Ardea’s Highway Drilling Confirms High-Grade Nickel Ahead of DFS Milestone
Ardea Resources has completed its infill drilling at the Highway nickel-cobalt deposit, delivering thick, high-grade intercepts that bolster the Kalgoorlie Nickel Project’s development prospects. These results underpin an updated resource estimate and support a front-loaded production profile.
- Completion of 10,058m infill RC drilling at Highway deposit
- Multiple thick intercepts exceeding 1% nickel near surface
- Validation of previous pit models with potential for deeper mineralisation
- Ongoing resource updates across Goongarrie Hub deposits
- Project DFS funded by Sumitomo Metal Mining and Mitsubishi Corporation
Infill Drilling Wraps Up at Highway
Ardea Resources Limited has announced the completion of its Definitive Feasibility Study (DFS) infill reverse circulation (RC) drilling program at the Highway nickel-cobalt deposit, a key component of the Kalgoorlie Nickel Project (KNP) Goongarrie Hub in Western Australia. The program, comprising 165 holes totaling over 10,000 metres, was designed to upgrade the geological confidence of the resource, particularly focusing on the first five years of mining.
Strong Nickel Intercepts Support Early Production
The drilling campaign returned thick, high-grade nickel intercepts close to surface, with standout results including 14 metres at 1.19% nickel from 30 metres depth and 20 metres at 1.12% nickel from 26 metres. These intercepts reinforce the potential for selective mining strategies that could front-load production, enhancing the project's economic profile during its early years.
Validation and Expansion of Resource Models
Importantly, the new drilling results validate the 2023 Pre-Feasibility Study (PFS) pit models and suggest opportunities for deeper pit optimisations that could capture additional mineralisation below previous designs. The inclusion of mineralised neutraliser material, identified at the base of the saprock layer, is expected to contribute positively to processing and recovery metrics.
Broader Resource Updates Underway
Alongside Highway, Ardea is progressing updated Mineral Resource Estimates (MREs) for other deposits within the Goongarrie Hub, including Big Four, Scotia Dam, and Goongarrie South; the latter being the largest and highest-grade deposit. These updates will feed into detailed resource optimisation and mine planning, culminating in an updated Ore Reserve as a critical DFS deliverable.
Strategic Partnership and ESG Focus
The DFS, budgeted at $98.5 million, is managed by Ardea’s subsidiary Kalgoorlie Nickel Pty Ltd and funded through a joint venture with Japanese partners Sumitomo Metal Mining and Mitsubishi Corporation. The project aims to develop Australia’s largest nickel-cobalt resource with a strong emphasis on meeting high environmental, social, and governance (ESG) standards, aligning with expectations from both Australian and Japanese stakeholders.
Looking Ahead
With the infill drilling program complete and assay results continuing to flow from other deposits, Ardea is well-positioned to deliver a robust DFS that could unlock significant value. The company’s Managing Director, Andrew Penkethman, highlighted the ongoing efforts to increase measured resource classifications and develop a mining plan that maximises proven and probable reserves, setting the stage for the next phase of project development.
Bottom Line?
Ardea’s Highway drilling success sets the stage for a pivotal DFS update that could accelerate nickel-cobalt production timelines.
Questions in the middle?
- How will updated Mineral Resource Estimates impact the overall project valuation?
- What metallurgical challenges remain in processing the mineralised neutraliser material?
- When can investors expect the final Ore Reserve and DFS completion?
