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Kalgoorlie Nickel Project

Kalgoorlie Nickel Project will be a multi-decade operation which will meet demand for nickel-cobalt supply with high ESG standards

Strategic partnership with SMM and MC who are funding the $98.5 million Definitive Feasibility Study (DFS), validating KNP Goongarrie’s potential and providing access to world-class expertise

  • Ardea, SMM and MC completed binding Shareholder Agreement to develop the KNP – Goongarrie Hub (ASX release 30 August 2024).
  • The Consortium will fully fund KNP Goongarrie Hub Definitive Feasibility Study (DFS) up to budget A$98.5M to earn 35% interest in a Joint Venture managed by Ardea’s subsidiary Kalgoorlie Nickel Pty Ltd (KNPL) with significant technical input from Ardea, SMM and MC.
  • The Consortium will earn an additional 15% interest on Final Investment Decision, with the Consortium assisting KNPL in optimising debt financing. This will take the Consortium to 50% interest in KNPL, with Ardea retaining 50% of KNPL.
  • For more, see ASX release 30 August 2024.

Premier mining jurisdiction with strong stakeholder support

  • Located in Western Australia, just 70km from Kalgoorlie-Boulder, the Project benefits from excellent infrastructure, a skilled workforce, a stable regulatory environment and desirable semi-arid environment.
  • The Project also has ready access to high-quality infrastructure with the Goldfields Highway, rail line and power infrastructure passing through the project area. The gas pipeline is located some 30km to the east and there are two port options, these being Esperance and Kwinana, that are well serviced by the KNP road and rail network.
  • Ardea plans for in-pit tailings and evaporation, suited to the semi-arid environment, reducing environmental risks compared to tropical locations.

Kalgoorlie Nickel Project - Goongarrie Hub will be a large-scale, long-life, low-cost Project

  • The current plan indicates a 40+ year operational life (ASX PFS release 5 July 2023).
  • The resources at Goongarrie are dominantly the premium goethite style and extend continuously over 25km of strike and at Highway, 30km north, over a strike length of 10km.
  • Additional expansion potential from Goongarrie Hub deposits not included in PFS, and DFS work to upgrade more of Mineral Resource to Measured category.
  • Current DFS studies include possible throughput increase to 4Mt per annum.
  • Potential lowest-cost producer with estimated operating costs of $6,000-$10,000 USD per tonne, Ardea is potentially competitive with Indonesian producers, thanks to low acid consumption and energy requirements (ASX PFS release 5 July 2023).
  • Ardea’s innovative ore processing approach with use of mineralised neutraliser reduces costs, while providing the dual benefit of acid neutralisation and metal recovery, demonstrating technical innovation in project design.
  • KNP Awarded Major Project Status by Australian Federal Government which has resulted in significant access to Government Departments and a seat at the table with input to working groups such as recently announced Production Tax Incentive.
  • Ardea will continue to retain 100% of all non–Goongarrie-Hub KNP tenements, being the Kalpini Hub (Kalpini, Bulong projects) and the Yerilla Hub (Jump Up Dam, Boyce Creek and Aubils projects), providing the Ardea with an internal project pipeline for future growth for nickel-cobalt and associated Critical Minerals.
  • The KNP Goongarrie Hub is advanced stage with near-term news flow catalysts: with DFS is set for completion in the second half of 2025. Regular news flow expected from ongoing studies and a clear path to Final Investment Decision.
  • Well-positioned for growing nickel demand with production aligned with expected market deficits from 2028 onwards, driven by electric vehicle and energy storage growth, with analysts projecting nickel prices above US$20,000 per tonne from 2030. (More about nickel)

KNP - Mineral Resource Estimate

On 30 June 2023, Ardea released an updated JORC Code (2012) Mineral Resource Estimate (MRE) for the KNP, with a combined resource of 854Mt at 0.71% Ni and 0.045% Co for 6.1Mt of contained nickel and 386kt of contained cobalt (ASX release 30 June 2023).

Mineral Resource Statement

Table 1: Kalgoorlie Nickel Project (KNP) Nickel and Cobalt Mineral Resource Estimate based on a 0.5% Ni cut-off grade
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 release 30 June 2023.

This Mineral Resource Estimate (MRE) is inclusive of the following KNP Goongarrie MRE and Ore Reserves table below on this page.
Table 2: KNP Goongarrie Hub PFS subset nickel, cobalt and scandium MRE using a greater than 0.5% Ni cut-off grade
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 release 30 June 2023.

The Goongarrie Hub Mineral Resources shown in the above table for the Goongarrie South, Highway, Goongarrie Hill, Big Four, Scotia Dam and Siberia North deposits are inclusive of the Ore Reserves below on this page.

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.

Table 3: Ore Reserve Summary – June 2023
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:

  1. The Ore Reserve is reported in accordance with JORC Code (2012).
  2. Ore reserves are reported at a cut-off of 0.5% Ni for primary feed stock to the processing facility, plus mineralised neutraliser as ore at a cut-off of 0.5% NiEq and Loss on ignition (LOI) above 25%.
  3. NiEq defined using Ni + 2.32 x Co.
  4. The Ore Reserve was evaluated using a base price of US$22,000/t for Ni and US$51,000/t for Co at 85% payable for a Mixed Hydroxide Precipitate (MHP) product, and an exchange rate 0.69 USD/AUD.
  5. Ore Reserves account for mining dilution and mining ore loss.
  6. Ore Reserves are reported on a Dry Tonnage Basis.
  7. Proven Ore Reserves are based on Measured Mineral Resources only and Probable Ore Reserves are based on Indicated Mineral Resources only.
  8. The sum of individual amounts may not equal due to rounding.
  9. This Ore Reserve estimate is for a subset of the KNP Goongarrie Hub deposits being Goongarrie South, Big Four, Goongarrie Hill, Highway and Siberia North.
  10. The Goongarrie Hub Mineral Resources shown on this web page for the Goongarrie South, Highway, Goongarrie Hill, Big Four, Scotia Dam and Siberia North deposits are inclusive of the Ore Reserves shown in the table above.

For full details and JORC table, see ASX release 5 July 2023.

Competent Persons Statement

The Resource Estimation, exploration and industry benchmarking summaries are based on information reviewed or compiled by Mr Ian Buchhorn, and Mr Andrew Penkethman. Mr Buchhorn is a Member of the Australasian Institute of Mining and Metallurgy and Mr Penkethman is a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Both Mr Buchhorn and Mr Penkethman are full-time employees of Ardea Resources Limited and have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Buchhorn and Mr Penkethman have reviewed this website and consent to the inclusion in this website of the information in the form and context in which it appears. Mr Buchhorn and Mr Penkethman own Ardea shares.

Ardea wishes to clarify that its current Kalgoorlie Nickel Project (KNP) Mineral Resource Estimate (MRE) following JORC Code (2012) guidelines is:

  Resource Category Size (Mt) Ni (%) Co (%) Contained Metal
Ni (kt) Co (kt)
KNP TOTAL Measured 22 0.94 0.079 207 17
Indicated 361 0.73 0.047 2,622 169
Inferred 471 0.70 0.043 3,272 200
GRAND TOTAL Combined 854 0.71 0.045 6,101 386

Note: 0.5% nickel cutoff grade used to report resources. Minor discrepancies may occur due to rounding of appropriate significant figures.

The Mineral Resource Estimate information referred to in this website has been previously released on the ASX platform by Ardea in ASX release 30 June 2023, in accordance with Listing Rule 5.8.

The Ore Reserve information referred to in this website has been previously released on the ASX platform by Ardea in ASX release 5 July 2023, in accordance with Listing Rule 5.9.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcements noted above and that all material assumptions and technical parameters underpinning the Mineral Resource Estimate and Ore Reserve in the previous market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original market announcements.

Previously Reported Information: The information in this website that references previously reported Exploration Results, Mineral Resources or Ore Reserves results is extracted from the Company’s ASX market announcements released on the date noted in the body of the text where that reference appears. The previous market announcements are available to view on the Company’s website or on the ASX website (www.asx.com.au). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.