Ardea Resources Completes Capital Raising to fund Kalgoorlie Nickel Project Feasibility Work

THE BOURSE WHISPERER: Ardea Resources (ASX: ARL) has raised $5.7 million to accelerate activities at the company’s Kalgoorlie nickel project (KNP) in Western Australia.

After the cash is banked, Ardea Resources will have more than $10 million cash it intends spending to progress feasibility study work streams, including hydrology and metallurgical drilling programs, metallurgical test work, and pit optimisation studies.

“The proceeds of the placement ensure Ardea is well funded to maintain momentum on accelerated Kalgoorlie Nickel Project feasibility study work streams,” Ardea Resources managing director Andrew Penkethman said in the company’s ASX announcement.

“With the continued expansion of the lithium-ion battery sector and Original Equipment Manufacturers needing to secure sustainable and ethical mineral supply, Ardea’s Kalgoorlie Nickel Project is perfectly positioned to play a leading role with its globally significant nickel-cobalt and scandium resource at Goongarrie with direct transport infrastructure links to the emerging Kwinana Battery Hub We have drill rigs contracted for the KNP Goongarrie Hub to commence drilling water production bores and metallurgical core holes during the September 2021 Quarter.

“Borefield exploration drilling has recently been completed and defined production bore targets are ready for drilling.

“This hydrology drilling will lock in secure process water supplies for the development of our nickel and critical mineral resources at the Goongarrie production hub.

“The metallurgical testwork will provide samples for additional testwork to refine our plans to use mineralised neutraliser sourced during conventional open pit mining as opposed to having to import neutraliser.

“We will also be assessing options to recover additional critical minerals, in addition to the planned nickel-cobalt and scandium production.

“All of these work streams will further enhance the Kalgoorlie Nickel Project and build upon the prefeasibility and expansion studies completed by Ardea in 2018.”









Ardea Resources Hits Best Semi-Massive Nickel Sulphide Intercept at Emu Lake to Date

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) reported assay results it claims to have confirmed komatiite-hosted basal nickel sulphide located above a felsic volcanic footwall contact at the Emu Lake prospect, 70km north-east of Kalgoorlie in Western Australia.

Ardea Resources drilled hole AELD0002 in April 2021, targeting a strong down-hole electromagnetic (DHEM) anomaly 50m north of earlier drill hole AELD0001, intersecting 0.65m of massive and semi-massive nickel sulphides and 1.1m of matrix and disseminated nickel sulphides.

Assays for this zone returned:

1.1m at 4.78 per cent nickel, 0.16 per cent copper, 0.47 grams per tonne platinum, 0.2g/t palladium from 366.9m (semi-massive sulphide), within a broader zone of 4.8m at 1.44 per cent nickel, 0.09 per cent copper, 0.2g/t platinum, 0.09g/t palladium from 365.9m, including a disseminated zone down to a cut-off of 0.3 per cent nickel.

The company explained this is one of the best nickel sulphide intercepts it has achieved at Emu Lake to date, claiming it demonstrates the prospectivity of this new western ultramafic position that has received minimal attention from historic exploration, thus opening up an entirely new target horizon.

“This new basal contact intercept provides a platform to test along this stratigraphic horizon for channel positions where the sulphides are insitu and expected to be thicker,” Ardea Resources managing director Andrew Penkethman said in the company’s ASX announcement.

“The available geophysics is showing there is potential for such a channel to exist below AELD0002 which could extend for a considerable length in a similar fashion to the Silver Swan channel.

“It is interesting to note that earlier surface EM surveys have not been able to detect these sulphides, demonstrating the potential to open up a previously un-tested, albeit deeper, search space at Emu Lake.”









Ardea Resources Commences Highway and Black Range Nickel Sulphide Drilling

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) reported commencement of drilling of two strong IP chargeability anomalies within the company’s Kalgoorlie nickel project in Western Australia.

Ardea Resources has kicked off a program of RC drilling to test for nickel sulphide mineralisation at two strong Induced Polarisation (IP) chargeability anomalies, at the company’s Highway and Black Range project areas located 110km north and 65km north-west of Kalgoorlie, respectively.

“Ardea remains focussed on developing the Kalgoorlie Nickel Project (KNP) to provide sustainable and ethical nickel and Critical Mineral supply for the rapidly expanding lithium-ion battery sector,”
Ardea Resources managing director Andrew Penkethman said in the company’s ASX announcement.

“In tandem with completing priority Definitive Feasibility Study work streams, compelling nickel sulphide and Critical Mineral exploration opportunities that can provide further upside, continue to be evaluated on Ardea’s strategic KNP tenement holding.

“The recently defined IP anomalies at Highway and Black Range, occurring in association with strong geochemical anomalies and other geological vectors is very significant.

“These anomalies provide compelling exploration targets, and it is exciting to see that drilling has now commenced to test them.

“Nickel sulphide mineralisation is traditionally treated through a flotation concentrator, but the proposed KNP flow-sheet is amenable to hydrometallurgical processing of sulphides, with multiple benefits for the autoclave operation.”








Ardea Resources Confirms Emu Lake Nickel Sulphide Drill Target

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) has delineated a strong off-hole conductor by way of a downhole electromagnetic (DHEM) survey at Emu Lake within the company’s Kalpini project in Western Australia.

Ardea Resources had the survey carried out on recently drilled hole (ALED0001) at Emu Lake defining a strong off-hole conductor north of the hole.

The company explained hole AELD0001 was drilled in December 2020, targeting a DHEM anomaly based on legacy data compiled by geophysical consultants, Newexco.

The hole intersected a stringer zone of nickel sulphides at 382m the company believes may be remobilised from a source defined by the AELD0001 DHEM modelling.

“Ardea remains focussed on their Kalgoorlie Nickel Project nickel laterite and developing this project to provide ethical and sustainable nickel and Critical Mineral supply for the rapidly expanding lithium-ion battery supply chain,” Ardea Resources managing director Andrew Penkethman said in the company’s ASX announcement.

“In tandem with this priority, compelling nickel sulphide and Critical Mineral exploration opportunities continue to be evaluated that can provide further KNP upside.

“This initial core hole at Emu Lake is a good example of the upside potential.

“The hole was drilled into an EM anomaly based on legacy data and was aimed at making a komatiite hosted (Kambalda style) nickel sulphide discovery.

“Given the low industry wide success rate in making nickel sulphide discoveries, it is extremely encouraging to see that we have identified a strong conductor along strike from the initial target that could represent an accumulation of high-grade nickel sulphide.

“We are looking forward to drilling this quality target whilst also working up additional compelling drill targets through a series of geophysical programs currently underway at Emu Lake, Highway and Black Range.”









Ardea Resources Goongarrie Resources Upgrade Sparks Interest

THE CONFERENCE CALLER: Following what has literally been decades in the making, 2021 could be the year that marks a major turning point in the evolution of one of Western Australia’s most anticipated critical metals projects. By Mark Fraser

With its Kalgoorlie Nickel Project (KNP), Ardea Resources (ASX: ARL) is confident it is sitting on one of the largest nickel-cobalt ore bodies in the developed world – a boast which is not unreasonable given it has a current resource inventory of 826 million tonnes of ore grading 0.7 per cent nickel and 0.046 per cent cobalt (for 5.8 Mt of contained nickel metal and 384,000t of contained cobalt).

Sitting within the western portion of the KNP tenements just 70 kilometres to the north west of Kalgoorlie-Boulder is the Goongarrie Nickel Cobalt Project (GNCP), which on its own contains resources that extend over 25km of strike.

Here the company has a resource – using a nickel cut-off grade of 0.5% – of 259 million tonnes at 0.7% nickel and 0.046% cobalt for 1.82 million tonnes and 119,200 tonnes of contained metal respectively.

These numbers were the result of a resource upgrade at Goongarrie, which Ardea announced on the day before this year’s RIU Explorers Conference in WA, where the junior presented during the opening day.

While at the podium, the company’s managing director and chief executive Andrew Penkethman was keen to make it clear that this mineralised reboot included the addition of 2,590 tonnes of contained scandium to the inventory.

It also meant the high grade component of the KNP was now 60 million tonnes at 1% nickel and 0.074 per cent cobalt for 595,000 tonnes of contained nickel and 44 tonnes of contained cobalt.

With numbers like this, Penketham suggested, the company is confident it is well placed to provide the world with essential supplies of ethically-sourced nickel and cobalt, along with other critical minerals like scandium and the rare earths duo of neodymium and cerium.

“With our ASX resource update released to the market yesterday, the core takeaway there is the 60 million tonnes at 1 per cent nickel (which) demonstrates high grade continuity,” he said.

“Our current base case is a 2 million tonnes per annum processing plant (at the GNCP), so you can see in sight ample production capacity.

“And again I’d just like to stress that Goongarrie is only the start of the KNP resource update – the next cab off the rank is Highway, located 30 kilometres to the north, so it is within easy hauling distance.”

While WA’s nickel laterite projects have something of a chequered history dating back to the late 1990s when Murrin Murrin, Cawse and Bulong all came on-stream only to be collectively plagued with a slew of ramp-up issues, Ardea is confident its so-called “WINNER” (Water, In-pit Neutraliser and Nickel Enhanced Reserve) strategy will add further value to the development of the GNCP and support the production aspirations of the KNP.

Part of this will involve a resource update of the Goongarrie Line, which is due to be completed during the March quarter, while resource estimation work is – as already mentioned – expected to continue on Highway, which represents a potential high grade satellite ore source for the proposed 2 Mtpa high pressure acid leach (HPAL) planned for the GNCP.

Ardea believes the latest Goongarrie resource update will be another large step forward in this initiative and, in addition to nickel and cobalt resources, will embrace the scandium, manganese and aluminium components.

Follow-up open pit optimisations are anticipated to target over 1% nickel leach feed grade, while plant optimisation will be complemented by mineralised neutraliser.

According to Ardea, neutraliser that can be sourced during open pit mining at Goongarrie is considered a large advantage over peer projects as it reduces the consumables that need to be purchased and transported to site, thereby reducing carbon emissions and lowers operating cost.

Ultimately, the aim is to optimise plant feed grades to the HPAL plant exceeding 1% nickel for at least 15 years. Options such as developing a second GNCP 2Mtpa HPAL train will also be considered, dependent upon the production requirements of the successful strategic partner.



Ardea Resources Chases Golden Zues

THE CONFERENCE CALLER: Having been kept busy sizing up one of the world’s largest undeveloped nickel-cobalt-critical minerals laterite plays in its home state of Western Australia, Ardea Resources (ASX: ARL) now looks set to devote a large portion of 2021 complementing this with a gold spin off. By Mark Fraser

While the company has had its hands full progressing the massive (not to mention long-awaited) Goongarrie base metals-scandium project some 70 kilometres north of Kalgoorlie-Boulder, it ended 2020 conducting further RC drilling on the nearby Zeus gold discovery, where yellow metal mineralisation has proven to be both high grade and near-surface.

Although still early days, gold intercepts like 10 metres at 12.97 grams per tonne from 42m (including 4m at 28.25g/t from 44m) and 6m at 2.07g/t (from 68m) have given the junior plenty of food for thought.

Located on the same tenure as Goongarrie, Zeus – at this stage of the game at least – represents a potential shallow gold mining opportunity.

In terms of the bigger picture, which will also involve further field activities at Lily Albany and Big Four Gold, it could well be the leader of a major new gold camp.

Sitting less than 2km to the east of Goongarrie’s 25km-long line of nickel-cobalt-scandium lateritic deposits, Zeus has been subjected to 19 drill holes varying in depth from 40-140m to test a number of targets.

They include the down-plunge and up-dip extension of Lode 1, confirmation of Lode 2 and the up-plunge, near-surface daylighting extent of Lode 2.

Additionally, historic gold anomalism – similar to that which initially highlighted Zeus’ potential – is evident around 200m to the north west.

A set of closely-spaced drill holes, similar to the prospect’s discovery program, aims to delimit gold anomalism and mineralisation distributions.

Just before Christmas the company said RC drilling at Zeus was typically rapid due to the soft, fresh nature of the chlorite schist host rocks, the shallow target depths as well as the negligible transported cover that is typically (or less than) 5m thick.

This work enabled Ardea to schedule the next RC program at the nearby Lily Albany gold discovery, where several targets will now receive the company’s attention.

These include the shallower oxide discovery zone for initial resource definition and assessment of open pit mining potential; the primary gold mineralisation immediately south of the discovery area that coincides with a suite of deep, strong demagnetisation targets; in addition to the Southeast Line of mineralisation, anomalism and demagnetisation targets which are coincident with the top of the target layered mafic-ultramafic intrusive.

This work will also test the northern Hinge Zone of gold anomalism and demagnetisation that coincides with faulted and/or folded intersection of the limbs of the layered mafic-ultramafic intrusive as well as the down-dip – and down-plunge – primary gold mineralisation throughout the areas drilled to date.

Ardea said a regularly-spaced (40m) drill-out over four 40m-spaced lines was designed to define the oxide zone resource potential throughout the discovery area.

Given the recent, “very positive metallurgical results” announced to the market towards the end of last year, the definition of shallower, oxide gold mineralisation would also help assess Lily Albany for its open pit potential.

Additionally, regularly-spaced drill holes should penetrate to fresh rock, thereby providing representative sampling of the entire weathered profile for resource modelling.

Seventeen drill holes for 2,610m will evaluate the top 130m of this profile.

Additional holes, Ardea noted, had been designed if the expansion of this program became warranted.

Should a resource be defined from this program, it was expected it would be between the base of the transported material (between 10-40m depth) and the top of the fresh rock (from 80-150m).

Diamond drilling is also scheduled for the Zeus, Lily Albany and Big Four Gold prospects to enable the full assessment of the controlling structures for gold mineralisation.

This would both ensure the drill directions were optimised and greatly assist resource estimation modelling and the targeting of gold mineralisation.

“Multiple work streams are continuing on other Ardea project areas, such as gold target generation and corporate structure for the planned gold spin out, nickel sulphide exploration drilling and down-hole electromagnetic surveys at the Binti Gossan target at Emu Lake, Kalpini, nickel sulphide target refinement at Highway, Black Range and other targets – and copper target refinement at Ghost Rocks,” Ardea Resources managing director and chief executive Andrew Penkethman explained.

“Work also continues apace in completing Ardea’s Goongarrie Line nickel-cobalt resource which will also include a maiden scandium resource component.”






Ardea Resources and Red 5 Limited Combine to Enhance Promising Gold Tenure

THE BOURSE WHISPERER: Ardea Resources (ASX: ARL) and Red 5 Limited (ASX: RED) have struck a Joint Venture Agreement in two of the former’s prospective gold exploration projects located in close proximity to the latter’s Darlot gold mine in the Eastern Goldfields region of Western Australia.

Adrea Resources declared the JV (ARL 20% / RED 80%) was part of its strategy to prioritise exploration and development work on the company’s Kalgoorlie Nickel Project (KNP) tenure.

For its part, Red 5 declared the Farm-in JV Agreement supports its multi-strand strategy to expand the Darlot Mineral Resource base, which includes regional ‘bolt-on’ acquisitions, such as the two prospects in question, in addition to comprehensive exploration being undertaken as part of the Darlot Mining Hub Strategy.

Red 5 can earn up to an 80 per cent interest in Ardea’s Mt Zephyr and Darlot East gold projects, through its 100 per cent-owned subsidiary, Darlot Mining Company Pty Ltd, that is required to spend $1.5 million within a 2-year period to earn an initial 60 per cent interest in the tenements.

Should this be achieved, Darlot may then elect to spend an additional $800,000 to earn an additional 20 per cent interest, for a total 80 per cent earned interest in the tenements.

Ardea is free carried by Darlot up to a Decision to Mine, after which it may elect to contribute pro-rata or dilute.

Should Ardea’s diluted interest falls below 10 per cent, it will convert to a 1.5 per cent Net Smelter Royalty (NSR).

The Mt Zephyr project covers an area of 900 square kilometres and is considered by Red 5 to represent an excellent gold discovery opportunity, located within 100 kilometres trucking distance from the Darlot Mill.

Mt Zephyr hosts several areas of known mineralisation, including the Dunn’s Find prospect (gold associated with Banded Iron Formation) and the Gale prospect (gold associated with granodiorite intrusion), which Red 5 considers to demonstrate early-stage similarities to its 4.1 million ounces King of the Hills (KOTH) gold deposit.

The Darlot East project comprises two Exploration Licences in an under-explored area located eight kilometres to the east of the Darlot Mine.

“Following the recent delivery of the Final Feasibility Study for the development of a bulk mining and processing operation at King of the Hills, Red 5’s growth vision is based on the establishment of two separate production hubs at KOTH and Darlot,” Red 5 managing director Mark Williams said in the company’s ASX announcement.

“This Joint Venture Farm-in Agreement with Ardea Resources provides an exciting opportunity for the discovery of gold resources within economic haulage distance of the Darlot processing plant, which is currently operating at one million tonnes per annum throughput.

“Ardea’s grassroots exploration programs have delineated a series of highly-prospective targets, including the high-priority Gale prospect, which shows interesting early-stage analogies to our 4.1 million ounces KOTH deposit.

“Red 5 now has a combined granted tenement footprint of 1,919 square kilometres in Western Australia’s Eastern Goldfields (including 423km2 under application), giving us a commanding position in this world-class gold district and an exceptionally strong growth pipeline of exploration projects.

“We are looking forward to getting on the ground to commence drilling and exploration programs at both the Mt Zephyr and East Darlot projects.”









Ardea Resources Claims Second New Gold Discovery

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) announced a second gold discovery in the Bardoc Tectonic Zone on the company’s Goongarrie nickel-cobalt project in Western Australia.

Ardea Resources declared the Zeus gold discovery after shallow high-grade orogenic gold mineralisation was defied beneath around eight metres of transported cover.

Results include:

10 metres at 12.97 grams per tonne gold from 42m, including 4m at 28.25g/t gold from 44m; and

6m at 2.07g/t gold from 68m.

Ardea based the discovery on reappraisal of historic gold anomalism that was not adequately followed up by previous tenement holders.

“Ardea’s gold targeting under cover strategy continues to reward with the discovery of primary orogenic gold mineralisation at Zeus,” Ardea Resources managing director Andrew Penkethman said in the company’s ASX announcement.

“Like the recent Lily Albany discovery, Zeus is located only 70 kilometres northwest of the City of Kalgoorlie-Boulder.

“These gold discoveries are very important for the development of the GNCP because they offer potential early revenue through fast-tracked mining as well as delimiting constraints on infrastructure distributions for the adjacent Goongarrie nickel-cobalt project.

“These early ‘greenfields’ successes are a credit to the exploration team and provide confidence in the company’s approach to maximise value for shareholders through realisation of the full mineral potential of our tenure.”









Ardea Resources Confirms Lily Albany Gold Discovery

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) announced confirmation of the Lily Albany gold discovery at Aphrodite North, located within the company’s Goongarrie nickel-cobalt project in Western Australia.

Ardea Resources said recent RC drilling had verified gold mineralisation continuity as part of its assessment of the Goongarrie project for underlying gold mineralisation.

Eight RC drill holes were completed on three sections, returning assay results demonstrating gold mineralisation to be continuous and open.

Ardea’s second round of RC drilling confirmed shallow to deep mineralisation, indicating vertical extent of an orogenic gold system over all depths drilled, including:

10 metres at 3.55 grams per tonne gold from 40m, including 2m at 15.50g/t gold from 44m;

18m at 1.07g/t gold from 216m, including 2m at 2.45g/t gold from 218m;

10m at 1.30g/t gold from 136m, including 2m at 3.06g/t gold from 136m; and

6m at 1.68g/t gold from 246m.

“Ardea’s gold targeting under cover strategy has been shown to be effective in discovering orogenic gold mineralisation with the discovery of Lily Albany,” Ardea Resources managing director Andrew Penkethman said in the company’s announcement to the Australian Securities Exchange.

“This emerging gold discovery is only 70 kilometres northwest of the City of Kalgoorlie-Boulder and Ardea will continue to leverage off the surrounding infrastructure to accelerate its gold strategy.

“With Ardea tenements covering 65 kilometres of strike along the major gold controlling structure, the Bardoc Tectonic Zone, multiple gold targets have been defined and will continue to be systematically explored to build upon this promising start.

“The Ardea Team are also keenly awaiting assay results from other gold targets recently drilled and look forward to providing updates on these, as information becomes available.”