Chalice Mining updates market on Gonneville as it hunts for a...

Chalice Mining updates market on Gonneville as it hunts for a backer
The Gonneville high-grade sulphide resource has 59 million tonnes of resources including palladium, platinum, gold, nickel, cobalt and copper.

• By BRIDGET CARTER

DATAROOM EDITOR

• 9:11PM APRIL 23, 2024
• NO COMMENTS

Chalice Mining updated the market about its Gonneville deposit on Tuesday night but that is not stopping many in the market wondering what’s come of its sale process, launched well over six months ago.
The company said its strategic partnering process was continuing, in parallel with development studies and regulatory approvals.
It said Chalice’s Gonneville high-grade sulphide resource, northeast of Perth, had been revised to 59 million tonnes of resources including palladium, platinum, gold, nickel, cobalt and copper.
Work continues on the pre-feasibility study.
Sources believe that Chalice, which counts Tim Goyder as a major shareholder, could be close to selecting a partner, which may come from a jurisdiction such as Japan. The process has been going since at least mid-last year.
Buyer interest may partly rest on views about the prospects for a palladium miner in Australia.
Russia supplies 43 per cent of the metal used in jewellery, fuel cells, electronics, dentistry and healthcare technology, and 35 per cent comes from South Africa.
Another major palladium miner in a safe jurisdiction like Australia could have appeal.
The company said Gonneville was one of the largest recent nickel sulphide discoveries globally, and the largest platinum elements discovery in Australia.
Yet the concentrate production process for the Gonneville deposit is not straightforward. It involves separating out the nickel, cobalt and platinum group metals.
The share price of Chalice Mining has plunged from last year when battery minerals were popular, with far higher prices.
Then, Chalice Mining’s share price was over $7. Its shares last traded at $1.285, with its market value at almost $500m.
The company’s main project is its Julimar nickel and copper project in Western Australia’s Avon region, 70km northeast of Perth.
Standard Chartered has been working to find a backer for the group. Last year, Chalice Mining boss Alex Dorsch said offers had come from car and battery makers in North America, Japan, South Korea and Europe.
BRIDGET CARTER