Ardea Resources Ltd. · ASX:ARL
Ardea Resources — Battery Metals Conference 2018
35 slides from Ardea Resources's conference presentation, Mar 14, 2018
Slide 1: Bringing the Goongarrie Nickel Cobalt Project towards development
ARDEA RESOURCES LIMITED ASX : ARL Bringing the Goongarrie Nickel Cobalt Project towards development Battery Metals Conference 14 March 2018 1
Slide 2: Disclaimer
Disclaimer Important notice Competent Person Statement This presentation contains general information only and is, or is based upon, information which has A competent person’s statement for the purposes of Listing Rule 5.22 has previously been been released to ASX or is contained in the Company’s pr
Slide 3: The Value Proposition: Why Invest in ARL?
THE VALUE PROPOSITION WHY INVEST IN ARL? 3
Slide 4: Why Ardea?
Why Ardea? • Considerable leverage to the Lithium Ion Battery sector, with increasing cobalt and nickel prices • Well funded - $14.9M cash @ 31 Dec • Significant relative value compared to Australian nickel-cobalt-laterite peers • Systematically advancing the Goongarrie Nickel Cobalt Project to a de
Slide 5: Ardea's Value Proposition
Ardea’s Value Proposition Ardea Resources Limited (ASX:ARL) is a development and exploration company with nickel-cobalt laterite, nickel sulphide, gold, and zinc assets. ARL prime focus is advancing its 100% owned flagship Goongarrie Nickel Cobalt Project, which is part of the Kalgoorlie Nickel Proj
Slide 6: Ardea's Value Proposition
Ardea’s Value Proposition • Largest Cobalt Resource in the Developed World (SNL) with significant scandium optionality • All assets totally unencumbered, no impediment to transacting • Non-conflict alternative to DRC supply • Excellent infrastructure in a well-established mining hub • A$50 million s
Slide 7: What Are Our Objectives?
WHAT ARE OUR OBJECTIVES? kA Ardea
Slide 8: Ardea's Corporate Objectives
Ardea’s Corporate Objectives • To create value for Ardea shareholders • To become a sustainable, reliable producer and directly supply: – cobalt sulphate and nickel sulphate to battery manufacturers – scandium oxide to the automotive and aerospace industries • To optimise value from Ardea’s other go
Slide 9: Who Are We?
WHO ARE WE? kA Ardea
Slide 10: Corporate Snapshot
Corporate Snapshot Capital Structure Australia’s best performing IPO for 2017 Shares on Issue 90,639,331 Share Price (13 March 2017) $1.57 – 850% SP increase to 31 Dec 52 week high / low $2.20 / $0.42 Cash $14.9 million – Still undervalued compared to peers Market Cap $134 million Unlisted Stock $0.
Slide 11: Ardea's Opportunities
ARDEA’S OPPORTUNITIES kA Ardea
Slide 12: Ardea's assets
Ardea’s assets KNP cobalt-nickel-scandium laterite, WA KNP (Kalgoorlie Nickel Project): developed world’s largest cobalt resource KNP Cobalt Zone: high-grade portion of the KNP, focus of development Primary Development Project: Goongarrie Nickel Cobalt Project Bulk tonnage gold projects, WA and NSW
Slide 13: KNP Cobalt Zone Opportunity
KNP COBALT ZONE OPPORTUNITY Potential for decades of cobalt and nickel supply from a stable jurisdiction 13
Slide 14: Ardea's nickel and cobalt opportunity
Ardea’s nickel and cobalt opportunity A long future for assured supply • Largest resource position in the developed world • Ardea is a genuine alternative to DRC cobalt for selected off-takers – Over 400,000 t of in-ground cobalt metal in the KNP – Over 5,600,000 t of in-ground nickel metal in the K
Slide 15: The KNP Cobalt Zone
The Goongarrie Nickel Cobalt Project, looking southeast, showing the extent of the Cobalt Zone (blue-green = Co >0.05%, purple = Co > 0.10%), and proximity to infrastructure The KNP Cobalt Zone 108.3 Mt at 0.10 % cobalt & 0.79 % nickel** 108,400 t contained cobalt metal 856,900 t contained nickel me
Slide 16: Goongarrie Nickel Cobalt Project
Goongarrie Nickel Cobalt Project The battery industry needs metal salts cobalt nickel scandium sulphate sulphate oxide • Direct production of high purity salts on site at Goongarrie • High purity cobalt sulphate and nickel sulphate to be provided directly to battery manufacturers • High purity scand
Slide 17: Development opportunity
Development opportunity • 100% ownership of project, unencumbered • Located within 100km of Kalgoorlie – Australia’s mining capital – Becoming a battery mineral centre • All necessary infrastructure – Sealed roads – Railway – Water – Electricity – Gas – Telecommunications – Skilled local workforce –
Slide 18: Simple open pit mining
Simple open pit mining • Very uniform mineralisation grades and mineralogy, well suited to open pit mining • Scheduled pits within 60 m of surface • Soft, free-digging open-pit mining • Low strip ratio • Competitive mining costs to be defined in PFS 18
Slide 19: Prefeasibility Study nearing completion
Prefeasibility Study nearing completion • Finalisation in progress • At 1 Mtpa throughput, we would aim to produce: >5,000 t cobalt sulphate per annum >30,000 t nickel sulphate per annum • 1.0 and1.5 Mtpa option to PFS level, 0.5 and 2.25 Mtpa scoping • Scandium oxide production option 19
Slide 20: Base case flowsheet
Filtration 1. Leaching 2. Impurity removal 4. Sulphate crystallisation 3. Ni-Co releach Base case flowsheet Pressure Acid Leach, with Mixed Sulphide precipitation yields high purity product 20
Slide 21: Marketing samples for off-take discussions
Marketing samples for off-take discussions • Bench-scale sulphates successfully produced • Drilling underway to source material for marketing samples – Production of samples later in 2018 • Discussions with key end-users underway – Battery manufacturers – Auto manufacturers – Metals traders 21
Slide 22: Peer comparison – main projects
Peer comparison – main projects Investment criteria ARDEA AUSTRALIAN MINES CLEANTEQ KNP Cobalt Zone, WA Sconi Project, QLD Sunrise Project, NSW Mineral Resource Size 108.3 million tonnes 89 million tonnes 101 million tonnes 0.10 % cobalt 0.07 % cobalt 0.13 % cobalt Grade 0.79 % nickel 0.58 % nickel
Slide 23: Peer comparison – company resources
Peer comparison – company resources Investment criteria Australian Mines CleanTeQ Over 700 million tonnes of KNP cobalt and nickel resources Sconi QLD (89 Mt), Company resources Goongarrie, Black Range, Kalpini, Yerilla, Flemington NSW (2.7 Mt) Sunrise NSW (101 Mt) Boyce Creek, Aubils, Siberia, High
Slide 24: KNP – battery mineral source for decades to come
KNP – battery mineral source for decades to come • Goongarrie is only the first stage of the development of the KNP – JORC-compliant resources at Black Range, Highway, Ghost Rocks, Aubils, Boyce Creek, Kalpini, Lake Rebecca, Siberia, and others. – Dominantly on granted mining licences, all unencumbe
Slide 25: Value Proposition
Value Proposition Well funded developer - with quality 100% Owned Australian assets $14.9 million cash - exercise of 77c options by May 2018 could add a further $11.9 million Optionality Play - Ardea provides exceptional leverage to the price of Cobalt + Nickel, the Battery Industry, and the Automot
Slide 26: Ardea Resources Limited
For prime exposure to: ▪ Battery Metals ▪ The Automotive Electrification Revolution ▪ The Lithium Ion Battery Industry ▪ Cobalt and Nickel commodity prices Additional optionality over 100% owned Zinc, Nickel Sulphide and Gold opportunities ARDEA RESOURCES LIMITED ASX : ARL Come discuss Ardea at our
Slide 27: App 1: Resource breakdown
App 1: Resource breakdown KNP Cobalt Zone nickel-cobalt mineral resource (JORC 2012) Resource Cut-off Size Cobalt Nickel Contained metal Camp Deposit(s) Remodel status category % (Mt) (%) (%) Co (t) Ni (t) Goongarrie Goongarrie South Total > 0.08 Co or > 0.5%Ni 53.1 0.10 0.82 52,000 436,600 ARL, Mar
Slide 28: App 1: Resource breakdowns (continued)
App 1: Resource breakdowns (continued) 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 Company for: 1. Kalgoorlie
Slide 29: App 1: Resource breakdowns (continued)
App 1: Resource breakdowns (continued) 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 Inferred Main Zone 0.17 1.7 0
Slide 30: App 2: Key Risks
Appendix 2: Key Risks 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 investment objectives (inclu
Slide 31: App 2: Key Risks (continued)
App 2: Key Risks (continued) 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, there is a risk that the m
Slide 32: App 2: Key Risks (continued)
App 2: Key Risks (continued) 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 testwork investigations; (ix
Slide 33: App 2: Key Risks (continued)
App 2: Key Risks (continued) 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 expected to have a varie
Slide 34: App 2: Key Risks (continued)
App 2: Key Risks (continued) 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; (b) movements in or o
Slide 35: App 2: Key Risks (continued)
App 2: Key Risks (continued) 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 factors such as: (a)