Chalice Mining Achieves Major Metallurgical Breakthrough at Gonneville, Enhancing Project Viability

About Chalice Mining Limited

Chalice Mining Limited (ASX: CHN) is an Australian mineral exploration and development company focused on critical minerals. The company owns the Gonneville PGE-Ni-Cu-Co Project in Western Australia, a world-class deposit that plays a key role in the global transition to sustainable energy and decarbonisation.

Eliminating Hydrometallurgical Processing: A Cost-Effective Shift

Chalice Mining has achieved a significant metallurgical breakthrough at its Gonneville Project, allowing for the production of saleable copper and nickel concentrates from low-grade composite ores. This marks a critical turning point, as it eliminates the need for a complex and expensive hydrometallurgical process. The ability to generate smelter-grade concentrates simplifies the overall processing approach, reducing both technical risks and operational complexities.

The optimised flotation process has successfully yielded two high-value concentrates: a copper-PGE-gold concentrate grading 22-26% copper with 45-60g/t palladium, platinum, and gold (3E), and a nickel-cobalt-PGE concentrate grading 7.5-8.7% nickel with 0.8% cobalt and 18-20g/t 3E. Additionally, the implementation of conventional Carbon-in-Leach (CIL) leaching has enhanced the recovery of palladium and gold from flotation tails. The latest optimisations have significantly reduced reagent consumption and operational costs compared to previous estimates from the 2023 Scoping Study.

Financial and Strategic Implications for the Gonneville Project

The removal of the hydrometallurgical process has a direct positive impact on the project’s financial outlook. Chalice Mining expects a significant reduction in both capital intensity and operating expenses, leading to improved project margins for a bulk open-pit mine plan. The latest process optimisations align with conservative economic assumptions and are expected to enhance the overall feasibility of the project. The company’s strong financial position, with AUD 90 million in cash and investments, ensures that it remains well-funded for the ongoing Pre-Feasibility Study (PFS) and further development.

Another crucial advantage of the optimised processing route is the potential eligibility for tax incentives. Under Australia’s newly legislated Critical Minerals Production Tax Incentive, CIL leaching qualifies as an eligible expenditure, allowing for a 10% tax offset on operating costs. This incentive further strengthens the economic case for the project by providing additional cost savings over the life of the mine.

Chalice Mining is continuing its PFS work, which is scheduled for completion by mid-2025. The study will refine the development plan, optimise recoveries, and improve cost estimates with greater accuracy. The company is also engaging with potential strategic partners for marketing and offtake agreements to ensure a stable and profitable sales pipeline for its concentrates. With the global demand for critical minerals rising, particularly in the electric vehicle and renewable energy sectors, the company is well-positioned to capitalise on these market trends.