Project Overview
The nickel-cobalt operation will help meet global demand for critical mineral supply with high Environmental, Social and Governance standards.
Mineral Resource Estimate
The Kalgoorlie Nickel Project (KNP) is a world-class resource of nickel-cobalt, showcasing a unique tropical surface weathering metal enrichment, predominantly within goethite and magnesian clays, forming Nickel Laterite. The Mineral Resource Estimate (MRE) (refer to Ardea ASX Announcement dated 30/06/2023 here) reveals an extensive deposit, totalling 854Mt at 0.71% Ni and 0.045% Co, for 6.1Mt contained Ni and 386kt contained Co.
The KNP – Goongarrie Hub, within the KNP is located 70 km northwest of the mining centre the City of Kalgoorlie-Boulder, and 50 km south of the town of Menzies. The Mineral Resource Estimate is 584Mt at 0.69% nickel and 0.043% cobalt for 4Mt of contained nickel and 250kt of contained cobalt (refer Table 3.3 in the Ardea ASX Announcement dated 30/06/2023 here).
KNP - Goongarrie Hub
The KNP – Goongarrie Hub is owned by Kalgoorlie Nickel Pty Ltd (KNPL), which will aim to develop the KNP – Goongarrie Hub into a globally significant nickel-cobalt operation under a Joint Venture between Ardea Resources Ltd (Ardea) and the Japanese Consortium (JC), comprising Sumitomo Metal Mining Co., Ltd (SMM) and Mitsubishi Corporation (MC). Ltd (refer to Ardea ASX Announcement dated 26/04/2024 here).
The nickel and cobalt mineral resources at KNP – Goongarrie Hub are dominantly the premium goethite mineralisation and extend continuously over 25 km of strike and at Highway, 30 km north, over a strike length of 10 km with mineralisation still open to the north (refer to the map below).
All key KNP – Goongarrie Hub mineral resources are located on granted mining leases and tenure 100%-controlled by KNPL.
The KNP – Goongarrie Hub Ore Reserve estimate stands at 194.1Mt at 0.70% Ni and 0.05% Co for 1.36Mt of contained nickel and 99,000t of contained cobalt (being for a subset of deposits: Goongarrie South, Big Four, Goongarrie Hill, Highway and Siberia North). This Ore Reserve estimate was the basis of the Prefeasibility Study (PFS) released by Ardea July 2023 (refer to ASX announcement here).
Key information from the July 2023 KNP – Goongarrie Hub PFS
Production Estimate for Ni & Co
The project is estimated to produce 30,000 tonnes of nickel and 2,000 tonnes of cobalt annually for over 40 years.
Strong EBITA & Competitive Costs
Averaging an Annual EBITA of A$800M, with a competitive C1 cost after cobalt credit of US$5,763/t Ni in MHP LOM.
Rapid Payback
Projected payback within 3.1 years, with mining costs accounting for less than 12% of the total operating cost.
Processing Enhancement
Major processing flowsheet enhancement of utilising in-pit saprock as neutraliser. This Mineralised Neutraliser (MN) generates additional nickel-cobalt production from in-pit material and reduces operating costs by not having to import limestone as a neutraliser.
Environmental Responsibility
The DFS detailed a Life Cycle Assessment (LCA) of 11.9 kg C02 eq. per kg nickel.
KNP – Goongarrie Hub's Strategic Significance
The KNP – Goongarrie Hub is situated in a premium mining area with strong community and political support. Its semi-arid, temperate location in the Great Western Woodlands facilitates responsible tailings disposal practices. The Project also has ready access to high-quality infrastructure with the Goldfields Highway, rail line and power infrastructure passing through the Project area. The Goldfields Gas Pipeline is located some 30 km to the east and there are two port options, these being Esperance and Kwinana, that are well serviced by the existing road and rail network.
With one of the largest nickel-cobalt resources globally, the KNP – Goongarrie Hub stands at the forefront of critical mineral deposits, emphasising its pivotal role in the energy transition.
The KNP – Goongarrie Hub will be model for sustainability, efficiency, and global significance in the nickel-cobalt mining sector. With its substantial resources, strategic location, and commitment to responsible practices, the KNP – Goongarrie Hub is poised to meet the demands of a market increasingly focused on ethical and sustainable sourcing of critical minerals. This Project will not only contribute to the industry but will set new standards for responsible mineral extraction.
Read the Ardea ASX Announcement.
A full ESG score summary on Ardea’s disclosures can be accessed on Digbee’s website.
Location and Tenure Map