Ardea Finds a US$510m Scandium Option at Goongarrie

Scandium Adds a High-Value By-Product Case

Ardea Resources Limited (ASX:ARL) has put a potentially valuable third product stream beside the nickel and cobalt planned for its Goongarrie Hub, with an independent scoping study assigning a preliminary net present value of US$509.8 million to an integrated scandium recovery circuit.

“Potential Integration of Scandium Recovery into the Proposed Goongarrie Hub HPAL Development.”

The proposed circuit carries an estimated US$73.5 million capital cost, annual operating costs of US$16.2 million and modelled production of 29.96 tonnes a year of scandium oxide. On the study’s assumptions, that produces a 59.6% internal rate of return at a 7% discount rate. The figures relate only to the scandium circuit and do not update the economics of the broader Goongarrie Hub nickel-cobalt project.

The result gives Ardea a fresh value angle at a project whose [link] was recently extended for further optimisation work. The company says the scandium circuit would draw from an existing barren HPAL liquor stream, allowing it to share planned mining, processing and site infrastructure rather than carrying the burden of a standalone operation.

Class 5 Study Leaves a Wide Range of Uncertainty

The important qualification is the study’s engineering maturity. Elemental Engineering prepared it to AACE Class 5, which Ardea describes as a low-definition scoping assessment with a typical accuracy range of roughly minus 30% to plus 50%. The model assumes less than 70% scandium recovery from a bleed representing less than 25% of the HPAL barren liquor flow, with the balance of that stream retaining potential future flexibility.

The headline economics are also highly exposed to the commodity price. The study uses a long-term scandium oxide price of US$2,000 per kilogram, rather than a binding offtake agreement. Ardea identifies scandium price and production rate as the two most influential value drivers, while the company’s own disclosure warns that actual capital costs, operating performance, production and financial outcomes may differ materially.

Ardea’s Japanese joint venture partners were not involved in preparing the study and do not endorse its content or financial economics. That distinction matters because the circuit is designed to integrate with the proposed Goongarrie Hub HPAL facility, whose development remains a prerequisite for the scandium opportunity.

Ion Exchange Moves to the Testwork Stage

The preferred flowsheet uses ion exchange to extract scandium from acidic process liquor, followed by precipitation, solvent extraction and calcining into scandium oxide. The product was selected over scandium fluoride because Ardea says oxide has a broader commercial market, greater pricing transparency and a simpler processing route.

The next step is laboratory-scale metallurgical testwork using representative Goongarrie Hub process liquors. That work is intended to screen ion exchange resins, improve selectivity against impurities, optimise solvent extraction and confirm precipitation and calcining conditions. Results would then feed into updated production and cost estimates and potentially an AACE Class 4 engineering study.

“Goongarrie South 3D view looking towards the NW; showing scandium resource model estimates within the +0.5% Ni grade shell envelope.”

The opportunity has been part of Ardea’s broader project narrative since the [link], but this is the first filing to attach a standalone economic assessment to scandium recovery. The company’s resource table includes 158 million tonnes at 25 parts per million scandium, containing 3,940 tonnes, although the current production target is underpinned by Measured and Indicated Resources only.

Funding and Partner Decisions Remain Ahead

No decision has been made to build the circuit and no funding strategy has been determined. Any development would require further metallurgical validation, engineering, environmental and regulatory approvals, financing, board approval and a decision to proceed with the broader Goongarrie Hub project. The estimated US$73.5 million therefore represents a circuit-level funding requirement, not the cost of bringing the full nickel-cobalt operation into production.

For shareholders, the attraction is clear: a small, high-value by-product could potentially leverage infrastructure already required for nickel and cobalt. The unresolved question is whether the model survives contact with real process liquor, a less predictable scandium market and the commercial decisions of the joint venture partners.