Ardea releases study on $1.17bn project

Ardea Resources has released an expansion study for its Goongarrie nickel-cobalt project in Kalgoorlie, with the company detailing a 2.3 million tonnes per annum capacity at a cost of $1.17 billion.

Ardea had previously outlined a capacity of 1mtpa to 1.5mtpa for the project in a pre-feasibility study.

The new study shows a pre-tax net present value of $3.1 billion, with an initial mine life of 25 years and a payback period of 5.1 years.

The study forecasts annual production of about 10,000 tonnes of cobalt sulphate and 81,000t of nickel sulphate.

“We are pleased with the results of this expansion study as it highlights the upside potential of Goongarrie and its competitive economies of scale,” executive chair Katina Law said.

“The primary goal of the company is to determine a cost-effective startup scenario and also provide an upside case more suited to a financier or partner seeking a long life, lower cost, sustainable production base in a stable jurisdiction.

“The results have shown the benefits of scale, demonstrating Goongarrie as a unique battery metals project that can become a significant global producer over a long life.”

Shares in Ardea finished down 8.1 per cent at 79 cents each today.