Ardea Resources Limited (Ardea or the Company) is pleased to present a progress report for the Kalgoorlie Nickel Project (KNP) Goongarrie Hub, notably the advancement of the Mineralised Neutraliser (MN) test work Research and Development (R&D) and related Pre-feasibility Study (PFS) update. Ardea's base case is 2 x1.5Mtpa High Pressure Acid Leach (HPAL) autoclaves combined with a 0.5Mtpa Atmospheric Leach (AL) circuit using technology successfully deployed at existing nickel laterite operations
PFS consolidation programs that are independent of final sale product are current.
Bench-scale metallurgy - Mineralised Neutraliser
The Mineralised Neutraliser concept involves the simple wet screen separation of magnesite-goethite-clay saprock into its constituent Serpentine-Goethite clay (termed 'Fines') and Magnesite Neutraliser oversize (termed 'Scats').
Laboratory results have been received for a Mineralised Neutraliser bulk sample assaying 0.8% Ni which was designed to be representative of the full strike of the Goongarrie Hub Highway nickel laterite deposit.
Screen beneficiation at 75 microns generated 23% Fines assaying 1.2% Ni and 77% Magnesite Neutraliser assaying 0.6% Ni.
Good Acid Neutralisation Capacity (ANC) of the magnesite Scats was confirmed, completely validating Ardea's research test work objective.
With the 3Mtpa HPAL model, the Fines represent potentially 200ktpa of additional plant feed exceeding 1% Ni as a minimal-cost feed to the Atmospheric Leach circuit.
More importantly, the magnesite Scats replace imported limestone as process neutraliser, representing both a cost saving from reduced consumable import and reduced carbon emissions by not having to transport limestone neutraliser to site.
This is a major flowsheet refinement and is resulting in a significant upgrade to the PFS flowsheet. Pre-feasibility Study Work Streams
Ore Reserve update well advanced, pit optimisations completed which now reflect access to the design pit-base Mineralised Neutraliser.
Having selected the production pit locations, the site layout for the General
Arrangement Plan is being finalised, with results of the requisite sterilization drilling awaited ahead of finalising.
Consulting engineer well advanced with independent study documents.
Consulting environmentalist appointed for lodgement of EPA submissions.
Ardea's Managing Director, Andrew Penkethman said:
'The Feasibility Study for the Kalgoorlie Nickel Project - Goongarrie Hub has been focussing on the metallurgy of Material Types to allow the various mineralisation styles to be specifically matched to the High Pressure Acid Leach, Atmospheric Leach and Mineralised Neutraliser circuits. For the Mineralised Neutraliser circuit, the separation of mineralised SerpentineGoethite clay from Magnesite Neutraliser by simple low-cost screening is a significant processing breakthrough. The Serpentine-Goethite clay is geochemically very well suited as an Atmospheric Leach feed, and most importantly, is generated at minimal additional processing cost.
RESOURCES AND PLANT FEED
The Goongarrie Hub is located 70km northwest along established road and rail infrastructure from the worldrenown mining centre, the City of Kalgoorlie-Boulder. Goongarrie is Ardea's most advanced project within the broader KNP. The Goongarrie Hub includes the Goongarrie deposits from south to north, Scotia Dam, Big Four, Goongarrie South and Goongarrie Hill, along with Highway some 30km to the north and Siberia North, approximately 30km to the southwest (Figure 1). The Goongarrie Hub Mineral Resource Estimate (MRE) of 561Mt at 0.68% nickel and 0.044% cobalt has the requisite HPAL and MN Material Types to service a 3Mtpa conventional, well-proven (notably Moa Bay, Coral Bay), 'off-the shelf' HPAL operation. The 2018 Goongarrie PFS was predicated on an HPAL operation treating 1.5Mtpa goethite mineralisation. With the flowsheet confirmation arising from the 2022 bench-scale metallurgy, the current PFS optimisation is based on 2x1.5Mtpa HPAL plant feed, along with some 0.3Mtpa AL plant feed with some 0.2Mtpa from MN Fines (the precise mix varies with individual pits and is such that all MN Fines slurry is pumped straight to AL with the hardrock AL feed stockpiles on the ROM pad used to maintain the AL circuit at full capacity)
MINING AND ENGINEERING STUDY TO DEFINE UPDATED ORE RESERVE
Mining and resource consultant Orelogy in Perth are completing detailed open pit resource optimisations and mining study of the Goongarrie Hub MRE aimed at converting the Indicated and Measured JORC Code (2012) MRE to a Proven and Probable Ore Reserve that supports the 3.5Mtpa flowsheet by considering relevant modifying factors. In support of the updated Ore Reserve and Feasibility Study, Wood Engineers have been retained to provide engineering back-up (also refer Process Gap Analysis Study, ASX release 25 January 2022). Ardea and supporting consultants are targeting completion of all PFS work in Q1 2023
This announcement is authorised for release by the Board of Ardea Resources Limited.
Contact:
Andrew Penkethman
Managing Director and Chief Executive Officer
Tel: +61 8 6244 5136
About Ardea Resources
Ardea Resources (ASX:ARL) is an ASX-listed nickel resources company, with a large portfolio of 100%-controlled West Australian-based projects, focussed on: * 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 the developed world at 830Mt at 0.71% nickel and 0.046% cobalt for 5.9Mt of contained nickel and 380kt of contained cobalt (Ardea ASX releases 15 February, 16 June 2021), located in a jurisdiction with exemplary Environmental Social and Governance (ESG) credentials, notably environment. * Advanced-stage exploration at compelling nickel sulphide targets, such as Emu Lake, 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. Ardea's KNP development with its 5.9 million tonnes of contained nickel is the foundation of the Company, with the nickel sulphide exploration, such as Emu Lake, as an evolving contribution to Ardea's building of a green, forward-facing integrated nickel company. Put simply, in the Lithium Ion Battery (LIB) sector, the Electric Vehicle and Energy Storage System battery customers demand an ESG-compliant, sustainable, and ethical supply chain for nickel and other inputs. In the wet tropics, with their signature HPAL submarine tailings disposal and rain forest habitat destruction, an acceptable ESG regime is problematic. In contrast, the world-class semi-arid, temperate KNP Great Western Woodlands with its benign environmental setting is likely the single greatest asset of the KNP. The KNP is located in a well-established mining jurisdiction with absolute geopolitical acceptance and none of the landuse and societal conflicts that commonly characterise nickel laterite proposals elsewhere. All KNP Goongarrie Hub production tenure is on granted Mining Leases with Native Title Agreement in place
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ARDEA RESOURCES LIMITED 
