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Ardea Resources Limited

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.

Ardea is positioning Goongarrie to be a supplier of high-purity nickel and cobalt 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.

On 15 February 2021, Ardea presented an updated JORC 2012-compliant Mineral Resource Estimate (MRE) completed for the Goongarrie Nickel Cobalt Project (GNCP), including a GNCP High Grade Resource - 60 million tonnes at 1.0% nickel Sustainable Long-life Battery Metal Resource Confirmed

JORC 2012-compliant Mineral Resource Estimate (MRE) completed for the Goongarrie Nickel Cobalt Project (GNCP)
GNCP based on 0.8% Ni cut‑off grade GNCP based on 0.5% Ni cut‑off grade KNP based on 0.5% Ni cut‑off grade
Measured Indicated & Inferred MRE
  • 60Mt at 1.0% Ni and 0.07% Co
  • Contained metal 595kt nickel and 44kt cobalt
  • 259Mt at 0.7% Ni and 0.05% Co
  • Contained metal 1,817kt nickel and 119kt cobalt
  • 826Mt at 0.7% Ni and 0.05% Co
  • Contained metal 5,817kt nickel and 384kt cobalt

Notes:

  • GNCP Maiden scandium component 74Mt at 35ppm scandium
  • GNCP dominantly premium goethite mineralogy with excellent mineralised zone continuity, low acid consumption and good plant rheology
  • Manganese credit, potential for Precursor Cathode Active Material (PCAM)
  • Significant alumina credit within Clay Upper Goethite, recent Ardea R&D indicates potential for High Purity Alumina (subject to bench-scale testing)

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The GNCP R&D product studies and resource update is the culmination of 12 months’ work and demonstrates that the GNCP is one of the largest and most strategic nickel-cobalt deposits in the developed world.

With the GNCP located 70km north of the City of Kalgoorlie-Boulder and the 25km long line of resources on granted mining leases, the project is strategically positioned to provide sustainable and ethical mineral supply in the premier mining jurisdiction in the world, Western Australia.

Most importantly for future project development, using a 0.8% nickel cut‑off grade, the MRE is 60 million tonnes at 1% nickel with strong cobalt, scandium and aluminium credits. This is a significant project advancement.

The Company is targeting leach feed grades to a 2Mtpa High Pressure Acid Leach (HPAL) plant exceeding 1% nickel for 25 years. Ardea uniquely within Australian laterites has resource optionality due to the large size and exceptional quality of the KNP resources for mine high grading and selective recovery of key geo-metallurgical mineralisation types.

The GNCP also has significant manganese credits and thus has potential for Precursor Cathode Active Material (PCAM) for use in lithium-ion batteries (LIB). Of significance, the nickel-cobalt-manganese for use in NCM811 cathodes - 8 parts nickel, 1 part cobalt and 1 part manganese – approximates the KNP in-ground metal ratio.

Resource

Table 1-1 – GNCP nickel, cobalt and scandium Mineral Resources based on a 0.8% Ni cut‑off grade
Deposit Resource Category Tonnes (Mt) Ni (%) Co (%) Contained Metal Sc Resources
Ni (kt) Co (kt) Mt Sc (ppm)
Goongarrie Hill Indicated 5.3 0.92 0.050 49 2.6 2.4 17
Inferred 1.9 0.92 0.034 17 0.6 0.4 16
Subtotal 7.2 0.92 0.046 66 3.3 2.8 17
Goongarrie South Measured 11.0 1.13 0.106 125 11.6 11.0 39
Indicated 21.1 0.99 0.071 208 15.0 15.5 25
Inferred 1.2 0.92 0.043 11 0.5 0.5 25
Subtotal 33.3 1.03 0.081 344 27.1 27.0 31
Big Four Indicated 12.1 0.97 0.068 118 8.3 8.9 27
Inferred 2.7 0.94 0.062 25 1.7 0.5 27
Subtotal 14.7 0.97 0.067 143 9.9 9.4 27
Scotia Dam Indicated 2.9 0.98 0.108 29 3.2 2.9 28
Inferred 1.4 1.02 0.057 14 0.8 0.0 26
Subtotal 4.3 0.99 0.091 43 4.0 2.9 28
GNCP Total Measured 11.0 1.13 0.106 125 11.6 11.0 39
Indicated 41.5 0.97 0.070 404 29.0 29.7 25
Inferred 7.1 0.95 0.051 67 3.6 1.4 23
Grand Total 59.6 1.00 0.074 595 44.3 42.2 29
Table 1-2 – GNCP nickel, cobalt and scandium Mineral Resources based on a 0.5% Ni cut‑off grade
Deposit Resource Category Tonnes (Mt) Ni (%) Co (%) Contained Metal Sc Resources
Ni (kt) Co (kt) Mt Sc (ppm)
Goongarrie Hill Indicated 40 0.65 0.037 260 14.7 10.5 16
Inferred 29 0.60 0.025 178 7.3 2.0 16
Subtotal 69 0.63 0.032 438 21.9 12.5 16
Goongarrie South Measured 18 0.94 0.085 172 15.4 18.2 40
Indicated 82 0.71 0.049 587 40.2 53.1 23
Inferred 10 0.64 0.033 61 3.1 5.5 24
Subtotal 110 0.75 0.053 820 58.7 76.8 27
Big Four Indicated 49 0.71 0.047 345 22.9 31.9 24
Inferred 14 0.68 0.043 95 6.1 2.9 24
Subtotal 63 0.70 0.046 440 28.9 34.8 24
Scotia Dam Indicated 12 0.71 0.065 82 7.4 11.2 25
Inferred 5 0.72 0.043 37 2.2 0.6 22
Subtotal 17 0.72 0.058 118 9.6 11.7 25
GNCP Total Measured 18 0.94 0.085 172 15.4 18.2 40
Indicated 182 0.70 0.047 1,274 85.1 106.6 23
Inferred 58 0.64 0.032 371 18.6 11.0 23
Grand Total 259 0.70 0.046 1,817 119.2 135.8 25
Table 1-3 – Updated KNP nickel and cobalt Mineral Resources based on a 0.5% Ni cut‑off grade
Camp Prospect Resource Category Size (Mt) Ni (%) Co (%) Contained Metal Estimation Details
Ni (kt) Co (kt) Method Source Year
Goongarrie Goongarrie South Measured 18 0.94 0.085 171 15 LUC Ardea 2021
Indicated 82 0.71 0.049 584 40 LUC Ardea 2021
Inferred 10 0.64 0.033 61 3 LUC Ardea 2021
Highway Indicated 53 0.66 0.042 349 22 OK Heron 2009
Inferred 34 0.64 0.038 218 13 OK Heron 2009
Ghost Rocks Inferred 47 0.66 0.042 312 20 OK Snowden 2004
Goongarrie Hill Indicated 40 0.65 0.037 259 15 LUC Ardea 2021
Inferred 29 0.60 0.025 176 7 LUC Ardea 2021
Big Four Indicated 49 0.71 0.047 346 23 LUC Ardea 2021
Inferred 14 0.68 0.043 96 6 LUC Ardea 2021
Scotia Indicated 12 0.71 0.065 82 7 LUC Ardea 2021
Inferred 5 0.72 0.043 37 2 LUC Ardea 2021
Goongarrie Subtotal Measured 18 0.94 0.085 171 15
Indicated 235 0.69 0.046 1,620 108
Inferred 140 0.65 0.037 900 52
Combined 393 0.68 0.044 2,692 175
Siberia Siberia South Inferred 81 0.65 0.033 523 27 OK Snowden 2004
Siberia North Indicated 10 0.64 0.051 64 5 OK Snowden 2009
Inferred 53 0.66 0.043 352 23 OK Snowden 2009
Black Range Indicated 9 0.67 0.090 62 8 OK HGMC 2017
Inferred 10 0.69 0.100 68 10 OK HGMC 2017
Siberia Subtotal Indicated 19 0.65 0.070 126 13
Inferred 144 0.66 0.041 943 59
Combined 163 0.66 0.045 1,070 73
KNP WEST TOTAL Measured 18 0.94 0.085 171 15
Indicated 255 0.69 0.048 1,747 121
Inferred 283 0.65 0.039 1,844 111
Combined 556 0.68 0.045 3,761 248
Bulong Taurus Inferred 14 0.84 0.051 119 7 OK Snowden 2007
Bulong East Indicated 16 1.06 0.055 169 9 OK Snowden 2004
Inferred 24 0.79 0.053 190 13 OK Snowden 2004
Bulong Subtotal Indicated 16 1.06 0.055 169 9
Inferred 38 0.81 0.052 309 20
Combined 54 0.88 0.053 477 29
Hampton Kalpini Inferred 75 0.73 0.044 550 33 OK Snowden 2004
Hampton Subtotal Inferred 75 0.73 0.044 550 33
KNP EAST TOTAL Indicated 16 1.06 0.055 169 9
Inferred 114 0.76 0.047 859 53
Combined 130 0.79 0.048 1,028 62
Yerilla Jump Up Dam Measured 4 0.94 0.048 36 2 OK Snowden 2008
Indicated 42 0.78 0.043 324 18 OK Snowden 2008
Inferred 18 0.63 0.034 116 6 OK Snowden 2008
Boyce Creek Indicated 27 0.77 0.058 206 16 OK Snowden 2009
Aubils Inferred 49 0.70 0.066 346 33 OK Heron 2008
KNP YERILLA TOTAL Measured 4 0.94 0.048 36 2
Indicated 68 0.78 0.049 531 33
Inferred 68 0.68 0.057 462 39
Combined 140 0.73 0.053 1,028 74
KNP TOTAL Measured 22 0.94 0.079 207 17
Indicated 339 0.72 0.048 2,446 163
Inferred 465 0.68 0.044 3,165 203
GRAND TOTAL Combined 826 0.70 0.046 5,817 384

Legend: LUC – Local Uniform Conditioning; OK – Ordinary Kriging

Table 5-1 – GNCP nickel, cobalt and scandium Mineral Resources based on a 1.0% Ni cut‑off grade
Deposit Resource Category Tonnes (Mt) Ni (%) Co (%) Contained Metal Sc Resources
Ni (kt) Co (kt) Mt Sc (ppm)
Goongarrie Hill Indicated 1.0 1.11 0.061 12 0.6 0.6 17
Inferred 0.3 1.11 0.039 4 0.1 0.1 14
Subtotal 1.4 1.11 0.055 15 0.8 0.7 17
Goongarrie South Measured 6.9 1.28 0.125 88 8.6 6.9 39
Indicated 7.5 1.17 0.090 88 6.8 5.7 25
Inferred 0.2 1.11 0.049 3 0.1 0.1 26
Subtotal 14.6 1.22 0.106 178 15.5 12.7 33
Big Four Indicated 3.9 1.16 0.089 46 3.5 3.1 28
Inferred 0.6 1.13 0.088 7 0.5 0.2 29
Subtotal 4.5 1.15 0.089 52 4.0 3.2 28
Scotia Dam Indicated 1.0 1.16 0.148 12 1.5 1.0 29
Inferred 0.7 1.17 0.067 8 0.4 0.0 20
Subtotal 1.7 1.16 0.116 19 1.9 1.0 29
GNCP Total Measured 6.9 1.28 0.125 88 8.6 6.9 39
Indicated 13.5 1.16 0.092 156 12.4 10.3 26
Inferred 1.8 1.14 0.067 21 1.2 0.4 24
Grand Total 22.2 1.20 0.100 265 22.2 17.6 31
Table 5-2 – GNCP nickel, cobalt and scandium Mineral Resources based on a combination of 0.5% Ni and 20 ppm Sc cut‑off grades
Deposit Resource Category Tonnes (Mt) Sc (ppm) Ni (%) Co (%) Contained Metal
Sc (kt) Ni (kt) Co (kt)
Goongarrie Hill Indicated 2.5 25 0.73 0.052 0.06 19 1.3
Inferred 0.6 24 0.67 0.050 0.01 4 0.3
Subtotal 3.1 25 0.72 0.052 0.08 23 1.6
Goongarrie South Measured 16.7 42 0.96 0.086 0.70 160 14.4
Indicated 28.6 31 0.77 0.066 0.89 220 18.9
Inferred 2.8 37 0.64 0.035 0.10 18 1.0
Subtotal 48.2 35 0.83 0.071 1.69 399 34.3
Big Four Indicated 16.0 35 0.77 0.063 0.56 123 10.0
Inferred 1.4 36 0.72 0.057 0.05 10 0.8
Subtotal 17.3 35 0.77 0.062 0.61 133 10.8
Scotia Dam Indicated 5.5 36 0.75 0.091 0.20 42 5.1
Inferred 0.2 36 0.62 0.036 0.01 1 0.1
Subtotal 5.8 36 0.75 0.089 0.21 43 5.1
GNCP Total Measured 16.7 42 0.96 0.086 0.70 160 14.4
Indicated 52.7 33 0.77 0.067 1.71 403 35.3
Inferred 5.0 35 0.66 0.043 0.18 33 2.1
Grand Total 74.4 35 0.80 0.070 2.59 597 51.9

For more detail and explanatory discussion, see ASX announcement dated 15 February 2021.

(February 2021)