Ardea Resources Ltd. · ASX:ARL
Ardea Resources — New Metals Conference (December 2019)
30 slides from Ardea Resources's conference presentation, Dec 12, 2019
Slide 1: New Metals Conference Presentation
11 December 2019 – New Metals Conference 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 Experienced & dedicated management team with global experience Capital Structure, as at 6 December 2019 in the resources sector, from corporate fundraising, exploration, Shares on Issue 117,300,435 discovery, feasibility studies, development and operations. Share Price $0.60 Ardea
Slide 4: Ardea is a well funded West Australian-focused developer
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 Company slide presentation from mid 2019. Kalgoorlie Nickel Project
Slide 5: Ardea Project Portfolio
Ardea Project Portfolio Ardea is a West Australian-focused developer and explorer DEVELOPING the GNCP EXPLORING the KNP for gold and nickel First drilling at Mulga Plum imminent and programs planned for 2020 on the Bardoc Tectonic Zone Ardea over 4,500 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, part of the KNP
Goongarrie Nickel-Cobalt Project 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 • 1.0Mtpa base case P
Slide 9: GCNP Advances in 2019 - Approvals
GCNP Advances in 2019 - Approvals • Community consultation current with 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 Fo
Slide 10: GNCP Advances in 2019 - Approvals
GNCP Advances in 2019 - Approvals Activities undertaken to minimise project footprint: • Back filling of open pits with slurry tailings • Sourcing neutraliser from open pit mining • Sourcing process water from pit dewatering • Extensive Flora and Fauna surveys undertaken across the project area 10
Slide 11: 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 12: Thick, high-grade, single ore type, low strip ratio
Thick, high-grade, single ore type, low strip ratio 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* Refer to Ardea ASX releases: *Goongarrie Nickel Cobalt Project, PFS study, 28 March 2018, Goongarrie Expansion Study, 24 July 2018, and Q
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 have confirmed on specification nickel & cobalt sulphate • 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 • High levels of most battery 350 minerals but not nickel 300 • Declining nickel reserves • Future nickel production not 250 expected to keep up with growing demand, driven mainly 200 by the battery sector. Years 150 • Not a matter of if, bu
Slide 17: 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 18: EVs and electrification now
EVs and electrification now 18 18
Slide 19: Industry-wide EV investment
Industry-wide EV investment • All auto manufacturers have EV plans in place. • New EV companies rising to challenge existing manufacturers. – Tesla (US) – Rivian (US) – BYD (China) • Mergers of auto companies to compete for EV dominance. • China removes EV subsidies, industry sustainable. • EV manuf
Slide 20: Exceptional greenfields opportunities in Eastern Goldfields
Exceptional greenfields opportunities in well established host structures within the Eastern Goldfields 20 Drilling the Mount Zephyr project, northern Eastern Goldfields, February 2019
Slide 21: Exploration Upside
Exploration Upside >4,500km2 of 100% controlled tenure in one of Australia’s premier gold and nickel sulphide provinces Extensive tenure position provides multiple strategic options 2020 focus on core KNP projects centred on Kalgoorlie operations base Priority on flagship GNCP Undertake go
Slide 22: 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 23: BTZ - GNCP Site layout and gold studies
BTZ - GNCP Site layout and gold studies • East side of the GNCP nickel deposit is proposed area for mine waste landforms and infrastructure • It is also a zone of extensive historic gold workings associated with the BTZ – Initial gold targeting completed, based on 40 years of historic hard copy data
Slide 24: Investment Summary
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 25: APPENDICES
For further information regarding Ardea, please visit www.ardearesources.com.au 25 APPENDICES
Slide 26: 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 1.0Mtpa 1.5Mtpa 2.25Mtpa over a 25-year mine life completed Status PFS PFS ES Expansion study of 2.25Mtpa with a No. Trains 1 1 1 25-year m
Slide 27: Our Flagship Goongarrie Nickel - Cobalt Project
Our Flagship Goongarrie Nickel - Cobalt Project View over Goongarrie Nickel Cobalt Project, looking southeast, showing the extent of the deposit (blue-green = Co >0.05%, purple = Co > 0.10%), and proximity to infrastructure. * See appendix for resource breakdown Goongarrie JORC Resource 215.6 Mt at
Slide 28: 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 29: 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 30: 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.
Ardea Resources — New Metals Conference (December 2019) on 6ix