Ardea Resources Limited (Ardea or the Company) is pleased to present an update on the Prefeasibility Study (PFS), following Sterilisation Drilling results adjoining proposed production pit locations. The program was designed for finalising the site layout General Arrangement Plan for the Kalgoorlie Nickel Project (KNP) - Goongarrie Hub.
Additionally, the drilling was used to test Rare Earth Element (REE) targets previously generated by the Company's Critical Mineral Research and Development (R&D) in rocks adjoining the nickel laterite mineralisation. One of two proposed infrastructure sites was at Goongarrie West adjoining the Goongarrie South Nickel Laterite mineralisation southwest of the Elsie Tynan pit. Three single hole traverses were designed at Goongarrie West as broad-spaced aircore drilling over a 3km NNW strike in a location containing no previous drilling.
These are considered significant intercepts, particularly based on such consistent mineralisation occurring in 1km spaced reconnaissance drill holes. Mineralisation in the three holes, based on drill-chip logging and associated geochemistry, is controlled by regolith contacts, specifically hosted by Saprolite Lower clay at its regolith contact with the underlying clay-weathered Saprock. Interpretation of results indicates the system is an Ionic Adsorption Clay (IAC) Rare Earth occurrence. As such, the drill intercept grades are considered particularly significant, precluding Goongarrie West as an infrastructure site option. In view of the drill results at Goongarrie West and as required by the WA Mines Act 1978, the Department of Mines, Industry Regulation and Safety (DMIRS) has been notified that a discovery of economic interest has been made
Ardea's Managing Director, Andrew Penkethman said: 'The Feasibility Study for the Kalgoorlie Nickel Project - Goongarrie Hub has completed pit optimisations and confirmed the production pit locations and thus likely infrastructure site requirements. The two main infrastructure alternatives were east of the Pamela Jean pit, or southwest of Elsie Tynan at Goongarrie West. Requisite drilling was completed in September 2022. With the high grade TREO results returned for the three holes at Goongarrie West, it has been an easy decision to instruct the Consulting Engineer to site the key production infrastructure at Pamela Jean East. The Goongarrie West REE Prospect will have confirmatory reverse circulation drill traverses completed as soon as possible, followed by bench-scale metallurgy designed to quantify the IAC REE potential. This additional drilling is an unexpected variation for the PFS work programs, being an unavoidable if not valuable outcome from the PFS. We trust that KNP stakeholders are as excited as the Ardea Team with these REE drill results.'
The bedrock granodiorite has a very high background of 246ppm TREO, being localised within the regolith profile at the Top of Fresh Rock (TOFR). Immediately overlying within the Saprolite Lower at the Base of Complete Oxidation (BOCO), there is a sharp grade increase to 1,081ppm TREO. Within the extensively studied Kalgoorlie Goldfields supergene gold deposits, the regolith interval between BOCO and TOFR is precisely where regolith-related supergene enrichment occurs. The Goongarrie West REE mineralisation is precisely following gold enrichment models documented in non-ultramafic host rocks. In terms of ultramafic nickel laterite host rocks within the WWF olivine cumulate rocks at the immediate eastern contact of Goongarrie West, the high-grade nickel-cobalt occurs at the contact of Clay Upper and Clay Lower within the regolith profile, termed the Enrichment Zone (EZ). The EZ is characterised by high cobalt and manganese (asbolite mineral) and reflects palaeo-water table metal enrichment. The Goongarrie West REE enrichment profile thus corresponds precisely with the WWF nickel laterite enrichment within the immediate adjoining Elsie Tynan and Big Four proposed pit areas. R&D has long confirmed the KNP EZ has significant REE enrichment, notably at Kalpini. Intercepts at Kalpini include WERC0371: 12m at 1.70% nickel, 0.151% cobalt, 28g/t scandium from 20m with 2,440ppm TREO and 1.320% Total Rare Metal Oxide (TRMO) which Includes titanium (Ti), yttrium (Y), zircon (Zr), niobium (Nb), hafnium (Hf), tantalum (Ta) and tungsten (W) (ASX release 14 March 2022). There can be little doubt that the Goongarrie West REE mineralisation is regolith-related and due to palaeo-water table metal enrichment. This would indicate an Ionic Adsorbed Clay (IAC) genesis for the Goongarrie West mineralisation. Confirmation requires bench-scale metallurgy testing to evaluate metal leaching from the clays.
Contact:
Andrew Penkethman
Managing Director and Chief Executive Officer
Tel: +61 8 6244 5136
About Ardea Resources
Ardea Resources (ASX:ARL) is an ASX-listed nickel and Critical Minerals resources company, with a large portfolio of 100%-controlled West Australian-based projects, focussed on: * Development of the Kalgoorlie Nickel Project (KNP) and its sub-set the Goongarrie Hub, a globally significant series of nickel-cobalt and Critical Mineral deposits which host the largest nickel-cobalt resource in the developed world at 830Mt at 0.71% nickel and 0.046% cobalt for 5.9Mt of contained nickel and 380kt of contained cobalt (Ardea ASX releases 15 February, 16 June 2021), located in a jurisdiction with exemplary Environmental Social and Governance (ESG) credentials, notably environment. * Advanced-stage exploration at compelling nickel sulphide targets, such as Emu Lake, and Critical Minerals targets including scandium and Rare Earth Elements throughout the KNP Eastern Goldfields world-class nickel-gold province, with all exploration targets complementing the KNP nickel development strategy. Ardea's KNP development with its 5.9 million tonnes of contained nickel is the foundation of the Company, with the nickel sulphide exploration, such as Emu Lake, as an evolving contribution to Ardea's building of a green, forward-facing integrated nickel company. Put simply, in the Lithium Ion Battery (LIB) sector, the Electric Vehicle and Energy Storage System battery customers demand an ESG-compliant, sustainable, and ethical supply chain for nickel and other inputs. In the wet tropics, with their signature HPAL submarine tailings disposal and rain forest habitat destruction, an acceptable ESG regime is problematic. In contrast, the world-class semi-arid, temperate KNP Great Western Woodlands with its benign environmental setting is likely the single greatest asset of the KNP. The KNP is located in a well-established mining jurisdiction with absolute geopolitical acceptance and none of the environmental (notably in tropics), land-use and societal conflicts that commonly characterise nickel laterite proposals elsewhere. All KNP Goongarrie Hub production tenure is on granted Mining Leases with Native Title Agreement in place. There are no conflicts of land use such as with fully traditional First Nations people or with high-value agriculture. Tenure is unencumbered, there being no third-party royalty holders apart from the rightful Sate government production royalty.
ARDEA RESOURCES LIMITED 
