Ardea Resources Secures $1.1M Federal Grant for Goongarrie Hub Nickel-Cobalt Project
Ardea Resources has enhanced the nickel-cobalt inventory at its Goongarrie Hub project near Kalgoorlie, Western Australia, using a high-tech mineral processing technique. This achievement has earned the company a $1.1 million grant from the Federal Government.
Less than two months ago, a Japanese consortium led by Sumitomo Metal Mining and Mitsubishi Corporation committed to funding a $98.5 million definitive feasibility study (DFS) for the Goongarrie Hub. The Federal Government has described the project as “globally significant.”
Ardea's patented "mineralised neutraliser" (MN) process has been validated through metallurgical testing, resulting in significant cost savings and a reduced carbon footprint. The MN process involves using magnesite saprock found at the base of the nickel-cobalt laterite profile. This material is separated into "fines" and "scats," with the latter used to neutralize sulphuric acid from leach circuits. This approach not only boosts the project’s metal inventory by 16% but also eliminates the need to purchase and transport limestone-calcium neutralisers, further reducing carbon emissions.
The cost savings are notable, with Ardea estimating sulphuric acid costs at about $290 per tonne of nickel, compared to $500 per tonne for peers who need to purchase limestone.
Ardea's Kalgoorlie Nickel Project (KNP) boasts an 854 million-tonne resource containing 6.1 million tonnes of nickel and 386,000 tonnes of cobalt. The Goongarrie Hub, comprising the bulk of this resource, includes the Goongarrie, Highway, and Siberia North deposits. All deposits sit within granted mining leases fully controlled by Ardea.
A preliminary feasibility study (PFS) released last July indicated a nickel per-tonne cost of less than US$6000 (AU$9030) with cobalt credits. Despite the retreat in cobalt prices, the expected increase in costs is minimal.
Sumitomo and Mitsubishi, through their joint venture agreement, can claim up to 50% of the Goongarrie Hub operation by funding the DFS and assisting Ardea in securing debt financing. The DFS is expected in the second half of next year.
Ardea appears well-positioned to meet the growing demand for nickel, a critical mineral for electric vehicle (EV) batteries, with support from its JV partners.
