Funding and Approvals: The Key Hurdles Ahead for Chalice’s Gonneville Development
Chalice Mining has completed a pivotal Pre-Feasibility Study for its Gonneville Palladium-Nickel-Copper Project, defining a maiden Ore Reserve and setting sights on a Final Investment Decision by mid-2028 amid robust metal prices.
- Completion of Gonneville Pre-Feasibility Study and maiden Ore Reserve
- 23-year open-pit mine with A$1.4bn pre-tax NPV and 23% IRR
- Strong palladium, nickel, and copper price environment boosting project economics
- Fully funded through to targeted Final Investment Decision in H1 2028
- Ongoing exploration and regulatory approvals progressing alongside offtake negotiations
A Milestone for Gonneville
Chalice Mining Limited has marked a significant milestone in the development of its 100%-owned Gonneville Project in Western Australia, completing a comprehensive Pre-Feasibility Study (PFS) and defining a maiden Ore Reserve. This 23-year open-pit operation is poised to become Australia's first primary Platinum Group Metal (PGM) mine and the country's second largest nickel mine, underpinning a diversified revenue stream from palladium, nickel, copper, and valuable byproducts.
Robust Financial Metrics Amid Rising Metal Prices
The PFS outlines a project with strong financial fundamentals, including a pre-tax net present value (NPV) of A$1.4 billion at an 8% discount rate and an internal rate of return (IRR) of 23%. The initial capital expenditure is estimated at A$820 million, with a payback period of under three years for the first stage. Notably, spot prices for palladium, copper, platinum, cobalt, and gold have surged well above the conservative base case assumptions used in the study, enhancing the project's upside potential.
Strategic Development and Funding Pathway
The development plan features a two-stage open-pit mining approach designed to balance capital efficiency and long-term value. Stage 1 focuses on higher-grade ore with a processing capacity of 5 million tonnes per annum, while Stage 2 expands throughput to 14 million tonnes per annum. Chalice is fully funded through to a targeted Final Investment Decision (FID) in the first half of 2028, supported by a strong cash position of approximately A$71.3 million and no debt. The company is actively engaging with potential offtake partners and financiers, including sovereign credit agencies and strategic investors, to secure project financing.
Environmental and Community Commitments
Chalice is advancing environmental approvals with submissions planned for the second half of 2026. The project benefits from 'Major' and 'Strategic' status awarded by Western Australian and Commonwealth governments, reflecting its critical minerals importance. The company emphasises sustainable development, with a biodiversity strategy aimed at no net loss of species and habitat, and strong community engagement, particularly with the Whadjuk Indigenous group under the South West Native Title Settlement.
Exploration and Corporate Updates
Beyond Gonneville, Chalice continues to explore multiple projects across Western Australia and the Northern Territory, applying a disciplined approach to capital allocation. The company reported executive changes with the departure of its Chief Operating Officer and appointment of an interim Study Manager for Gonneville. Operationally, Chalice maintains a forecast expenditure of approximately A$1.5 million per month, focusing on advancing feasibility studies and regulatory processes.
Bottom Line?
With a robust PFS and strong market tailwinds, Chalice’s Gonneville Project is on track to reshape Australia’s critical minerals landscape, next steps hinge on securing financing and environmental approvals.
Questions in the middle?
- How will ongoing fluctuations in palladium and nickel prices impact the final investment decision?
- What are the prospects and timelines for expanding mining beyond the current open-pit resource?
- How will Chalice structure its financing to balance debt and strategic partnerships for project execution?
