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Kalgoorlie Nickel Project ARL 100%

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

  • Granted Mining Lease tenure in premier location for skills, infrastructure and resource project operation
  • 6.1Mt Nickel & 386kt Cobalt MRE positions KNP in top 10 global nickel resources
  • PFS shows KNP Goongarrie Hub will be a multi-decade operation to meet the global demand for Ni & Co
  • Low-cost Ni & Co, strong earnings for over 40 years plus upside, with project pay back within 3.1 years and post tax NPV7 A$4.98 billion
  • Ardea's ESG credentials strengthened during PFS, with In-pit tailings disposal plan, and LCA indicating low carbon emission
  • Positive engagement with the Japanese Consortium to scope DFS under extended non-binding MOU

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, Mitsubishi Corporation, and Mitsui & Co.

  • Ardea are working to scope DFS under non-binding MOU, with a well-regarded and experienced Japanese Consortium comprised of Sumitomo Metal Mining Co., Ltd, Mitsubishi Corporation, and Mitsui & Co., Ltd
  • Ardea and the Consortium are defining a scope of work for the DFS and are engaging positively to complete this, with the Consortium funding the DFS subject to the parties agreeing on the DFS scope before the end of Quarter 4, 2023 and entering into a binding Final Agreement by the end of Quarter 1, 2024
  • Sumitomo Metal Mining are most successful in developing and operating nickel-cobalt laterite operations
  • Mitsubishi and Mitsui have decades of project development and operations experience in Australia and globally
  • For details, see ASX announcements dated 5 July 2023 and 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.

  1. ASX Release 21 March 2022.
  2. See KNP Goongarrie Hub PFS presentation page 21 for detailed Ore Reserve table.
  3. See KNP Goongarrie Hub PFS presentation page 43-48 for detailed notes on the financial metrics.
  4. 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

Updated KNP nickel and cobalt MRE 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 announcement dated 30 June 2023.
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 announcement dated 30 June 2023.
KNP Goongarrie Hub PFS subset nickel, cobalt and scandium Mineralised Neutraliser Material MRE below 0.5% Ni cutoff 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 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.
Highway and Goongarrie nickel and cobalt Mineral Resources using a 0.8% Ni cut-off grade
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 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.

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

Desirable Flowsheet Proven Technology
3.5Mtpa - 2 x 1.5Mtpa HPAL autoclaves plus 0.5Mtpa AL circuit