Chalice Mining (ASX: CHN) – Q3 2026 Quarterly Activities Report

Chalice Mining’s September quarterly update shows the Gonneville palladium-nickel-copper project advancing to a critical de-risking phase with an 8-week continuous pilot plant scheduled to commence in November 2026. The pilot plant represents the final validation step for the full flowsheet before the Definitive Feasibility Study completion, expected in Q3 2027. This timeline positions the company toward a targeted Final Investment Decision in the first half of 2028 and first production in early 2030.

The Gonneville project is modeled to generate A$4.7 billion in pre-tax free cash flow over its 23-year open-pit phase under conservative commodity price assumptions. The company forecasts annual production of 220,000 ounces of 3E precious metals, 7,000 tonnes of nickel, 8,000 tonnes of copper, and 700 tonnes of cobalt. Management describes Gonneville as forecast to become the lowest-cost PGM mine in the western world, with all-in sustaining costs of US$370 per ounce of 3E over the initial 23-year period. These production and cost metrics underpin the project’s investment case.

Market conditions are favoring offtake discussions for Gonneville’s primary products. Chalice reported strong inbound interest in copper concentrate offtake given exceptionally tight copper market conditions, while nickel concentrate interest has strengthened due to supply diversification away from Indonesian sources. The company is pursuing formal offtake negotiations and aiming to secure 60 to 70 percent of pre-production funding through export credit agencies, sovereign debt, or grants, with the balance from byproduct streams, offtake-linked finance, and strategic investment. The company finished the quarter with a cash position of approximately A$53 million, providing near-term flexibility.

Board changes announced during the quarter bring significant development and financial experience to the table. Ross Carroll, former Chief Financial Officer at MMG and Woodside Petroleum, will assume the Non-Executive Chair role, while Gerard Rheinberger, a former Rio Tinto senior executive, joins as Non-Executive Director. These appointments signal management’s confidence in transitioning from development to execution phase and show the scale of the opportunity. The company also strengthened its operating team with Paul De Ponte as Gonneville Project Director and Tim Langmead as General Manager Corporate Affairs.

Environmental approvals represent the critical path to FID. An independent review by former Western Australian EPA Chair Dr Tom Hatton endorsed Chalice’s environmental approvals strategy and targeted timeline. The company expects to submit the Environmental Review Document and Public Environment Report in Q4 2026, with major environmental approvals anticipated in H1 2028. Investors should monitor progress on pilot plant results in Q1 2027, the FS completion timeline, and regulatory approval decisions as the project moves toward FID. This announcement is price sensitive and has been flagged as material by the ASX.

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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