Ardea Resources Limited (Ardea or the Company) is pleased to present an updated JORC Code (2012) compliant Mineral Resource Estimate (MRE) for the Goongarrie Hub nickel-cobalt deposits within the Kalgoorlie Nickel Project (KNP).
The KNP global Mineral Resource Estimate (using a 0.5% Ni cut-off grade) now stands at 854Mt at 0.71% Ni and 0.045% Co for 6.1Mt of contained nickel and 386kt of contained cobalt.
The KNP is owned 100% by Ardea and the Goongarrie Hub is undergoing a Prefeasibility Study (PFS) for an open pit mining operation feeding a 3Mtpa High Pressure Acid Leach (HPAL) and 0.5Mtpa Atmospheric Leach (AL) circuit using proven technology to produce Mixed Hydroxide Product (MHP) for the Lithium Ion Battery (LIB) sector.
The technical work streams of the PFS have now been completed, and is undergoing a final review by the Competent Persons. Upon finalisation and sign off, expected to be in early July, Ardea will release the PFS by announcement on the ASX. The Goongarrie Hub is a subset within the KNP. The deposits within the Goongarrie Hub that were considered in the PFS comprise from south to north on the Goongarrie Line the Scotia Dam (SD), Big Four (BF), Goongarrie South (GS), and Goongarrie Hill (GH) deposits, as well as the satellite deposits Highway (HW) and Siberia North (SN). Other Goongarrie Hub deposits (Ghost Rocks, Siberia South and Black Range) have at this stage not been included in the PFS. As part of the PFS, the Goongarrie Hub MRE was re-evaluated to consider the Mineralised Neutraliser (MN) that is captured in optimised open pits, with a grade of less than the 0.5% nickel MRE reporting grade. As once this material has been screened, the coarse magnesium rich magnesite saprock has been demonstrated to be a viable source of neutraliser and the fine goethite rich fraction a viable source of AL feed (ASX releases 16 November 2022 and 15 June 2023). A key component of the PFS for the KNP Goongarrie Hub has been focussed on Material Types to allow the nickel-cobalt mineralisation to be variously matched to the High-Pressure Acid Leach (HPAL), Atmospheric Leach (AL) and MN circuits, maximising resource utilisation for a well understood and proven flowsheet.
Ardea's Managing Director and CEO Andrew Penkethman noted: 'The Kalgoorlie Nickel Project Goongarrie Hub Prefeasibility Study technical work streams are completed, with final sign-off shortly by the various contributors. Whilst completing the open pit optimisations of the resource models, it was apparent that additional tonnes of nickelcobalt bearing Mineralised Neutraliser below the 0.5% nickel reporting grade would be recovered within the mine plan. This extra neutralising material contributes additional project value through its Magnesite component being used in the leaching circuit for acid neutralisation, to which it adds nickel-cobalt units at nil cost. Additionally, the Mineralised Neutraliser Fines component contribute to the nickel-cobalt production as the dominant feed for the Atmospheric Leach circuit. This excellent R&D outcome is protected with an international patent application recently lodged (ASX release 15 June 2023).'
The Goongarrie Hub is located 70km northwest from the world-renowned mining centre, the City of Kalgoorlie-Boulder, along established road and rail infrastructure. Goongarrie is Ardea's most advanced project within the broader KNP. The Goongarrie Hub includes the Goongarrie deposits from south to north, Scotia Dam, Big Four, Goongarrie South and Goongarrie Hill, along with Highway some 30km to the north and Siberia North, approximately 30km to the southwest. These six deposits are the main source of plant feed for the PFS currently being finalised. All Goongarrie Hub mineral resources are located on granted mining leases with Native Title Agreement in place and tenure 100%-controlled by Ardea. Additional future Goongarrie plant feed is expected to also be sourced from Ghost Rocks, Siberia South and Black Range, but these deposits were not required to complete the PFS, given the very large proximal resource base already available. The entire KNP is characterised by excellent availability of road and rail infrastructure for reagent and product logistics and ore haulage from satellite deposits. A major project advantage is proximity to Australia's premium mining services centre being the City of Kalgoorlie-Boulder with its 130-year mining history. The main purpose of this Mineral Resource update is to classify this Mineralised Neutraliser as part of the Mineral Resource Estimate, so that this material can be available for inclusion in the Ore Reserve in the upcoming PFS. The total Kalgoorlie Nickel Project Mineral Resource Estimate with the inclusion of all mined MN is now 854Mt at 0.71% Ni and 0.045% Co for 6.1Mt of contained nickel and 386kt of contained cobalt. This is a world-significant nickel-cobalt asset within an infrastructure-rich location, within the best mine operating jurisdiction in the world
As this specification was based on the characteristics of the material that demonstrated acid neutralising capacity and not nickel economics, each deposit contained surplus requirements. The preferred source of MN was defined as a subset of this material type using pit optimisation and scheduling analysis undertaken as part of the PFS. Compared to traditional nickel laterite operations that transport limestone from the Nullarbor Plains or from Esperance lime sands, the MN cost per tonne benefits have a significant influence on pit optimisations, such that pits are driven deeper in order to access the saprock MN. R&D undertaken by Ardea subsequent to the 2018 Ardea PFS and Expansion Study (Ardea ASX releases 28 March 2018 and 24 July 2018) has demonstrated the benefits through AL being able to regulate acid production, utilise the excess heat and steam from the acid plant and generate power off grid without fossil fuels, which in particular were not key benchmarks in any of the earlier KNP feasibility study programs.
Contact:
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About Ardea Resources
Ardea Resources (ASX:ARL) is an ASX-listed nickel resources company, with a large portfolio of 100%-controlled West Australian-based projects, focussed on: Development of the Kalgoorlie Nickel Project (KNP) and its subset 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 854Mt at 0.71% nickel and 0.045% cobalt for 6.1Mt of contained nickel and 386kt of contained cobalt, 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 nickelgold province, with all exploration targets complementing the KNP nickel development strategy. Ardea's KNP development with its 6.1 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, forwardfacing 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 landuse 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.
COMPLIANCE STATEMENT (JORC CODE 2012)
The Resource Estimation, data collection processes and industry benchmarking summaries for the KNP Goongarrie Hub deposits are based on information reviewed or compiled by Mr. Ian Buchhorn, and Mr Andrew Penkethman. Mr Buchhorn is a Member of the Australasian Institute of Mining and Metallurgy and Mr Penkethman is a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Both Mr Buchhorn and Mr Penkethman are full-time employees of Ardea Resources Limited and have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Buchhorn and Mr Penkethman have reviewed this press release and consent to the inclusion in this report of the information in the form and context in which it appears. Mr Buchhorn and Mr Penkethman own Ardea shares. The information in this report that relates to Resource Estimates for the KNP non Goongarrie Hub deposits is based on information originally compiled by previous employees of Heron Resources Limited and current full-time employees of Ardea Resources Limited. The Exploration Results, Resource Estimates and data collection processes have been reviewed and verified by Mr Ian Buchhorn who is a Member of the Australasian Institute of Mining and Metallurgy and currently a director of Ardea Resources Limited. Mr Buchhorn has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the exploration activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Buchhorn consents to the inclusion in this report of the matters based on his information in the form and context that it appears. Mr Buchhorn owns Ardea shares. The Mineral Resource Estimate for the KNP non Goongarrie Hub deposits information shown in this ASX release have been previously released on the ASX platform by Ardea in ASX release 16 June 2021, in accordance with Listing Rule 5.8. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement noted above and that all material assumptions and technical parameters underpinning the Mineral Resource Estimate in the previous market announcement continue to apply and have not materially changed
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements and forward-looking information within the meaning of applicable Australian securities laws, which are based on expectations, estimates and projections as of the date of this news release. This forward-looking information includes, or may be based upon, without limitation, estimates, forecasts and statements as to management's expectations with respect to, among other things, the timing and amount of funding required to execute the Company's programs, development and business plans, capital and exploration expenditures, the effect on the Company of any changes to existing legislation or policy, government regulation of mining operations, the length of time required to obtain permits, certifications and approvals, the success of exploration, development and mining activities, the geology of the Company's properties, environmental risks, the availability of labour, the focus of the Company in the future, demand and market outlook for precious metals and the prices thereof, progress in development of mineral properties, the Company's ability to raise funding privately or on a public market in the future, the Company's future growth, results of operations, performance, and business prospects and opportunities. Wherever possible, words such as 'anticipate', 'believe', 'expect', 'intend', 'may' and similar expressions have been used to identify such forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and on information available to management at such time. Forward-looking information involves significant risks, uncertainties, assumptions, and other factors that could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors, including, but not limited to, fluctuations in currency markets, fluctuations in commodity prices, the ability of the Company to access sufficient capital on favourable terms or at all, changes in national and local government legislation, taxation, controls, regulations, political or economic developments in Australia or other countries in which the Company does business or may carry on business in the future, operational or technical difficulties in connection with exploration or development activities, employee relations, the speculative nature of mineral exploration and development, obtaining necessary licenses and permits, diminishing quantities and grades of mineral reserves, contests over title to properties, especially title to undeveloped properties, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other geological data, environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding, limitations of insurance coverage and the possibility of project cost overruns or unanticipated costs and expenses, and should be considered carefully. Many of these uncertainties and contingencies can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Prospective investors should not place undue reliance on any forward-looking information. Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure prospective purchasers that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forwardlooking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.
ARDEA RESOURCES LIMITED 
