Ardea Resources Limited (Ardea or the Company) is pleased to present the summary outcomes of the 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 20221.
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 cobalt2
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
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 emissions4
In-pit tailings disposal minimises environmental footprint and enables mine site rehabilitation, concurrent with steady-state mine operation
Managing Director and CEO Andrew Penkethman said: 'I would like to acknowledge the efforts of the Ardea Team, business partners and stakeholders in delivering a high-quality study with outstanding financial results. The Ore Reserve defined for the KNP Goongarrie Hub is 194.1Mt at 0.70% Ni and 0.05% Co for 1.36Mt of contained nickel and 99,000t of contained cobalt to sustain a minimum 40-year mine-life. However, the PFS did not include the adjoining Mineral Resources at Ghost Rocks, Siberia South and Black Range that are expected to provide the opportunity to further expand the mine life or facilitate increased production rates. Projects of the scale of the KNP Goongarrie Hub, with a mine life measured in decades, located within a premier resource development and operating jurisdiction, are rare and are therefore globally significant, strategic assets which must be developed to help provide the essential Battery and Critical Minerals required to underpin the required energy transition, accelerate the move to Electric Vehicles and achieve global climate targets. There has never been a better time for a mega project, such as the KNP Goongarrie Hub, to advance financing discussions, as governments around the world continue to expand their commitment to providing long tenor, low interest rate Export Credit Agency debt to accelerate the development of Battery and Critical Minerals projects that meet the highest Environmental Social and Governance (ESG) standards in low country risk jurisdictions. This PFS provides the ideal platform to move forthwith into the DFS phase to continue to advance this worldsignificant asset toward development and multi-decade production.
Contact:
Andrew Penkethman
Tel: +61 8 6244 5136
About Ardea Resources
Ardea Resources Limited (ASX:ARL) is an ASX-listed nickel resources company, with a large portfolio of 100%- controlled West Australian-based projects, focussed on: Development of the Kalgoorlie Nickel Project (KNP) including its flagship Goongarrie Hub deposits, a globally significant series of Critical Mineral deposits which host one of the world's largest nickel-cobalt resources, at 854Mt at 0.71% Ni and 0.045% Co for 6.1Mt of contained nickel and 386kt of contained cobalt (Ardea ASX release 30 June 2023), located in a jurisdiction with exemplary ESG credentials. Advanced-stage exploration at compelling nickel sulphide targets, such as Emu Lake, and Critical Minerals targets including scandium and rare earth elements throughout the KNP Eastern Goldfields world-class nickel-gold province, with all exploration targets aimed at complementing the KNP nickel development strategy. Ardea's KNP development with its 6.1 million tonnes of contained nickel is the foundation of the Company, with its other exploration assets, such as the Emu Lake nickel sulphide prospect, as an evolving contribution to Ardea's building of a green, forward-facing integrated nickel company. Electric Vehicle and Energy Storage System lithium-ion battery customers demand an ESG-compliant, sustainable, and ethical supply chain for nickel and other inputs. Unlike the wet tropics, where HPAL submarine tailings disposal and rain forest habitat destruction are problematic, the semi-arid, temperate KNP is located in the Great Western Woodlands that is an environment amenable to best practice progressive disposal of tailings in open pit voids. The KNP is located in one of the world's premier mining jurisdiction with unquestionable geopolitical acceptance (WA ranked 2nd in the Fraser Institute Investment Attractiveness index) and none of the land-use and societal conflicts that commonly characterise nickel laterite proposals elsewhere. All KNP Goongarrie Hub production tenure is on granted Mining Leases with Native Title Agreement in place.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements and forward-looking information within the meaning of applicable Australian securities laws, which are based on expectations, estimates and projections as of the date of this news release. This forward-looking information includes, or may be based upon, without limitation, estimates, forecasts and statements as to management's expectations with respect to, among other things, the timing and amount of funding required to execute the Company's exploration, development and business plans, capital and exploration expenditures, the effect on the Company of any changes to existing legislation or policy, government regulation of mining operations, the length of time required to obtain permits, certifications and approvals, the success of exploration, development and mining activities, the geology of the Company's properties, environmental risks, the availability of labour, the focus of the Company in the future, demand and market outlook for commodities and the prices thereof, progress in development of mineral properties, the Company's ability to raise funding privately or on a public market in the future, the Company's future growth, results of operations, performance, and business prospects and opportunities. Wherever possible, words such as 'anticipate', 'believe', 'expect', 'intend', 'may' and similar expressions have been used to identify such forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and on information available to management at such time. Forward-looking information involves significant risks, uncertainties, assumptions, and other factors that could cause actual results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors, including fluctuations in currency markets, fluctuations in commodity prices, the ability of the Company to access sufficient capital on favourable terms or at all, changes in national and local government legislation, taxation, controls, regulations, political or economic developments in Australia or other countries in which the Company does business or may carry on business in the future, operational or technical difficulties in connection with exploration or development activities, employee relations, the speculative nature of mineral exploration and development, obtaining necessary licenses and permits, diminishing quantities and grades of Ore Reserves, contests over title to properties, especially title to undeveloped properties, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other geological data, environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding, limitations of insurance coverage and the possibility of project cost overruns or unanticipated costs and expenses, and should be considered carefully. Many of these uncertainties and contingencies can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forwardlooking statements made by, or on behalf of, the Company. Prospective investors should not place undue reliance on any forward-looking information. Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure prospective purchasers that actual results will be consistent with such forwardlooking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law. The Pre-Feasibility Study referred to in this announcement is based on technical and economic assessments to support the estimation of Ore Reserves. Ardea believes it has reasonable grounds to support the results of the Pre-Feasibility Study, however, there is no assurance that the intended development referred to will proceed as described. The production targets and forward-looking statements referred to are based on information available to the Company at the time of release and should not be solely relied upon by investors when making investment decisions. Material assumptions and other important information are contained in this release. Ardea cautions that mining and exploration are high risk, and subject to change based on new information or interpretation, commodity prices or foreign exchange rates. Actual results may differ materially from the results or production targets contained in this release. Further evaluation is required prior to a decision to conduct mining being made
ARDEA RESOURCES LIMITED 