Ardea Resources Limited announced that The Kalgoorlie Nickel Project (KNP) Goongarrie Hub (Goongarrie) is undergoing a Feasibility Study for a High Pressure Acid Leach (HPAL) and Atmospheric Leach (AL) processing operation using proven technology successfully in use at other operations, such as at Coral Bay in the Philippines and the Ravensthorpe Nickel Operation in Western Australia. The base case end product from Goongarrie will be Mixed Hydroxide Precipitate (MHP) which is the preferred nickel-cobalt product for the Lithium Ion Battery (LIB) sector. In mid-2021, Ardea announced the commencement of a KNP Goongarrie Hub Feasibility Study.

The original development targets included the following: Single train leaching circuit, treating 2.25Mtpa of goethite ore via HPAL; Potential Serpentine ore treatment via Atmospheric Leach; Mixed Hydroxide Precipitate (MHP) or PCAM final product; Recovery of Critical Minerals such as Sc, Nd, Pr to be evaluated; Optimisation strategies for leading ESG project development. In-house engineering studies have been conducted, which involved the design of process models specific to the premium Goongarrie plant feed, peer operations analysis studies, operational calculations and the development of critical engineering documentation, such as Block Flow Diagrams, Process Descriptions, Mass and Energy Balances, Document Control Procedures, Work Breakdown Structures, Site CO2 Emissions Modelling, Overall Design Basis, Process Design Criteria, Operating Cost Estimates, Process Financial Model, Vendor Registrations, Operations Risk Register and Process Sensitivity Analyses. The general conclusions from these investigations include: Baseline production capacity is to be 3.0Mtpa dry feed to a two-train HPAL circuit treating goethite and beneficiated siliceous goethite ore to maintain feed grades in excess of 1% nickel; Serpentine mineralisation will be utilised in an AL circuit treating 0.5Mtpa of leach feed; High grade MHP is to be the final product, pending specific input to the contrary from updated market analysis or key end-user requirements; Critical Minerals recovery, in addition to cobalt, is being determined by in progress metallurgical testwork; ESG policies and procedures have been reviewed by external consultants, and deemed as meeting industry standards and will continue to be updated in line with the growth of the Company; The site operating philosophy has been modified to maximise the energy recovery from the on-site sulphuric acid plant, and to reduce imported (fossil fuel based) site energy requirements; The benefits of the upgraded circuit design are improved economic returns, lower carbon emissions, more reliable plant operation and strong end-user demand.