Ardea Resources (ARRRF)

[tootalljones]

douginil, remember this recent upgrade is just a portion (what they call the Black Rock subsection) of a far more massive cobalt and nickle deposit, which the company is now drilling and aiming to upgrade.

The formal title to this resource is The Kalgoorlie Nickle Project (the KNP which the company says is "one of the largest cobalt projects in the world and certainly the largest in the developed world." (their phrase).

So they are upgrading this, and the news release of my earlier post is just a portion of their current work.

They are improving it in chunks. THERE IS LITTLE DOUBT ABOUT THIS, I SAY THIS BECAUSE AS COBALT HAS BLASTED HIGHER MUCH MORE OF THIS MASSIVE, DEVELOPED WORLD RESOURCES COMES INTO PLAY AND BECOMES ECONOMIC...

At Cobalt priced at 5 to 10 bucks, it is not economic, but at cobalt priced at 27 or 28 bucks, today's price, (and exploding far higher), so much more of their massive resource can come into play.

From the Appendix 1 below:

"The global resource for the KNP is 805.3 Mt at 0.048 %
cobalt and 0.70 % nickel (Table 2 below) which equates to over 386,000 t of contained cobalt metal.
Table 2 – KNP Resources breakdown
Resource Category Quantity
(Mt)
Co
(%)
Ni
(%)
Measured 9.6 0.081 1.02
Indicated 244.0 0.052 0.75
KNP Total Measured and Indicated 253.6 0.052 0.76
Inferred 551.7 0.046 0.68
KNP Total Resources 805.3 0.048 0.70
Recent recalculation of these resources with a focus on cobalt rather than nickel concentrations shows
that the KNP is one of the world’s largest cobalt resources, and certainly the largest in the developed
world.
The KNP Cobalt Zone
A cobalt-rich subset of the KNP, known as the KNP Cobalt Zone, contains a significant cobalt and nickel
resource in its own right. The KNP Cobalt Zone contains 49.7 Mt at 0.12 % cobalt and 0.86 % nickel
(Table 3) for a total contained cobalt metal of just under 60,000 t. Our aim is to substantially increase
upon this initial resource through exploration of known outlying cobalt occurrences and drill intercepts, and
through reinterpretation of the resource based on cobalt cut-off grades rather than the current 0.5 % nickel
cut-off.

[COMPARISONS]:

Table 3 – KNP Cobalt Zone, Resource Statement from RMRC consulting group
Area Prospect Resource
category
Cutoff
(% Co)
Size
(Mt)
Cobalt
(%)
Nickel
(%)
Goongarrie Goongarrie
South
Measured 0.08 3.4 0.14 1.19
Indicated 0.08 11.2 0.11 0.92
Inferred 0.08 1.4 0.11 0.76
Big Four Indicated 0.08 4.5 0.11 0.89
Inferred 0.08 0.2 0.11 0.95
Scotia Inferred 0.08 2.9 0.14 0.88
Goongarrie subtotal 23.6 0.12 0.94
Siberia Black Range Inferred 0.50(Ni) 20.1 0.10 0.75
Yerilla Aubils Inferred 0.08 6.0 0.15 0.90
KNP Cobalt Zone total resources 49.7 0.12 0.86
KNP Cobalt Zone pre-feasibilty study underw

--------------------------------

See Appendix 1 which begins on page six of this presentation from earlier this year:
https://www.ardearesources.com.au/downloads/announcements/arl_2017022401.pdf