Ardea Resources Ltd. · ASX:ARL
Ardea Resources — Diggers and Dealers 2018
32 slides from Ardea Resources's conference presentation, Aug 6, 2018
Slide 1: Ardea Resources
Ardea Resources World-significant Australian cobalt and nickel for the battery industry Diggers and Dealers – Booth E06, Kalgoorlie, 6 - 8 August 2018 www.ardearesources.com.au 1 Ardea Resources Limited 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 Company's prospectus dated 9 November 2016 (including supplementary prospectuses dated 18 November 2016 and 6 January 2017), the
Slide 3: Ardea Value Proposition
e Ardea Value Proposition • 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* • Potentially a multi-decade producer of high-quality nickel and cobalt sulphate – 100% offtake available • 1.0Mtpa base case PFS
Slide 4: Corporate Snapshot
Corporate Snapshot Capital Structure 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 (1 August 2018) $0.855 geometallurgy, ensures the right mix t
Slide 5: 100% Australian Asset Portfolio
100% Australian Asset Portfolio Porphyry & Epithermal Nickel-Cobalt Laterites, WA Copper-Gold Projects, NSW Goongarrie Nickel Cobalt Project Lachlan Fold Belt, NSW is Other deposits also under assessment: Australia’s premier address for Black Range, Kalpini, Yerilla, Boyce Creek, porphyry and epithe
Slide 6: Goongarrie Nickel Cobalt Project
GOONGARRIE NICKEL COBALT PROJECT WESTERN AUSTRALIA Ardea’s flagship is Australia’s premier nickel cobalt project 6 Looking towards the ore body at Goongarrie adjacent to the Goldfields Highway, looking NE
Slide 7: Goongarrie Nickel Cobalt Project – 15km strike length of continuous mineralisation
Goongarrie Nickel Cobalt Project – 15km strike length of continuous mineralisation Goongarrie JORC Resources 215.6 Mt at 0.06% cobalt and 0.71% nickel* * Reserves optimised for 1.5Mtpa, 25 year mine life only, less than 20% of Goongarrie resource utilised at this scale 40.1 Mt at 0.09% cobalt and 0.
Slide 8: Simple, shallow open pit mining
Simple, shallow open pit mining • Uniform mineralisation grades and mineralogy • Scheduled pits within 60m of surface • Soft, free-digging open-pit mining • Low strip ratio, 2:1 8
Slide 9: Base case flowsheet
Filtration 1. Leaching 2. Impurity removal 4. Sulphate crystallisation crystallisa 3. Ni-Co releach Base case flowsheet Pressure Acid Leach, with Mixed Sulphide precipitation yields high purity product 9
Slide 10: A High-Quality Cobalt and Nickel Sulphate Producer
A High-Quality Cobalt and Nickel Sulphate Producer 1.0Mtpa 1.5Mtpa 2.25Mtpa Outstanding results delivered from recently completed PFS* and Expansion Study+ Status PFS PFS ES • PFS 1.0Mtpa base case over a 25-year mine life No. Trains 1 1 1 US$ 1.13 US$ 1.52 US$ 2.4 • ES 2.25Mtpa with a 25-year mine
Slide 11: Capital Intensity of HPAL Projects - Peer Comparision
Capital Intensity of HPAL Projects - Peer Comparision 11
Slide 12: 2.25Mtpa Expansion Study
2.25Mtpa Expansion Study • Unique mineralogy of Goongarrie allows: – Single autoclave for 2.25Mtpa (same size as the 1.5Mtpa case) – 40 minutes residence time – High density solids into the autoclave – No significant change in recoveries with short residence time • Goongarrie exhibits significant po
Slide 13: DFS Programs Underway
DFS Programs Underway • DFS programs underway including: – Demonstration-scale Pilot Plant currently running to produce Ni and Co Sulphate – Resource drilling and re-estimation – Approvals • Additional upside options are currently being assessed and include the following: – Mineralised neutraliser o
Slide 14: Exceptional Size and Scale
Exceptional Size and Scale Investment criteria Ardea Resources 773 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 resource
Slide 15: The Bigger Picture
e Bigger Picture – multi-decade multi-dec cade resour resource rce • 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 staged development approach • Potential additional processing hubs
Slide 16: Indicative Development Timetable
Indicative Development Timetable 2018 2019 2020/2021 2021/2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PFS DFS Offtake discussions Resource/reserve/sampling drilling 2.25Mtpa Scoping Study (Completed) Goongarrie Resource Upgrade Scandium Study Mineralised Neutraliser Study Production & Marketing Samples Investment
Slide 17: Other Value Drivers for Ardea
OTHER VALUE DRIVERS FOR ARDEA Ardea’s portfolio includes Australia’s largest cobalt resource, as well as significant gold, nickel sulphide and base metal projects 17 Drill samples from Black Range west of the Goongarrie Nickel Cobalt Project. Black Range contains high nickel, and cobalt, and accessor
Slide 18: Au - Mount Zephyr (WA)
Au - Mount Zephyr (WA) • 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 exploration programs underway: – New geophysics – New geological interpretations – New targets • Hist
Slide 19: New concepts to test
New concepts to test • Area east of Celia Lineament is highly prospective: • Most historic gold workings east of lineament • Mt Windarra nickel sulphide stratigraphy • Jupiter, Wallaby granitoid-hosted gold to the east of the lineament further south • Along structure from Mt Morgans gold deposits •
Slide 20: Zn Au – Lewis Ponds (NSW)
Zn Au – Lewis Ponds (NSW) • Major zinc-gold-silver development project with enormous potential in NSW • Historic resources: – 6.62 Mt @ 2.4 % Zn, 1.4 % Pb, 0.2 % Cu, 1.5 g/t Au, and 69 g/t Ag – Bulk mining open pit exploration target: – 15-25 Mt @ 2.2-3.7 % Zn equiv* or 1.0-1.5 g/t Au equiv* • Main
Slide 21: Need long term Ni-Co Supply?
Need long term Ni-Co Supply? • Goongarrie is a multi-decade producer of high-quality nickel and cobalt sulphate • 1.0Mtpa 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 • PF
Slide 22: APPENDICES
APPENDICES iA Ardea 22
Slide 23: 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 24: 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 P
Slide 25: KNP resource breakdown
APPENDIX – KNP resource breakdown # !$ (&'(%"! (&') 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 Total Resources 773.0 0.0
Slide 26: Autoclave Size Comparison
APPENDIX – Autoclave Size Comparison 26
Slide 27: The Sulphate Markets
APPENDIX – e Sulphate Markets • 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
Slide 28: Targeting the Sulphate Market
TARGETING THE SULPHATE MARKET Ardea is positioning itself to supply the lithium ion battery market as the Automotive Electrification Revolution gathers pace 28
Slide 29: The Growing Momentum in Cobalt
e Growing Momentum in Cobalt • 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 • Anticipate
Slide 30: The Growing Momentum in Cobalt
e Growing Momentum in Cobalt • 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 sou
Slide 31: Cobalt and Nickel Sulphate Fundamentals
Cobalt and Nickel Sulphate Fundamentals • 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 specific
Slide 32: ASX : ARL
ASX : ARL www.ardearesources.com.au Suite 2, 45 Ord St, West Perth WA 6005, AUSTRALIA +61 8 6244 5136 Email us at ardea@ardearesources.com.au 32