Ardea banks $1.2M research rebate to fuel WA nickel development
Ardea Resources has received a significant $1.18 million research and development (R&D) tax incentive rebate from the Australian government for pioneering work on its Kalgoorlie Nickel Project (KNP) in Western Australia's Goldfields region.
The timely cash injection for last year's cutting-edge nickel research will boost Ardea's commitment to advancing its globally significant nickel-cobalt resource.
The rebate follows a $4.6M strategic placement from Japanese joint venture partner Sumitomo Metal Mining in April, bolstering Ardea's robust cash balance of $12M at last quarter's end.
Ardea's R&D efforts have centred on its breakthrough mineralised neutraliser process, a novel approach to nickel-cobalt extraction that has led to an international patent application.
The process leverages magnesite saprock at the base of its Goongarrie nickel hub's laterite deposits, segregating it into fines for processing and magnesite scats for neutralising leach discharge solutions.
The company says its innovation promises to enhance the efficiency and sustainability of nickel-cobalt production, aligning with global demand for responsibly sourced critical minerals.
The KNP is Australia's largest nickel-cobalt resource and has an impressive 854 million tonnes at 0.71 per cent nickel and 0.045 per cent cobalt for a contained 6.1Mt of nickel and 386,000t of cobalt.
The Goongarrie hub alone hosts 584Mt of ore, with 4Mt of contained nickel, and is being developed in a 50:50 joint venture with Sumitomo and Mitsubishi.
The Japanese consortium is fully funding a $98.5M definitive feasibility study, which Ardea says is on track for completion in the second half of this year, paving the way for a final investment decision by 2027.
Ardea's innovative process is a cornerstone of its strategy to establish a low-cost, multi-decade operation. The company's 2023 prefeasibility study projected an extraordinary $800M annual EBITDA over a 40-year mine life, producing 30,000t of nickel and 2000t of cobalt annually from a shallow, flat-lying orebody.
The rebate will further support Ardea's ongoing exploration at its advanced project, currently targeting nickel sulphide and critical minerals such as scandium and rare earth elements at its Kalpini hub just next door.
With a formidable Japanese consortium in tow and a strengthened balance sheet, Ardea will look to navigate volatile global nickel markets and deliver on its vision of becoming a leading supplier of critical minerals by 2030. As work on the definitive feasibility study progresses, the company continues to lay the groundwork for a potential world class operation that could restore nickel to Australia critical minerals ensemble.
Is your ASX-listed company doing something interesting? Contact:
matt.birney@wanews.com.au
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