Ardea Resources Ltd. · ASX:ARL
Ardea Resources — 2019 Australian Nickel Conference
34 slides from Ardea Resources's conference presentation, Oct 15, 2019
Slide 1: Australian Nickel Conference Presentation
15 October 2019 Australian Nickel Conference Presentation Presented by Andrew Penkethman 1A r d e a R e s o u r c e s L i m i t e d Suite 2, 45 Ord St, West Perth WA 6005, AUSTRALIA +61 8 6244 5136
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: Is an Australia-focused developer and explorer
Is an Australia-focused developer and explorer Nickel Sulphate crystals from Gold nuggets recovered from 3D model of Mt Aubrey epithermal Ardea pilot plant work Ardea WA tenements gold system 3
Slide 4: Corporate Snapshot
Corporate Snapshot Capital Structure, as at 30 September 2019 Experienced management team with global experience in the resources Shares on Issue 112,291,853 sector, from corporate fundraising, exploration, discovery, feasibility Share Price $0.535 studies, development and operations. 52 week high /
Slide 5: Ardea Project Portfolio
Ardea Project Portfolio Goongarrie Nickel Cobalt Project Australia’s premier nickel-cobalt project - DFS programs, Metallurgy and Approvals underway Nickel Sulphide Projects, WA Literature review complete, surface EM and soil geochemistry planned = Gold) Projects WA ESPERANCE First drilling at Mt Ze
Slide 6: Ardea's flagship is Australia's premier Nickel Cobalt Project
Ardea’s flagship is Australia’s premier Nickel Cobalt Project 6 Looking towards the plant site at Goongarrie adjacent to the Goldfields Highway, looking NE
Slide 7: The Kalgoorlie Nickel Project
The Kalgoorlie Nickel Project • Kalgoorlie Nickel Project (KNP) has a globally significant nickel and cobalt resource of 773Mt at 0.7% Ni and 0.05% Co* – 5.6 million tonnes contained nickel – 405,000 tonnes contained cobalt • The Goongarrie Nickel Cobalt Project (GNCP) is part of the broader KNP, wi
Slide 8: KNP is globally significant
KNP is globally significant Source: SNL database & Ardea Company data (KNP only). * Nickel equivalents defined using the following values (9 July 2019, US$ price): Ni ($12,646.50/t), Co ($26,647/t), Cu ($5,808.50/t). Ni equivalent grade (Ni eq. %) = Ni(%) + 2.107xCo(%) + 0.459xCu(%). Recoveries were
Slide 9: KNP and GNCP are world class and largest in Australia
KNP and GNCP are world class and largest in Australia Source: SNL database & Ardea Company data (KNP & GNCP only). * Nickel equivalents defined using the following values (9 July 2019, US$ price): Ni ($12,646.50/t), Co ($26,647/t), Cu ($5,808.50/t). Ni equivalent grade (Ni eq. %) = Ni(%) + 2.107xCo(
Slide 10: Goongarrie Nickel - Cobalt Project Highlights
Goongarrie Nickel - Cobalt Project Highlights The 100% owned GNCP is part of the largest Nickel Cobalt Resource in the developed world^ • Potential multi-decade producer of high-quality nickel and cobalt sulphate • 100% nickel and cobalt offtake available • 1.0Mtpa base case PFS – low CAPEX start-up
Slide 11: A High Quality Nickel and Cobalt Sulphate Project
A High Quality Nickel and Cobalt Sulphate Project Outstanding results delivered from PFS* and PFS of 1Mtpa and 1.5Mtpa base case over a 25-year mine Expansion Studies completed in 2018: life completed 1.0Mtpa 1.5Mtpa 2.25Mtpa Expansion study of 2.25Mtpa with a 25-year mine life Status PFS PFS ES
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 13
Slide 14: Cobalt Block Model – Cross Section 6669600mN
Cobalt Block Model – Cross Section 6669600mN Large scale, long-life open pit mining potential 14
Slide 15: GNCP Material Types “run-of-mine goethite ore”
GNCP Material Types “run-of-mine goethite ore” Depth Regolith Ni Co Mn Sc Cr V Al Ca Fe LOI Mg Si Ti Zr 39m (m) % % % ppm % ppm % % % % % % % ppm 41-42 CUGZR 1.61 0.194 0.74 60 1.73 -100 2.5 0.0 43.8 13.1 0.9 4.4 0.04 10 41m 42m 42-44 CUGZR 1.56 0.267 1.52 60 2.63 -100 1.4 0.0 45.4 15.5 0.7 1.9 0.03
Slide 16: GNCP Material Source, Type and Quality
GNCP Material Source, Type and Quality The high quality of Goongarrie ore is the key to project success: • High levels of nickel and cobalt with scandium-rare earth credit potential • Ore mainly goethitic (>40% Fe), no smectite clays (unlike many other laterite deposits, so no drying required before
Slide 17: World-Class Mining Standards, Location & Infrastructure
World-Class Mining Standards, Location & Infrastructure • Kalgoorlie-Boulder, 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 is 80km north on the ma
Slide 18: The Nickel Market – Reserve Life of Major Battery Minerals
The Nickel Market – Reserve Life of Major Battery Minerals 350 300 • High levels of most battery minerals but not nickel 250 • Nickel supplies most critical 200 • Declining global nickel reserves Years 150 • Growing nickel demand with 100 constrained supply 50 • No shortage of graphite or lithium 0
Slide 19: Nickel Market Growth
Nickel Market Growth Nickel Production and Consumption • Production and consumption growth CAGR +5.8% 2,500 have been increasing Production (kt) • During the Chinese economic boom, 2000-2015, GDP growth between 10 2,000 Consumption (kt) and 30% per annum (pa) initiated the Chinese Boom 2000-15 CAGR
Slide 20: 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 21: Investment Summary: Battery minerals and Gold and base metals
Investment Summary Battery minerals for the EV and Battery revolution Gold and base metals in Australia’s prime locations Drill samples from Black Range west of the Goongarrie Nickel Cobalt Project. Black Range contains high nickel, and cobalt, and accessory scandium, platinum and palladium.
Slide 22: Exceptional greenfields opportunities in overlooked areas of the Eastern Goldfields
Exceptional greenfields opportunities in overlooked areas of the Eastern Goldfields 22 Drilling the Mount Zephyr project, northern Eastern Goldfields, February 2019
Slide 23: 2019 Exploration Program
2019 Exploration Program 3,500km2 of 100% controlled tenure in one of Australia’s premier gold and nickel sulphide provinces Drilling completed at Bardoc Tectonic Zone (BTZ) confirms gold mineralisation potential with multiple targets, resource modelling current at Big Four as model for 65km tar
Slide 24: Bardoc Tectonic Zone (BTZ)
Bardoc Tectonic Zone (BTZ) One of the major gold-bearing structures of the Eastern Goldfields runs through the GNCP +80 km long gold-producing regional shear / fault system (~65km controlled by Ardea) Hosts Paddington gold mine, Goongarrie, Menzies, and Comet Vale historic gold mining centres
Slide 25: Perrinvale Nickel Sulphide Project
Perrinvale Nickel Sulphide Project • The Cathedrals Belt, Australia’s newest nickel province, is a geologically unusual E-W belt. • Ardea has the eastern strike extent of the host structure of St George Mining’s recent Mt Alexander Ni-Cu(-PGE) sulphide discoveries. • St George Mining notes that*: –
Slide 26: Australia's premier address for bulk-tonnage copper-gold porphyry, epithermal gold, and VMS deposits
Australia’s premier address for bulk-tonnage copper-gold porphyry, epithermal gold, and polymetallic VMS deposits 26 Examining historic mine workings at Lewis Ponds, NSW
Slide 27: Spinning out NSW assets to focus on WA Nickel & Gold
Spinning out NSW assets to focus on WA Nickel & Gold • 3,216km2 of 100% controlled, highly prospective tenure within the Lachlan Fold Belt (LFB) NSW. • Excellent record of exploration success leading to low-cost production. • High-quality infrastructure (road, rail, power and water), Communities wit
Slide 28: Investment Summary
Investment Summary • Goongarrie is Australia’s premier nickel-cobalt project, with potential for scandium-rare earth credits • Globally significant mineral resource in an infrastructure-rich and stable jurisdiction provides ability to increase production from multiple processing hubs within the KNP
Slide 29: APPENDICES
APPENDICES For further information regarding Ardea, please visit www.ardearesources.com.au 29A r d e a R e s o u r c e s L i m i t e d Suite 2, 45 Ord St, West Perth WA 6005, AUSTRALIA +61 8 6244 5136
Slide 30: 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 31: APPENDIX – Goongarrie Nickel Cobalt Project Resources
APPENDIX – Goongarrie Nickel Cobalt Project Resources Summary of total mineral resources within the Goongarrie Nickel Cobalt Project area, comprising resources at Goongarrie Hill, Goongarrie South, Big Four, and Scotia Dam (14 March 2018). ( ) Camp Domains Cut-off Resource Size Cobalt Nickel Contain
Slide 32: 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 33: 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 34: Base case GNCP flowsheet
Filtration 1. Leaching 2. Impurity removal 4. Sulphate crystallisation 3. Ni-Co releach Base case GNCP flowsheet Pressure Acid Leach, with Mixed Sulphide precipitation yields high purity product 34