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ARL - Ardea Resources

There has not been much action at ARL for a couple of months but I was looking at the chart again today and if it can break 58c then my next resistance line is 73c. As mentioned before ARL register is very tight so when it decides to go it will hopefully move pretty quick.

Holding and waiting ...



 

Just needs a bit of that positive Volume @Tech was talking about before Xmas Trav.
 
I came across ARL on the weekend and lucky for me I bought on Monday. Up 20%.

ARL are probably gaining attention because they are next door to SGQ. SGQ is an explorer generating some exciting results from their Kalgoorlie prospects. WSA has a stake in SQL (25%?). ARL are right next door to SGQ and they are just starting to conduct EM surveys of their tenement which has been identified as the same mineral belt, the Cathederals Belt, that SGQ have had successful drilling results on. I think with prudent stop losses in place, speckies like SGQ and ARL have a good chance of performing well over the next few months if the Nickel price holds up.

ARL are also planning to spin off their NSW gold tenements which have a JORC. The market might be viewing this as the most favourable way to realise value from these prospects.

If anyone is interested in researching this company further note that they changed CEO and strategy not long ago. There is at least one interview with the new CEO, a geologist, available online. Worth a listen to.
 
Does it mean anything that ARL is a member of FBICRC?
 
Ardea Resources was pitching investors for $20 million this morning; the offer was priced at 70¢ a share, an 11.9 per cent discount to the last close and an 8.6 per cent discount to the five-day volume-weighted average price. Was 40-50c for most of 2021 before running to 80c in Jan/ Feb.

Potential investors were told Ardea would primarily use the money for sulphide drilling, regional nickel exploration, studies and working capital.

Since hiving off Kalgoorlie Gold Mining (KAL), the company has focused on what it calls the battery minerals sector in their Kalgoorlie Nickel Project, Goongarrie Hub, with its 830Mt resources, 0.71 per cent average nickel grade (and 5,879 kt of contained nickel), 0.05 per cent average cobalt grade (and 384 kt of contained cobalt). Ardea’s Kalgoorlie Nickel Project is in the pre-feasibility stage and has told investors it’s the largest emerging nickel resource in Australia.
  • Gap Analysis Study completed and DFS underway
  • Goongarrie Hub Hydrogeology Drilling completed ; Rockwater & Harrington
  • Goongarrie Hub Metallurgical Drilling completed by contractor DDH1
  • Metallurgical Testwork Underway by ALS Laboratory Group
  • Stakeholder engagement accelerated, running parallel with DFS work

As well, it has announced a Nickel Sulphide discovery at Emu Lake, some 70km NE of Kal.
 
ARL enjoying good overheads after being awarded major project status on the 18th of this month, for their Kalgoolie Nickel. Then on the 21st by the Prime minister. This had a huge influence on the share price, jumping from 80c on the 17th to $1.6c today and till climbing I figure. I would have to say it is amazing what the influence of the Government can have on the impact of the share price, for Australian Security's...


 
Ardea is pressing on with its Kalgoorlie Nickel Project (KNP) as many other nickel projects struggle due to the low nickel price.

ARL shares have been in demand and the price is surprisingly going higher.
 
from the wires:

Sumitomo and Mitsubishi have agreed to back Ardea Resources and its $3.1 billion nickel laterite and cobalt project, about 80 kilometres from Kalgoorlie and BHP’s ageing nickel smelter.

Ardea’s Goongarrie project is slated to produce 30,000 tonnes of nickel and 2000 tonnes of cobalt per annum over a 40-plus-year mine life using the latest iteration of the high pressure acid leach (HPAL) technology that has helped Chinese-backed miners in Indonesia flood the global market with cheap nickel.


Highlights
• Strategic Partners selected for the globally significant KNP – Goongarrie Hub located in the tier 1 mining jurisdiction of WA.
• Ardea has executed a binding Cooperation Agreement to form a 50:50 incorporated JV with SMM and MC which represents a significant Critical Minerals Collaboration.
• The Consortium will fund 100% of the DFS costs up to the agreed budget of approximately A$98.5 million and assist KNPL in optimising debt financing to earn an ultimate 50% interest in the JV, with Ardea retaining the other 50%.
• The Transaction is subject to conditions precedent including FIRB approval and the execution of a binding Shareholders' Agreement.
• In addition, Ardea, SMM and KNPL have agreed on funding support arrangements allowing DFS activities to continue in Q2 2024.
• Transaction completion is expected prior to the end of Q3 2024.
 
from the wires:

• In addition, Ardea, SMM and KNPL have agreed on funding support arrangements allowing DFS activities to continue in Q2 2024.
in the cold light of the morning after and some sober analysis, there ain't no free ride here, kids.
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