Chalice Mining is progressing its Gonneville Project Pre-Feasibility Study on schedule for November 2025 completion, fully funded and targeting a Final Investment Decision by late 2027 as palladium prices hit a two-year high.
- Pre-Feasibility Study on track for November 2025 completion
- Project fully funded with ~$76.4M cash and no debt
- Targeting Final Investment Decision in late 2027
- Palladium prices reach over US$1,600/oz, supporting economics
- Exploration drilling underway across multiple WA and NT targets
Gonneville Project Progress
Chalice Mining Limited has reported solid advancement on its flagship Gonneville Palladium-Nickel-Copper Project in Western Australia. The Pre-Feasibility Study (PFS) is progressing well, with completion expected in November 2025. This study is critical as it finalises the project scope, mine plan, metallurgical testwork, and offtake assumptions, setting the stage for a targeted Final Investment Decision (FID) in late 2027.
The project envisions a long-life, bulk open-pit mine with a simple concentrator-leach process plant. Initial operations will focus on a lower throughput for the first four years, followed by an expansion from year five onward. Notably, the project benefits from being situated entirely on Chalice-owned farmland, reducing land acquisition complexities.
Financial and Market Context
Chalice is in a strong financial position, holding approximately $76.4 million in cash and listed investments with zero debt at the end of the quarter. This robust balance sheet fully funds the studies and permitting phase through to the FID. Operating cash outflows were around $5.9 million for the quarter, reflecting ongoing development and exploration activities.
Market conditions are favourable, with palladium prices climbing to a two-year high exceeding US$1,600 per ounce in October 2025. This price recovery is underpinned by supply constraints and geopolitical risks, including US trade investigations into Russian palladium imports. The tightness in the palladium and nickel concentrate markets is expected to enhance the commercial terms for Gonneville’s products.
Technical and Environmental Advances
Metallurgical testwork has delivered a simplified, industry-standard flowsheet that eliminates the need for hydrometallurgical processing, significantly reducing capital and operating costs. The project will produce two smelter-grade concentrates; one copper-rich and one nickel-rich; alongside an iron concentrate and a precious metals doré.
Environmental approvals are progressing on schedule, with draft Environmental Review Documents due for submission by mid-2026. Flora and fauna surveys have commenced along infrastructure corridors, and biodiversity offset programs are being expanded. Community engagement remains strong, with recent surveys showing 68% local support for the mine development.
Exploration and Corporate Developments
Beyond Gonneville, Chalice continues to advance exploration across multiple projects in Western Australia and the Northern Territory. Recent drilling at greenfield targets has intersected promising geological features, with further programs planned for the coming months.
On the corporate front, Chalice issued new performance rights and unlisted options to executives and non-executive directors, subject to shareholder approval at the upcoming Annual General Meeting. These incentives align management interests with the company’s long-term value creation goals.
Bottom Line?
With the Gonneville PFS nearing completion and palladium prices surging, Chalice is poised for a pivotal phase, investors will watch closely as the company moves toward its 2027 Final Investment Decision.
Questions in the middle?
- What will the maiden Ore Reserve Estimate reveal about Gonneville’s economic potential?
- How will binding offtake agreements shape project financing and risk profile?
- What impact will environmental approvals and community feedback have on the project timeline?