Key Highlights

  • Ardea and the Japanese Consortium agreed that a Pre-FEED phase should be undertaken before the project moves to front-end engineering.
  • The Pre-FEED phase is focused on reducing capital and operating costs.
  • Scope, timing and funding of the phase are under negotiation.
  • The parties expect to conclude the agreements by the end of 2026.

Ardea Resources Limited (ASX:ARL) released an update on its Kalgoorlie Nickel Project's Goongarrie Hub on 30 October 2026. The update follows a review of the draft definitive feasibility study carried out so far, including by independent technical experts. The company and its Japanese Consortium partners have agreed on a further phase of study work before the project advances.

The Pre-FEED Phase

The further phase, known as the Pre-FEED phase, is intended to optimise the definitive feasibility study before the project progresses to front-end engineering and design. The company describes it as a step that refines the existing work rather than replacing it.

The phase is expected to focus on capital and operating cost reductions. It will also examine value engineering opportunities already identified across several technical areas, including resource domaining, mining, metallurgy and process flowsheet design.

Joint Venture Negotiations

Ardea and the Consortium are negotiating the scope, timing and funding of the Pre-FEED phase. The negotiations also cover amendments to the joint venture agreements for Kalgoorlie Nickel Pty Ltd, which governs the project's ownership structure.

The parties expect to conclude these agreements by the end of 2026. The update makes that completion a condition for the phase to proceed.

Study Outcome So Far

The draft feasibility work has not yet been completed to the standard required for front-end engineering. The decision to add a Pre-FEED phase reflects that the partners see scope to improve the cost base before committing to the next stage.

The release does not provide a revised capital estimate, production profile or timetable for construction, so the outcome of the Pre-FEED phase remains to be reported.

Final Word

Ardea's update points to a further study phase for the Goongarrie Hub, aimed at reducing costs before the project moves into engineering. The timing of that phase depends on joint venture amendments that the parties expect to conclude by the end of 2026. Future announcements will indicate whether the agreements are signed and how the Pre-FEED work changes the project's economics.