Chalice Mining has completed its Pre-Feasibility Study for the Gonneville PGM-Nickel-Copper-Cobalt Project in Western Australia, confirming the project ranks as the largest and lowest-cost primary PGM mine development in the western world. The study validates Chalice’s positioning as a critical minerals developer at a time when global demand for battery and industrial metals continues to outpace supply.
The financial case is compelling. The project delivers an A$1.4 billion net present value at an 8 percent discount rate (pre-tax) with a 23 percent internal rate of return. Free cashflow totals A$4.7 billion over the project life, with payback achieved within 2.7 years of first production. All-in sustaining costs are pitched at US$370 per ounce of three-element PGM (palladium, platinum, gold), placing Gonneville in the second quartile of the global cost curve, a significant achievement for a greenfield project in an inflationary environment. These metrics suggest Gonneville can generate substantial shareholder returns across commodity cycles.
Production capacity underwrites the economics. The project is modelled to produce an average 220,000 ounces of three-element PGM annually alongside 7,000 tonnes of nickel, 8,000 tonnes of copper, and 700 tonnes of cobalt per year across a 23-year open-pit mine life. The maiden ore reserve of 260 million tonnes at 0.86 grams per tonne represents 7.1 million ounces of PGM and significant nickel-copper inventory. Reserve definition is constrained by infill drilling density, suggesting material upside as the project advances through detailed studies.
The project’s economic contribution extends beyond Chalice shareholders. Development and operation will generate A$29.2 billion in economic value for Australia, including A$2.0 billion in taxes and royalties. Construction and operation are predicted to create 3,761 direct and indirect jobs across Western Australia, representing transformational employment in regional Australia. This regional impact story may help secure community and government support through the approvals process.
Timeline visibility is a key strength. Environmental modelling is complete, with Environmental Review Documents targeted for submission in the December quarter of calendar 2026. The Feasibility Study commenced in the March quarter of 2026 and tracks toward completion in the second half of 2027. Final Investment Decision is targeted for the first half of 2028, meaning shareholders have a defined pathway to project sanctioning over the next 18 months.
Investors should monitor regulatory progression and approvals momentum. An independent review by former WA EPA Chair Dr Tom Hatton supports Chalice’s targeted FID timing, a positive signal for execution credibility. The next catalyst is the Environmental Review Document submission and subsequent regulator feedback cycles. Commodity prices for nickel, copper, and platinum group metals will also warrant attention, as movements in these markets directly influence project economics between now and Final Investment Decision.
View the full ASX announcement (PDF)
About Chalice Mining Limited (ASX: CHN)
Chalice Mining Limited is an explorer and developer of precious and base metals, with a primary focus on its flagship Julimar project in Western Australia. The project contains platinum group elements, nickel, copper, cobalt, and gold resources. The company maintains additional exploration interests across Western Australia and the Northern Territory, positioning itself as a developer of green metals for the energy transition.
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