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, 29 April 2024 and 30 August 2024.
Kalgoorlie Nickel Project
Ardea’s KNP hosts one of the largest nickel-cobalt resources in the developed World, 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), which places the Company in a prime position to provide essential supplies of ESG-compliant nickel and cobalt, along with other Critical Minerals such as scandium.
The Goongarrie Hub, within the KNP is located 70km northwest of the mining centre the City of Kalgoorlie-Boulder, with resources of 584Mt at 0.69% nickel and 0.043% cobalt for 4Mt of contained nickel and 250kt of contained cobalt (ASX release 30 June 2023). Resources from the Goongarrie, Highway and Siberia North laterite nickel-cobalt deposits are planned to be the base load feed for a process operation located at Goongarrie South.
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. All key Goongarrie Hub mineral resources are located on granted mining leases.
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.
With the exception of the Goongarrie Hub (which will be under the Joint Venture announced 29 April 2024, Ardea will continue to retain 100% of all other KNP tenements, being the Kalpini Hub (Kalpini, Bulong projects) and the Yerilla Hub (Jump Up Dam, Boyce Creek and Aubils projects).
These projects provide the Company with an internal project pipeline for future growth for nickel-cobalt and associated Critical Minerals.
Ardea, Sumitomo Metal Mining (SMM) and Mitsubishi Corporation (MC) complete binding Shareholder Agreement setting out the terms for Joint Venture to develop the Kalgoorlie Nickel Project (KNP) – Goongarrie Hub
- Strategic Partners selected for the globally significant KNP – Goongarrie Hub located in the tier 1 mining jurisdiction of WA.
- Ardea executed a binding Cooperation Agreement to form a 50:50 incorporated JV with SMM and MC (Consortium) which represents a significant Critical Minerals Collaboration 26 April 2024, subject to conditions precedent, all conditions now met.
- Ardea, Sumitomo Metal Mining and Mitsubishi Corporation completed binding Shareholder Agreement to develop the KNP – Goongarrie Hub 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 MC1.
- 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 announcements dated 29 April 2024 and 2 September 2024.
Kalgoorlie Nickel Project - Goongarrie Hub will be a multi-decade operation which will meet demand for nickel-cobalt supply with high ESG standards
Once in production, the Kalgoorlie Nickel Project – Goongarrie Hub is expected to be one of the largest nickel-cobalt producers in Australia. The project will meet the high ESG standards expected from modern society and be a leader in responsible resource project development, as demonstrated by Ardea’s 2023 Pre-Feasibility Study.
PFS 5 July 2023 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
- 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 cobalt
- 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 life
- The project generates: Average Annual EBITA of A$800M and project pay back within 3.1 years
- Low cost C1 Opex after Cobalt credit of US$5,763/t Ni (or excluding Cobalt credit - US$10,197/t/Ni) in MHP LOM
- 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
- In-pit tailings disposal minimises environmental footprint and enables mine site rehabilitation, concurrent with steady-state mine operation
- See ASX announcement dated 5 July 2023 for details
The execution of the Cooperation Agreement with Sumitomo Metal Mining and Mitsubishi Corporation 29 April 2024 represented a major milestone completing Ardea's Strategic Partner process for Goongarrie Hub, and enabling DFS early works to commence. The DFS has commenced, with expected completion in the second half of 2025.
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) and one of the largest in the developed World.
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. This Mineral Resource Estimate (MRE) is inclusive of the following KNP Goongarrie MRE and Ore Reserves table below on this page. |
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. The Goongarrie Hub Mineral Resources shown in the able 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.
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:
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For full details and JORC table, see ASX announcement dated 5 July 2023.