Kalgoorlie Nickel Project - Goongarrie Hub will be a multi-decade operation which will meet demand for nickel-cobalt supply with high ESG standards
For more information, references and disclosures, see ASX announcements dated 30 June 2023, 5 July 2023 and 29 September 2023
Ardea Kalgoorlie Nickel Project MOU with Sumitomo Metal Mining and Mitsubishi Corporation
- Ardea continues to make substantial progress on the Kalgoorlie Nickel Project - Goongarrie Hub Definitive Feasibility Study (DFS) scope with a consortium (Consortium) consisting of Sumitomo Metal Mining (SMM) and Mitsubishi Corporation (MC)*.
- Ardea collaboration with well-regarded and experienced Japanese Consortium (JC) comprised of Sumitomo Metal Mining Co., Ltd and Mitsubishi Corporation has resulted in completion of 2023 PFS due diligence, agreement on the DFS Scope of Work, with the DFS tender review and budget nearing completion.
- Ardea and the JC are working towards executing Final Agreements to facilitate the completion of the KNP Goongarrie Hub DFS, make a Final Investment Decision and jointly secure project development funding for this strategic nickel-cobalt project. Ardea and the Consortium have agreed to extend the period for negotiating the Cooperation Agreement to April 2024.
- For details, see ASX announcement dated 5 July 2023, ASX announcement dated 29 September 2023, ASX announcement dated 21 December 2023, December 2023 Quarterly Report, ASX announcement dated 29 February 2024, ASX announcement dated 27 March 2024.
* Mitsui & Co., Ltd (Mitsui) has elected to withdraw from the Consortium 21 December 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.
KNP Awarded Major Project Status by Australian Federal Government
- Globally significant nickel and cobalt Mineral Resource at the Kalgoorlie Nickel Project (KNP) with Mineral Resource 6.1Mt contained nickel and 386kt contained cobalt (plus 3.39kt scandium, from just Goongarrie deposits) and pipeline of other Critical Minerals.
- KNP is the largest nickel-cobalt resource in Australia (GSWA Feb 2022) and one of the top 10 nickel resources globally.
KNP - Mineral Resource Estimate
On 16 June 2021, Ardea presented a Mineral Resource Estimate (MRE) for the Highway deposit (part of the Goongarrie Hub), and an updated JORC Code (2012) compliant MRE completed for the Goongarrie Hub (previously termed Goongarrie Nickel Cobalt Project - GNCP), including a High Grade Resource - 78 million tonnes at 1.0% nickel Long-life Battery Metal Resource Confirmed.
On 30 June 2023, Ardea presented an updated MRE for the KNP, with a combined resource of 854Mt at 0.71% nickel (see ASX announcement dated 30 June 2023).
Mineral Resource Statement
Camp | Prospect | Resource Category | Size (Mt) | Ni (%) | Co (%) | Contained Metal | Estimation Details | |||
---|---|---|---|---|---|---|---|---|---|---|
Ni (kt) | Co (kt) | Method | Source | Year | ||||||
Goongarrie | Goongarrie South | Measured | 18.2 | 0.94 | 0.085 | 171 | 15 | LUC | Ardea | 2021 |
Indicated | 82.3 | 0.71 | 0.049 | 584 | 40 | LUC | Ardea | 2021 | ||
Inferred | 9.6 | 0.64 | 0.033 | 61 | 3 | LUC | Ardea | 2021 | ||
Highway | Indicated | 70.6 | 0.69 | 0.038 | 487 | 27 | LUC | Ardea | 2023 | |
Inferred | 21.1 | 0.67 | 0.040 | 141 | 8 | LUC | Ardea | 2023 | ||
Ghost Rocks | Inferred | 47.3 | 0.66 | 0.042 | 312 | 20 | OK | Snowden | 2004 | |
Goongarrie Hill | Indicated | 39.9 | 0.65 | 0.037 | 259 | 15 | LUC | Ardea | 2021 | |
Inferred | 29.3 | 0.60 | 0.025 | 176 | 7 | LUC | Ardea | 2021 | ||
Big Four | Indicated | 48.7 | 0.71 | 0.047 | 346 | 23 | LUC | Ardea | 2021 | |
Inferred | 14.1 | 0.68 | 0.043 | 96 | 6 | LUC | Ardea | 2021 | ||
Scotia Dam | Indicated | 11.5 | 0.71 | 0.065 | 82 | 7 | LUC | Ardea | 2021 | |
Inferred | 5.1 | 0.72 | 0.043 | 37 | 2 | LUC | Ardea | 2021 | ||
Goongarrie Subtotal | Measured | 18.2 | 0.94 | 0.085 | 171 | 15 | ||||
Indicated | 253.0 | 0.69 | 0.044 | 1,758 | 112 | |||||
Inferred | 126.5 | 0.65 | 0.037 | 823 | 47 | |||||
Ms+Ind+Inf | 397.7 | 0.69 | 0.044 | 2,753 | 175 | |||||
Siberia | Siberia South | Inferred | 80.7 | 0.65 | 0.033 | 525 | 27 | OK | Snowden | 2004 |
Siberia North | Indicated | 14.2 | 0.72 | 0.042 | 102 | 6 | Ni (UC), Co (OK) | Snowden | 2009 | |
Inferred | 72.2 | 0.74 | 0.034 | 534 | 25 | Ni (UC), Co (OK) | Snowden | 2009 | ||
Black Range | Indicated | 9.3 | 0.67 | 0.090 | 62 | 8 | OK | HGMC | 2017 | |
Inferred | 9.9 | 0.69 | 0.100 | 68 | 10 | OK | HGMC | 2017 | ||
Siberia Subtotal | Indicated | 23.5 | 0.70 | 0.061 | 165 | 14 | ||||
Inferred | 162.8 | 0.69 | 0.038 | 1,127 | 61 | |||||
Ms+Ind+Inf | 186.3 | 0.69 | 0.040 | 1,292 | 75 | |||||
KNP Goongarrie Hub TOTAL | Measured | 18.2 | 0.94 | 0.085 | 171 | 15 | ||||
Indicated | 276.5 | 0.70 | 0.046 | 1,923 | 127 | |||||
Inferred | 289.3 | 0.67 | 0.037 | 1,951 | 108 | |||||
Ms+Ind+Inf | 584.0 | 0.69 | 0.043 | 4,044 | 250 | |||||
Bulong | Taurus | Inferred | 14.2 | 0.84 | 0.051 | 119 | 7 | OK | Snowden | 2007 |
Bulong East | Indicated | 15.9 | 1.06 | 0.055 | 169 | 9 | OK | Snowden | 2004 | |
Inferred | 24.0 | 0.79 | 0.053 | 190 | 13 | OK | Snowden | 2004 | ||
Bulong Subtotal | Indicated | 15.9 | 1.06 | 0.055 | 169 | 9 | ||||
Inferred | 38.2 | 0.81 | 0.052 | 309 | 20 | |||||
Ms+Ind+Inf | 54.1 | 0.88 | 0.053 | 477 | 29 | |||||
Hampton | Kalpini | Inferred | 75.4 | 0.73 | 0.044 | 550 | 33 | OK | Snowden | 2004 |
Hampton Subtotal | Inferred | 75.4 | 0.73 | 0.044 | 550 | 33 | ||||
KNP Kalpini Hub TOTAL | Indicated | 15.9 | 1.06 | 0.055 | 169 | 9 | ||||
Inferred | 113.6 | 0.76 | 0.047 | 859 | 53 | |||||
Ms+Ind+Inf | 129.5 | 0.79 | 0.048 | 1,028 | 62 | |||||
Yerilla | Jump Up Dam | Measured | 3.8 | 0.94 | 0.048 | 36 | 2 | OK | Snowden | 2008 |
Indicated | 41.6 | 0.78 | 0.043 | 324 | 18 | OK | Snowden | 2008 | ||
Inferred | 18.4 | 0.63 | 0.034 | 116 | 6 | OK | Snowden | 2008 | ||
Boyce Creek | Indicated | 26.8 | 0.77 | 0.058 | 206 | 16 | OK | Snowden | 2009 | |
Aubils | Inferred | 49.4 | 0.70 | 0.066 | 346 | 33 | OK | Heron | 2008 | |
KNP Yerilla Hub TOTAL | Measured | 3.8 | 0.94 | 0.048 | 36 | 2 | ||||
Indicated | 68.4 | 0.78 | 0.049 | 531 | 33 | |||||
Inferred | 67.8 | 0.68 | 0.057 | 462 | 39 | |||||
Ms+Ind+Inf | 140.0 | 0.73 | 0.053 | 1,028 | 74 | |||||
KNP TOTAL | Measured | 22.0 | 0.94 | 0.079 | 207 | 17 | ||||
Indicated | 360.8 | 0.73 | 0.047 | 2,622 | 169 | |||||
Inferred | 470.7 | 0.70 | 0.043 | 3,272 | 200 | |||||
GRAND TOTAL | Ms+Ind+Inf | 853.5 | 0.71 | 0.045 | 6,101 | 386 | ||||
Legend: LUC – Local Uniform Conditioning; UC – Uniform Conditioning; OK – Ordinary Kriging. For more detail and explanatory discussion, see the full Kalgoorlie Nickel Project (KNP) Mineral Resource Estimate (MRE) following JORC Code (2012) guidelines in ASX announcement dated 30 June 2023. |
Deposit | Resource Category | Tonnes (Mt) | Ni Co Resources | Contained Metal | Sc Resources | |||
---|---|---|---|---|---|---|---|---|
Ni (%) | Co (%) | Ni (kt) | Co (kt) | Tonnes (Mt) | Sc (ppm) | |||
Goongarrie South | Measured | 18 | 0.94 | 0.085 | 172 | 15 | 18 | 40 |
Indicated | 82 | 0.71 | 0.049 | 587 | 40 | 53 | 23 | |
Inferred | 10 | 0.64 | 0.033 | 61 | 3 | 6 | 24 | |
Subtotal | 110 | 0.75 | 0.053 | 820 | 59 | 77 | 27 | |
Goongarrie Hill | Indicated | 40 | 0.65 | 0.037 | 260 | 15 | 11 | 16 |
Inferred | 29 | 0.60 | 0.025 | 178 | 7 | 2 | 16 | |
Subtotal | 69 | 0.63 | 0.032 | 438 | 22 | 13 | 16 | |
Big Four | Indicated | 49 | 0.71 | 0.047 | 345 | 23 | 32 | 24 |
Inferred | 14 | 0.68 | 0.043 | 95 | 6 | 3 | 24 | |
Subtotal | 63 | 0.70 | 0.046 | 440 | 29 | 35 | 24 | |
Scotia Dam | Indicated | 11 | 0.71 | 0.065 | 82 | 7 | 11 | 25 |
Inferred | 5 | 0.72 | 0.043 | 37 | 2 | 1 | 22 | |
Subtotal | 17 | 0.72 | 0.058 | 118 | 10 | 12 | 25 | |
Highway | Indicated | 71 | 0.70 | 0.038 | 491 | 27 | 19 | 27 |
Inferred | 21 | 0.67 | 0.040 | 142 | 8 | 3 | 26 | |
Subtotal | 92 | 0.69 | 0.038 | 633 | 35 | 22 | 26 | |
Siberia North | Indicated | 14 | 0.72 | 0.042 | 102 | 6 | - | - |
Inferred | 72 | 0.74 | 0.034 | 532 | 24 | - | - | |
Subtotal | 86 | 0.73 | 0.035 | 634 | 30 | - | - | |
Combined PFS Deposits | Measured | 18 | 0.94 | 0.085 | 172 | 15 | 18 | 40 |
Indicated | 267 | 0.70 | 0.044 | 1,867 | 118 | 126 | 23 | |
Inferred | 151 | 0.69 | 0.034 | 1,045 | 51 | 14 | 23 | |
Grand Total | 437 | 0.71 | 0.042 | 3,083 | 184 | 158 | 25 | |
Minor discrepancies may occur due to rounding of appropriate significant figures. For more detail and explanatory discussion, see the Kalgoorlie Nickel Project (KNP) Goongarrie Hub Subset in ASX announcement dated 30 June 2023. |
Deposit | Resource Category | Tonnes (Mt) | Ni Co Resources | Contained Metal | Sc Resources | |||
---|---|---|---|---|---|---|---|---|
Ni (%) | Co (%) | Ni (kt) | Co (kt) | Tonnes (Mt) | Sc (ppm) | |||
Goongarrie South | Measured | 0.1 | 0.42 | 0.033 | 0.2 | 0.0 | 0.1 | 49.5 |
Indicated | 2.2 | 0.38 | 0.029 | 8.4 | 0.7 | 2.2 | 8.2 | |
Inferred | 0.6 | 0.35 | 0.039 | 2.2 | 0.2 | 0.6 | 22.9 | |
Subtotal | 2.9 | 0.37 | 0.031 | 10.9 | 0.9 | 2.9 | 11.2 | |
Goongarrie Hill | Indicated | 0.1 | 0.42 | 0.021 | 0.6 | 0.0 | 0.0 | 14.8 |
Inferred | 1.1 | 0.39 | 0.018 | 4.2 | 0.2 | 0.0 | 10.9 | |
Subtotal | 1.2 | 0.40 | 0.018 | 4.7 | 0.2 | 0.0 | 11.7 | |
Big Four | Indicated | 0.8 | 0.37 | 0.035 | 2.8 | 0.3 | 0.6 | 24.2 |
Inferred | 0.9 | 0.36 | 0.027 | 3.2 | 0.2 | 0.6 | 16.3 | |
Subtotal | 1.7 | 0.36 | 0.031 | 6.1 | 0.5 | 1.2 | 20.2 | |
Scotia Dam | Indicated | 0.3 | 0.34 | 0.032 | 0.8 | 0.1 | 0.3 | 8.0 |
Inferred | 0.0 | 0.37 | 0.024 | 0.1 | 0.0 | 0.0 | 9.8 | |
Subtotal | 0.3 | 0.34 | 0.031 | 0.9 | 0.1 | 0.3 | 8.2 | |
Highway | Indicated | 31.8 | 0.38 | 0.014 | 119.5 | 4.6 | 0.1 | 26.4 |
Inferred | 0.5 | 0.39 | 0.019 | 2.0 | 0.1 | 0.0 | 29.5 | |
Subtotal | 32.3 | 0.38 | 0.014 | 121.4 | 4.7 | 0.1 | 27.2 | |
Siberia North | Indicated | 0.0 | - | - | - | - | - | - |
Inferred | 0.0 | - | - | - | - | - | - | |
Subtotal | 0.0 | - | - | - | - | - | - | |
Combined PFS Deposits | Measured | 0.1 | 0.42 | 0.033 | 0.2 | 0.0 | 0.1 | 49.5 |
Indicated | 35.2 | 0.38 | 0.016 | 132.1 | 5.6 | 3.1 | 11.6 | |
Inferred | 3.1 | 0.37 | 0.025 | 11.7 | 0.8 | 1.3 | 19.4 | |
Grand Total | 38.4 | 0.37 | 0.017 | 144.0 | 6.4 | 4.5 | 14.3 | |
Minor discrepancies may occur due to rounding of appropriate significant figures. For more detail and explanatory discussion, see the Kalgoorlie Nickel Project (KNP) Goongarrie Hub Subset in ASX announcement dated 30 June 2023. |
Deposit | Resource Category | Tonnes (Mt) | Ni (%) | Co (%) | Contained Metal | |||
---|---|---|---|---|---|---|---|---|
Ni (kt) | Co (kt) | |||||||
Goongarrie Hill | Indicated | 5.3 | 0.92 | 0.050 | 49 | 2.6 | ||
Inferred | 1.9 | 0.92 | 0.034 | 17 | 0.6 | |||
Subtotal | 7.2 | 0.92 | 0.046 | 66 | 3.3 | |||
Goongarrie South | Measured | 11.0 | 1.13 | 0.106 | 125 | 11.6 | ||
Indicated | 21.1 | 0.99 | 0.071 | 208 | 15.0 | |||
Inferred | 1.2 | 0.92 | 0.043 | 11 | 0.5 | |||
Subtotal | 33.3 | 1.03 | 0.081 | 344 | 27.1 | |||
Big Four | Indicated | 12.1 | 0.97 | 0.068 | 118 | 8.3 | ||
Inferred | 2.7 | 0.94 | 0.062 | 25 | 1.7 | |||
Subtotal | 14.7 | 0.97 | 0.067 | 143 | 9.9 | |||
Scotia Dam | Indicated | 2.9 | 0.98 | 0.108 | 29 | 3.2 | ||
Inferred | 1.4 | 1.02 | 0.057 | 14 | 0.8 | |||
Subtotal | 4.3 | 0.99 | 0.091 | 43 | 4.0 | |||
Highway | Indicated | 15.1 | 1.01 | 0.053 | 152 | 8.0 | ||
Inferred | 3.7 | 0.98 | 0.053 | 36 | 2.0 | |||
Subtotal | 18.8 | 1.00 | 0.053 | 188 | 10.0 | |||
Combined Deposits | Measured | 11.0 | 1.13 | 0.106 | 125 | 11.6 | ||
Indicated | 56.5 | 0.98 | 0.066 | 556 | 37.1 | |||
Inferred | 10.8 | 0.95 | 0.051 | 103 | 5.6 | |||
Grand Total | 78.3 | 1.00 | 0.069 | 784 | 54.3 | |||
For more detail and explanatory discussion on 0.8% Ni cut-off MRE, see the ASX announcement dated 16 June 2021. |
Goongarrie Hub - Ore Reserve Estimate June 2023
Orelogy has developed an Ore Reserve estimate for the Goongarrie South, Big Four, Goongarrie Hill, Highway and Siberia North pits. The Ore Reserves were produced in accordance with the guidelines of the JORC Code 2012.
The KNP Goongarrie Hub Pre-feasibility Study Ore Reserve consists of ore above 0.5% Ni as the feed stock for the KNP processing facility, and ore as mineralised neutraliser above 0.5% Ni equivalent and LOI is above 25%. The following sections summarise the modifying factors applied to produce the Ore Reserve.
Ore >= 0.5% Ni | Ore > 0.5% NiEq and LOI > 25% | Total Ore | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Deposit | Mt | Ni (%) | Co (%) | Ni (kt) | Co (kt) | Mt | Ni (%) | Co (%) | Ni (kt) | Co (kt) | Mt | Ni (%) | Co (%) | Ni (kt) | Co (kt) |
Proven | |||||||||||||||
Goongarrie South | 16.7 | 0.96 | 0.09 | 160 | 15 | 0.05 | 0.43 | 0.03 | 0.20 | 0.01 | 16.7 | 0.96 | 0.09 | 160 | 15 |
Sub-total | 16.7 | 0.96 | 0.09 | 160 | 15 | 0.0 | 0.43 | 0.03 | 0 | 0 | 16.7 | 0.96 | 0.09 | 160 | 15 |
Probable | |||||||||||||||
Big Four / Scotia Dam | 34.9 | 0.76 | 0.07 | 265 | 23 | 0.8 | 0.38 | 0.04 | 3 | 0 | 35.7 | 0.75 | 0.06 | 268 | 23 |
Goongarrie South | 33.6 | 0.79 | 0.07 | 265 | 23 | 1.8 | 0.40 | 0.03 | 7 | 1 | 35.4 | 0.77 | 0.07 | 272 | 24 |
Goongarrie Hill | 15.8 | 0.70 | 0.04 | 110 | 7 | 0.1 | 0.44 | 0.02 | 0 | 0 | 15.9 | 0.70 | 0.04 | 111 | 7 |
Highway | 54.0 | 0.70 | 0.04 | 380 | 22 | 27.2 | 0.39 | 0.01 | 106 | 4 | 81.2 | 0.60 | 0.03 | 486 | 26 |
Siberia North | 9.2 | 0.74 | 0.05 | 68 | 4 | 9.2 | 0.74 | 0.05 | 68 | 4 | |||||
Sub-total | 147.4 | 0.74 | 0.05 | 1,087 | 79 | 29.9 | 0.39 | 0.02 | 117 | 5 | 177.4 | 0.68 | 0.05 | 1,204 | 84 |
TOTAL | |||||||||||||||
Big Four / Scotia Dam | 34.9 | 0.76 | 0.07 | 265 | 23 | 0.8 | 0.38 | 0.04 | 3 | 0 | 35.7 | 0.75 | 0.06 | 268 | 23 |
Goongarrie South | 50.2 | 0.85 | 0.08 | 425 | 38 | 1.9 | 0.40 | 0.03 | 7 | 1 | 52.1 | 0.83 | 0.07 | 432 | 39 |
Goongarrie Hill | 15.8 | 0.70 | 0.04 | 110 | 7 | 0.1 | 0.44 | 0.02 | 0 | 0 | 15.9 | 0.70 | 0.04 | 111 | 7 |
Highway | 54.0 | 0.70 | 0.04 | 380 | 22 | 27.2 | 0.39 | 0.01 | 106 | 4 | 81.2 | 0.60 | 0.03 | 486 | 26 |
Siberia North | 9.2 | 0.74 | 0.05 | 68 | 4 | 9.2 | 0.74 | 0.05 | 68 | 4 | |||||
TOTAL | 164.1 | 0.76 | 0.06 | 1,247 | 94 | 30.0 | 0.39 | 0.02 | 117 | 5 | 194.1 | 0.70 | 0.05 | 1,365 | 99 |
Notes:
|
For full details and JORC table, see ASX announcement dated 5 July 2023.