Kalgoorlie Nickel DFS Delay Raises Questions on Project Timing and Costs

Project Update and DFS Delay

Ardea Resources has provided a detailed update on the progress of the Kalgoorlie Nickel Project’s (KNP) Goongarrie Hub Definitive Feasibility Study (DFS), managed by the joint venture company Kalgoorlie Nickel Pty Ltd (KNPL). Originally slated for completion in December 2025, the DFS is now expected to be finalised in the first half of 2026. This delay stems from the cumulative effect of minor setbacks across multiple workstreams, though the company remains focused on maintaining the high-quality standards required for such a significant, long-life nickel-cobalt development.

Despite the delay, Ardea emphasises the steady advancement of key activities, including drilling, resource modelling, and infrastructure design. The company and its Consortium partners, Sumitomo Metal Mining and Mitsubishi Corporation, continue to collaborate closely, sharing technical expertise and refining project parameters.

Drilling and Resource Modelling Progress

Fieldwork supporting the DFS is largely complete, with an extensive drilling campaign comprising 727 reverse circulation holes and 32 diamond drill holes, totalling over 48,000 metres. These efforts underpin updated geological domain interpretations for several deposits within the Goongarrie Hub, which will feed into revised Mineral Resource and Ore Reserve estimates. Notably, domain interpretations for Goongarrie South and Goongarrie Hill are underway, while preparations for Siberia North have commenced.

Engineering and Process Design Advances

Engineering design packages have progressed well, with Ausenco completing a 60% design review of the process plant and finalising 3D models. Lycopodium has advanced the hydrogen sulphide plant design, delivering a 3D model and modularisation report, while Chemetics has provided draft capital estimates for the sulphuric acid plant. These developments are critical to refining capital and operating cost estimates, scheduled for completion in late 2025.

Additionally, technical teams from Ardea and KNPL recently visited Sumitomo’s Taganito HPAL facility in the Philippines, deepening knowledge exchange on high-pressure acid leach processing, a core technology for the project. This collaboration has already identified potential opportunities to optimise process parameters, though no final decisions have been made.

Permitting, Heritage, and Stakeholder Engagement

Ardea has executed a Heritage Agreement with the Marlinyu Ghoorlie Native Title Claimant Group, covering approximately 75% of the Goongarrie Hub’s nickel-cobalt Mineral Resources. This milestone underscores the company’s commitment to strong stakeholder relationships and responsible project development. Environmental baseline surveys are being updated to reflect the evolving project footprint, with additional fieldwork planned to ensure comprehensive coverage.

The Consortium has also earned a 17.5% interest in KNPL by contributing 50% of the DFS expenditure, with this stake set to increase to 50% at the final investment decision. This equity arrangement aligns the partners’ interests closely as the project advances toward development.

Looking Ahead

While the DFS delay is a setback, Ardea remains optimistic about the project’s long-term prospects. The ongoing technical collaboration and incremental design improvements could enhance the project’s economics and operational efficiency. Investors will be watching closely for upcoming updates on capital and operating cost estimates, permitting progress, and any further refinements to the project schedule.