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.
Ardea Resources managing director and CEO Andrew Penkethman said: โArdea are pleased to see the strong progress being made on the DFS to advance the KNP โ 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.โ
The company says the DFS remains on track for completion in late 2025, with updates shortly expected to include a resource estimate together with the status of mining and environmental approvals. Operational updates will include any tweaks the company decides to make to its process plant design and hydrogeological findings.
In a 50:50 joint venture deal inked four months ago, Sumitomo and Mitsubishi committed to jointly fund $98.5 million for the DFS.
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 earn up to 50 per cent of the biggest nickel-cobalt resource in Australia which hosts an 854 million tonne resource grading 0.71 per cent nickel and 0.045 per cent cobalt.
Both Sumitomo and Mitsubishi are enormous conglomerates who generally only have an appetite for massive projects. With a PFS projected annual EBITDA of $800 million a year for 40 years, Ardeaโs Goongarrie Hub would appear to fit the bill well.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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