The Cawse nickel project is a new generation pressure acid leach (PAL), solvent extraction and electrowinning process used to produce LME grade nickel metal and cobalt sulphide concentrate containing 40 per cent cobalt by treating nickel and cobalt oxide ores from a lateritic ultramafic profile. The project is located 50 kilometres NW of Kalgoorlie in Western Australia. The commercial success of the Cawse nickel operation is dependent in part upon the ability of the principal ore type to be beneficiated. A simple process of rejecting lower grade material on the basis of particle size achieves this. The process is called upgrading and allows subgrade material to become commercial ore grade and also allows higher ore grades to be processed in the early parts of the operation. The success of the upgrade process is dependent upon the physical and chemical properties of the ore being processed and the nickel grade of the ore. The upgrade ore type represents >80 per cent of the Cawse nickel resource and is hosted mostly within a limonite unit, represented by goethitic clays in the upper saprolite zone. In the upgrade processing circuit the ore is crushed and slurried. It is then passed over a series of screens that remove all material over 0.5 mm. This ensures that coarse material is removed from the main ore stream. Upgrade is reliant on selectively rejecting lower grade or barren material, which can include silica, magnesite and relict saprock. To predict leach feedgrade, the grade control estimates the head grade and upgrade percentage for all ore delivered to the run of mine ore pad. To do this reverse circulation (RC) drill holes are logged for ore type, assayed for a range of elements and undergo simulated upgrade testwork. The percentage and grade of material rejected through the upgrade circuit has the most influence on upgrade per cent. This reject is determined by the physical properties of the rock mass and drum scrubber parameters. The correlation between nickel upgrade and reject can be established to predict upgrade from the known mass reject. Parcels of upgrade ore milled to date closely follow projected correlation trends. Upgrade circuit results have been excellent, with average nickel grades upgrading by 34 per cent, cobalt by 23 per cent, with 55 per cent mass passing.