Name of the Project
Kalgoorlie nickel project (KNP) Goongarrie Hub.

Location
City of Kalgoorlie-Boulder, Australia.

Project Owner/s
Ardea Resources.

Project Description
KNP has an ore reserve of 194.1-million tonnes at 0.70% nickel and 0.05% cobalt for 1.36-million tonnes of contained nickel and 99 000 t of contained cobalt.

The July 2023 prefeasibility study envisages the use of conventional low-cost openpit mining methods, with mine optimisation studies projecting the production of about 30 000 t/y of nickel and 2 000 t/y of cobalt for more than 40 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project generates a pretax net present value, at a 7% discount rate, of A$7.63-billion and an internal rate of return of 30%, with a payback of 3.1 years.

Capital Expenditure
A$3.12-billion.

Planned Start/End Date
The project execution phase is tentatively targeted for the third quarter of 2025, allowing for production by early 2028.

Latest Developments
Ardea Resources has received commitments to raise A$16-million in a share placement to professional and sophisticated investors.

Ardea said on August 30 that it would place 22.7-million shares at 70c each under the company’s existing placement capacity, with the offer price representing a 2.2% discount to its 15-day volume weighted average price.

Additionally, 90 000 shares will be placed to board members, subject to shareholder approval.

Funds raised from the placement will be used for definitive feasibility study (DFS) work at the Kalgoorlie nickel project, critical mineral exploration and finalising strategic partner agreements, as well as for working capital.

“The company is excited to advance the scope of its DFS with the Japanese Consortium under [a] memorandum of understanding and reach binding terms for full funding of the DFS by the end of calendar year 2023,” Ardea MD Andrew Penkethman has said.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Ardea Resources, tel +61 8 6244 5136 or email ardea@ardearesources.com.au.