East Perth-based contractor Lycopodium has secured a definitive feasibility contract at Ardea Resources’ Kalgoorlie nickel-cobalt project, valued at $5.4 million.
East Perth-based contractor Lycopodium has secured a definitive feasibility contract at Ardea Resources’ Kalgoorlie nickel-cobalt project, valued at $5.4 million.
Under the deal, Lycopodium will complete design and capital cost estimation in relation to the hydrogen sulphide plant, which will be located within the project’s Goongarrie hub, located 70km north-west of Kalgoorlie.
“We are extremely pleased to have this strategic opportunity to support the development of the Kalgoorlie nickel project – Goongarrie hub, which is anticipated to become one of the largest nickel-cobalt producers in Australia and therefore of critical significance in the energy transition to renewables,” Lycopodium managing director Peter De Leo said.
The project’s Goongarrie hub development is an asset of Ardea’s 100 per cent-owned subsidiary, Kalgoorlie Nickel.
Kalgoorlie Nickel is overseeing the project’s $98.5 million DFS, which is on course to be completed in the second half of the 2025 calendar year.
In September last year, Ardea told the market it had secured a 50:50 joint venture with Sumitomo Metal Mining and Mitsubishi Corporation, with the consortium agreeing to fund the DFS before earning into the project.
Tuesday’s market update follows on from news late last year that Lycopodium had secured EPC contracts, to the value of $56.7 million, at Montage Gold’s Koné gold project in Côte d’Ivoire.
Lycopodium closed trade up 2 per cent to $11.44, while Ardea shares finished down 2 per cent to 40 cents.
