Permitting Progress Critical as Ardea Advances Major Nickel-Cobalt Operation

Definitive Feasibility Study Milestone

Ardea Resources Limited has provided a comprehensive update on its Kalgoorlie Nickel Project (KNP) – Goongarrie Hub, marking a significant step forward in the Definitive Feasibility Study (DFS). The recent completion of a major infill Reverse Circulation (RC) drilling program, comprising 727 holes for over 45,700 metres, enhances resource confidence and supports the early mine plan. This drilling campaign focused on increasing the density and classification of nickel-cobalt resources, a critical foundation for advancing the project towards production.

With approximately 47% of the DFS budget expended, A$46.1 million contributed by the Consortium partners Sumitomo Metal Mining and Mitsubishi Corporation, the project is on track to deliver a robust development plan for what is poised to be Australia’s next major nickel-cobalt producer.

Technical and Operational Progress

Alongside drilling, the process plant design and metallurgical testwork have seen encouraging developments. Ausenco, the engineering partner, has advanced key design elements including 3D modelling of major equipment and infrastructure. Testwork confirms the ore’s generally soft to medium-hard characteristics, which bodes well for processing efficiency. Zinc removal and corrosion testing have also progressed, informing process design refinements.

Non-process infrastructure contracts have been awarded, and water resource investigations at Siberia North have yielded positive flow rates, potentially reducing the number of required bores. These operational advances underpin the project’s low operating cost ambitions.

Permitting and ESG Commitments

Permitting activities are advancing steadily, with the Economic Impact Assessment underway and expected to support the Department of Jobs, Tourism, Science and Innovation’s Lead Agency Status application. The appointment of a Head of Approvals and Compliance strengthens the project’s regulatory engagement capabilities. Environmental, Social, and Governance (ESG) initiatives remain a priority, with ongoing baseline environmental studies and active stakeholder engagement, including progress on Native Title negotiations and heritage agreements.

Ardea’s Managing Director Andrew Penkethman emphasised the team’s commitment to meeting high ESG standards demanded by both Australian and Japanese stakeholders, reflecting the project’s strategic importance and social license to operate.

Resource Confidence and Future Outlook

Resource estimation updates continue with wireframing and geostatistical analysis underway at key deposits such as Big Four and Goongarrie South. Importantly, no further resource definition drilling is planned as part of the DFS, indicating confidence in the current mineral inventory. The project’s substantial nickel-cobalt resource, 854 million tonnes at 0.71% nickel and 0.045% cobalt, positions it among the world’s largest and most significant deposits.

Looking ahead, the DFS completion and permitting milestones will be critical to watch as Ardea and its partners move closer to a final investment decision and eventual production commencement.