Heron's spin off Ardea Resources has outstanding potental

Ardea Resources IPO

* Ardea Resources Limited is an outstanding opportunity for investors, based on the high quality of the development and exploration projects:
Ardea is a spin-off from Heron Resources, 1 for 10 in-specie distribution to Heron shareholders, following in the footsteps of similar successful Heron spin-offs such as Avoca and Azimuth, free 1 for 3 Loyalty Options at three months after listing. The Ardea assets are long-term Heron projects which with the current financing of Heron’s Woodlawn development, are no longer strategic to stay within Heron.

*Lewis Ponds development:

* 6.6Mt at 1.5g/t Au and 2.4% Zn, open all directions, 20km NW along structure from the 2.2Moz McPhillamys gold    discovery, within the major gold province of NSW (Cadia, Northparkes, Cowal).

* Bulk tonnage gold-zinc-silver system. Site visits to McPhillamys and Lewis Ponds confirms comparable geological settings for an open pit, bulk tonnage moderate grade system. With gold at US$430/oz in 2005 when the resource was first done, Lewis Ponds was a narrow high grade underground 6.6Mt VMS base metal resource. At current gold price US$1170/oz, Lewis Ponds is a potentially a large open-pit gold-base metal system, with Exploration Target far exceeding current 6.6Mt resource.

*Resource upgrade, metallurgy and PFS in 18 months following listing, re-interpretation as a bulk tonnage open pit with underground exploitation later in project.

*Ardea already owns the key Lewis Ponds freehold land, so that statutory compliance for a future mining operation is much improved.

* Mt Zephyr exploration:

* “Syenite gold” style (Jupiter, Wallaby), Gale prospect soil geochem 273ppb Au, RAB 0-18m at 0.5g/t Au (to RAB refusal), requires RC follow up, Easter Well soil geochem 1,163ppb Au, Pauls Find 271g/t Au rock chip bedrock source at head-water of alluvial nugget finds, Donut Magnetic Low with several gold occurrences around contact, all undrilled.
* BIF-hosted gold style (Mt Morgans), on the Celia Lineament structural trend, Dunns New Find minimal historic drilling (<20 percussion holes over 4km strike), high priority de-magnetized cross-cut fault zones in BIF are undrilled (“Boogardie Breaks”).
* Komatiite channel nickel sulphide (Windarra stratigraphy), textbook olivine cumulate channels with “gossanous ironstone” at base of flow (0.3% Ni), require EM and RC drill test.

* Kalgoorlie Nickel Project “corporate start-up”

* 805Mt at 0.7% Ni and 0.05% Co, world-significant nickel-cobalt resource on granted mining leases within a stable jurisdiction with all required infrastructure.

* High cobalt-nickel-manganese as discrete zones (26Mt at >0.1% Co), new JORC 2012 cobalt-rich resource estimation currently underway, potential lithium ion battery feedstock (lithium nickel manganese cobalt oxide LiNiMnCoO₂ or NMC).

* KNP chrysoprase semi-precious gemstone, strong association with siliceous nickel-cobalt laterite, five advanced stage chrysoprase pit opportunities, run-of-mine chrysoprase value $8-20/kg, gem quality >>$20/kg.

* Value proposition:

* Value will be added quickly through drilling, with metallurgy and resource upgrade at Lewis Ponds, RC drill gold and nickel sulphide targets at Mount Zephyr and Taurus, NMC metallurgy and chrysoprase at KNP.
$1 million subscribed by the Board, its associates and management, great belief in the projects, committed management team.

* Enterprise Value $8.4M, very competitive when consider EV of peers as per chart below ($22M EV for Impact Minerals based mainly on Commonwealth [0.7Mt], located within Lewis Ponds [6.6Mt] structural trend, $11M EV for Syndicated Metals with Monument project for sole Mt Zephyr benchmark, $8M EV for Conico Ltd with 50% of Mt Thirsty Cobalt for sole KNP benchmark).

* Future corporate opportunities for Ardea’s cobalt-nickel-manganese NMC battery feedstock and chrysoprase projects will be actively pursued to maximise benefits to Ardea Shareholders, potential “start-ups”.

Refer attached Ardea IPO presentation showcasing Ardea’s projects, and you can download a Prospectus from the Ardea Resources web site.
Please contact Matt Painter or Ian Buchhorn to further discuss the opportunity.
Ardea Resources Limited
A new listing out of Heron Resources Limited
1/7 Havelock Street, West Perth WA 6005
Ph: +61 8 6500 9200
Matt Painter

[email protected]
Ian Buchhorn

[email protected]
www.ardearesources.com.au