Ardea Resources Ltd. · ASX:ARL
Ardea Resources — Shareholder Meeting (November 2019)
32 slides from Ardea Resources's shareholder meeting presentation, Nov 29, 2019
Slide 1: Ardea Annual General Meeting Presentation
27 November 2019 – Ardea Annual General Meeting Presentation Presented by Andrew Penkethman
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: Corporate Snapshot
Corporate Snapshot 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, development and operations. 52 w
Slide 4: Ardea is a well funded West Australian-focused developer and explorer
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 Company slide presentation
Slide 5: Ardea Project Portfolio
Ardea Project Portfolio 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 Australia Targets being
Slide 6: Ardea's flagship is Australia's premier Nickel Cobalt Project
Ardea’s flagship is Australia’s premier Nickel Cobalt Project 6
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 Highlights
Goongarrie Nickel - Cobalt Project Highlights 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 offtake available • 1.0Mtp
Slide 9: GNCP Advances in 2019 – Materials
GNCP Advances in 2019 – Materials • 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 • Mine scheduling complete
Slide 10: GNCP Advances in 2019 – Approvals
GNCP Advances in 2019 – Approvals • 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 identified at Scotia Dam/Big
Slide 11: GNCP Advances in 2019 – Approvals
GNCP Advances in 2019 – Approvals 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 11 11
Slide 12: Thick, high-grade, single ore type, low strip ratio
Thick, high-grade, single ore type, low strip ratio 12 12
Slide 13: Nickel Block Model – Cross Section 6669600mN
Nickel Block Model – Cross Section 6669600mN Well understood mineralogy with consistent nickel and cobalt grades Large scale, long-life open pit mining potential 13
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 completed in 2018 • High levels of nickel and cobalt, with 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 – Nil sovereign risk, very strong Local Government support – Goongarrie only 80 km north on the main Go
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 • Growing nickel demand expected 200 to result in rising prices Years 150 • Not a matter of if, but when! 100 • Nickel supplies most critical of al
Slide 17: Nickel Market Growth
Nickel Market Growth 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. ~20 years, to add 1 mill
Slide 18: 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 19: Exceptional greenfields opportunities in well established host structures within the Eastern Goldfields
Exceptional greenfields opportunities in well established host structures within the Eastern Goldfields 19 Drilling the Mount Zephyr project, northern Eastern Goldfields, February 2019
Slide 20: 2019 Exploration Program
2019 Exploration Program 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 mineralisation at Gale and n
Slide 21: 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 22: BTZ - GNCP Advances in 2019 – Site layout and gold studies
BTZ - GNCP Advances in 2019 – Site layout and gold studies • 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 completed, based on 9,565 d
Slide 23: Godolphin Resources (ASX Code: GRL) IPO closes early
Godolphin Resources (ASX Code: GRL) IPO closes early Anticipated to list on ASX 18 Dec 2019 23 Examining historic mine workings at Lewis Ponds, NSW
Slide 24: Spinning out NSW assets to focus on WA Nickel & Gold
Spinning out NSW assets to focus on WA Nickel & Gold • 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. • 431kozs gold (JORC 2012
Slide 25: Ardea achieves its stated objectives
Investment Summary 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 available, subject to financi
Slide 26: APPENDICES
For further information regarding Ardea, please visit www.ardearesources.com.au 26 APPENDICES
Slide 27: 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 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-year mine life No. Trai
Slide 28: Our Flagship Goongarrie Nickel - Cobalt Project
Our Flagship Goongarrie Nickel - Cobalt Project 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% of Goongarrie resource
Slide 29: 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 30: 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 31: 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 32: APPENDIX – Godolphin Resource Inventory
APPENDIX – Godolphin Resource Inventory 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 1.21 1.61 - - - - 1.6
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