Ardea Resources Scoping Study Puts $509.8 Million Value on Scandium By-Product at Goongarrie Hub

Ardea Resources has identified a potential US$509.8 million net present value from adding scandium recovery to its proposed Goongarrie Hub nickel-cobalt operation in Western Australia. TradingView reported the figure from an independent scoping study. Ardea Resources is a pre-revenue Australian nickel-cobalt developer advancing the Goongarrie Hub, targeting 30,000t Ni and 2,000t Co per annum in battery-grade MHP form for the EV and energy storage supply chain.

How the Scandium Circuit Would Work

The scoping study estimated that the additional processing circuit would require US$73.5m in capital and generate an internal rate of return of 59.6%, using a 7% discount rate. The proposed circuit would extract scandium from a process stream already envisaged for the Kalgoorlie nickel project, rather than require a standalone mine. The preliminary findings create a potential third critical-mineral product alongside nickel and cobalt, although the recovery assumptions and projected economics still require metallurgical validation.

Engineering consultant Elemental Engineering selected ion exchange as the preferred extraction method, with scandium oxide identified as the more commercially suitable sale product than scandium fluoride. The model assumes that less than 25% of the barren liquor from the planned high-pressure acid leach facility would feed the scandium recovery circuit, leaving scope to examine higher volumes later. It forecasts scandium recovery of less than 70%, annual scandium oxide output of 29.96 tonnes, and operating expenditure of US$16.2m a year over a 40-year project life.

The financial estimates assume a scandium oxide price of US$2,000 per kilogram, with production volumes and market prices identified as the most influential economic variables, according to akta.pro company records. The capital estimate covers only the scandium recovery circuit and excludes mining, HPAL processing, and wider infrastructure costs attributable to the proposed nickel-cobalt development. The scandium assessment does not change the economics or development strategy of the broader Goongarrie Hub project, whose definitive feasibility work remains separate.

Goongarrie Hub Resource Base

The 2023 mineral resource estimate for Goongarrie Hub includes 158 million tonnes grading 25 parts per million scandium and containing an estimated 3,940t of the metal. That total includes Inferred material, but the scandium production targets in the scoping study rely solely on Measured and Indicated resources. Scandium occurs within the nickel-cobalt mineralisation, and the proposed recovery process would draw on shared plant and utilities rather than a separate development footprint.

The metal is used in lightweight aluminium alloys, aerospace and defence applications, additive manufacturing and solid oxide fuel cells. Market forecasts cited by Ardea anticipate rising scandium oxide demand, but the specialised market remains small and relatively opaque, making the assumed selling price an important uncertainty.

Testing Planned Before Engineering

Ardea plans laboratory-scale testing of representative Goongarrie Hub process liquor to assess resin selectivity, solvent extraction performance, impurity removal, and scandium oxide production. The work is intended to replace preliminary process assumptions with project-specific results before the company considers more detailed engineering.

"Nickel and cobalt remain the cornerstone of the project and our primary development focus," managing director Andrew Penkethman said. "Rather, this study demonstrates the potential to unlock additional value from the same resource and planned processing infrastructure by recovering scandium as a third critical mineral."

Any decision to build the scandium recovery circuit would depend on successful testing, further engineering, environmental and regulatory approvals, financing, and development of the underlying HPAL operation.

Earlier Milestones for the Kalgoorlie Project

Ardea Resources received Western Australian Lead Agency Status for its Kalgoorlie Nickel Project's Goongarrie Hub in June 2026, streamlining approvals, The Sydney Morning Herald reported. The project holds 854 million tonnes at 0.71% nickel, the largest undeveloped nickel resource in Australia.

In June 2026, Ardea pushed back its definitive feasibility study completion for the Goongarrie Hub to incorporate value-engineering opportunities, The Sydney Morning Herald reported. The study, funded up to $98.5 million by Sumitomo and Mitsubishi, has already spent $84.5 million.

Ardea presented at the Noosa Mining Conference 2026 on July 24, showcasing its Kalgoorlie Nickel Project as Australia's largest nickel-cobalt resource with approximately 6.1 million tonnes of contained nickel, Investing.com reported.