Kalgoorlie Nickel Project - Goongarrie Hub DFS Update

Published: 2025-06-24 10:25:54 ET ARL.AX

Published on 06/24/2025 at 10:25

Ardea Resources Limited (Ardea or the Company) provides an update on the key activities underway at the Kalgoorlie Nickel Project (KNP) - Goongarrie Hub (the Project) as part of the ongoing Definitive Feasibility Study (DFS).

The DFS, with a budget of $98.5M1, is being managed by Ardea subsidiary Kalgoorlie Nickel Pty Ltd (KNPL) and funded by Sumitomo Metal Mining Co., Ltd (SMM) and Mitsubishi Corporation (MC) (together the Consortium). Ardea and the Consortium are working collaboratively with the KNPL team to complete the DFS to support development of the KNP - Goongarrie Hub, as a multi-decade, low operating cost, nickel-cobalt producer2.

Managing Director and CEO Andrew Penkethman noted: 'Ardea is pleased to provide an update on the DFS activities currently underway to advance the KNP - Goongarrie Hub toward production, as Australia's next major nickel-cobalt producer2. The KNPL team consistently demonstrates a strong commitment to technical excellence, with multiple workstreams underway across key areas including geology, mining, metallurgy, process design, permitting and community engagement. We look forward to continuing to update the market as we advance Australia's largest nickel-cobalt resource3 toward development as a new source of production that meets the high ESG standards expected from Australia and Japan.'

During May 2025, the infill Reverse Circulation (RC) drilling programme was completed. The full program comprised a total of 727 holes for 45,735 metres across five deposits. During the month, 28 RC holes were drilled for 1,938 metres focused on Goongarrie South to support resource classification and increase confidence in the mineral inventory. Additionally, four RC holes were drilled at Goongarrie Hill to serve as Quality Assurance / Quality Control (QA/QC) twins for diamond drilling (DD) holes. With these activities completed, no further resource definition RC drilling is planned, as part of the DFS. Mineralised neutraliser samples for metallurgical testwork were selected from the remaining half core of the DD holes after assaying, utilising a combination of twin-hole RC assays, geological logging, and core photography to ensure a representative selection of lithologies and geochemical characteristics. One diamond drill rig remained on site at the end of May 2025, drilling large diameter drillholes for tripling of metallurgy DD and RC sample holes across Goongarrie South, Big Four / Scotia Dam, and Highway.

Resource estimation updates continued with the commencement of wireframing at the Big Four / Scotia Dam deposit, where first-pass string interpretation was completed and is currently under review. Similar wireframing activities have commenced at Goongarrie South and Highway. These initial wireframes will facilitate geostatistical analysis and preliminary resource estimation. A joint site visit was conducted by Consortium and KNPL geologists in May 2025 to review drilling operations, examine key geological exposures, and inspect the Siberia North test pumping sites. QA/QC and core processing procedures were also reviewed and discussed to ensure alignment between all parties.

Continued progress was made on the Process Plant, with Ausenco advancing several key design and engineering activities. Key vendor equipment and Early Contractor Involvement updates were incorporated into the project 3D model along with major building, civil and structural designs, while piping modelling was also advanced. Equipment selection for power generation was finalised, and the tender process for the Power Options Study was initiated. For the H2S and Acid Plants, critical safety reviews (HAZOP, HAZID) were completed, design documents were updated and issued for client review, and 3D piping modelling commenced. Process test work and engineering also progressed well. Uniaxial compressive strength results confirmed that the ore is generally soft to medium-hard, with no hard ores identified. Ore preparation and hydrometallurgical test work continued, including crushing, milling, settling and rheology tests, all of which showed positive results. Zinc removal tests continued, and coupon corrosion testing was finalised. In process design, further studies and scenario modelling using SysCAD were undertaken. Discussions are ongoing to refine process design and material handling strategies. For Non-Process Infrastructure (NPI), the NPI Services Contract was awarded to Primero. Production bore test pumping at Siberia North was completed, demonstrating positive flow rates, which may support a reduction in the number of bores required. Aquifer modelling has commenced, with completion expected in July 2025, and further water volume investigations were continued. Progress was also made on the village and NPI buildings contract, with most architectural and structural deliverables approved. Additional market enquiries were issued for laboratory layout, communications, bussing, and catering services.

Permitting and approvals activities progressed across several key areas. The Economic Impact Assessment, a critical input for the Department of Jobs, Tourism, Science and Innovation (JTSI) Lead Agency Status application, has commenced and is expected to be completed by July 2025, with the application on track for submission shortly thereafter. Major Project Status renewal at the Commonwealth level is pending. The overall approvals strategy was refined to align with the DFS schedule and recent guidance from the Environmental Protection Authority, with project referrals deferred until sufficient technical details are available. A new position, Head of Approvals and Compliance, was filled in May 2025, further strengthening KNPL's capability in this critical area. Environmental, Social, and Governance (ESG) initiatives remained a focus, with continued progress on baseline environmental studies, including detailed assessments of flora, fauna, and endemic species. Implementation of a new stakeholder management system commenced, and new tools are being deployed to enhance environmental and stakeholder information management. Positive engagement continued on Native Title activities, with negotiations on protocols and heritage agreements advanced. The project team participated in multiple stakeholder forums, including industry conferences and meetings with regulatory agencies, to support approvals and maintain strong relationships with the community and government. Land management activities included progressing mineral rights agreements, reviewing access and infrastructure arrangements, and preparing necessary documentation for ongoing and future land access requirements

About Ardea Resources

Ardea Resources (ASX:ARL) is an ASX-listed nickel development company in joint venture with Sumitomo Metal Mining and Mitsubishi Corporation to build, commission and operate a plus 30,000tpa multi-decade nickel operation2: Development of the Kalgoorlie Nickel Project (KNP) and its sub-set, the Goongarrie Hub, a globally significant series of nickel-cobalt and Critical Mineral deposits which host the largest nickel-cobalt resource in Australia and one of the largest in the developed World at 854Mt at 0.71% nickel and 0.045% cobalt for 6.1Mt of contained nickel and 386kt of contained cobalt. Within the KNP, the Goongarrie Hub has 584Mt for 4.0Mt of contained nickel (Consortium right to earn 50%) and the Kalpini Hub has 270Mt for 2.1Mt of contained nickel (Ardea 100% unencumbered interest) (Ardea ASX release 30 June 2023), located in a jurisdiction with exemplary Environmental Social and Governance (ESG) credentials. Scoping Study initial programs being planned for the Kalpini Hub nickel-cobalt resources. Advanced-stage exploration at compelling nickel sulphide targets, such as Kalpini, and Critical Minerals targets including scandium and Rare Earth Elements throughout the KNP Eastern Goldfields world-class nickel-gold province, with all exploration targets complementing the KNP nickel development strategy.