Ardea Resources Limited (Ardea) advises the commencement of a Feasibility Study (FS) on its Kalgoorlie Nickel Project (KNP), with the study focus and future plant site being at Goongarrie, targeting premium goethite ore.

The FS follows the positive Goongarrie Nickel Cobalt Project (GNCP) PreFeasibility Study (PFS) and Expansion Study (ES) in 20181 and resource upgrade in 20212. With the ever-increasing nickel and cobalt demand, the 2018 studies require an upgrade to accommodate the increasing international level of Lithium Ion Battery nickel and cobalt interest.

The KNP scope has been expanded from Goongarrie alone for Goongarrie to now include high grade goethite satellite pits at Highway and Siberia North (Goongarrie Hub). The FS now includes mineralised neutraliser from Kalpini and Bulong (Kalpini Hub) and Aubils, Boyce Creek, Jump Up Dam and Lake Rebecca nontronite mineralisation (Yerilla Hub). The FS is evaluating the potential revenue contributions from scandium and Rare Earth Elements (REE) throughout the KNP.

The KNP FS programs are in parallel with a streamlining of the Ardea mineral asset portfolio through structured gold divestments

Farm-outs of Mt Zephyr and Darlot East and Mulga Plum projects completed in 2020 and provisional sale of Bedonia in 20213.

The previous Ardea demerger exercise being the spin-out of the NSW assets into Godolphin Resources Limited (ASX:GRL) in December 2019.

Finalising the demerger and spin-out of Ardea's Kalgoorlie region gold tenements into a new Initial Public Offering (IPO) named, Kalgoorlie Gold Mining Limited (KalGold, ASX:KAL).

Ardea Shareholders, subject to an EGM vote and admission to ASX, to receive an in-specie distribution of KalGold vendor shares at nil cost, plus have a priority right to subscribe for KalGold IPO shares.

Strategically located tenements within crustal-scale Tectonic Zones with known gold endowment, but are relatively unexplored for gold, due to an historic focus on KNP nickel-cobalt laterite resources.

Multiple gold drill targets, all within 150km of Australia's gold capital, the City of Kalgoorlie Boulder.

Defining and quantifying Goongarrie Hub gold resource areas, particularly Lily Albany and Lady Charlotte, to facilitate designing infrastructure sites east of the Goongarrie nickel laterite resources.

Look to monetising the gold resources identified during the last year, including through open pit mining and custom milling (notably Big Four Gold) through finite leasing arrangements.

Any pit voids generated will be available as KNP Goongarrie water storage and tailings infrastructure, and additionally provide pit wall stability geotechnical data for future Goongarrie laterite pits.

Ardea Managing Director, Andrew Penkethman, noted: 'The initial Ardea KNP Feasibility Study programs including granting of water extraction licences and bench-scale metallurgy are focussed on work streams that are independent of the final decision regarding KNP throughput and sale product. Along with Ardea's membership of the Future Battery Industry Cooperative Research Centre at Curtin University Perth, the aim with the KNP is to replicate successful HPAL nickel operations such as Coral Bay in the Philippines and Moa Bay in Cuba, contributing Critical Minerals to the rapidly expanding Lithium Ion Battery sector'

Feasibility Study Work Programs, H2 2021

The Ardea Board at its 28 May 2021 meeting adopted the Program and Budget for the Kalgoorlie Nickel Project Feasibility Study, focussed initially on 'generic' work streams, which permit flexibility in respect to future Strategic Partner consortium options such as production rate (eg 2.25Mtpa) or product type (eg Mixed Hydroxide Product (MHP) or Precursor Cathode-active Material (PCAM)).

The FS has six key initial elements

FS Manager appointed, consultant with 25 years nickel operating and study management experience: o Gap Analysis that addresses all previous KNP studies and nominates the FS product type.

High Pressure Acid Leach (HPAL) flow-sheet, using the consultant's considerable operational and process development experience to support the design.

Capturing by-product Critical Mineral revenue streams in addition to the nickel-cobalt, being the scandium and Rare Earth Elements (REE) indicated throughout the KNP by Ardea's ongoing drill pulp re-assay programs.

Water Extraction Licences, drill and hydrology contracts awarded. o Application for a 3.5GLpa water production licence based on the East Goongarrie Palaeo-channel and penetrative large-scale bedrock structures at Goongarrie South and Big Four.

All requisite drill programs have received statutory approval to proceed.

Contact:

Andrew Penkethman

Tel: +61 8 6244 5136

About Ardea Resources

Ardea Resources Limited (ASX:ARL) is an ASX-listed resources company, with a 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 and Advanced-stage exploration at compelling nickel sulphide, Critical Minerals and gold targets within the KNP Eastern Goldfields world-class nickel-gold province

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