Goongarrie Nickel-Cobalt Project ARL 100%

The Goongarrie Nickel-Cobalt Project is Ardea’s flagship project. The 100% owned GNCP is part of the largest Nickel Cobalt Resource in the developed world. Goongarrie is located in the tier-one mining jurisdiction of Kalgoorlie, which offers world-class infrastructure in an established mining hub.

Goongarrie is a globally significant, readily scalable project, which is being developed to become a long-term producer of high-quality nickel-cobalt sulphate.

With resource of 773 million tonnes at 0.71% Ni and 0.05% Co, Goongarrie is currently positioned as the premium nickel-cobalt project in Australia, whilst also offering significant upside with only 5% of the Kalgoorlie Nickel-Project landholding being factored in to the current resource.

Ardea is positioning Goongarrie to be a supplier of high-purity cobalt and nickel sulphate to the lithium ion battery market as the automotive electrification revolution continues to rapidly grow. The electric vehicle market is expected to account for 14% of new car sales by 2025, whilst the cobalt sulphate market is forecasted to reach US$9.5 billion by 2025.

Increased demand for cobalt sulphate is driven by the higher energy density it provides to both electric vehicle and energy storage system batteries.

Highlights

• Potential multi-decade producer of high-quality nickel and cobalt sulphate
• 100% nickel and cobalt offtake available
• A Pre-Feasibility study has shown Goongarrie to be a highly valuable development and Ardea continues to advance the project toward a final investment decision
  • 1.0Mtpa base case PFS – low CAPEX start-up with robust project economics
  • 2.25Mtpa expanded case – mill feed grades 0.88% Ni and 0.10% Co
• Low technical risk project to provide nickel and cobalt for the growing battery (Electric Vehicle and Static Storage Battery) market
• DFS programs underway
• Strategic partner interest is high as concerns rise around secure long-term supply of battery grade nickel and cobalt

GNCP milestones since Ardea listed in 2017

Geology

• Resource upgrade at Goongarrie
• Maiden reserve announced for Goongarrie
• 50,561m of drilling to date by Ardea since listing
• Comprehensive geomet studies completed and underway

Metallurgy

• Variability and Rheology test work to date favourable
• Pilot Plant successfully produced nickel and cobalt sulphate crystals
• Crystals meet specifications of several battery industry off-takers
• Marketing samples being evaluated by off-takers and battery end-users

Project Studies

• Pre-Feasibility Study completed for 1.0 and 1.5Mtpa processing options
• Expansion Case (Scoping Study) completed for 2.25Mtpa option
• Definitive Feasibility Study programs underway

Location

• Kalgoorlie, Western Australia offers world-class infrastructure in an established mining district
  • 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 cross Goongarrie tenements
  • Gas pipeline close by
• Western Australia’s safety, health and environmental standards are world’s best practice
• An Australian source for battery metals removes supply line concerns
• Goongarrie offers an ethical, secure, long-life source of nickel life and cobalt