Ardea Resources Ltd. · ASX:ARL
Ardea Resources — RUI Sydney Resources Round Up 2018
28 slides from Ardea Resources's conference presentation, May 9, 2018
Slide 1: Advancing our Flagship, Multi-Decade Goongarrie Nickel Cobalt Project Towards Production
ARDEA RESOURCES LIMITED For personal use only Advancing our Flagship, Multi-Decade Goongarrie Nickel Cobalt Project Towards Production RUI Sydney Resources Round Up 8-10 May 2018 Ardea Resources Limited Suite 2, 45 Ord St, West Perth WA 6005, AUSTRALIA +61 8 6244 5136 www.ardearesources.com.au ardea
Slide 2: Disclaimer
Disclaimer For personal use only 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 Company’s prospectus dated 9 November 2016 (including supplementary prospectuses dated 18 November 2016 an
Slide 3: The Ardea Proposition
The Ardea Proposition For personal use only • Largest Cobalt Resource in the Developed World* with significant scandium optionality • Safe, secure supply – non-conflict alternative to DRC • Kalgoorlie, Western Australia offers world-class infrastructure in an established mining hub • Recently comple
Slide 4: Corporate Snapshot
Corporate Snapshot Capital Structure For personal use only Shares on Issue (April 30, 2018) 93,146,021 Share Price (9 May 2018) $0.89 52 week high / low $2.20 / $0.42 Cash $15 million Market Cap (12 April 2018) $95 million Unlisted Stock $0.25 options (IPO) 12.31 million $0.77 options (Loyalty) 15.5
Slide 5: Goongarrie Nickel Cobalt Project, Western Australia
For personal use only GOONGARRIE NICKEL COBALT PROJECT WESTERN AUSTRALIA Ardea’s flagship is Australia’s premier nickel cobalt project 5 Looking towards the plant site at Goongarrie adjacent to the Goldfields Highway, looking NE
Slide 6: The Flagship Project
The Flagship Goongarrie Nickel Cobalt Project For personal use only Continuous cobalt nickel mineralisation exceeding 15 km at Goongarrie Insert picture of Goongarrie Goongarrie JORC Reserves 40.1 Mt at 0.09% Cobalt & 0.82% Nickel* Reserves optimised for 25 year mine life only, less than 20% of Goon
Slide 7: The Flagship Project
The Flagship Goongarrie Nickel Cobalt Project For personal use only • The Goongarrie Nickel Cobalt Project is a globally significant, readily scalable project • Significant potential to provide exceptional returns over a minimum of 25 years • Ardea holds nickel-cobalt laterite projects covering 1,73
Slide 8: Goongarrie - Highly-Scalable, Multi-Decade Project
Goongarrie - Highly-Scalable, Multi-Decade Project For personal use only Outstanding results delivered from recently completed Pre- 1.0 Mtpa 1.5 Mtpa Feasibility Study* (base case) Status PFS PFS • 1.0 Mtpa base case over a 25-year mine life • 95.5% cobalt and 94.5% nickel recovery – life of mine No
Slide 9: Goongarrie – a Premium Australian Cobalt Project
Goongarrie – a Premium Australian Cobalt Project For personal use only ARDEA RESOURCES AUSTRALIAN MINES CLEANTEQ Investment criteria Goongarrie, WA Sconi, QLD Sunrise, NSW Final products Cobalt sulphate, nickel sulphate, possible scandium oxide Size 215.6 million tonnes 89 million tonnes 101 million
Slide 10: Rapidly Accelerating the Goongarrie Project
Rapidly Accelerating the Goongarrie Project Indicative timeline to move Goongarrie towards production For personal use only 2018 2019 2020 – commence Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PFS DFS construction Offtake discussions Resource/reserve/sampling drilling 2021/2022 – mining, 2.25 Mtpa scoping study commis
Slide 11: The Bigger Picture
For personal use only THE BIGGER PICTURE Ardea’s portfolio includes Australia’s largest cobalt resource, as well as significant gold and base metal projects 11 Drill samples from Black Range west of the Goongarrie Nickel Cobalt Project. Black Range contains high nickel, and cobalt, and accessory sca
Slide 12: The Bigger Picture
The Bigger Picture For personal use only • The Goongarrie Nickel Cobalt Project is part of the broader Kalgoorlie Nickel Project (KNP) which is the largest cobalt resource in Australia • Goongarrie’s PFS reserve represents less than 5% of the Company’s nickel-cobalt resources – 773 Mt at 0.05 % Coba
Slide 13: Upside Potential of Ardea's Nickel-Cobalt Assets
Upside Potential of Ardea’s Nickel-Cobalt Assets For personal use only Investment criteria Ardea Resources Australian Mines CleanTeQ Over 700 million tonnes of cobalt and nickel resources, WA Sconi QLD (89 Mt), Company resources Goongarrie, Black Range, Kalpini, Yerilla, Boyce Flemington NSW (2.7 Mt
Slide 14: Ardea's Project Portfolio
Ardea’s Project Portfolio For personal use only Porphyry & Epithermal Nickel-Cobalt Laterites, WA Copper-Gold Projects, NSW Goongarrie Nickel Cobalt Project Lachlan Fold Belt, NSW is Other deposits also under assessment: Australia’s premier address for Black Range, Kalpini, Yerilla, Boyce Creek, por
Slide 15: Targeting the Sulphate Market
For personal use only TARGETING THE SULPHATE MARKET Ardea is positioning itself to supply the lithium ion battery market as the Automotive Electrification Revolution gathers pace 15
Slide 16: The Growing Momentum in Cobalt
The Growing Momentum in Cobalt For personal use only Cobalt demand continues to grow on the back of the Electric Vehicle and Electric Static Storage battery markets Electric Vehicles predicted to account for 14% of all new car sales by 2025 Cobalt sulphate market forecast to reach US$9.5 billi
Slide 17: The Growing Momentum in Cobalt
The Growing Momentum in Cobalt Increasing ethical concerns over supply of cobalt For personal use only from DRC (~60% of global supply) Apple has stopped sourcing cobalt from DRC and has opted to pay a premium for cobalt from regulated industrial mines More global manufacturers anticipated to
Slide 18: Ardea Will Produce Cobalt and Nickel Sulphates
Ardea Will Produce Cobalt and Nickel Sulphates For personal use only • Cobalt and nickel are critical components of lithium ion batteries ensuring high energy density and chargeability. Higher cobalt and nickel levels in lithium ion batteries gives Electrified Vehicles greater range and faster recha
Slide 19: Ardea Resources – A Compelling Cobalt Story
ARDEA RESOURCES – A Compelling Cobalt Story For personal use only • The Goongarrie Nickel Cobalt Project is a long-life project, that can deliver high-quality nickel and cobalt sulphate to battery manufacturers, auto manufacturers & metals traders • 1.0 Mtpa base case PFS demonstrates a low-capital
Slide 20: Ardea Resources Limited
For personal use only ARDEA RESOURCES LIMITED ASX : ARL www.ardearesources.com.au Suite 2, 45 Ord St, West Perth WA 6005, AUSTRALIA +61 8 6244 5136 Contact Mr Brett Clark, Managing Director and CEO, ardea@ardearesources.com.au 20
Slide 21: Appendices
21 For personal use only APPENDICES
Slide 22: Appendix – Project Resources
APPENDIX – Goongarrie Nickel Cobalt Project Resources For personal use only 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
Slide 23: Appendix – Reserves Defined for Project
APPENDIX – Reserves Defined for Goongarrie Nickel Cobalt Project For personal use only 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
Slide 24: Appendix – KNP resource breakdown
APPENDIX – KNP resource breakdown For personal use only 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
Slide 25: Appendix – The Sulphate Markets
US$/t APPENDIX – The Sulphate Markets • Strong growth in sulphate pricing is expected with rapidly increasing demand for high- For personal use only purity product from manufacturers globally. Increased battery production is required to power the Automotive Electrification Revolution • Cobalt sulpha
Slide 26: Appendix – Simple Open Pit Mining
APPENDIX – Simple Open Pit Mining • Very uniform mineralisation grades and mineralogy, well suited to open pit mining For personal use only • Scheduled pits within 60 m of surface • Soft, free-digging open-pit mining • Low strip ratio 26
Slide 27: Appendix – Base case flowsheet
For personal use only Filtration 1. Leaching 2. Impurity removal 4. Sulphate crystallisation 3. Ni-Co releach APPENDIX – Base case flowsheet Pressure Acid Leach, with Mixed Sulphide precipitation yields high purity product 27
Slide 28: Ardea Resources Limited
For personal use only ARDEA RESOURCES LIMITED ASX : ARL www.ardearesources.com.au Suite 2, 45 Ord St, West Perth WA 6005, AUSTRALIA +61 8 6244 5136 Contact Mr Brett Clark, Managing Director and CEO, ardea@ardearesources.com.au 28