Chalice Mining Limited (ASX: CHN) is delighted to announce an updated Mineral Resource Estimate (MRE) for its 100%-owned Gonneville PGE-Ni-Cu-Co Project, situated on Chalice-owned farmland approximately 70km north-east of Perth in Western Australia. This development marks a significant stride towards optimizing the Project amid a challenging commodity price landscape.
The discovery of the extensive Gonneville orthomagmatic palladium-platinum-nickel-copper-cobalt sulphide deposit by Chalice in early 2020 has been a focal point. Over the past four years, an extensive drilling campaign encompassing more than 1,200 drill holes spanning approximately 320,000 meters has been executed to delineate the Resource, which remains open to the north-west and down-dip.
Since the last Resource update in March 2023, meticulous modeling efforts have honed in on reinterpreting high-grade sulphide zones within the Resource, enabling exploration of selective mining methodologies in greater detail. Notably, the updated MRE includes separate modeling of high-grade palladium, nickel, and copper zones to enhance delineation of mineralogical domains. Previous Resource models predominantly assumed bulk open-pit mining methods with considerably larger block sizes.
Furthermore, the integration of 56 additional drill holes serves to bolster confidence in the Resource and extend its depth down-dip to approximately 1,100 meters. The Resource comprises a mixture of oxide, transitional, and fresh mineralization. Sulphide mineralization within the pit is delineated at two distinct Net Smelter Return (NSR) cut-offs, one reflecting the initial emphasis on a high-grade, selective mining starter case, and another indicative of potential future expansion into bulk open-pit mining.
As of April 23, 2024, the updated Resource for the Gonneville deposit is presented in Tables 1 and 2, with key variances between the March 2023 and April 2024 estimates highlighted in Table 3.
Commenting on the updated Resource, Chalice Managing Director & Chief Executive Officer, Alex Dorsch, remarked:
"The remodeled high-grade sulphide Resource marks the initial phase in the recalibration of the development strategy for the Gonneville Project. The refined high-grade model serves as a foundation for designing a more selective, smaller scale starter project.
"The starter project blueprint aims to prioritize higher grades initially, thereby enhancing recoveries and overall margins, with the aim of fortifying the project's resilience in a conservative commodity pricing environment. Additionally, the reduced scale of the starter project translates to lower development capital costs and consequently a diminished risk profile.
"Crucially, the scaled-down starter project design allows for potential expansion into a larger scale bulk mining operation contingent upon prevailing economic conditions. Initial selective mining preserves the flexibility for future expansion, as mined material can be stockpiled for subsequent processing. This phased development approach mitigates risk, optimizes capital deployment, and maximizes flexibility.
"Encouragingly, recent step-out drill holes have confirmed further Resource growth at depth and unearthed additional exploration upside, reaffirming Gonneville's status as a world-class mineral system of generational significance.
"We eagerly anticipate finalizing the revised Scoping Study Starter Case in the ensuing months and advancing the Pre-Feasibility Study, slated for completion in mid CY25. Armed with the enhanced Resource model and a robust cash position, Chalice is well-positioned to advance this distinctive critical minerals project."
