Chalice Advances Gonneville Feasibility with Pilot Plant and Strategic Partnerships

Feasibility Study Advances with Pilot Plant and Environmental Planning

Chalice Mining (ASX:CHN) is pushing forward with its 100%-owned Gonneville Palladium-Nickel-Copper Project in Western Australia, advancing the Feasibility Study (FS) that is shaping up as a critical step toward project financing and execution. The company is preparing for an eight-week continuous pilot plant scheduled to start in Q3 2026, which will test the full processing flowsheet and represents the final de-risking milestone for financiers.

Alongside metallurgical drilling to supply ore for the pilot plant, Chalice has refined the palladium-platinum-gold-nickel elution process within the leach circuit, achieving a simplified and commercially viable design. Environmental modelling and assessment are progressing, with draft Environmental Review Documents due for submission in Q4 2026, marking a key phase in securing regulatory approvals that are expected to be the critical path to the Final Investment Decision (FID) targeted for H1 2028.

Project Economics and Development Timeline

The Gonneville Project is designed as a 23-year open-pit mine producing annual averages of 220,000 ounces of 3E precious metals (palladium, platinum, gold), 7kt of nickel, 8kt of copper, and 0.7kt of cobalt. Using conservative commodity price assumptions, the Pre-Feasibility Study (PFS) released in December 2025 forecasted A$4.7 billion in pre-tax free cashflow with a rapid payback period of 2.7 years. The mine is expected to be the lowest-cost primary platinum group metals producer in the western world, with all-in sustaining costs averaging US$370 per ounce 3E.

Following the FS completion in H2 2027, Chalice plans an 18-month engineering and construction phase, aiming for first production in early 2030. The company is actively negotiating offtake agreements for copper and nickel concentrates, focusing on maintaining flexibility while exploring linked project financing options to align with downstream partners.

Exploration Expands Across Multiple Jurisdictions

Chalice’s exploration portfolio spans over 6,500 square kilometres across Western Australia, the Northern Territory, South Australia, and New Zealand. The June quarter saw significant progress at the Deep Blue copper-rare earth element target within the Northam JV in WA, where a 2.5km soil anomaly hosts rock chip samples with up to 19.3% total rare earth oxides, including high-value magnet rare earths like Neodymium and Praseodymium. A 19-hole RC drilling program commenced in mid-July, with assay results pending.

In South Australia, the Callabonna JV is preparing for drilling in September, targeting iron-oxide copper-gold systems beneath large magnetic and gravity anomalies. Meanwhile, in the Northern Territory, three new Warrego North exploration licences were granted, enabling RC drilling to start in September after years of permitting delays. The Warrego North targets are situated near historically prolific copper-gold deposits in the Tennant Creek Mineral Field.

Corporate Strengthening and Financial Position

Chalice appointed Paul De Ponte as Gonneville Project Director in July 2026, bringing over 25 years of experience in delivering major mining projects, including leadership roles at Rio Tinto. Tim Langmead was named General Manager Corporate Affairs, tasked with overseeing government relations and stakeholder engagement critical to advancing regulatory approvals.

The company also engaged Odin Partnership Limited as strategic advisors, leveraging their global expertise in mining finance and project development. Chalice closed the quarter with a robust cash and listed investments position of $59 million, adequately funding operations through to the targeted FID. The company continues to engage with a range of potential financiers, including royalty and streaming companies, sovereign credit agencies, and offtake partners.

Economic and Community Impact Modelling

Economic modelling completed during the quarter highlights the Gonneville Project’s potential to deliver substantial benefits to Western Australia and the broader Australian economy. Over its 23-year life, the project is projected to contribute $24.1 billion to the state’s Gross State Product, support an average of 3,761 jobs including 419 direct residential roles, and generate $7.7 billion in procurement from over 1,200 local businesses. These figures underscore the project's strategic importance amid growing global demand for critical minerals.