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Ardea Resources Hits Shallow Mineralisation at Mulga Plum

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) has maintained the drill result pace by reporting the intersection of shallow gold mineralisation at the company’s Mulga Plum project, northeast of Menzies in the Eastern Goldfields of Western Australia.

Ardea Resources completed first-pass drilling at Mulga Plum that has demonstrated shallow gold mineralisation appears to be associated with both flat-lying and subvertical structures throughout the historic mining area, hosted within mainly potassic altered granite.

Highlighted intercept results include:

AJAR0003
2 metres at 1.19 grams per tonne gold from 20m and 2m at 2.96g/t gold from 42m;

AJAR0006
2m at 1g/t gold from 18m;

AJAR0007
2m at 1.25g/t gold from 38m;

AJAR0009
2m at 8.84g/t gold from 14m; and

AJAR0011
6m at 1.22g/t gold from 10m.

“Ardea is in the enviable position of having a large and highly prospective nickel and gold tenement package in the Eastern Goldfields of Western Australia,” Ardea Resources managing director Andrew Penkethman said in the company’s announcement to the Australian Securities Exchange.

“The Kalgoorlie Nickel Project tenements have historically been explored for near surface nickel-cobalt mineralisation but have seen limited modern and systematic exploration for gold and this represents a prime opportunity to define new gold targets.

“Ardea will continue to test the prospectivity of its large Eastern Goldfields land holding for gold and nickel sulphides.”

 

Email: ardea@ardearesources.com.au

Web: www.ardearesources.com.au

 

THE DAILY ROADHOUSE

 

De Grey Mining Extends Mineralisation at Hemi Gold Discovery

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) reported encouraging signs from drilling underway at the recent Hemi discovery at the company’s Mallina gold project in Western Australia.

Ausgold in Heightened Drilling Mode at KGP

THE DRILL SERGEANT: Ausgold (ASX: AUC) reported on recent drilling activity at the company’s 100 per cent-owned Katanning gold project (KGP) in Western Australia.

Pantoro Eyes Mineralised Extensions to Norseman Deposits

THE DRILL SERGEANT: Pantoro (ASX: PNR) reported latest drilling results from the Scotia, Daisy South and Gladstone-Everlasting deposits at the company’s Norseman gold project in Western Australia.

Ardea Resources Defines Shallow, High-Grade Gold at Big Four Gold

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) has completed an 11-hole RC drilling program at the historic Big Four gold mine, south of Goongarrie in Western Australia.

Black Cat Syndicate Relies More on Strategy Than Luck

THE CONFERENCE CALLER: All of the planets seem to be lining up for Black Cat Syndicate (ASX: BC8) as it prepares to make the transition from explorer to miner in one of Western Australia’s most overlooked gold districts. By Mark Fraser 

 

Ardea Resources Defines Shallow, High-Grade Gold at Big Four Gold

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) has completed an 11-hole RC drilling program at the historic Big Four gold mine, south of Goongarrie in Western Australia.

The Big Four gold mine is located within the footprint of the company’s Goongarrie nickel-cobalt project (GNCP).

Ardea stressed that each of the 11 drill holes completed contained gold intercepts, including:

ABFR0270
18 metres at 3.38 grams per tonne gold from 18m, including 6m at 6.03g/t gold from 20m;

ABFR0272
14m at 2.4g/t gold from 6m, including 4m at 5.73g/t gold from 6m;

ABFR0274
20m at 2.91g/t gold from 76m, including 2m at 13.6g/t gold from 76m and 2m at 5.29g/t gold from 82m and 2m at 5.01g/t gold from 92m.

“Ardea is highly encouraged by these first-pass drill results from Big Four,” Ardea Resources managing director Andrew Penkethman said in the company’s announcement to the Australian Securities Exchange.

“The fact that all planned holes intersected significant gold mineralisation confirms the geological model.

“Mineralisation is still open at depth and a possible fault off-set structural repetition has been modelled along strike to the north and will now be tested to define the extent of this mineralised system.

“Ardea will continue to test the prospectivity of its large Eastern Goldfields land holding for gold and nickel sulphides, in parallel to de-risking the nickel-cobalt resources within the broader Kalgoorlie nickel project.”

Ardea believes systematic gold exploration across the GNCP represents another opportunity to enhance overall project economics.

Presently, strong, coherent, and extensive gold anomalism is associated with surface lateritic nickel-cobalt mineralisation that the company considers could be indicative of underlying primary bedrock orogenic gold mineralisation.

 

Email: ardea@ardearesources.com.au

Web: www.ardearesources.com.au

 

A Lengthy Tale of Two Nickel Plays

THE CONFERENCE CALLER: A couple of nickel projects in Western Australia – one containing sulphides and the other made up of lateritic material – look set to see the light of day after some two decades of sitting on the drawing board. By Mark Fraser

Possibly the most advanced is the West Musgrave joint venture between exploration house Cassini Resources (ASX: CZI) and miner Oz Minerals (ASX: OZL), where the proponents are looking to develop the Nebo-Babel sulphide deposit – an ore body that caused quite a bit of market excitement when it was initially discovered by Western Mining back in 2000.

Meanwhile, the second is the Kalgoorlie Nickel Project (KNP), which is being developed by Ardea Resources (ASX: ARL) and contains a globally significant nickel and cobalt resource.

Like Nebo-Babel, the KNP has been around for a long time, having initially been established by Heron Resources in light of the WA nickel laterite boom of the late 1990s. Later, between 2005-2009, it was the subject of pre-feasibility due diligence by Vale Inco.

Shortly before the 2020 RIU Explorers conference – at which both juniors presented – Cassini completed its own pre-feasibility study for the West Musgrave project, which is located 100 kilometres north-east of Warburton, wherein a solid case for the mine’s development was made.

The PFS indicated its maiden ore reserve of 220 million tonnes at 0.33 per cent nickel and 0.36 per cent copper for a contained 720,000t of nickel and 790,000t of copper could support a mine life of 26 years – some 18 years more than suggested by scoping due diligence conducted in 2017.

The project scale of 10 million tonnes per annum remained unchanged, with target annual life of mine production set at 22,000tpa of nickel and 28,000tpa of copper concentrates.

Higher concentrate production – 27,000tpa of nickel and 33,000tpa of copper – was forecast for the first five years, which could see a six year project payback period from a decision to mine or around a three year one from the start of production.

According to brokerage Hartleys, the project was significantly de-risked by the detailed metallurgical test work, which delivered base metal recoveries at the upper end of expectations and provided good (industry standard) concentrate grades of around 10-11% nickel and 25-26% copper.

Moreover, the PFS also suggested improved operating costs thanks to increased by-product credits (including cobalt, gold, silver and platinum group metals), the use of hybrid renewable diesel power generation and innovative processing solutions such as the use of vertical roller mills, which reduces power consumption by around 15% and provides an estimated 2% improvement in nickel recoveries.

The large scale, longer life operation has come with a higher capital cost, which is now expected to be $995 million instead of the scoping capex range of $730-800 million.

Under the terms of the JV with Oz Minerals, Cassini is not required to contribute to the project capital costs until the delivery of a bankable feasibility study. As it stands the JV partners are looking to start construction sometime in 2021-22 and operations by 2023.

During the RIU show, Cassini managing director Richard Bevan said while Oz Minerals ran the PFS, the junior partner (30%) did a number of work packages.

“Oz really approached this as an operator of this asset,” he explained.

“They spent in excess of $50 million on the PFS and a number of the work packages are well passed the PFS stage, especially those that represent the potential risks of this project around metallurgy and resources.”

Meanwhile, just north of the mining hub of Kalgoorlie-Boulder, Ardea is carrying out its own due diligence on the KNP, which currently contains a resource of 773Mt at 0.7% nickel and 0.05% cobalt for 5.6Mt of contained nickel and 405,000t of contained cobalt.

Within the KNP holdings sits Goongarrie, which has resources of 216Mt at 0.71% nickel and 0.06% copper for 1.5Mt of contained nickel and 130,700t of contained cobalt.

Although the history of nickel laterite projects in WA has been fairly dismal, Ardea is confident it will not fall into the same metallurgical traps as some of its predecessors like BHP (at Ravensthorpe) and Anaconda Nickel (at Murrin Murrin).

During his RIU presentation the company’s chief executive, Andrew Penkethman, pointed out Goongarrie’s ore was goethitic which, he said, was the preferred feedstock for pressure acid leaching circuits.

“It’s a crumbly iron rich material that contains the nickel and cobalt, it has low acid consumption and it can be mined and put through the process plant the same day,” he said.

Other deposits that had excess silica or clay, Penkethman noted, needed to be screened and then dried – in some cases for lengthy periods.

 

 

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.”

 

Email: ardea@ardearesources.com.au
Web: www.ardearesources.com.au
Directors: Andrew Penkethman, Katina Law, Ian Buchhorn, Wayne Bramwell

THE DAILY ROADHOUSE

 

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.”

 

Email: ardea@ardearesources.com.au

Web: www.ardearesources.com.au

 

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.”

 

Email: ardea@ardearesources.com.au

Web: www.ardearesources.com.au

 

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:

ABFA0245
6 metres at 2 grams per tonne gold from surface to end of hole (EOH);

ABFA0188
24m at 0.8g/t gold from 12m;

ABFA0197
12m at 0.3g/t gold from 78m to EOH;

ABFA0209
6m at 0.4g/t gold from 42m, and 18m at 0.1g/t gold from 66m to EOH; and

ABFA0152
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.”

 

Email: ardea@ardearesources.com.au

Website: www.ardearesources.com.au

 

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.”

 

Email: ardea@ardearesources.com.au

Website: www.ardearesources.com.au