Chalice Mining’s Gonneville PFS Unveils Low-Cost Critical Minerals Giant

A New Critical Minerals Powerhouse Emerges

Chalice Mining Limited has released a comprehensive Pre-Feasibility Study (PFS) for its Gonneville Palladium-Nickel-Copper Project, located in Western Australia’s under-explored West Yilgarn region. The study outlines a large-scale, long-life open-pit mine that promises to be a globally significant source of critical minerals essential for the energy transition and automotive sectors.

The project is positioned as the largest and lowest-cost undeveloped palladium-nickel-copper reserve in the western world, with an initial 23-year mine life. It is forecast to generate approximately A$4.7 billion in free cash flow pre-tax, with a rapid payback period of around 2.7 years. The robust financial metrics include a pre-tax net present value (NPV) of A$1.4 billion and an internal rate of return (IRR) of 23%, underscoring the project's strong economic fundamentals.

Competitive Cost Profile and Strategic Advantages

Gonneville’s cost profile is particularly compelling, with all-in sustaining costs (AISC) estimated at US$370 per ounce of 3E palladium-platinum-gold equivalent, placing it in the second quartile globally and the lowest cost in the Western world. This low-cost position is supported by a simple, proven flotation and leach processing flowsheet and a low strip ratio of 1.2x for the open-pit mining operation.

Strategically, the project benefits from ownership of approximately 2,600 hectares of surrounding farmland, significantly de-risking development and providing ample space for infrastructure and biodiversity offsets. It has also secured “Strategic Project Status” from the Western Australian government and “Major Project Status” from the Australian Federal Government, reflecting strong regulatory support and community engagement.

Robust Market Position and Palladium Leverage

Gonneville’s revenue mix is diversified across palladium (51%), nickel (22%), copper (17%), and cobalt, providing resilience against commodity price fluctuations. The project is particularly leveraged to palladium prices, with every US$100 per ounce increase in palladium adding approximately A$250 million to the project’s NPV and A$630 million to cumulative free cash flow.

Given the constrained global palladium supply; dominated by geopolitically sensitive regions like Russia and South Africa; and the structural demand from hybrid vehicle catalysts, Gonneville is well positioned to capitalize on a tightening market. The PFS also highlights significant exploration upside, with about half of the resource remaining unmined below the planned pit shell and open at depth, offering potential for future expansion or underground mining.

Pathway to Development and Sustainability Commitments

Chalice is funded to reach a Final Investment Decision (FID) targeted for the first half of 2028, with environmental review documents scheduled for submission in the second half of 2026. The company’s experienced management team, including COO Dan Brearley and GM Environment & Community Jocelyn Zimmerman, is advancing regulatory approvals, offtake negotiations, and financing discussions.

Environmental stewardship is a core pillar of the project, with commitments to no net loss of species or habitat diversity, extensive baseline surveys, and restoration initiatives already underway. The project’s location on cleared farmland and proximity to Perth enable access to existing infrastructure and a local workforce, avoiding fly-in fly-out complexities common in remote mining operations.

Looking Ahead

The Gonneville PFS positions Chalice Mining at the forefront of critical minerals development in Australia, combining scale, cost competitiveness, and strategic leverage to palladium. As the company progresses toward feasibility studies and regulatory milestones, the market will be watching closely for how commodity price dynamics and financing arrangements shape the project’s trajectory.