Chalice Mining reports robust cash reserves and steady progress on the Gonneville Project pre-feasibility study, while exploration in Western Australia uncovers promising new gold-copper anomalies.
- Strong cash position of ~$77.7M with no debt at quarter-end
- Gonneville PFS on track for Q4 2025 completion, targeting FID in late 2027
- Simplified process flowsheet reduces costs and technical risks
- Environmental Review Documents scheduled for mid-2026 submission
- New gold-copper targets identified in West Yilgarn exploration with follow-up drilling planned
Robust Financial Position Supports Development
Chalice Mining Limited closed the June quarter with a strong balance sheet, holding approximately $77.7 million in cash and listed investments, and notably carrying no debt. This financial strength underpins the company’s confidence as it advances the Gonneville Palladium-Nickel-Copper Project through its pre-feasibility study (PFS) phase. The company remains fully funded to carry the project through studies and permitting, aiming for a Final Investment Decision (FID) targeted for late 2027.
Progress on Gonneville Pre-Feasibility Study
The PFS, initiated in mid-2023, is progressing on schedule with completion expected in the fourth quarter of 2025. Recent metallurgical breakthroughs have enabled a simplified process flowsheet that eliminates the need for hydrometallurgical processing of nickel concentrate. This innovation significantly reduces capital expenditure, operating costs, and technical risks compared to the 2023 Scoping Study. The staged development plan envisions an initial four-year higher-grade, lower-risk open-pit mining phase, followed by a bulk expansion from year five, optimizing returns and strategic value.
Environmental and Regulatory Milestones
Chalice is on track to submit draft Environmental Review Documents (ERDs) by mid-2026, with environmental modelling underway by consultancy GHD. The project’s scope and site layout have been finalized, enabling detailed impact assessments. Concurrently, community engagement remains strong, with the latest Local Voices survey indicating sustained local support for the mine development, emphasizing environmental responsibility and transparent communication.
Exploration Uncovers New Gold-Copper Targets
Beyond Gonneville, Chalice continues to explore its extensive West Yilgarn Province tenure, covering over 7,000 square kilometers. Recent drilling at the Kings and Barrabarra Projects has identified significant new gold-copper anomalies, including a notable 6.61 g/t gold intercept at the Hardtack Target. Follow-up aircore drilling is planned for the third quarter of 2025 to further test these promising zones. These discoveries highlight the region’s underexplored potential and Chalice’s strategic focus on critical minerals and precious metals.
Market Context and Strategic Partnerships
While palladium prices have shown early signs of recovery, rising 25% during the quarter, spot prices remain below the marginal cost of supply, reflecting ongoing market tightness. Chalice continues to engage with potential strategic offtake and financing partners, including Mitsubishi Corporation, to optimize marketing and maximize project value. The company is also investigating sustainable power solutions and secured a Letter of Intent for process water supply from treated wastewater, underscoring its commitment to environmental stewardship and operational efficiency.
Bottom Line?
As Chalice advances its flagship project and expands exploration horizons, the coming quarters will be pivotal in translating technical progress into tangible value amid evolving market dynamics.
Questions in the middle?
- How will palladium price fluctuations impact the economic viability of the Gonneville Project?
- What are the timelines and potential hurdles for securing final environmental approvals?
- Can the newly identified gold-copper targets in West Yilgarn translate into significant resource additions?