Chalice Mining’s Gonneville Project: Critical Minerals Pre-feasibility Study Progress

What is the Gonneville Project and Why is it Significant?

Chalice Mining's Gonneville project represents one of Australia's most significant critical minerals energy transition discoveries in the past decade. Located approximately 70km north of Perth in Western Australia, this remarkable multi-element deposit was discovered in 2020 and has rapidly gained recognition for its strategic importance in the global minerals landscape.

The project sits predominantly on cleared farmland within Chalice's 22 square kilometer landholding, providing logistical advantages while minimizing environmental disruption. What truly distinguishes Gonneville is its unique mineral composition, containing a valuable combination of platinum group elements (PGEs), nickel, copper, and cobalt—all critical resources for the clean energy transition and advanced manufacturing.

In recognition of its strategic importance, the Western Australian government granted Gonneville "strategic project" status in 2024, while the federal government simultaneously designated it a "major project." These classifications reflect the deposit's potential contribution to Australia's critical minerals industry and national economic priorities.

Understanding Gonneville's Strategic Value

The Gonneville deposit's value extends far beyond its mineral content. As global demand for battery metals and platinum group elements continues to surge, this project represents a rare opportunity to develop a domestic supply chain for materials essential to renewable energy technologies, electric vehicles, and aerospace applications.

The project's proximity to Perth provides significant infrastructure advantages, reducing development costs and environmental footprint while enabling efficient access to skilled labor, technical expertise, and export facilities. This strategic location enhances the project's commercial viability compared to more remote critical mineral deposits.

"Gonneville represents a rare convergence of favorable factors: exceptional mineralogy, strategic location, and supportive regulatory environment—all amid growing global demand for these specific critical minerals," notes industry analysts tracking the project's development.

Chalice Mining's landholding also presents expansion potential, with ongoing exploration activities suggesting the possibility of additional mineralized zones that could further enhance the project's scale and WA resources economic impact.

Critical Minerals Significance in the Global Market

The mineral combination at Gonneville places it squarely at the intersection of several high-demand markets:

• Platinum Group Elements (PGEs): Essential for catalytic converters, fuel cells, and emerging clean hydrogen technologies
• Nickel: Critical component in lithium-ion batteries, stainless steel, and aerospace alloys
• Copper: Fundamental to electrical infrastructure, renewable energy systems, and electric vehicles
• Cobalt: Key battery metal that enhances energy density and thermal stability

This mineral portfolio positions Gonneville as a potential cornerstone in Australia's critical minerals energy transition strategy, addressing supply chain vulnerabilities while capitalizing on growing international demand for responsibly-sourced materials.

The July 2024 strategic memorandum of understanding with Japanese conglomerate Mitsubishi further validates Gonneville's global significance. This partnership represents international recognition of the project's potential to supply high-quality critical minerals to Asian markets, potentially securing offtake arrangements that could accelerate development.

How is the Gonneville Pre-Feasibility Study Progressing?

The pre-feasibility study (PFS) for Chalice Mining and Gonneville pre-feasibility study commenced in mid-2023 and is advancing toward its targeted completion in the fourth quarter of 2025. This comprehensive technical and economic assessment represents a crucial milestone in the project's development pathway.

The PFS encompasses multiple workstreams designed to evaluate Gonneville's viability across various scenarios. Engineering teams are concurrently assessing mining methods, processing technologies, infrastructure requirements, and economic parameters to develop an optimized development strategy that maximizes value while minimizing environmental impacts.

A distinctive feature of Chalice's approach is the focus on a staged development pathway—prioritizing higher-grade zones initially while establishing infrastructure that can support subsequent expansion phases. This methodical strategy aims to reduce upfront capital requirements while generating earlier cash flows to support future growth.

Current PFS Timeline and Objectives

The PFS timeline aligns with the broader regulatory process, with draft environmental review documents scheduled for submission in mid-2026. This coordinated approach ensures technical and environmental considerations are integrated throughout the modern mine planning process.

Key objectives of the current PFS include:

1. Technical Viability Assessment: Determining optimal mining and processing methods for Gonneville's complex multi-element mineralogy
2. Development Pathway Optimization: Establishing the most efficient staged approach to resource extraction and processing
3. Economic Evaluation: Assessing project economics across various metal price scenarios and operating parameters
4. Infrastructure Planning: Finalizing designs for processing facilities and supporting infrastructure
5. Risk Mitigation Strategies: Identifying and addressing potential challenges before advancing to the feasibility stage

Progress on these objectives has enabled Chalice to finalize its site conceptual plan, providing clarity on infrastructure placement and operational configurations that will form the foundation for detailed engineering work.

Mitsubishi Partnership: Strategic Implications

In July 2024, Chalice Mining signed a strategic memorandum of understanding (MOU) with Mitsubishi Corporation, marking a significant validation of Gonneville's potential. This partnership brings together Chalice's mineral resources with Mitsubishi's global reach, technical expertise, and financial capabilities.

The collaboration offers several strategic advantages:

• Technical Knowledge Transfer: Access to Mitsubishi's experience in developing similar resource projects globally
• Supply Chain Integration: Potential connection to Mitsubishi's extensive network of industrial customers in the battery and automotive sectors
• Financial Support: Possible pathways to project financing through Mitsubishi's investment arms
• Market Access: Enhanced ability to secure offtake agreements with Asian manufacturers

"Partnerships with major international players like Mitsubishi can significantly de-risk development projects by providing technical expertise, market access, and potential financing avenues," explain mining finance specialists.

This collaboration also signals growing international recognition of Western Australia's critical role in global critical minerals supply chains, potentially attracting additional partners and investors to the Gonneville project.

What Does the Site Conceptual Plan Reveal?

Chalice Mining has finalized a comprehensive site conceptual plan for Gonneville that optimizes operational efficiency while minimizing environmental footprint. This detailed blueprint positions all major infrastructure elements—including open-pit mining operations, processing facilities, and supporting infrastructure—within the company's 22 square kilometer landholding.

The site plan strategically utilizes predominantly cleared farmland, reducing biodiversity impacts while simplifying construction logistics. This approach reflects Chalice's commitment to sustainable mining practices that balance economic objectives with environmental and community considerations.

The finalized plan represents a significant milestone in the pre-feasibility study process, providing a concrete foundation for detailed engineering designs and environmental assessment work. It also enables more precise capital cost estimations and construction planning for subsequent development phases.

Infrastructure and Processing Design

The site conceptual plan incorporates several key infrastructure elements:

• Open-Pit Mining Areas: Strategically positioned to access high-grade zones initially while maintaining efficient expansion pathways
• Processing Plant: Centrally located to minimize ore transportation distances while allowing for modular expansion
• Tailings Storage Facility: Designed with modern containment systems to protect groundwater resources
• Water Management Infrastructure: Including collection ponds, treatment facilities, and recycling systems
• Site Access Roads: Configured to minimize community impact while ensuring operational efficiency
• Administrative Facilities: Positioned to optimize site management and personnel logistics

This integrated approach to infrastructure planning demonstrates Chalice's commitment to operational excellence and environmental stewardship. The proximity to existing regional infrastructure, including power networks and transportation corridors, enhances the project's logistical advantages.

Technical Advancements in Processing

Metallurgical testwork conducted during the PFS has informed significant flowsheet innovations for metal recovery, focusing on maximizing extraction efficiency across Gonneville's diverse mineral suite. These technological advancements aim to optimize recovery rates while minimizing energy consumption, water usage, and reagent requirements.

The processing strategy addresses several technical challenges:

1. Multi-Element Recovery: Developing circuits that effectively separate and concentrate PGEs, nickel, copper, and cobalt from a single ore source
2. Concentrate Quality: Producing marketable concentrates that meet offtaker specifications for impurity levels and mineral content
3. Water Conservation: Implementing closed-loop systems that maximize recycling and minimize freshwater requirements
4. Energy Efficiency: Selecting grinding and separation technologies that reduce power consumption without compromising recovery rates

Chalice's approach to processing technology selection balances proven methodologies with innovative techniques, ensuring reliable performance while incorporating advances in mineral processing efficiency. This balanced strategy mitigates technical risk while positioning the project to benefit from ongoing technological improvements.

What Regulatory and Environmental Steps are Underway?

Chalice Mining and Gonneville pre-feasibility study is navigating a comprehensive regulatory pathway, with significant milestones already achieved and a clear roadmap for remaining approvals. The project's designation as a "strategic project" by the Western Australian government and "major project" by the federal government in 2024 has streamlined certain approval processes while maintaining rigorous environmental standards.

These designations reflect recognition of Gonneville's economic significance and provide access to coordinated approval mechanisms that reduce administrative duplication while ensuring thorough assessment. This regulatory approach balances development facilitation with environmental protection, creating a more predictable timeline for project advancement.

The regulatory process is proceeding in parallel with technical studies, allowing environmental considerations to inform design decisions throughout the pre-feasibility study. This integrated approach helps identify and address potential impacts early, reducing the risk of costly redesigns or approval delays.

Approval Process Timeline

The regulatory pathway for Gonneville includes several key milestones:

• Strategic/Major Project Designations: Secured in 2024, providing access to streamlined approval coordination
• Baseline Environmental Studies: Ongoing since project initiation, documenting existing conditions
• Draft Environmental Review Documents: Targeted for submission in mid-2026
• Public Comment Period: Expected following document submission in 2026
• Regulatory Assessment: Anticipated through late 2026 and 2027
• Final Approvals: Required before final investment decision in late 2027

This timeline aligns with the technical development schedule, positioning the project for an investment decision once both regulatory and definitive feasibility study are complete. The structured approach to approvals provides stakeholders with transparency regarding assessment processes and decision points.

Environmental and Community Considerations

Chalice's environmental approach extends beyond compliance to incorporate sustainable development principles. The company is conducting comprehensive baseline studies covering biodiversity, water resources, air quality, and cultural heritage to establish a thorough understanding of the project area.

Environmental planning emphasizes several priorities:

• Water Management: Developing strategies to minimize consumption, manage quality, and protect groundwater resources
• Land Rehabilitation: Creating progressive restoration plans to return disturbed areas to productive use
• Biodiversity Protection: Identifying and preserving areas of ecological significance
• Waste Minimization: Designing systems to reduce waste generation and ensure proper containment
• Carbon Footprint: Evaluating options to minimize greenhouse gas emissions through efficient design and renewable energy integration

"Successful critical minerals projects increasingly depend on demonstrating robust environmental and social governance frameworks that address stakeholder concerns while meeting regulatory requirements," note sustainability experts following the mining sector.

Community engagement forms a central component of Chalice's approach, with ongoing consultation to understand local priorities and address concerns. This collaborative process aims to build lasting relationships with community stakeholders while maximizing local economic benefits through employment opportunities and business development.

What is the Project Development Pathway?

Chalice Mining has established a structured development pathway for Gonneville that balances technical rigor with commercial pragmatism. The company's approach focuses on methodical de-risking through progressive study stages, culminating in a final investment decision targeted for late 2027.

This development strategy prioritizes a staged approach to minimize initial capital requirements while establishing infrastructure that supports future expansion. By focusing initially on higher-grade zones and core processing capabilities, Chalice aims to generate earlier cash flows that can help fund subsequent development phases.

The pathway incorporates flexibility to adapt to changing market conditions, technological advancements, and regulatory requirements. This adaptability is particularly important for critical minerals projects, where market dynamics and processing technologies continue to evolve rapidly.

Investment Decision Timeline

The path to final investment decision includes several critical milestones:

1. Pre-Feasibility Study Completion (Q4 2025): Establishing technical viability and economic parameters
2. Environmental Review Submission (Mid-2026): Initiating formal regulatory assessment
3. Definitive Feasibility Study (2026-2027): Finalizing engineering designs and cost estimates
4. Financing Arrangements (2027): Securing capital commitments from partners and lenders
5. Final Investment Decision (Late 2027): Board approval to proceed with construction
6. Construction Phase (2028-2029): Building processing facilities and site infrastructure
7. Commissioning and Ramp-up (2029-2030): Progressive startup of operations

This timeline provides stakeholders with clear visibility into the project's advancement, enabling better coordination of support services, workforce development, and community planning. The structured approach also allows for stage-gate reviews at each major milestone to ensure the project continues to meet economic and sustainability criteria.

Financing and Partnership Strategy

Chalice is pursuing a multi-faceted financing strategy that leverages strategic partnerships, government support mechanisms, and traditional project finance structures. The July 2024 memorandum of understanding with Mitsubishi represents a significant component of this approach, potentially providing access to both capital and market connections.

The financing strategy encompasses several elements:

• Strategic Partner Engagement: Continuing discussions with potential offtake partners and strategic investors
• Government Support: Exploring available grants and incentives for critical minerals development
• Debt Financing: Evaluating project finance options with commercial and development banks
• Equity Components: Assessing appropriate balance of equity funding for project development

"Critical minerals projects often benefit from blended financing approaches that combine strategic investment, government support, and traditional project finance to distribute risk while accelerating development," according to mining finance advisors.

Chalice's engagement with potential offtake partners extends beyond financing to include technical collaboration, product specification development, and supply chain integration. These partnerships can provide valuable market insights while establishing frameworks for future commercial relationships.

How Does Gonneville Compare to Similar Projects?

Gonneville distinguishes itself among global critical mineral developments through its unique combination of minerals, strategic location, and development potential. While comprehensive benchmarking requires detailed technical parameters that will emerge from the pre-feasibility study, several comparative advantages are already apparent.

The project's multi-element nature—containing platinum group elements, nickel, copper, and cobalt in a single deposit—represents a relatively rare mineral assemblage globally. This combination creates opportunities for processing synergies while reducing the market risk associated with single-commodity projects.

Gonneville's location provides significant infrastructure advantages compared to many critical mineral projects in remote regions. Proximity to Perth ensures access to skilled labor, technical services, power infrastructure, and transportation networks—reducing both capital requirements and operational complexities.

Benchmarking Against Global Critical Mineral Developments

When compared to international peers, Gonneville offers several distinctive characteristics:

• Mineral Diversity: Few global projects contain the same combination of battery metals and platinum group elements in economically viable concentrations
• Jurisdictional Advantage: Western Australia offers political stability and well-established mining regulations compared to many alternative supply regions
• Infrastructure Access: Superior logistics and utility connections versus remote projects in frontier regions
• Development Timeline: Potentially accelerated path to production due to supportive regulatory framework and existing infrastructure

The project's scale relative to global peers will be further clarified through the pre-feasibility study, which will establish resource parameters, production capacities, and capital intensity metrics that enable more precise benchmarking against comparable developments.

Market Position Analysis

Gonneville's market position benefits from growing demand for responsibly-sourced critical minerals, particularly those essential to clean energy technologies and advanced manufacturing. The project addresses several supply-chain vulnerabilities currently concerning manufacturers and governments:

1. Geographic Concentration Risk: Diversifying supply away from politically complex regions
2. Environmental Standards: Offering materials produced under Western Australia's stringent regulatory framework
3. Supply Chain Transparency: Providing clearly documented provenance for critical inputs
4. Processing Integration: Potential for domestic value addition through refined products

The project's development timeline aligns with projected supply gaps in several critical minerals markets, particularly nickel and platinum group elements, where demand growth from battery manufacturing and hydrogen technologies is expected to outpace current production capacity.

Market positioning is further enhanced by Australia's strategic trade relationships, particularly with key manufacturing hubs in Asia and technology developers in North America and Europe. These established connections can facilitate offtake arrangements and strategic partnerships that accelerate Gonneville's integration into global supply chains.

What are the Economic Implications of Gonneville?

The Gonneville project represents a potentially significant economic catalyst for Western Australia, generating employment opportunities, export revenue, and supply chain development across multiple sectors. While specific economic projections await completion of the pre-feasibility study, the project's scale and strategic importance suggest substantial regional and national benefits.

The project's development model—focusing on both mining and initial processing—creates opportunities for value addition within Australia rather than simply exporting raw materials. This approach aligns with national priorities to capture more economic value from critical mineral resources while building domestic technical capabilities.

Long-term economic impacts extend beyond direct operations to include skills development, technology transfer, and infrastructure improvements that benefit broader regional development. These lasting contributions enhance the project's significance

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