Ann: Exploration and development update, page-3

An update on the Company’s activities while awaiting receipt of assay results following completion of initial PFS programs
Ardea Resources Limited (ASX: ARL, “Ardea” or “the Company”) is pleased to provide a brief exploration and development update for Shareholders.
The KNP Cobalt Zone, WA
Assay results for Black Range and Kalpini are pending, with the commercial laboratory still completing assays. Several events beyond the Company’s control, including failure of one of the laboratory’ instruments, have caused a backlog in receiving assay results.
• Assay results for the diamond drilling at Goongarrie South have been prioritised to facilitate progress on the Pre-Feasibility Study (PFS). Material recovered from this program has been delivered to the metallurgical laboratory for the initial testwork of the PFS.
• Interpretation of historic and new drilling at Kalpini shows nickel and cobalt anomalism associated with ultramafic (komatiitic) rock types in outlying areas, confirming the exploration model for the area.
• At the Black Range layered mafic complex, assays for platinum, palladium, and scandium are designed to complement cobalt and nickel assays. Historical drilling around Mt Carnage in the Black Range shows significant platinum and palladium in fresh rock. Our focus will be to define their distribution in the near-surface laterite profile where the nickel and cobalt are concentrated. Also, Ardea has identified the Black Range layered mafic complex as a likely host for scandium despite a lack of historic analyses.
• Results and detailed analysis for each of these programs will be released once all data is received and interrogated for quality control.
There have been significant advances on the cobalt resource upgrade for the KNP Cobalt Zone:
• Comprising a strike length of over 15 km, all historic data from the contiguous Goongarrie South and Big Four areas has been remodelled to provide robust resource models and grade shells based on cobalt cut-offs, as opposed to the nickel cut-offs defined historically. An upgraded resource will be released in June.
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• Work has commenced on remodelling historic data from the Goongarrie Hill (north of Goongarrie South) and Scotia Dam (south of Big Four) areas. Together these will comprise an extensive strike-continuous zone of cobalt and nickel mineralisation that will be the focus of PFS development studies.
• Remodelling of the Black Range resource will be undertaken on completion of other areas listed above, and following incorporation of all new assay results from recent drilling.
• A core processing facility was established in Kalgoorlie for the recent Goongarrie South drilling and ongoing KNP programs.
The KNP Cobalt Zone remains our main development focus.
Lewis Ponds Zn-Au-Ag, NSW
Detailed analysis of recently drilled drill core has shed light on geometallurgical and structural controls on various styles of mineralisation at Lewis Ponds. Results will delimit the scope of the required programs for the PFS at Lewis Ponds.
Samples are in transit to Perth for commencement of the metallurgical stage of the Lewis Ponds PFS.
Taurus Au, WA
In March, a rock chip and mapping program at Taurus, near Bulong some 20 km east of Kalgoorlie, collected over 250 samples. The aim is to document the distribution of gold mineralisation and anomalism throughout historic workings and drill programs. This program is expected to form the basis for forthcoming exploration programs at Taurus.
As with our other samples, these have been caught up in the backlog of pending assays at the laboratory. Results are expected soon and will be reported once all are received and interrogated for quality control.
Recruitment
The Company recently advertised two Senior Geologist positions based both in Kalgoorlie and in Orange. Several excellent candidates have applied, and the Company is very confident of employing highly skilled and motivated individuals who will be able to build the development teams and accelerate our programs in each area.
It is envisaged that the successful applicants will progress the main development projects (the KNP Cobalt Zone and Lewis Ponds respectively) as well as undertake earlier stage exploration on the Company’s extensive exploration portfolios throughout each region.
For further information regarding Ardea, please visit www.ardearesources.com.au contact:
Ardea Resources:
Dr Matt Painter
Managing Director, Ardea Resources Limited
Tel +61 8 6500 9200
[email protected]
Media or Investor Inquiries:
Jon Snowball
FTI Consulting
Tel +61 2 8298 6100 or +61 477 946 068
[email protected]