr greenstone belt • All historic gold workings east of lineament • Mt Windarra nickel sulphide stratigraphy • Jupiter, Wallaby granitoid-hosted gold to the east of the lineament further south • Alo
Slide 33: App 1: Dunn’s Line, Mt Zephyr
App 1: Dunn’s Line, Mt Zephyr • Historic workings along >4 km strike – Gold grading from “a few pennyweights to 3oz per ton” – ~5 to 90 g/t gold • Mt Morgans equivalent BIF-hosted replacement style gold – Hill 50-style with mineralised breaks, largely undrilled 33
Slide 34: App 1: Mt Zephyr drill targets
App 1: Mt Zephyr drill targets Mt Zephyr / Dunns Line Gold • 4 km strike of mineralised BIF with old workings • Mt Morgan’s analogue, same host rocks • Mt Magnet Hill 50 “Boogardie Breaks” model Jones A Gale Gold Jones B • High-grade, extensive, shallow anomaly Dunns • Shallow RAB intercepts • Jupit
Slide 35: Exploration projects
Appendix 1 (continued) Exploration projects • Mount Zephyr, WA – Gale gold – Dunn’s Line gold – Jones nickel sulphide • Taurus gold, WA 35
Slide 36: App 1: Taurus gold prospect, WA
App 1: Taurus gold prospect, WA Bulong area, east of Kalgoorlie • 5m @ 38 g/t near surface drill intercept • Extensive historic workings over several hundred metres – 2 sides of valley that recently yielded numerous gold nuggets – Gold extends under alluvial cover? • Alteration and veining in chips
Slide 37: App 1: Timetable for exploration
App 1: Timetable for exploration Project Prospect Program Timing (start)* Mt Zephyr, WA Gale gold 10-20 shallow RC holes Upon granting of Dunns New Find gold 10-20 RC holes, each ~90-150m deep licences Jones A, B and others Ni sulphide EM programs Kalgoorlie East, WA Taurus gold 10-15 shallow RC hol
Slide 38: Appendix 2: Resource breakdowns
Appendix 2: Resource breakdowns KNP nickel-cobalt mineral resource (JORC 2012) Quantity Co Ni Resource Category (Mt) (%) (%) Measured 9.6 0.081 1.02 Indicated 244.0 0.052 0.75 KNP Total Measured and Indicated 253.6 0.052 0.76 Inferred 551.7 0.046 0.68 KNP Total Resources 805.3 0.048 0.70 In accordan
Slide 39: App 2: Resource breakdowns (continued)
App 2: Resource breakdowns (continued) KNP Cobalt Zone nickel-cobalt mineral resource (JORC 2012) Resource Cutoff Size Co Ni MgO* FeO* Al2O3* SiO2* CaO* Mn* Cr* Area Prospect category (% Co) (Mt) (%) % % % % % % % % Goongarrie Goongarrie South Measured 0.08 3.4 0.14 1.19 1.6 47 6.3 17 0.16 1.02 1.27
Slide 40: App 2: Resource breakdowns (continued)
App 2: 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 41: App 2: Resource breakdowns (continued)
App 2: 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 42: Appendix 3: Key Risks
Appendix 3: Key Risks An investment in the Company is not risk free. Before deciding to trade in the Shares, Shareholders and interested investors should read the entire Prospectus, consider at least the following risk factors in light of their personal circumstances and investment objectives (inclu
Slide 43: App 3: Key Risks (continued)
App 3: Key Risks (continued) Limited exploration • Aside from Lewis Ponds and the KNP, Ardea’s projects have been subjected to only limited drill testing. Whilst gold and/or nickel mineralisation as the case may be has been located in multiple previous drill intersections, there is a risk that the m
Slide 44: App 3: Key Risks (continued)
App 3: Key Risks (continued) Exploration and Operating Risks (cont.) • (vii) unavailability of transport or drilling equipment to allow access and geological and geophysical investigations; (viii) unavailability of suitable laboratory facilities to complete metallurgical testwork investigations; (ix
Slide 45: App 3: Key Risks (continued)
App 3: Key Risks (continued) Environment • The projects are subject to Western Australian, New South Wales and Federal laws and regulations regarding environmental matters and the discharge of hazardous wastes and materials. As with all mining projects, the projects would be expected to have a varie
Slide 46: App 3: Key Risks (continued)
App 3: Key Risks (continued) Other Risks General Economic Risks and • Share market conditions may affect the listed securities regardless of operating performance. Share market conditions are affected by many Business Climate Risks factors such as: (a) general economic outlook; (b) movements in or o
Slide 47: App 3: Key Risks (continued)
App 3: Key Risks (continued) Exploration, Development, • The business of mineral exploration, project development and mining by its nature contains elements of significant risk. Ultimate and Mining and Processing Risks continuing success of these activities is dependent on many factors such as: (a)
Slide 48: Thank you
Thank you Ardea Resources Limited Level 1/7 Havelock Street West Perth WA 6005 Australia Tel: +61 8 6500 9200 John Toll Azure Capital Limited +61 8 6263 0888 ardea@ardearesources.com.au 48