An extract from this morning's * article...

An extract from this morning's * article .............

Like nowhere else

Despite the sell-off, PGE expert Keith Goode, a well known Australian resources expert and geologist who runs analysis firm Eagle Research Advisory, said Julimar still boasts palladium numbers in its deep drilling that “don’t exist anywhere else”.

He’s a strong advocate for the idea that Gonneville’s best development prospect is underground, where Chalice could selectively mine higher grade portions of its 1.9km long, 800m deep resource.

“They’ll definitely go underground,” he suggested.

“I’ve seen some of that drill core on the underground and you’ve got grades that are like 40g/t of palladium out there, those kind of numbers don’t exist anywhere outside of WA.

“I’ve never seen those kind of numbers ever, in any other PGE orebody in the world.”

He said the 23% sell-off yesterday was a “kneejerk reaction”, with the $1.6-2.3 billion capex bill hardly unusual for a project of its size and processing method in WA.

Goode said De Grey Mining’s (ASXEG) Hemi gold project could come back with similar capex numbers, given its scale and the fact it is looking also at using pressure oxidation autoclaves to process sulphide rich resources.

Liontown’s (ASX:LTR) Kathleen Valley lithium mine and Lynas’ (ASX:LYC) Kalgoorlie rare earths cracking and leaching plant are also creeping towards the $1b mark in terms of capex.

First stab

In Goode’s opinion, Gonneville would be better developed conventionally like South African PGE projects, where higher grade sulphide ore is first sold to a third party smelter to generate income before constructing a smelter and eventually a refinery with the cash flows over time.

That would leverage what he says is a province scale opportunity at Julimar.

Currently Gonneville, which has high grade intercepts reported beneath the 800m base of its 560Mt resource, covers just 7% of the Julimar Complex, a 26km long structure which extends beneath the Julimar State Forest.

Beyond that is hundreds of kilometres of relatively unexplored territory on the western edge of the Yilgarn Craton, a geological structure thought to be barren relative to the historic gold, lithium and nickel rich Eastern Goldfields on the other side of the massive domain.

He described the study as a ‘first stab’, with the project’s scope likely to change especially after Chalice completes is strategic partnering process for Julimar.

“It’s just a scoping study, it’s not your final design route,” Goode said.

“So basically, you’ve got to do the PFS which really starts to hone down which way you’re going to go".