Ardea Resources (ASX: ARL) Explorers 2020

THE CONFERENCE CALLER: Ardea Resources boasts a large portfolio of 100 per cent-controlled West Australian-based projects.

The company’s flagship is the Goongarrie nickel-cobalt project, that forms part of the broader Kalgoorlie nickel-cobalt project in Western Australia.

Ardea claims Goongarrie to be part of the largest nickel-cobalt Resource in the developed world with potential to be a multi-generational mine offering outstanding multi-commodity exposure which includes cobalt, nickel, scandium, vanadium, chromium, aluminium and gold.

Ardea’s other WA projects include Bedonia West, comprising E63/1827 and E63/1828 covering 358 square kilometres to complete Ardea’s coverage of the Jimberlana Dyke west of the existing Bedonia prospect.

Ardea has confirmed previously identified anomalous nickel-copper-PGM soil auger geochemistry is coincident with a specific intrusive phase of the Jimberlana Dyke lopolith.

The Perrinvale E29/1006 covers 175sqkm along the eastern strike continuation of the ‘Cathedrals’ Proterozoic Dyke complex.

The application was based on Ardea recognising lopolith mineralisation controls at Bedonia.

The company hopes to secure similarly endowed lopolith geological settings, as well as the northern strike continuation of the domain boundary Ida Fault hosting the Mt Ida gold mining centre.

Goongarrie is readily global-scale project, which Ardea is developing with the aim of becoming a long-term producer of high-quality nickel-cobalt sulphate.

The project currently hosts a Resource of 773 million tonnes at 0.71 per cent nickel and 0.05 per cent cobalt and offers plenty of upside with only five per cent of the company’s Kalgoorlie nickel-project landholding being factored in to the current resource.

Ardea is positioning Goongarrie to be a supplier of high-purity cobalt and nickel sulphate to the lithium-ion battery to meet the burgeoning demands of the growing automotive electrification, a market expected to account for 14 per cent 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.

A Pre-Feasibility study demonstrated Goongarrie to be a highly valuable development project and Ardea is determined to continue to advance the project toward a final investment decision.

Recent work undertaken close to Goongarrie included rock chip sampling of old workings and sporadic outcropping that confirmed gold mineralisation over an area of at least 400 square metres at the Mulga Plum gold prospect.

The mineralisation encountered is mostly vein-hosted, returning up to 17.1 grams per tonne gold in selective quartz lode material.

All rock types assessed returned an average grade of 1.8g/t gold for all samples taken, which the company interpreted to suggest the presence of bulk tonnage potential within a dominantly granite host.

Ardea is evaluating Mulga Plum as a bulk-tonnage gold system as part of its broader aim to prove up and mine gold from its suite of projects near the Goongarrie project and these results bolstered its confidence in the project to proceed to early stage drill evaluation of the project.

A systematic shallow RC drill program of 26 angled RC holes of 50 to 70m each to define extent and orientation of near-surface gold mineralisation was being planned at the time of writing.

Much of Ardea’s 2019 was focused on the spin out of the company’s New South Wales Lachlan Fold Belt gold-base metal projects into Godolphin Resources (ASX: GRL).

This was completed in December, after which Godolphin’s development focus will be the Lewis Ponds gold-zinc and Mount Aubrey gold projects associated with the Lachlan Transverse Zone (LTZ) of the Lachlan Fold Belt (LFB) in central NSW.

Since its listing in 2017, Ardea quickly became the second largest mineral tenement holder in NSW amassing a dominant land position it acquired through detailed project scale and regional data compilation and analysis.

Work completed by Ardea advanced these NSW projects towards defining four separate JORC Code-compliant mineral resources.

Work programs completed include land-holder access agreements, digitally capturing historic exploration data, geological mapping and soil auger geochemistry, leading to the definition of drill-ready targets across granted Godolphin tenure.

“We understand that different investors in Ardea have preferences for different asset exposure and with the Godolphin spin-out, we can clearly separate the WA Goongarrie nickel cobalt project nickel production opportunity from the New South Wales gold production opportunity with ancillary gold/base metal exploration,” Ardea Resources CEO Andrew Penkethman said.

“This will drive superior value for shareholders in both entities.

The New South Wales assets being in a separate fully independent vehicle will crystallise their value and allow them to be advanced independently of Ardea’s West Australian exploration and development initiatives.”


Directors: Andrew Penkethman, Katina Law, Ian Buchhorn, Wayne Bramwell



Pioneer Resources Estimates Initial Inferred Mineral Resource for Cade Spodumene Deposit

THE DRILL SERGEANT: Pioneer Resources (ASX: PIO) declared it has completed sufficient exploration to estimate an initial Inferred Mineral Resource for the Cade spodumene deposit within the company’s 100 per cent-owned Pioneer Dome project in Western Australia.

Calidus Resources Drilling Underpins Open Pit Resource Upgrade

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) reported the final batch of RC drilling results from inside the planned Klondyke pit at the company’s 1.25 million-ounce Warrawoona gold project in Western Australia.

Pantoro Confirms High-Grade Mineralisation at Gladstone-Everlasting

THE DRILL SERGEANT: Pantoro Limited (ASX: PNR) released initial drilling results from the Gladstone-Everlasting deposit (Gladstone) at the company’s 50 per cent-owned Norseman gold project in Western Australia.

Cassini Resources and OZ Minerals Expand WMP Tenure

THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) announced an extension to exploration tenure at the West Musgrave Project (WMP), a Joint Venture with OZ Minerals Limited (ASX: OZL) in Western Australia.

Carawine Resources Drilling at Victorian Gold-Copper Project Deposit

THE DRILL SERGEANT: Carawine Resources (ASX: CWX) has commenced diamond drilling at the company’s 100 per cent-owned Jamieson project in northeast Victoria that hosts the Hill 800 and Rhyolite Creek prospects.

Ardea Resources Set to Drill at Mulga Plum Gold Deposit

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) reported that rock chip sampling of old workings spoil and sporadic outcrop at the company’s Mulga Plum gold prospect in Western Australia has confirmed gold mineralisation over an area of at least 200 square metres.


Ardea Resources Set to Drill at Mulga Plum Gold Deposit

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) reported that rock chip sampling of old workings spoil and sporadic outcrop at the company’s Mulga Plum gold prospect in Western Australia has confirmed gold mineralisation over an area of at least 200 square metres.

Ardea Resources identified the mineralisation as mostly vein-hosted, up to 17.1 grams per tonne gold in selective quartz lode material.

The company said from all the rock types assessed it achieved an average grade of 1.8g/t gold for all samples taken, which it interpreted to suggest bulk tonnage potential from what is a dominantly granite host.

Ardea explained it is evaluating Mulga Plum as a bulk-tonnage gold system as part of its broader aim to prove up and mine gold from its suite of projects near the Goongarrie nickel cobalt project (GNCP) in WA.

“The results confirm historic grab sample results in government archives recording similarly high-grades in quartz veining within the granite and bimodal volcanic sequence at Mulga Plum,” Ardea Resources said in its ASX announcement.

The company indicated it would now proceed with first pass drill evaluation of the project covering both Mulga Plum and Plum Pudding prospects comprising 26 angled RC holes for 1,420m of drilling.

“This initial program will provide adequate data to assess the bulk gold mineralisation potential at depth, to determine the controls on gold mineralisation and potential project scale,” the company said.

“Positive evaluation of the Mulga Plum project following this first round of drilling will prompt additional drilling in these inaccessible areas that will require some earth moving for rig access.

“A second phase of drilling will most likely also test lateral and depth extensions should mineralisation prove to be open in any direction.”





Ardea Resources Updates Lewis Ponds Resource

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) announced a new JORC 2012-compliant Indicated and Inferred Mineral Resource estimate, for the company’s Lewis Ponds gold-silver-zinc-lead-copper deposit near Orange in New South Wales.

Ardea reported the new JORC 2012 Mineral Resource for the Volcanic hosted massive sulphide (VHMS) Lewis Ponds project, comprising Indicated and Inferred Mineral Resources, at:

20.24 million tonnes at 0.5 grams per tonne gold, 33.3g/t silver, 1.5 per cent zinc, 0.7 per cent lead, and 0.1 per cent copper for total contained metal of 326,000 ounces gold, 21.6 million ounces silver, 290,000 tonnes zinc and 135,000 tonnes lead.

“The Lewis Ponds polymetallic mineral system is regionally significant and shares similarities with other well-known and significant Lachlan Fold Belt bulk tonnage projects,” Ardea Resources CEO Andrew Penkethman said in the company’s announcement to the Australian Securities Echnage.

“This project is being vended into Godolphin Resources Limited, Ardea’s planned IPO of its New South Wales gold and base metal assets with Godolphin expected to expand upon the considerable resource already defined at Lewis Ponds as mineralisation is open in every direction.

“There has been minimal historic gold exploration done across what is clearly an excellent gold structure with multiple historic workings that hosts Lewis Ponds and the 2.3 million-ounce McPhillamys gold deposit 23 kilometres southeast along structure.”

Ardea has also commenced geophysical surveys at the company’s 100 per cent-owned Perrinvale nickel-copper sulphide project, located west of Leonora in the Eastern Goldfields Province of WA.

“Ardea have been assessing the nickel sulphide potential of their large strategic land holding in Western Australia and defined a number of compelling exploration targets,” Penkethman said.

“A ground EM survey has just commenced at the Perrinvale project and we are excited by the potential to define conductors that represent concealed nickel sulphides.

“At Emu Lake, previous explorers have already defined a conductor in a setting interpreted to be similar to the Silver Swan nickel sulphide mine.

“Drilling of this untested target is expected to commence later this week.

“I look forward to receiving the results from these green fields exploration programs and continuing to assess Ardea’s quality project portfolio.”





Ardea Resources Identifies Gold at Goongarrie Nickel Cobalt Project

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) completed a first-pass gold exploration program at the Big Four prospect, part of the company’s Goongarrie nickel cobalt project in Western Australia.

Ardea Resources completed 265 aircore holes for 4,861 metres at the Big Four prospect, which it said had confirmed gold mineralisation at the company’s Big Four gold mine and historic gold prospects at Zeus and Dionysus, as well as identifying numerous new anomalies.

Results of the recent Big Four drilling include:

6 metres at 2 grams per tonne gold from surface to end of hole (EOH);

24m at 0.8g/t gold from 12m;

12m at 0.3g/t gold from 78m to EOH;

6m at 0.4g/t gold from 42m, and 18m at 0.1g/t gold from 66m to EOH; and

4m at 0.3g/t gold from 6m to EOH.

“The stacking of the nickel-cobalt-scandium laterite mineralisation upon the gold being located in the crustal-scale Bardoc Tectonic Zone appears to be globally and geologically unique,” Ardea Resources CEO Andrew Penkethman said in the company’s announcement to the Australian Securities Exchange.

“The extent and strength of gold anomalism as a conceptual target is exceptional.

“Though much work remains to define the full gold potential, the possibility of multiple revenue streams from nickel, cobalt, scandium and gold at Goongarrie is tantalising.

“Forthcoming integrated drilling programs to define gold resources will complement and potentially add significant value to the economics of our flagship Goongarrie nickel cobalt project.”





Ardea Resources Advancing NSW Portfolio IPO

THE BOURSE WHISPERER: Ardea Resources (ASX: ARL) is advancing its spin-out of the company’s New South Wales assets via an Initial Public Offer (IPO).

Ardea Resources said it had completed technical reviews and field programs confirming high-prospectivity mineral targets across the IPO tenure.

Ardea controls a suite of tenements in NSW within the Lachlan Fold Belt that hosts multiple bulk-tonnage deposits such as Northparkes, Cadia-Ridgeway and Cowal.

The company has data validation underway for the Lewis Ponds gold-base metal project with resource estimation to follow.

The Mount Aubrey epithermal gold project has had a 3D model completed for historic gold drilling, while at the Yeoval, Copper Hill East, Ophir and Wiseman’s Creek projects located on the Lachlan Transverse Zone and at Gundagai, historic exploration data has been compiled.

Where land access was secured, vehicle mounted soil auger or conventional manual soil geochemistry has been completed with a view to defining drill targets.

Data compilation is current at Calarie and Restdown, and land access negotiations have commenced.

“The IPO of our NSW assets is a part of Ardea’s three-pronged value creation strategy,” Ardea Resources CEO Andrew Penkethman said in the company’s announcement to the Australian Securities Exchange.

“This prospective 2,000 square kilometres of gold and base metal tenure across our 100 per cent-controlled NSW projects will underpin a dedicated IPO, with distribution of free in specie shares to Ardea shareholders.

“The IPO is advancing as planned, with target definition followed by on-ground exploration completed over key components of each project area.

“Initial results are highly encouraging and have confirmed multiple base and precious metal targets, which highlight the prospectivity of the NSW project portfolio with follow up programs planned to test these targets post IPO.”





Ardea Resources Updates KNP Cobalt Zone Resource to Over 100Mt

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) released an update to the cobalt Resources at the company’s Kalgoorlie nickel project (KNP) in the Eastern Goldfields of Western Australia.

Ardea Resources has increased the Resource for the KNP Cobalt Zone to 108.3 million tonnes at 0.10 per cent cobalt and 0.79 per cent nickel.

In total the KNP Cobalt Zone contains over 108,000 tonnes of cobalt metal and over 856,000 tonnes of nickel metal.

The major contributor to the upgrade was the Cobalt Zone at the Goongarrie nickel cobalt project (GNCP), which has been defined at 83.1 million tonnes at 0.1 per cent cobalt and 0.81 per cent nickel.

The corresponding contained metal estimates are 81,700 tonnes cobalt metal and 672,300 tonnes nickel metal.

The Resource includes mineral resources at Goongarrie South, Big Four, and Scotia Dam which occur within a continuous mineralised zone extending over 16 kilometres in strike length north to south and over one kilometre wide.

Ardea declared the Goongarrie nickel cobalt project as the company’s prime development project and the subject of a forthcoming pre-feasibilty study (PFS).

The company is focused on the development of the deposits of the Goongarrie camp where mining schedules have highlighted the cobalt-rich and nickel-rich portions of the deposits which correspond to the Cobalt Zone at Goongarrie.

The company explained the Resource upgrade was not the result of additional drilling results or remodelling exercise.

The upgrade stemmed from a reappraisal of the focus of mining at Goongarrie during the development of the PFS and a substantial hike in metal prices.

The company reported previous resource estimates in 2017 using a 0.08 per cent cobalt cut-off only, ensuring capture of much high-grade nickel mineralisation.

However, the PFS has progressed and metals prices improved, positively impacting modelling of mining schedules, highlighting blocks containing high-grade nickel mineralisation with moderate cobalt grades (of less than 0.08 %) as volumetrically and fiscally important component of the deposits.

“The net effect is that 40 million tonnes of moderate to high-grade nickel / moderate cobalt mineralisation (reporting < 0.08% cobalt and > 0.5% nickel) have been added to the resource as continuity of mining blocks has improved,” Ardea Resources said in its ASX announcement.

“Most of this mineralisation is within the Cobalt Zone at Goongarrie but was not previously reported in the June 2017 Ardea announcement.

“In these areas, higher nickel grades often correspond to moderate cobalt.

“The effect of this updated reporting is that overall cobalt grade is not significantly diminished, and nickel grade is maintained.

“This newly included mineralisation is integral to the resource and indeed to the modelling and planning of the of the mining project, hence the Mineral Resource reporting for Goongarrie has been updated to reflect this.”