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
Sumitomo Metal Mining (SSM) and Mitsubishi have thrown their support behind the project.

Ardea Resources announced a binding cooperation agreement between SSM and Mitsubishi on April 29 to form a 50:50 joint venture to develop the project.

The agreement establishes the terms and conditions on which the consortium, Ardea and Kalgoorlie Nickel Pty Ltd (KNPL) will conduct the definitive feasibility study (DFS) and other activities leading up to a final investment decision.

Ardea, SMM and KNPL have agreed on funding support arrangements, enabling earlier DFS activities to occur in the second quarter.    

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.