Gold Projects Discussion, page-5

The following info is from Ardea's prospectus. Initially the following were the main target focus projects and that somewhat changed with the ever increasing demand for cobalt.

• Lewis Ponds gold-zinc project
  • ‐ Main Zone and Tom’s Zone JORC resource 6.6Mt at 1.5g/t gold and 2.4% zinc, strong potential to expand the tonnage, including untested up‐dip surface oxide gold targets
  • ‐ Geological setting comparable to the Regis Resources McPhillamys 2.2Moz gold discovery located along structure 20km southeast
• Mt Zephyr gold and nickel sulphide project
  • ‐ Gale gold, associated with the domain boundary Celia Lineament, 273ppb gold in soils, 18m at 0.5g/t gold in RAB from surface to RAB refusal, no RC drilling of the central anomaly (700m x 100m RAB anomaly), geological setting comparable to the Dacian Gold Jupiter ‘syenite‐hosted gold’ discovery located along structure 50km southeast
  • ‐ Jones Area A and B nickel sulphide, Mt Windarra ultramafic stratigraphy with discrete magnetic highs associated with ‘Silver Swan‐style’ ultramafic channels, no previous RC drill testing or modern deep penetration ground and down‐hole EM
• Bardoc Tectonic Zone and East Kalgoorlie gold projects
  • ‐ Big Four 6m at 8.6g/t gold historic drill‐hole, open soil gold anomaly to south
  • ‐ Taurus 5m at 38g/t gold historic drill‐hole, 50 ounces recent gold nugget discoveries.
    
    From the CHAIRMAN:

Ardea’s development focus will be the Lewis Ponds Gold‐Zinc project in central NSW and Kalgoorlie Nickel Project in WA (KNP). Its exploration focus will be the Mt Zephyr gold and nickel and Bardoc Tectonic Zone/Kalgoorlie East gold projects in the Eastern Goldfields of WA. Ardea has a 100% interest in all of these projects.
The Company plans to drive shareholder value through a targeted drilling program. The data from this exploration will allow the Company to appropriately identify and rank our development priorities. In addition, the Company will assess strategic corporate opportunities that may have the potential to create additional value for all Shareholders.
Development
At Lewis Ponds, we have 6.6 million tonnes at 1.5g/t gold and 2.4% zinc with copper, lead and silver credits. Initially the Ardea focus will be two‐fold:

• In terms of development, to complete an initial diamond drilling program to obtain metallurgical test material as a precursor
  to an updated mineral resource estimate. Additionally, shallow RC drilling for oxide gold targets is required up‐dip of the known resource.
• In terms of exploration, the McPhillamys 2.2 million ounce gold deposit is located 20km southeast from our southern tenement boundary along the regional Godolphin Fault. Ardea controls some 50km of this structural target northwest to Copper Hill East, representing a premium quality gold exploration target.
  At the KNP, our focus is to update the mining study and metallurgical flowsheet from the 2014 scoping study to a pre‐feasibility level of study. In particular, Ardea will be assessing the cobalt development potential of the cobalt‐rich segments of the KNP.
  Exploration
  Mt Zephyr is particularly exciting, being a close geological analogy of the Dacian Gold Mt Morgans gold project located 50km southeast along strike. Soil and RAB gold anomalies associated with syenite granitoid intrusions and ‘donut’ magnetic anomalies will be drilled.
  Before deciding to invest in the Company, prospective investors should read entirely this Prospectus and, in particular, the summary of the Company’s projects in section 3 and the risk factors in section 4.
  Whilst the Company’s projects have been subject to exploration and, in the case of Lewis Ponds and KNP, resources reported in accordance with the JORC Code, the Company’s projects are subject to exploration and development risks, and an investment in the Company is considered speculative.
  
  Ardea will hold a quality portfolio of development and exploration projects with great potential, and I encourage you to read the Prospectus, and invite you to participate as a Shareholder in the Company. We look forward to your support and can assure you of aggressive development and exploration programs. You should also note the 1 for 3
  Loyalty Option to be issued at no cost three months after Ardea lists.
• LEWIS PONDS -Lachlan fold belt NSW.
  Located on the domain boundary Godolphin Fault 20km NW along 3.3 strike of the 2.2Moz McPhillamys gold resource, the Lewis Ponds resource is
  6.6Mt at 1.5g/t Au and 2.4% Zn. Ardea controls some 50km of the mineralised Godolphin Fault structure, with mineralised centres from southeast to northwest including Mt Nicholas, Tom’s, Main Zone, Mt Shorter and Calula.
• Mt ZEPHYR - Eastern Goldfields of W.A.

Located on the domain boundary Celia Lineament, 50km NW along strike from 3.4 the Dacian Gold (ASXCN) Mt Morgans Westralia BIF and Jupiter syenite gold resources of 3.3Moz. Drill‐ready targets at Gale with 250ppb Au soil anomaly with 18m at 0.5g/t Au from surface in RAB and Mt Zephyr BIF with 3km strike of historic gold shafts, and minimal previous RC drilling at Gale granitoid and Mt Zephyr BIF.

BARDOC TECTONIC ZONE -Eastern Goldfields of W.A.

Located on the gold‐endowed Bardoc Tectonic Zone between Broad
Arrow and Menzies, several historic gold mining centres require drill‐testing, notably at Big Four with previous RC drill intercepts up to 6m at 8.6g/t gold and at Ghost Rocks with rock chip samples up to 5.3g/t gold.

Ardea holds or will hold rights to Heron’s Kalgoorlie Nickel Project and other non‐Woodlawn portfolio of assets; which includes the following leading projects:

(a) Lewis Ponds, New South Wales;
(b) Mt Zephyr, Eastern Goldfields of Western Australia;
(c) Bardoc Tectonic Zone, Eastern Goldfields of Western Australia; and (d) Kalgoorlie Nickel Project

Lewis Ponds, Lachlan Fold Belt, New South Wales

1. (a) Description, Location and Access
   Lewis Ponds is located 15km east of Orange in central NSW in a region of well‐established mining infrastructure (Cadia‐ Ridgeway mining centre). The main project is within granted EL5583 and is 100% Ardea‐owned. Access is good, with extensive road networks servicing cleared agricultural land.
   Details of the tenements which together comprise Lewis Ponds, together with Ardea’s interest and encumbrances are set out in the Solicitors’ Report on Tenements (section 9).
2. (b) History
   The district of Lewis Ponds has had a long history of mining with the discovery of gold in the 1850s and open pit and shallow underground mining during the period 1887 to 1921.
   The Lewis Ponds district has been subject to modern exploration by several well‐credentialed companies following its recognition as a VMS setting by the Shell Company of Australia in the 1980s. Tri Origin Australia NL discovered and delineated the current deposit in the early to mid‐1990s.
3. (c) Geological Setting, Mineralisation and Deposit Types
   Lewis Ponds is within a Volcanogenic Massive Sulphide (VMS) province in the eastern Lachlan Fold Belt (LFB), hosted by N‐S trending Silurian‐aged felsic volcanic rifts with deposits including from south to north Stockmans, Captains Flat, Woodlawn, Cullarin and Lewis Ponds.

Specifically, the Lewis Ponds property lies within a belt of Silurian‐aged felsic volcanics and associated sedimentary rocks including limestone breccias on the western margin of the Hill End Trough sub‐basin.
Regis Resources’ McPhillamys gold project, which hosts 73.2Mt at 0.94g/t Au for 2.21Moz, is located some 20km southeast along strike from the southern tenement boundary, with the gold‐hosting‐structure and soil gold anomalism trending into the Ardea tenure along the Godolphin Fault.
In addition to VMS base metal targets, Ardea controls some 50km of the favourable McPhillamys gold‐hosting Godolphin Fault structure from Lewis Ponds in the southeast to Copper Hill East in the northwest.
The Lewis Ponds deposit consists of two stratabound, disseminated to massive sulphide lenses, Main Zone and Tom’s Zone, which occur in a sequence of steeply dipping, tightly folded and faulted volcanics. The deposit is highly deformed with mineralisation extending over a strike length of more than 2km.
The Ophir Gold prospect is located in the northeast project area and has a profusion of historic gold workings. Systematic evaluation is required.
The Copper Hill East prospect includes porphyry copper‐gold targets at Mystery 3km NE from Copper Hill along structure, and McPhillamys‐style gold hosted by Silurian‐aged felsic volcanics at the Calula Mines.
(d) Mineral Resource and Mineral Reserve Estimates
TriAusMin Limited (which was acquired by Heron in August 2014) announced a JORC Code 2004 resource estimate on 6 October 2005 with an updated JORC 2012 resource completed in October 2016.
The independently estimated Mineral Resource at Lewis Ponds reported in accordance with JORC Code is divided into resources from two zones, Main Zone and Tom’s Zone.
The cut‐off grade applied to the calculation of Lewis Ponds Mineral Resources was 3.0% zinc equivalent (ZnEq). The following 2005 metal prices were used to calculate zinc equivalent values applied to the Kriged Mineral Resource estimate.

Far more info can be obtained from the prospectus which was lodged with ASX ON 7/2/2017.