Lycopodium (ASX:LYL) has secured a Definitive Feasibility Study contract for the design engineering of the hydrogen sulphide plant for developing the Kalgoorlie Nickel Project – Goongarrie Hub in Western Australia.
The Kalgoorlie Nickel Project – Goongarrie Hub is an asset of Ardea Resources’ (ASX:ARL) subsidiary Kalgoorlie Nickel. Ardea’s subsidiary is managing the DFS for a large-scale, multi-decade nickel operation.
Lycopodium, which has a market capitalisation of $447.87 million, says the DFS is on schedule to be completed towards the end of H2 2025.
The company’s scope of services under the $5.4 million contract includes completing a capital cost estimate and designing the hydrogen sulphide plant.
The hydrogen sulphide gas will be used to precipitate a high-purity nickel and cobalt sulphide product called mixed sulphide precipitate (MSP). MSP is a precursor for producing electrolytic nickel and cobalt, nickel powder and nickel sulphate for lithium-ion battery production.
Lycopodium Managing Director Peter De Leo says this is a strategic opportunity to support the development of Kalgoorlie Nickel’s asset, which is expected to become “one of the largest nickel-cobalt producers in Australia”.
The Kalgoorlie Nickel Project – Goongarrie Hub is considered a series of nickel-cobalt and critical mineral deposits which hosts a large nickel-cobalt resource.
Kalgoorlie Nickel’s resource totals 854 million tonnes @ 0.71% nickel and 0.045% cobalt for 6.1 million tonnes of contained nickel and 386,000 tonnes of contained cobalt. Meanwhile, Goongarrie Hub’s resource totals 584 million tonnes @ 0.69% nickel and 0.043% cobalt for 4 million tonnes of contained nickel and 250,000 tonnes of contained cobalt.
Lycopodium provides integrated engineering construction and asset management solutions. The company is focused on delivering complex, multidisciplinary projects through to the provision of feasibility studies and advisory services.
Write to Aaliyah Rogan at Mining.com.au
Images: Ardea Resources
