Kalgoorlie Nickel Project DFS Targets 3.5Mtpa HPAL and MSP Product Shift

Project Evolution and DFS Progress

Ardea Resources has provided a significant update on the Definitive Feasibility Study (DFS) for its Kalgoorlie Nickel Project (KNP) – Goongarrie Hub. The DFS remains on track for completion in the first half of 2026, with several important design changes confirmed since the 2023 Pre-Feasibility Study (PFS). These changes reflect a strategic response to industry cost pressures and new technical insights, aiming to enhance the project’s efficiency and commercial viability.

Simplified Processing and Increased Throughput

A major shift in the project’s processing flowsheet is the removal of the Atmospheric Leach (AL) circuit, consolidating ore treatment through an expanded High Pressure Acid Leach (HPAL) circuit now targeting 3.5 million tonnes per annum, up from 3.0 Mtpa in the PFS. This simplification reduces plant complexity, lowers acid consumption, and shrinks the carbon footprint, aligning with growing environmental expectations. The autoclave design has been optimised to improve nickel recovery while maintaining operational reliability.

Product Strategy and Market Implications

Another pivotal update is the switch in sale product from Mixed Hydroxide Precipitate (MHP) to Mixed Sulphide Precipitate (MSP). MSP offers improved payability and broader market flexibility, as it is compatible with a wider range of global nickel sulphide smelters and refineries. While this change requires additional infrastructure such as hydrogen and nitrogen plants, the company anticipates these capital costs will be offset by enhanced revenue potential and marketing advantages.

Strategic Importance and Government Support

The Australian Federal Government has renewed the project’s Major Project Status, underscoring its strategic role as a long-life supplier of nickel and cobalt critical for battery and stainless steel markets. This status facilitates smoother regulatory engagement and supports timely project approvals. Ardea continues active discussions with government bodies to optimise the project’s development pathway.

Exploration of By-Products and Operational Efficiencies

Beyond core nickel-cobalt production, the DFS is exploring opportunities to recover valuable by-products such as scandium, with conceptual plans for a future refinery included in the site layout. Gold prospects within the project area, notably the Big Four deposit, are also being evaluated for potential early custom milling and integration with nickel operations. Additionally, the company is investigating comminution circuit simplifications and innovative ore transport methods to reduce costs and improve operational efficiency.

Outlook and Next Steps

While final capital and operating costs remain under refinement, Ardea’s value-engineering efforts aim to mitigate recent industry-wide cost escalations. The company anticipates releasing comprehensive DFS results in H1 2026, which will provide detailed financial metrics and confirm the project’s robust technical and commercial profile. Investors and stakeholders will be watching closely for these updates, which will shape the project’s trajectory in the competitive nickel market.