Source : THE AGE NEWS
By James Pearson
With four drill rigs active and several work contracts already being awarded, Ardea Resources is quickly completing a definitive feasibility study ( DFS ) for its massive Goongarrie Hub nickel laterite project in the Goldfields region of Western Washington.
Supported by big joint venture lovers Sumitomo Metal Mining and Mitsubishi Corporation, the$ 98.5 million Dss is looking to show up the economy of turning the task into a low-cost, multi-decade loamy nickel-cobalt manufacturer.
As part of the resource estimate update for Ardea Resources ‘ large metal loamy project in WA’s Goldfields, a stone drilling rig completes a earlier RC opening for quality confidence and quality control testing.
The on-site rigs are conducting the all-important tool description, mechanical, and hydrogeological cutting, with a second setup set to join the operations following fortnight.
So far, 622 tool concept drill pits for 37, 842 feet have been completed on a 40 by 40 centimeter placement network. The firm anticipates that the company’s sluggish results so much to turn into a storm over the next couple of months despite the fact that the majority of the assays are still pending.
Key staff selection for the DFS is almost perfect, with 40 specialists now ashore, complemented by contributions from Ardea, Sumitomo, and Mitsubishi.
Multiple contracts and work packages have now been awarded as the DFS continues to advance. These include metallurgical test work, water assessment studies, pipeline layout planning.
Contractors are now working on crucial tools like flash vessels and autoclave agitators.
In addition, the company is looking at alternative processing flowsheets as part of the study, which could reduce the amount of time material remains in the autoclave from 70 to 60 minutes, which would increase annual throughput in the high-pressure acid leach plant from 3 to 3. 5 million tonnes. This would result in a final product that is mixed sulphide.
‘ DFS deliverables are set to accelerate.’
Andrew Penkethman, managing director and CEO of Ardea Resources
Currently, the project is forecast to produce 30, 000 tonnes of nickel and 2000 tonnes of cobalt per year for up to an eye-watering 40 years. In operating an open-cut mining process, the project will exploit its shallow, flat-lying nickel laterite orebody with a low strip ratio of just 1.5: 1.
Andrew Penkethman, managing director and CEO of Ardea Resources said: “Ardea are pleased to see the strong progress being made on the DFS to advance the KNP – Goongarrie Hub toward production. With the KNPL Owners Team now in place, working collaboratively with Ardea, Sumitomo Metal Mining and Mitsubishi Corporation, DFS deliverables are set to accelerate.”
The company claims that the DFS is still on track to be finished in late 2025, with updates soon anticipated to include a resource estimate as well as the status of mining and environmental approvals. Any modifications the company makes to the design of its process plant and hydrogeological findings will be included in any operational updates.
Sumitomo and Mitsubishi agreed to jointly fund$ 98.5 million for the DFS in a 50:50 joint venture agreement signed four months ago.
Subject to positive DFS outcomes, the JV will bankroll the front-end engineering design and financing discussions, leading to an eventual final investment decision.
The Japanese consortium will then be able to make up to 50 % of Australia’s largest nickel-cobalt resource, which has an 854 million tonne resource with a 0. 71 % nickel and 0. 045 percent cobalt content.
Both Sumitomo and Mitsubishi are sizable conglomerates with a general appetite for sizable projects. With a PFS projected annual EBITDA of$ 800 million a year for 40 years, Ardea’s Goongarrie Hub would appear to fit the bill well.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com. au
