Chalice Mining Boosts Gonneville Project with $90M Cash and New COO Appointment
Chalice Mining reports a robust cash position of approximately $90 million and no debt as it progresses the Gonneville Project towards a targeted Final Investment Decision in 2027. The appointment of Dan Brearley as COO signals strengthened operational leadership amid ongoing metallurgical testwork and exploration activities.
- Strong cash and listed investments balance of ~$90M with zero debt
- Gonneville Project Pre-Feasibility Study on track for mid-2025 completion
- Appointment of Dan Brearley as Chief Operating Officer effective March 2025
- Significant progress in metallurgical testwork and process flowsheet optimizations
- Active exploration across multiple Western Australian projects with promising geology
Financial Strength and Strategic Focus
Chalice Mining Limited closed the December 2024 quarter with a strong financial footing, reporting approximately $79.9 million in cash and an additional $9.8 million in listed investments, all without any debt. This solid balance sheet underpins the company’s strategy to advance the Gonneville Project through critical development phases, including studies and permitting, targeting a Final Investment Decision (FID) around 2027.
Cost discipline remains a priority, with expenditure reductions and deferrals implemented to ensure funding sufficiency for ongoing and upcoming activities. Operating cash outflows were approximately $3.9 million for the quarter, primarily directed towards exploration and evaluation, staff costs, and corporate expenses.
Progress on the Gonneville Project
The Gonneville PGE-Nickel-Copper-Cobalt Project in Western Australia remains the company’s flagship asset. The Pre-Feasibility Study (PFS) is progressing well, with a targeted completion by mid-2025. During the quarter, Chalice refined its preferred development case, focusing on a staged approach with a reduced initial scale and simplified processing flowsheet to lower risk and capital intensity.
Metallurgical testwork is approximately 75% complete, involving extensive variability sampling from 33 dedicated drill holes. Batch and locked-cycle flotation tests have yielded promising results, and leach tests indicate potential reductions in reagent consumption and operating costs compared to previous studies. Magnetic separation testwork is ongoing, aiming to further optimize reagent use.
Mining studies have been updated with minor improvements over the 2023 Scoping Study, and marketing discussions with global copper and nickel smelters and precursor cathode active material refiners continue to show strong interest, reflecting tight market conditions for these commodities.
Leadership and Corporate Developments
In a significant leadership move, Chalice appointed Dan Brearley as Chief Operating Officer effective 3 March 2025. Brearley brings extensive experience in project management and mining operations, expected to be instrumental in steering the Gonneville Project through its final studies and regulatory approvals towards FID. This appointment replaces Mike Nelson, who is departing for an international career opportunity.
Additionally, the Board welcomed mining and corporate finance executive Richard Hacker, enhancing the company’s governance as it advances its strategic objectives.
Exploration Momentum Across Western Australia
Beyond Gonneville, Chalice continues to explore aggressively across its extensive West Yilgarn Province tenure, spanning over 8,000 square kilometers. Recent aircore drilling at the Barrabarra Project intersected encouraging greenstone geology, with assay results pending. Similarly, drilling at the Kann target within the Northam Joint Venture revealed promising intrusive geology and disseminated sulphides.
Exploration programs are planned to intensify in early 2025, including reverse circulation drilling and electromagnetic surveys to test high-priority targets. The company has rationalized its tenure to focus on the most prospective areas, with a forecast regional exploration budget of approximately $2 million for the remainder of FY25.
Regulatory and Environmental Progress
Chalice achieved a key regulatory milestone with the Gonneville Project granted 'Major Project' status by the Commonwealth Minister for Industry and Science. This designation facilitates coordinated approvals and government support, streamlining the path to development.
Cultural heritage surveys have been completed with no impediments identified, and environmental baseline studies continue to advance in preparation for the Public Environmental Review. Collaborative research agreements are in place to develop environmental offset strategies, underscoring Chalice’s commitment to sustainable development.
Bottom Line?
As Chalice Mining strengthens its leadership and advances critical studies, the market will watch closely for the Gonneville Project’s transition from development to decision-making in 2027.
Questions in the middle?
- How will the final metallurgical testwork results influence the project's processing flowsheet and cost structure?
- What are the prospects for securing strategic offtake and financing partners ahead of the FID?
- How might exploration results from the West Yilgarn Province impact Chalice’s growth trajectory beyond Gonneville?
