Ardea Resources reports significant progress on its Kalgoorlie Nickel Project, completing key drilling and metallurgical work while securing $4.6 million in strategic funding from Sumitomo Metal Mining. The company remains well-funded as its joint venture partners advance the Definitive Feasibility Study.
- Completed $4.6M placement with Sumitomo Metal Mining at premium
- Joint venture partners earned 17.5% interest after funding 50% of $98.5M DFS budget
- Over 7,300m of drilling completed confirming high-grade nickel-cobalt mineralisation
- Received $1.2M R&D tax rebate and holds $14.6M cash with no debt
- Ongoing environmental, community engagement, and approvals progress
Strategic Funding Bolsters DFS Progress
Ardea Resources Limited has reported a productive June 2025 quarter, marked by a $4.6 million placement to Sumitomo Metal Mining Co., Ltd at a premium to market prices. This capital injection, alongside a $1.2 million research and development tax rebate, reinforces Ardea's strong financial position with $14.6 million cash on hand and zero debt. The funding supports ongoing work on the Kalgoorlie Nickel Project (KNP), particularly the Goongarrie Hub Definitive Feasibility Study (DFS), which is jointly funded by a Japanese consortium including Sumitomo and Mitsubishi Corporation.
Drilling and Metallurgical Advances
The quarter saw the completion of 6,208 metres of reverse circulation infill drilling and 1,149 metres of diamond drilling across key deposits such as Goongarrie South, Goongarrie Hill, Big Four, Scotia Dam, and Highway. These programs have confirmed the grade, thickness, and continuity of nickel-cobalt laterite mineralisation, with promising new intersections of Mineralised Neutraliser (MN) material. Bulk High Pressure Acid Leach (HPAL) testwork concluded, with downstream processing and tailings characterisation ongoing, underpinning the process plant design which has reached 60% completion in design reviews.
Joint Venture Milestone and Ownership Structure
Following expenditure of half the $98.5 million DFS budget, the consortium partners earned the first tranche of interest in Kalgoorlie Nickel Pty Ltd (KNPL), the incorporated joint venture vehicle managing the Goongarrie Hub. This milestone grants them a combined 17.5% ownership, with rights to increase to 50% upon a positive Final Investment Decision. The consortium’s full funding of the DFS de-risks the project and aligns with Ardea’s strategy to leverage strong partnerships for development.
Environmental and Community Engagement
Ardea continues to prioritise environmental, social, and governance (ESG) standards, recording zero lost time injuries during the quarter. The company has advanced baseline environmental studies and rehabilitation planning, aiming to minimise impacts and promote progressive rehabilitation. Engagement with First Nations communities remains active, including support for native title celebrations and local cultural initiatives. These efforts underscore Ardea’s commitment to sustainable development and community partnership.
Looking Ahead
With $49 million of committed DFS funding remaining, Ardea is well positioned to complete the feasibility study and progress towards development. Upcoming workstreams include further metallurgical testwork, hydrogeological investigations, infrastructure design, and regulatory approvals. The company is also advancing its funding strategy in collaboration with its consortium partners, aiming to secure the capital necessary for project construction and operation. Meanwhile, exploration and scoping studies continue at the Kalpini Hub, which holds significant nickel, scandium, and rare earth element potential complementary to the Goongarrie Hub.
Bottom Line?
Ardea’s steady progress and strategic partnerships set the stage for a pivotal Final Investment Decision in the Kalgoorlie Nickel Project’s development journey.
Questions in the middle?
- When will the consortium decide on the Final Investment Decision to increase ownership to 50%?
- How will pending assay results from ongoing drilling impact resource upgrades and mine planning?
- What are the key risks and timelines associated with environmental approvals and community agreements?