Chalice updates resource estimate

Exploration company Chalice Mining has announced an updated mineral resource estimate for its Gonneville nickel-copper-platinum project, located 70km north-east of Perth.

The revised estimate contains 3.8 million ounces of palladium and platinum, 120,000 tonnes of nickel, along with 120,000t of copper – and forms the basis of both selective open-pit and underground mining.

“The remodelled high-grade sulphide resource marks the first step in the reset of the development strategy for the Gonneville project,” Chalice chief executive officer and managing director Alex Dorsch said.

“The high-grade model provides improved high-grade definition to underpin the design of a more selective, smaller scale starter project.

“The starter project design will target higher grades initially, which drive higher recoveries and better overall margins, with the objective of making the initial stage of the project much more resilient at conservative commodity prices.

“The smaller scale starter project will also have a reduced development capital cost and therefore a lower risk profile.”

Tuesday’s revised update follows on from Chalice telling the market earlier this month that it was keen to begin construction of the project in 2027 and had lodged development plans with the Environmental Protection Agency.

Subject to a final investment decision and regulatory approvals, Chalice has set a production target of 2029.

“We are looking forward to completing the revised scoping study starter case over the coming months and progressing the pre-feasibility study, which is due to be completed in middle of the 2025 calendar year,” Mr Dorsch said.

“With the improved resource model and a strong cash balance, Chalice is in a strong position to progress this unique critical minerals project.”

In April 2023, the West Perth-based company begin its search to team up with a tier-1 strategic partner for Gonneville, however said these discussions remain ongoing and a transaction cannot be guaranteed.

Shares in the company fell sharply in August 2023 following the release of project's scoping study. A few months later at the company's AGM, Mr Dorsch said a high-grade underground mine was a great opportunity for the company to generate upside at Gonneville. 

Chalice last traded at $1.28 per share, after entering a trading halt on Monday.