Ardea Kalgoorlie Nickel Project MOU with Sumitomo Metal Mining, Mitsubishi Corporation, and Mitsui & Co.
- Non-binding MOU with a consortium consisting of Sumitomo Metal Mining, Mitsubishi Corporation, and Mitsui & Co., Ltd amended to extend the timing for completion of Definitive Feasibility Study (DFS) scoping, due diligence and Final Agreement.
- In accordance with the MOU, positive engagement continues between Ardea and the Consortium to scope the Kalgoorlie Nickel Project – Goongarrie Hub DFS.
- Recent Ardea tenement consolidation at Goongarrie will facilitate an enhanced DFS development plan.
- As agreed in the MOU, the Consortium is to sole fund the DFS subject to agreeing on the scope and entering into a binding Final Agreement. In the interim, Ardea continues to advance time critical workstreams, such as season-dependent environmental surveys.
- Future work is aimed at completing the DFS, making a Final Investment Decision and securing project development funding for the Goongarrie Hub to become a globally significant producer of nickel-cobalt for the Lithium-Ion Battery sector.
- For details, see ASX announcement dated 5 July 2023 & ASX announcement dated 29 September 2023
KNP Goongarrie Hub Ore Reserve & Feasibility Study Defines +40 Year Operation with Strong Financial Metrics
On 5 July 2023, Ardea Resources released their Pre-Feasibility Study (PFS) completed on its 100%-owned Kalgoorlie Nickel Project (KNP) Goongarrie Hub, located 70km northwest of the mining capital of Australia, the City of Kalgoorlie-Boulder. The KNP was awarded Major Project Status by the Federal Government in March 2022.¹
The PFS presents a high-quality evaluation of the Project and defines a compelling investment case to advance the Goongarrie Hub through to Definitive Feasibility Study (DFS). The PFS has also identified clear project enhancement opportunities which will be quantified during the DFS. The PFS should be regarded as being comprised of conservative assumptions and outcomes.
PFS Highlights include:
- Ore Reserve – 194.1Mt at 0.70% Ni and 0.05% Co for 1.36Mt of contained nickel and 99,000t of contained cobalt.²
- Mining optimisation studies have projected production of approximately 30,000t of nickel and 2,000t of cobalt per year for more than 40 years. Year 1 to 5 (post ramp up) production >34ktpa nickel and >3ktpa cobalt²
- Conventional low-cost open pit mining methods result in mining costs comprising less than 12% of total operating cost with a very low strip ratio at an average of 1.5 for the first 35 years of mine life²
- The project generates³:
- Pre-tax NPV₇ of A$7,625M and IRR of 30%
- Post-tax NPV₇ of A$4,980M and IRR of 23%
- Average Annual EBITA of A$800M
- Project pay back within 3.1 years
- Direct cash cost after Co by products of US$3,763/t Ni in MHP during the first five years of operation, and US$5,763/t Ni in MHP over life of mine³
- Total capital cost of A$3,117m, including process plant and infrastructure cost of A$2,264M and sulphuric acid, steam and power plant cost of $574M³
- Life Cycle Assessment (LCA) is expected to be 11.9 kg CO₂ eq. per kg nickel in MHP based on Ardea’s Scope 1, 2 and upstream Scope 3 emissions.⁴
- In-pit tailings disposal minimises environmental footprint and enables mine site rehabilitation, concurrent with steady-state mine operation
For detailed summary of the outcomes of the PFS, see ASX announcement dated 5 July 2023.
- ASX Release 21 March 2022.
- See KNP Goongarrie Hub PFS presentation page 21 for detailed Ore Reserve table.
- See KNP Goongarrie Hub PFS presentation page 43-48 for detailed notes on the financial metrics.
- See KNP Goongarrie Hub PFS presentation page 41 for detailed notes on the LCA.