Ardea Resources Ltd. · ASX:ARL
Ardea Resources — Investor Presentation (February 2019)
36 slides from Ardea Resources's investor presentation, February 2019
Slide 1: Ardea Resources
Aragea Resources WOnG Signed AUStralian Cobalt and nic Fortra Haecapy inleltijeny 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), the Goongarrie
Slide 3: Ardea Resources
ARDEA RESOURCES An Australian minerals exploration and development company DEVELOP the Goongarrie Nickel-Cobalt Project 3 kA Ardea
Slide 4: Capital Structure and Board and Management
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 (13 Feb 2019) $0.485 geometallurgy, ensures the right mix to make Goongarrie suc
Slide 5: Ardea project portfolio in WA and NSW
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 Aubils, Siberia, Highway, G
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: Goongarrie is part of the broader Kalgoorlie Nickel Project
• The Goongarrie Nickel Cobalt Project is part of the broader Kalgoorlie Nickel Project (KNP) • 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 • Potential for multiple processing hubs
Slide 8: Investment criteria and peer comparison of contained metal
Investment criteria Ardea Resources (KNP) Contained cobalt metal in resources Company resources Ardea: 405,000 t cobalt Over 700 million tonnes of AUZ: 57,157 t cobalt and nickel resources, WA Numerous deposits within 100km radius, CLQ: 114,000 t including Goongarrie, Black Range, Kalpini, Yerilla,
Slide 9: Goongarrie is part of the largest cobalt resource in the developed world
The 100% owned Goongarrie Project is part of the largest Cobalt Resource in the developed world • Potential multi-decade producer of high-quality nickel and cobalt sulphate • 100% nickel and cobalt offtake available • 1.0Mtpa base case PFS – low CAPEX start-up with robust project economics • 2.25Mtp
Slide 10: View over Goongarrie Nickel Cobalt Project
Insert picture of Goongarrie Reserves optimised for 25 year mine life only, less than 20% of Goongarrie resource utilised at this scale (40.1 Mt at 0.82% Nickel & 0.09% Cobalt*) 10 10 View over Goongarrie Nickel Cobalt Project, looking southeast, showing the extent of the deposit (blue-green = Co >0
Slide 11: Outstanding results from PFS and Expansion Studies completed in 2018
Outstanding results delivered from PFS* and ✓ PFS of 1Mtpa and 1.5Mtpa base case over a 25-year Expansion Studies completed in 2018: mine life completed 1.0Mtpa 1.5Mtpa 2.25Mtpa ✓ Expansion study of 2.25Mtpa with a 25-year mine life Status PFS PFS ES completed No. Trains 1 1 1 ✓ 95.5% cobalt and 94.
Slide 12: Uniform mineralisation grades and mineralogy
• Uniform mineralisation grades and mineralogy • Open pit mining potential • Scheduled pits within 60m of surface • Soft, free-digging open-pit mining • Low strip ratio 12
Slide 13: The high quality of Goongarrie ore is key to project success
• The high quality of Goongarrie ore is key to the project’s success: – uniform in composition – laterally continuous over kilometres – high levels of cobalt, scandium credit – overwhelmingly goethitic (unlike many other laterite deposits), – highly soluble in HPAL acid, low acid consumption – no sc
Slide 14: Building on the $50 Million spent by Vale and Heron
Building on the $50 Million spent by Vale and Heron on 2005-2009 PFS Geology ✓ Resource upgrade at Goongarrie ✓ Maiden reserve announced for Goongarrie ✓ 47,239m of drilling to date by Ardea since listing Metallurgy ✓ Variability and Rheology test work to date favourable ✓ Pilot Plant testing succes
Slide 15: Current activities
Current activities • Strategic Partner process • Goongarrie Resource Upgrade • High Grade Mine Schedule based on Resource Upgrade • Mineralised Neutraliser study • Extensive Variability Program planned to extend the geo- metallurgy database to reflect the ore LOM • Water studies • Tailings studies •
Slide 16: Over 125 years of mining in the region
• 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 – Railway lines, power lines cr
Slide 17: Drilling the Mount Zephyr project
17 Drilling the Mount Zephyr project, northern Eastern Goldfields, February 2019
Slide 18: First pass drill programs completed at Mount Zephyr
✓ First pass drill programs completed at Mount Zephyr, assays pending ✓ Gold targeting program at Bardoc Tectonic Zone (BTZ) at Goongarrie • Over 300 drillholes in Phase I • Drilling commenced ✓ Systematic assessment and ranking of all non-nickel cobalt laterite projects during 2019 • Taurus, Bedoni
Slide 19: Bardoc Tectonic Zone gold potential at Goongarrie
✓ One of the major gold-bearing structures of the Eastern Goldfields runs through the GNCP ✓ 80 km long gold-producing regional shear / fault system ✓ Hosts Paddington gold mine, Goongarrie, Menzies, and Comet Vale historic gold mining centres ✓ Contiguous with Boulder-Lefroy Fault, hosts Kalgoorlie
Slide 20: Mount Zephyr gold and nickel-copper drill programs
✓ Prime exploration opportunity for Ardea, virtually no systematic gold exploration since 1990s. ✓ First pass drill programs completed: • Gold at Gale, Dunn’s North, Dunn’s Line Paul’s Find • Ni-Cu sulphides (+ gold) at Jones Area A ✓ Multiple gold and base metal targets in the process of being defi
Slide 21: Outcrop-limited gold anomaly at Gale, Mt Zephyr
✓ Outcropping gold-mineralised granite: • Exceptional 900 x 300 m outcrop-limited anomaly at gold over 0.1 g/t (up to 1.49 g/t at surface) • Sericite, pyrite, hematite alteration. • Gold, arsenic, copper and barium anomalism. • Parallels with Dacian’s Jupiter mine & Gold Field’s Wallaby mine. ✓ Firs
Slide 22: Examining historic silver mine workings at Lewis Ponds, NSW
22 Examining historic silver mine workings at Lewis Ponds, NSW
Slide 23: NSW prospectus expected and listing timeline
• Resource upgrade underway at Lewis Ponds • Data upgrades for all projects, focus on Mt Aubrey and Yeoval • Present timeline: – prospectus expected to be issued in Q3 2019 – Aiming to list by end 2019 • Also considering project sale opportunities Ophir Goldfield discovery site, NSW 23
Slide 24: Ardea's suite of 100% owned NSW projects
Ardea’s suite of high-quality 100% owned projects: • Lewis Ponds zinc-silver-lead-gold- copper deposit • High-grade epithermal Au-Ag mineralisation – Mount Aubrey (fmr BHP) – Wiseman’s Creek • Porphyry systems – Yeoval Cu-Au-Mo-Rh • Orogenic gold – Calarie (at Forbes) – Ophir (Australia’s first gold
Slide 25: Mt Aubrey epithermal gold drill results
As Sb Western Vein Eastern Vein Silicification alteration 500m RL Mt Aubrey position 450m RL 4900mE 4700mE 5700mE 5900mE Quartz–illite ± adularia High-grade gold zone Au alteration could lie at depth MAD4: Increasing Depth 88m @ 0.22g/t Au Ag from 2m Quartz–chlorite alteration Pb Zn >50 g x m Au • M
Slide 26: Lewis Ponds mining history, resource and exploration target
Extensive mining history from 1850s through to early 1900s JORC Inferred Resource: 6.6Mt at 1.5g/t Au, 69g/t Ag and 2.4% Zn Exploration Target: 15–25 Mt at 2.2–3.7 % ZnEq* or 1.2–2.0 g/t AuEq* • Resource Upgrade underway • Soil gold anomalies + McPhillamy-style gold targets with no previous testing
Slide 27: Drill samples from Black Range
27 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 28: Advanced Australian nickel-cobalt project at Goongarrie
✓ Advanced Australian nickel-cobalt project at Goongarrie – Large mineral resource in a stable jurisdiction – Significant drilling and metallurgical work already completed – Project Studies completed: • 1Mtpa and 1.5Mtpa case studies offer significant economic opportunity • Scoping Study completed o
Slide 29: Contact details
Suite 2, 45 Ord St, West Perth WA 6005, AUSTRALIA +61 8 6244 5136 29 Email us at ardea@ardearesources.com.au
Slide 30: Appendices
APPENDICES kA Ardea 30
Slide 31: 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 32: 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 33: KNP nickel-cobalt mineral resource (JORC 2012)
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 34: Strong growth in sulphate pricing expected
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 35: Leaching, impurity removal and sulphate crystallisation
Filtration 1. Leaching 2. Impurity removal 4. Sulphate crystallisation 3. Ni-Co releach 35
Slide 36: Contact details
Suite 2, 45 Ord St, West Perth WA 6005, AUSTRALIA +61 8 6244 5136 36 Email us at ardea@ardearesources.com.au
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