Despite the nickel price coming off the boil significantly since the industry last got together for the Australian Nickel Conference in 2022, the consensus at this year’s event was that the fundamentals for nickel remain strong.
One project that has seen many nickel cycles rotate through the market over time is the massive Kalgoorlie Nickel Project (KNP), just north of Western Australia’s mining capital from which it takes its name.
Ardea Resources Ltd Managing Director & CEO Andrew Penkethman said KNP was the largest nickel resource in Western Australia and the 10th largest globally.
Ardea controls a sprawling 4,000sq km of tenure in the Eastern Goldfields, with the tenements being highly prospective for battery and critical minerals, in addition to nickel.
The initial focus for Ardea is the central Goongarrie Hub, where the nickel laterite deposits are all located within granted Mining Licences.
The Goongarrie Hub Ore Reserve alone speaks for 194.1 million tonnes at 0.70% nickel and 0.05% cobalt containing 1.36 million tonnes of nickel and 99,000 tonnes of cobalt.
For perspective, this can sustain production of approximately 30,000 tonnes of nickel and 2,000 tonnes of cobalt per year for about 40 years.
“These giant deposits are incredibly rare, and they enable the opportunity to plan strategically – we are talking about mine life in the decades, not just a couple of years,” Mr Penkethman said.
“We have been running the strategic partner process and, on the 5th of July, we announced the non-binding memorandum of understanding with a consortium of quality Japanese partners.”
Ardea is working with those partners currently to define a scope of work for a definitive feasibility study (DFS), and ultimately fund the DFS.
“We are working towards being able to develop this project together.”
The ore types at Goongarrie are free-dig, ultimately translating to a low cost, rapid open pit mining operation. It also translates to a low-energy crushing circuit as well as low acid consumption in the processing plant – all beneficial to overall future operating costs.
“What I would like you to take away from today’s presentation, is that these giant resources are incredibly rare and essential to help the world decarbonise.
“Without these projects developed, there is no low carbon future and there is no energy transition.”
Ardea Resources Ltd Managing Director & CEO Andrew Penkethman
