Slide 1: Cobalt focus, April 2017
For personal use only ASX code: ARL Cobalt focus, April 2017 www.ardearesources.com.au
Slide 2: Important Notice and CP statement
Important Notice and CP statement For personal use only 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
Slide 3: Focus on high-grade zones within Australia's largest cobalt resource
For personal use only Focus on high-grade zones within Australia’s largest cobalt resource Kalgoorlie Nickel Project (KNP) Cobalt Zone, WA 3
Slide 4: Ardea – A new ASX-listed company
Ardea – A new ASX-listed company For personal use only ASX listing Listing date 9 February 2017 Share price at listing $0.20 Capital structure, 31 March 2017 Share price $0. 52 Shares on issue 67,000,747 Market capitalisation $34.8 million Cash at bank $4.1 million Enterprise value $30.7 million Opt
Slide 5: Ardea's cobalt focus
Ardea’s cobalt focus For personal use only Standing on the shoulders of giants: Over $50 million spent historically Cobalt and nickel mining development project To supply the booming battery industry 100% ownership of project 5
Slide 6: The KNP is Australia's largest cobalt resource
View over Goongarrie South, looking northeast, showing the partial extent of the deposit (yellow), the extensive historic drill grid, and proximity to infrastructure The KNP is Australia’s and the developed world’s* For personal use only largest cobalt resource 805 Mt at 0.05 % Co and 0.7 % Ni** 386
Slide 7: Australia's largest cobalt deposit… by some way
Australia’s largest cobalt deposit… … by some way. For personal use only Table 2 – Ardea Benchmarks, ASX-listed companies ranked by contained cobalt metal Size Co Co metal Company Project Mineralisation style (Mt) (%) (kt) 1 Ardea Resources 805 0.05% 386.4 Kalgoorlie Nickel Project, WA Laterite Ni-C
Slide 8: Australian cobalt from the KNP
Australian cobalt from the KNP An ideal source feeding lithium ion battery production For personal use only Cobalt is a major component of lithium ion batteries – Contain more cobalt than lithium – Phones and computers – Electric and hybrid vehicles – Solar power storage systems The most energy-dens
Slide 9: Cobalt market
Cobalt market For personal use only ~75,000 tpa global production Demand is outstripping supply Presently US$54,600/t, some way to go to repeat 2008 levels 9 9
Slide 10: World cobalt supply
World cobalt supply Looming supply issues? For personal use only Around 60% of global supply is from the Democratic Republic of Congo Worsening internal political climate Rioting, protesting, political succession issues Failure of UN missions Murder of UN representatives Human rights issues Child la
Slide 11: The next automotive revolution is underway
The next automotive revolution is underway For personal use only Mercedes Benz 10 electric vehicles by 2022, investing €10 billion Volkswagen Group 30 electrified vehicles by 2025 Every manufacturer is planning an electrified range All electrified vehicles will use Li-ion batteries 11
Slide 12: Norway – electrified vehicle market penetration
Norway – electrified vehicle market penetration A sign of things to come? For personal use only 2013 Tax reductions 2011 2013 2015 2017 2020 2025 76% of market Electrified 22% of market 50% of market 250,000 EVs All new vehicles diesel vehicle tops electrified electrified forecast to be zero emissio
Slide 13: KNP Cobalt Zone
KNP Cobalt Zone KNP Yerilla For personal use only World-significant resource in a stable jurisdiction KNP West Within 150 km of Kalgoorlie, WA All required infrastructure Active granted mining leases $50 million previous expenditure Vale Inco and Heron KNP East 400,000 m drilling Detailed metallurgy
Slide 14: KNP Cobalt Zone
KNP Cobalt Zone For personal use only Sub-horizontal bodies of cobalt mineralisation at each location Near surface open-pit mining – low strip ratio – easy digging 14
Slide 15: Pre-feasibility study timeline
Pre-feasibility study timeline Optimise the Cobalt Zone before seeking a funding partner For personal use only February-April Geometallurgy of KNP cobalt mineralisation, define metallurgical testing requirements March Appoint study manager, award PFS contract March-April Black Range and Kalpini RC i
Slide 16: KNP Drilling
KNP Drilling KNP Yerilla For personal use only KNP Core Drilling West Goongarrie – metallurgical sampling Black Range – resource upgrade Kalpini – addition to KNP Cobalt Zone KNP East RC Drilling 16
Slide 17: Black Range
Black Range For personal use only 24 drill holes planned Strong cobalt mineralisation Anomalous chromium + platinum 17
Slide 18: Comparing peers – CleanTeQ and Ardea
Comparing peers – CleanTeQ and Ardea Same style of deposit For personal use only Syerston KNP Commodities Co, Ni, Sc Co, Ni Ownership CleanTeQ 100% Ardea 100 % Location NSW WA Drilling >1300 holes > 9000 holes Deposit style Laterite Laterite Substrate bedrock Ultramafic rocks Ultramafic rocks Depth
Slide 19: Comparing peers – CleanTeQ and Ardea
Comparing peers – CleanTeQ and Ardea Different valuations For personal use only CleanTeQ Ardea Resources PFS (Co, Ni) Oct 2016 Due Jan 2018 DFS Due Q4, 2017 ?2018-19 ~16 months difference Market Cap (30 Mar) $470 million $34.8 million a 19
Slide 20: Ardea's other projects
Ardea’s other projects Also exploring zinc, gold, silver, chrysoprase, nickel, platinum For personal use only High quality portfolio Not a one-trick pony Spin-off potential for several projects 20
Slide 21: Thank you
21 For personal use only 21 Thank you
Slide 22: Appendix 1: Resource breakdowns
Appendix 1: Resource breakdowns For personal use only 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
Slide 23: App 1: Resource breakdowns (continued)
App 1: Resource breakdowns (continued) For personal use only 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
Slide 24: App 1: Resource breakdowns – Compliance Statement
App 1: Resource breakdowns (continued) For personal use only 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 Compa
Slide 25: Lewis Ponds mineral resource (JORC 2012)
App 1: Resource breakdowns (continued) For personal use only 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 Inferre
Slide 26: Appendix 2: Key Risks
Appendix 2: Key Risks For personal use only 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 invest
Slide 27: App 2: Key Risks (continued)
App 2: Key Risks (continued) For personal use only 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, ther
Slide 28: App 2: Key Risks (continued)
App 2: Key Risks (continued) For personal use only 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 testwo
Slide 29: App 2: Key Risks (continued)
App 2: Key Risks (continued) For personal use only 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 ex
Slide 30: App 2: Key Risks (continued)
App 2: Key Risks (continued) For personal use only 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;
Slide 31: App 2: Key Risks (continued)
App 2: Key Risks (continued) For personal use only 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