Ardea Hits Grade Gold at Highway with Thick Nickel-Cobalt Intercepts

Ardea Resources (ASX: ARL) has wrapped up infill drilling at its Highway deposit within the Goongarrie Hub — and if the latest assays are anything to go by, the Kalgoorlie Nickel Project is shaping up as one of the most robust nickel-cobalt plays in the country.

The recently completed reverse circulation (RC) program was designed to upgrade Mineral Resource confidence and sharpen the focus for upcoming mine planning under the project’s Definitive Feasibility Study (DFS). The early returns? Exceptionally thick, high-grade, and near-surface nickel-cobalt intercepts that reinforce the project's potential to front-load production.

Noteworthy results include 14 metres at 1.19% nickel from just 30 metres depth, including 10 metres at 1.43% (KHWR0067), and 20 metres at 1.12% nickel from 26 metres (KHWR0154), with a standout internal hit of 6 metres at 2.38% nickel. These grades comfortably outstrip the average 0.5% Ni cut-off used in the broader Goongarrie resource.

“These drill results from Highway are a strong follow-up from the Big Four and Scotia Dam results previously reported and continue to demonstrate the high grade and continuity of the nickel-cobalt mineralisation at the Kalgoorlie Nickel Project – Goongarrie Hub,” said Managing Director and CEO Andrew Penkethman.

He added: “The KNPL team's ongoing work to increase Measured Mineral Resource classification and develop a robust mining plan, with maximum Proven and Probable Ore Reserve, continues at pace to support the Project DFS.”

All this activity is underpinned by serious money. Ardea’s DFS is backed by a $98.5 million budget and is being advanced by joint venture vehicle Kalgoorlie Nickel Pty Ltd (KNPL), with Japanese heavyweights Sumitomo Metal Mining and Mitsubishi Corporation footing the bill as part of a consortium earn-in.

The Highway drilling, comprising 165 holes for over 10,000 metres, targeted areas designated for early open-pit mining — a deliberate strategy aimed at capturing strong cash flow early in the mine’s life. It also included diamond drilling for QAQC and metallurgical samples, critical for process plant optimisation.

The updated geological models — including domains for "Mineralised Neutraliser" materials that may play a role in blending for processing — are now being integrated into revised Mineral Resource Estimates across multiple deposits. This will flow into new Ore Reserve calculations, a core deliverable of the DFS.

The broader context is even more compelling. Ardea’s Kalgoorlie Nickel Project, which includes the Goongarrie and Kalpini hubs, boasts 854 million tonnes at 0.71% nickel and 0.045% cobalt — the largest such resource in Australia. The Goongarrie Hub alone holds 4 million tonnes of contained nickel, with the potential to underpin a +30,000tpa operation for decades.

With DFS outputs expected to cascade through the back half of 2025, investors will be watching closely as Ardea drills, assays, models, and ultimately seeks to monetise one of the country’s most strategically significant nickel assets.