Goongarrie South Drilling Yields 249 Significant Ni-Co-Sc Intercepts Over 16,234m

Infill Drilling Completes Key Phase at Goongarrie South

Ardea Resources Limited has announced the completion of an extensive reverse circulation (RC) infill drilling program at its Goongarrie South nickel-cobalt-scandium deposit, part of the broader Kalgoorlie Nickel Project (KNP) Goongarrie Hub in Western Australia. The campaign involved 230 holes totaling 16,234 metres, designed to upgrade resource confidence ahead of the ongoing Definitive Feasibility Study (DFS).

Results from the drilling have confirmed 249 significant intercepts exceeding 0.5% nickel over at least 2 metres, with standout intercepts including 34 metres at 1.75% nickel and 0.43% cobalt from 12 metres depth. These findings affirm Goongarrie South as the highest-grade nickel-cobalt deposit within the KNP Goongarrie Hub.

Premium Ore Characteristics Enhance Project Economics

The mineralisation at Goongarrie South is dominated by premium goethite ore, noted for its softness, free-digging nature, and low acid consumption during processing. These attributes are expected to positively impact mining efficiency, ore preparation, and metallurgical performance, factors that were highlighted in Ardea’s 2023 Pre-Feasibility Study and are being further refined in the DFS.

Managing Director Andrew Penkethman emphasised the strategic advantage of the deposit’s proximity to the proposed processing plant location, which, combined with the ore’s favourable characteristics, supports an optimised project payback and robust economics.

Advancing Resource and Reserve Upgrades

Alongside the RC drilling, associated diamond drilling for metallurgical sampling has been completed, feeding into updated Mineral Resource Estimates (MRE) and geometallurgical modelling. Geological interpretation and wireframing are underway for multiple deposits within the Goongarrie Hub, including Big Four, Scotia Dam, and Highway, all integral to the DFS.

Following the MRE updates, detailed resource optimisation and mine planning will define an updated Ore Reserve, a critical DFS deliverable. The presence of Mineralised Neutraliser material near the processing plant site, identified through drilling, may further enhance pit designs and reduce operating costs by providing an on-site acid neutraliser source.

Strong Consortium Support and ESG Credentials

The DFS, with a budget of $98.5 million, is managed by the joint venture company Kalgoorlie Nickel Pty Ltd and funded by Japanese partners Sumitomo Metal Mining Co., Ltd and Mitsubishi Corporation. This partnership underscores the project’s potential to become a globally significant, responsible supplier of nickel and cobalt, meeting stringent Environmental, Social, and Governance (ESG) standards demanded by Australia and Japan.

Ardea’s collaboration with CSIRO on geochemical and metallurgical research further supports the project’s technical foundation and sustainability credentials.

Looking Ahead

With infill drilling complete and resource upgrades imminent, Ardea is poised to advance the KNP Goongarrie Hub towards development. The ongoing DFS will refine project design and economics, setting the stage for a potential multi-decade nickel-cobalt operation in a jurisdiction renowned for mining excellence and ESG leadership.