Ardea Resources Launches $98.5 Million Feasibility Study for Goongarrie Hub Nickel Project
Ardea Resources has initiated a $98.5 million definitive feasibility study (DFS), fully funded by a Japanese consortium, for its expansive Goongarrie Hub nickel project located 70km northwest of Kalgoorlie in Western Australia’s Eastern Goldfields region. This funding deal involves Japanese industry giants Sumitomo Metal Mining and Mitsubishi Corporation, who will receive a 50% stake in the Goongarrie Hub operation.
The Goongarrie Hub is part of Ardea's larger Kalgoorlie nickel project (KNP), which is said to host the largest nickel-cobalt resource in the developed world. The global mineral resource estimate for the project stands at 854 million tonnes with grades of 0.71% nickel and 0.045% cobalt, containing 6.1 million tonnes of nickel and 386,000 tonnes of cobalt. The measured resource component includes 22 million tonnes at grades of 0.94% nickel and 0.079% cobalt, totaling 207,000 tonnes of nickel and 17,000 tonnes of cobalt.
Ardea Resources has recently commenced an 888-hole DFS drilling campaign at Goongarrie Hub, spanning 51,745 meters, to enhance the confidence in the measured resource and solidify its payback period expectations.
Andrew Penkethman, Ardea's Managing Director and CEO, emphasized that the Goongarrie Hub DFS marks the first critical minerals collaboration between Australia and Japan. He highlighted the project's potential as a long-term nickel-cobalt operation, aiming to ensure supply chain diversity, security, and adherence to high environmental, social, and governance (ESG) standards expected by both countries.
The agreement with Sumitomo and Mitsubishi also includes provisions for assisting Ardea in sourcing debt financing for the project. The company has transferred several executives to the KNP to oversee the DFS, including Project Director Matt Read and Technical Services General Manager Mike Miller.
The DFS, segmented into six key work packages, covers the process plant and its utilities, non-process infrastructure, approvals, geology, mining, and hydrogeology. Ausenco, a global engineering and consulting firm, has been awarded the contract for the process plant components, with other work packages to be assigned subsequently. Reuben Joseph, President of Ausenco Minerals and Metals (APAC/Africa), noted that the assembled team possesses extensive expertise in nickel laterite process design and operation, spanning feasibility studies to project execution.
The DFS is expected to take up to 18 months, with completion slated for the second half of next year.
