Ardea Resources Ltd. · ASX:ARL
Ardea Resources — South-West Connect ASX Showcase 2023
29 slides from Ardea Resources's conference presentation, Oct 18, 2023
Slide 1: Kalgoorlie Nickel Project Goongarrie Hub
Kalgoorlie Nickel Project Goongarrie Hub A multi decade nickel-cobalt operation South-West Connect ASX Showcase 18 October 2023
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 Corporate Overview
Ardea Corporate Overview Board Executive Management Team Mathew Longworth Non-Executive Chair Sam Middlemas Company Secretary Andrew Penkethman Managing Director & CEO Rebecca Moylan Chief Financial Officer Ian Buchhorn Executive Director Matt Read Project Director Alex Mukherji GM - Land Access Mar
Slide 4: Nickel and Cobalt Market – Unprecedented Demand
Nickel and Cobalt Market – Unprecedented Demand • Current producers of nickel will not meet demand forecasts with all known resources needing to be developed to help meet demand • Global nickel and cobalt demand is set to double by 2030, driven by battery applications • The US Inflation Reduction Ac
Slide 5: Kalgoorlie Nickel Project – Strong Fundamentals
Kalgoorlie Nickel Project – Strong Fundamentals Granted Mining 6.1Mt Nickel & PFS shows KNP Low-cost Ni & Co, Positive Lease tenure in 386kt Cobalt Goongarrie Hub strong earnings engagement with premier location MRE1 positions will be a multi- for over 40 years the Japanese for skills, KNP in top 10
Slide 6: Kalgoorlie Nickel Project – Globally Significant Nickel & Cobalt Resource
Kalgoorlie Nickel Project – Globally Significant Nickel & Cobalt Resource • The Kalgoorlie Nickel Project (KNP) global Mineral Resource Estimate1 (MRE) is 854Mt at 0.71% Ni and 0.045% Co for 6.1Mt contained nickel and 386kt contained cobalt • The KNP Goongarrie Hub MRE1 now stands at 584Mt at 0.69%
Slide 7: Kalgoorlie Nickel Project Resource in Top 10 Globally
Kalgoorlie Nickel Project Resource in Top 10 Globally Top 10 Note: • Contained Ni Metal is reported Total Mineral Resource (M+I+Inf) Page 7 • See References for Global Nickel Resource chart in Appendices
Slide 8: KNP globally strategic significant resource, in the best operating jurisdiction
KNP globally strategic significant resource, in the best operating jurisdiction in the world Page 8
Slide 9: KNP Goongarrie Hub Ore Reserve
Highway KNP Goongarrie Hub Cross Section 669 7260mN Ore Reserve1 • 1.36Mt of nickel metal Goongarrie Hill • 99kt of cobalt metal • Resource defined by >5,000 drill holes for Cross Section Goongarrie South 666 9600mN >250km of drilling Big Four / Scotia Dam Siberia North Page 9 1. See full tables in
Slide 10: KNP Goongarrie Hub – Cross Section through Goongarrie South
KNP Goongarrie Hub – Cross Section through Goongarrie South Open Pit (PFS 5 July 2023) AGSD0001* 100.80m @ 1.00% Ni, 0.08% Co from 34m 24.84m @ 1.10% Ni, 0.08%Co from 140.2m 10.00m @ 96g/t Sc from 24m Goongarrie South AGSR0418* Pamela Jean Deeps Section 666 9600mN 42m @ 0.67% Ni, 0.04% Co from 30m 5
Slide 11: KNP Goongarrie Hub – Cross Section through Highway
KNP Goongarrie Hub – Cross Section through Highway Open Pit Mineralised Neutraliser Highway Section 669 7260mN (PFS 5 July 2023) 200m 38m @ 1.03% Ni, 0.147% Co from 13m AGSD0001 inc 11m @ 1.22% Ni, 0.063% Co & 38g/t Sc from 16m 100.80m and 10m@@1.00% 1.40%Ni,Ni,0.08% CoCo 0.363% from 34m Sc from 29m
Slide 12: Simple Mining Characteristics
Simple Mining Characteristics Highway Deposit 17km Goongarrie Hill Goongarrie South Big Four / Scotia Dam Goongarrie Hub Deposits To Siberia North To Kalgoorlie - Boulder • 25km strike - Uniform Ni-Co laterite mineralisation dominated by Goethite • Goethite is ‘Best in Class’ plant feed and makes up
Slide 13: Nickel and Cobalt Goongarrie Hub Mining
Nickel and Cobalt Highway Deposit 17km Goongarrie Hill Goongarrie South Big Four / Scotia Dam Goongarrie Hub Mining To Siberia North To Kalgoorlie - Boulder • Open-pit, soft, mainly free-digging mining with low-cost mining methods • 2023 PFS pit schedule estimate very low strip ratio of 1.8:1 (waste
Slide 14: Kalgoorlie Nickel Project – Goongarrie Hub Mining Study
Kalgoorlie Nickel Project – Goongarrie Hub Mining Study • Goongarrie Hub Ore Reserve1 of 194.1Mt at 0.70% Ni and 0.05% Co for 1.36Mt of nickel and 99,000t of cobalt to sustain production of approximately 30,000t of nickel and 2,000t of cobalt per year for > 40 years • The enhanced updated mine plan
Slide 15: Goongarrie Hub Processing Plant
Goongarrie South Goongarrie Hub Processing Plant Page 15
Slide 16: Desirable Flowsheet Proven Technology
Acid Plant MHP Power Plant CCD HPAL SN PN Goethite Grind AL Mineralised Neutraliser Silica-Goethite Bene Desirable Flowsheet Proven Technology 3.5Mtpa - 2 x 1.5Mtpa HPAL autoclaves plus 0.5Mtpa AL circuit Page 16
Slide 17: Goongarrie Hub – Low-Cost Mining and Production
Goongarrie Hub – Low-Cost Mining and Production Goongarrie Hub C1 cost including Co credit compares very well on the global cost curve Page 17 Note: based on data from Company filings.
Slide 18: KNP Goongarrie Hub Updated Ore Reserve & PFS Financials
KNP Goongarrie Hub Financials Updated Ore Reserve Nickel Revenue A$ M 44,429 Cobalt Revenue A$ M 7,880 & PFS defines Revenue - combined A$ M 52,309 +40-year operation with EBITDA LOM A$ M 34,217 EBITDA Annual (average) A$ M 800 strong financial EBITDA margin % 65% metrics1: Net Cash Flow (Pre-tax) A
Slide 19: Outstanding Growth Potential Identified During PFS
Outstanding Growth Potential Identified During PFS • Several opportunities exist with substantial benefits to the financial metrics expected and include: Addition of a scandium recovery circuit Optimisation of existing processing circuit Optimisation of the rate of throughput vs residence time
Slide 20: Ardea sign KNP Goongarrie Hub MOU
Ardea sign KNP Goongarrie Hub MOU • Ardea are working to scope DFS under non-binding MOU, with a well-regarded and experienced Japanese Consortium comprised of Sumitomo Metal Mining Co., Ltd, Mitsubishi Corporation, and Mitsui & Co., Ltd1 • Ardea and the Consortium are defining a scope of work for t
Slide 21: ESG credentials strengthened during PFS
ESG credentials strengthened during PFS In-pit tailings disposal1 minimises environmental footprint and enables mine site rehabilitation, concurrent with steady-state mine operation. KNP – Goongarrie Hub LCA Climate Change Contribution Analysis Life Cycle Assessment (LCA) is expected to be 11.9 kg C
Slide 22: Key Investment Considerations – For a must have nickel-cobalt stock
Key Investment Considerations – For a must have nickel-cobalt stock KNP is a strategic asset owned 100% by Ardea - it is the largest Ni - Co resource in Australia and in top 10 globally, making it of a scale that is incredibly rare and important in the World’s journey to Net Zero Located in the
Slide 23: Andrew Penkethman
For further information Andrew Penkethman Managing Director & CEO +61 8 6244 5136 ardea@ardearesources.com.au Keep up to date with news, videos and more at our website: www.ardearesources.com.au The Ardea team hosting a KNP Goongarrie Hub Diggers & Dealers Mining Forum site visit in August 2023
Slide 24: Appendices: Full tables and supporting references
Kalgoorlie Nickel Project Goongarrie Hub A multi decade nickel-cobalt operation Appendices: Full tables and supporting references
Slide 25: Competent Persons
Competent Persons Information in this presentation has been summarised from ARL ASX MRE Announcement 30 July 2023, ARL ASX PFS Announcement 5 July 2023 Ore Reserves and ARL ASX MOU Announcements 5 July 2023 and 29 September 2023. Information in this presentation that relates to Ore Reserves at the K
Slide 26: KNP Global MRE
KNP Global MRE KNP Global nickel and cobalt Mineral Resources based on a 0.5% Ni cut-off grade Contained Contained KNP Hub Resource Category Size (Tonnes) Ni (%) Co (%) Ni (kt) Co (kt) Goongarrie Hub Measured 18,200,000 0.94 0.085 171 15 Indicated 276,500,000 0.70 0.046 1,923 127 Inferred 289,300,00
Slide 27: KNP Goongarrie Hub MRE
KNP Goongarrie Hub KNP Goongarrie Hub nickel and cobalt Mineral Resources based on a 0.5% Ni cut-off grade Resource Size Ni Co Contained Metal Estimation Details Prospect MRE Goongarrie Category Measured Indicated (Mt) 18 82 (%) 0.94 0.71 (%) 0.085 0.049 Ni (kt) 171 584 Co (kt) 15 40 Method LUC LUC
Slide 28: KNP Goongarrie Hub Ore Reserve Summary
KNP Goongarrie Hub KNP Goongarrie Hub Ore Reserve Summary consisting of ore above 0.5% Ni as the feed stock for the processing facility, and ore as Mineralised Neutraliser above 0.5% Nieq and LOI above 25% Ore Reserve Summary Ni Ore >= 0.5% Ni Co Ni Co Ore > 0.5% NiEq and LOI > 25% Ni Co Ni Co Ni To
Slide 29: References for Global Nickel Resource Chart
References for Global Nickel Resource Chart Reference Date Title ref. pp Link SLN - Doniambo 26 Apr 2023 Eramet Universal Registration Document 2022 77 https://www.eramet.com/wp-content/uploads/2023/04/2023-04-26-Eramet-URD-2022-EN.pdf Norilsk Division Annual Report 2022 54-55 https://nornickel.com/
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