‘Gonneville is viable’: Goyder’s Chalice Mining halves Toodyay mine build costs but key investor missing

Tim Goyder-backed Chalice Mining has released a long-awaited pre-feasibility study outlining a cheaper way forward for its Gonneville mine near Toodyay, but it is yet to nail funding support from a key partner. Shares in the listed junior, made famous by its nickel-copper-platinum group elements discovery in 2020, were down 9.4 per cent in early trade to $1.58 as the market digested updated project numbers. Revised initial costs of turning the Gonneville discovery into a producing mine have been reduced substantially under the new, smaller-scale proposed plan to $820 million from a previous $1.6 billion price tag billed in 2023. It would churn out an initial 220,000 ounces a year of palladium, platinum and gold, making it a first-of-its-kind mine in Australia producing the metals group referred to as 3E precious metals. Gonneville would also deliver a further 7000tpa of nickel and 8000tpa of copper. However, the study leaves a big question mark of further involvement from Japanese industrials giant Mitsubishi Corporation, which agreed to partner which Chalice under a non-binding memorandum of understanding in July 2024. At the time the pair agreed to work towards potentially firming up a binding partnership or joint venture to develop the miner’s Gonneville nickel-copper-platinum group elements discovery, but only once a pre-feasibility study had been completed, then due in mid-2025. “We would like to thank Mitsubishi for their support and input to date, and we look forward to working closely with them as we progress into offtake and financing discussions,” chief executive Alex Dorsch said. The explorer has indicated it plans to pursue debt funding to advance the project. It’s hoped the new study will lead to securing funding partners, and Chalice is looking to appeal to increased government interest in bolstering its critical minerals supplies. Receiving “strategic project” status from the State Government and “major project” status from the Federal Government, is also hoped to aid the funding mission. Mr Dorsch told analysts on Monday Gonneville was now a “fundable and executable project”. “The pre-feasibility study is a major milestone for Chalice, and highlights our plan to develop a major critical minerals mine which, due to its scale, longevity and location represents a compelling, unique and strategic opportunity in the sector,” he said in a statement. “The study demonstrates that Gonneville is viable and will generate solid returns, even at bottom of the cycle prices.” More to come.