Ardea Resources Limited (Ardea or the Company) has provided an update on the progress being made with the Consortium, comprising Japanese conglomerates Sumitomo Metal Mining Co., Ltd (SMM) and Mitsubishi Corporation (MC), for the development of the Kalgoorlie Nickel Project - Goongarrie Hub Definitive Feasibility Study (DFS) - located near Kalgoorlie in Western Australia.
Highlights
- Ardea and a consortium (Consortium) consisting of Sumitomo Metal Mining (SMM) and Mitsubishi Corporation (MC) have reached agreement on the Kalgoorlie Nickel Project - Goongarrie Hub Definitive Feasibility Study (DFS) service provider scope and budget, subject to further discussion and reaching agreement on binding Final Agreements.
- After extensive technical and commercial due diligence, the Consortium has advised Ardea that they have completed their due diligence.
- Ardea and the Consortium will continue discussions to agree on binding Final Agreements, aiming to be finalised and executed by 31 March 2024.
- Upon execution of Final Agreements, future work will be aimed at completing the DFS, making a Final Investment Decision (FID) and securing project development funding for the Goongarrie Hub to become a globally significant producer of nickel-cobalt.
Despite some of the recent challenges in the Australian nickel sector leading to mine closures and project suspensions, Ardea acknowledges the increased State and Federal government support through initiatives such as nickel being added to the Australian Critical Minerals list.
The KNP Goongarrie Hub 2023 PFS defined direct cash cost after cobalt by products of US$5,763/t nickel in MHP over life of mine which provides a significant cash margin at current nickel prices. With this context in mind, Ardea considers the timing to complete the DFS and develop the project is ideal.
Managing Director and CEO Andrew Penkethman noted:
“It is pleasing to see nickel added to the Australian Critical Minerals list and the nickel sector receiving State and Federal government support.
This initiative reiterates that Australia and key ally nations remain focussed on supply chain diversity and security, with planning for the KNP Goongarrie Hub taking into account the high ESG standards expected by modern democratic society.
With the long term fundamentals for nickel remaining strong, Ardea and the Consortium continue their proactive engagement and collaboration which has helped facilitate significant progress in finalising the KNP Goongarrie Hub DFS scope of work and budget.
Commercial discussions are continuing as a priority. Key considerations being covered include DFS funding, through to securing project development capital to enable project construction and achieve steady state nickel-cobalt production, from within the best resources operating jurisdiction in the world.
Ardea and the Consortium look forward to executing Final Agreements, and commencing the DFS.”
Contact details:
David Tasker
T: +61 433 112 936
E: [email protected]