Ardea Resources Ltd. · ASX:ARL
Ardea Resources — Sprott Natural Resource Symposium 2018
32 slides from Ardea Resources's conference presentation, Jul 20, 2018
Slide 1: Ardea Resources
Aragea Resources WOnG-SiGgmiicdat AUStraliam cobalt and nicke Fortra Haecapy inleltijeny Sprott Natural Resource Symposium, Vancouver, 17—20 July 2018 www.ardearesources.com.au Ardea Resources Limited Suite 2, 45 Ord St, West Perth WA 6005, AUSTRALIA +61 8 6244 5136
Slide 2: Important notice
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 and 6 January 2017) and the Goongar
Slide 3: Goongarrie Nickel-Cobalt Project highlights
• The 100% owned Goongarrie Nickel-Cobalt Project is part of the largest Cobalt Resource in the Developed World – 773Mt at 0.7% Ni and 0.05% Co • Robust Pre-Feasibility Study which included the following highlights: – Pre-tax NPV US$1.4 billion – Pre-tax IRR 29% – Initial focus will be on 40Mt at 0.
Slide 4: Capital structure and management team
Experienced management team with global experience in corporate fundraising, Shares on Issue 104,990,413 processing and engineering for laterite nickel-cobalt deposits, laterite geology and Share Price (6 July 2018) $0.76 geometallurgy, ensures the right mix to make Goongarrie succeed. 52 week high
Slide 5: Porphyry & Epithermal Copper-Gold Projects, NSW; Nickel-Cobalt Laterites, WA
Porphyry & Epithermal Nickel-Cobalt Laterites, WA Copper-Gold Projects, NSW Goongarrie Nickel Cobalt Project Lachlan Fold Belt, NSW is Other deposits also under assessment: Australia’s premier address for Black Range, Kalpini, Yerilla, Boyce Creek, porphyry and epithermal WESTERN copper-gold project
Slide 6: Looking towards the plant site at Goongarrie
6 Looking towards the plant site at Goongarrie adjacent to the Goldfields Highway, looking NE
Slide 7: View over Goongarrie Nickel Cobalt Project
Insert picture of Goongarrie 7 7 View over Goongarrie Nickel Cobalt Project, looking southeast, showing the extent of the deposit (blue-green = Co >0.05%, purple = Co > 0.10%), and proximity to infrastructure. * See appendix for resource breakdown
Slide 8: PFS was based on only 5% of the Company's total resources at Goongarrie
• Significant potential to provide exceptional returns over a minimum of 25 years • Ardea holds nickel-cobalt laterite projects covering 1,738 km2 near Kalgoorlie, Western Australia – Goongarrie makes up 142 km2 of this total area • Close proximity to world-class infrastructure and logistics – Prime
Slide 9: Pre-Feasibility Study results
Outstanding results delivered from recently completed 1.0 Mtpa 1.5 Mtpa (base case) Pre-Feasibility Study* Status PFS PFS • 1.0 Mtpa base case over a 25-year mine life No. Trains 1 1 • 95.5% cobalt and 94.5% nickel recovery – life of mine Pre Tax NPV8 US$ 1.13 billion US$ 1.52 billion • Pre-cobalt C
Slide 10: Uniform mineralisation and open pit mining potential
• Uniform mineralisation grades and mineralogy • Open pit mining potential • Scheduled pits within 60m of surface • Soft, free-digging open-pit mining • Low strip ratio 10
Slide 11: 2.25 Mtpa scoping study nearing completion
• Scoping study on 2.25 Mtpa via single processing train is nearing completion – > 8,000 tpa cobalt sulphate expected – > 70,000 tpa nickel sulphate expected • Goongarrie exhibits significant potential for expansion via multiple parallel modular trains • Additional upside options are currently being
Slide 12: Over 700 million tonnes of cobalt and nickel resources, WA
Over 700 million tonnes of cobalt and nickel resources, WA Company resources Goongarrie, Black Range, Kalpini, Yerilla, Boyce Creek, Aubils, Siberia, Highway, Ghost Rocks (all within 100km radius) >400,000 t cobalt Metal contained in resources >5,600,000 t nickel Market capitalisation $80 million Ma
Slide 13: Goongarrie is part of the broader Kalgoorlie Nickel Project
• The Goongarrie Nickel Cobalt Project is part of the broader Kalgoorlie Nickel Project (KNP) • KNP is the largest cobalt resource in Australia • Ardea is adopting a conservative staged development approach • A targeted plan will be utilised to prove up the resources at the following deposits: – Sib
Slide 14: Kalgoorlie offers world-class infrastructure
• Kalgoorlie, Western Australia offers world-class infrastructure in an established mining hub – Over 125 years of mining in the region – Low sovereign risk – World-leading workplace practices enshrined in law – Goongarrie is 80 km north on the main Goldfields Highway • Renewable mine site electrici
Slide 15: Development timeline PFS to DFS
2018 2019 2020 2021/2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PFS DFS Offtake discussions Resource/reserve/sampling drilling 2.25 Mtpa scoping study Goongarrie Resource & Reserve Upgrade Scandium PFS update Mineralised neutraliser PFS update Production & Marketing Samples Investment Decision Environmental studie
Slide 16: Positioning to supply the lithium-ion battery market
itionin itself to uppl 1 the li hium ion battery. market as
Slide 17: Cobalt demand continues to grow
• 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 billion by 2025 • Anticipated cobalt sulphate market CAGR
Slide 18: Ethical concerns over cobalt supply from DRC
• Increasing ethical concerns over supply of cobalt from DRC (~60% of global supply) • Some companies have stopped sourcing cobalt from DRC and are opting to pay a premium for cobalt from regulated industrial mines • More global manufacturers anticipated to follow in sourcing alternative supply • De
Slide 19: Cobalt and nickel in lithium ion batteries
• Cobalt and nickel are critical components of lithium ion batteries ensuring high energy density and chargeability • Higher cobalt and nickel content provides EVs with greater range and faster recharge times • The battery industry requires the metals specifically as soluble compounds to be suitable
Slide 20: Black Range drill samples
20 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 21: New ideas to test in old gold mining areas
• New ideas to test in old gold mining areas ~350km north of Kalgoorlie • Mt Zephyr greenstone belt barely explored for >20 years • Numerous historic gold workings • Extensive work programs underway: – New geophysics – New geological interpretations – New targets Alteration and brecciation in granit
Slide 22: Gold window
W E Gold window • Area east of Celia Lineament is highly prospective: Mount Zephyr • Most historic gold workings east of lineament greenstone belt • Mt Windarra nickel sulphide stratigraphy • Jupiter, Wallaby granitoid-hosted gold to the east of the lineament further south • Along structure from Mt
Slide 23: Historic workings along >4 km strike
• Historic workings along >4 km strike – Gold grading from “a few pennyweights to 3oz per ton”, Dunn, April 1900 – ~5 to 90 g/t gold – Gold-hosting BIF units traced ~18 km under cover • Mt Morgans equivalent BIF-hosted replacement style gold – Hill 50-style with mineralised breaks, largely undrilled
Slide 24: Goongarrie is a multi-decade producer of nickel and cobalt sulphate
• Goongarrie is a multi-decade producer of high-quality nickel and cobalt sulphate • 1.0 Mtpa base case PFS demonstrates a low-capital expenditure start-up with robust project economics • Size and scalability of Goongarrie offers significant upside for project growth • PFS has only accounted for 5%
Slide 25: Contact details
Suite 2, 45 Ord St, West Perth WA 6005, AUSTRALIA +61 8 6244 5136 25 Email us at ardea@ardearesources.com.au
Slide 26: Appendices
APPENDICES kA Ardea 26
Slide 27: Goongarrie mineral resources summary
Study component of the Ardea PFS. Summary TableofError! total mineral No textresources within style of specified the Goongarrie in document.-1 – Summary Nickel Cobalt Project area, comprising of total resources at mineral resources within the Goongarrie Hill, Goongarrie Goongarrie South, Project Nic
Slide 28: Goongarrie Ore Reserves
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 Proven — — — Probable 13.92 0.09% 0.77% Total 13.92 0.09% 0.77% T
Slide 29: KNP nickel-cobalt mineral resource
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 0.05 0.68 254,400 3,600,000 KNP Tota
Slide 30: Sulphate pricing and premiums
US$/t • Strong growth in sulphate pricing is expected with rapidly increasing demand for high- purity product from manufacturers globally. Increased battery production is required to power the Automotive Electrification Revolution • Cobalt sulphate and nickel sulphate attract a price premium (based
Slide 31: Sulphate production process
Filtration 1. Leaching 2. Impurity removal 4. Sulphate crystallisation 3. Ni-Co releach 31
Slide 32: Contact details
Suite 2, 45 Ord St, West Perth WA 6005, AUSTRALIA +61 8 6244 5136 32 Email us at ardea@ardearesources.com.au
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