Chalice Mining has concluded the March 2024 quarter with about $107 million in cash and investments, setting the company up to progress exploration activities at the Gonneville nickel-copper-platinum group element (Ni-Cu-PGE) project and the West Yilgarn Ni-Cu-PGE province.
At Gonneville, the high-grade sulphide resource increased by about 18 per cent after incorporating 15 new step-out drill holes. The total resource now totals 59 million tonnes at 2 grams per tonne of palladium, platinum and gold (3E), 0.20 per cent Ni, 0.21 per cent Cu, 0.019 per cent cobalt (Co).
The resource also holds contained metal comprising 3.8 million ounces 3E, 120,000 tonnes (t) Ni, 120,000t Cu and 11,000t Co.
Following the resource update, Chalice said it would work towards a selective mining campaign at Gonneville.
“Selective mining initially preserves the optionality of a future expansion, as mined material will be stockpiled for future processing,” Chalice managing director and chief executive officer Alex Dorsch said on April 23.
“This staged development approach reduces risk, allows efficient deployment of capital and maximises optionality.”
Looking ahead, a pre-feasibility study (PFS) for Gonneville remains on target for completion in the middle of 2025. Metallurgical test work for the PFS and regulatory approvals for the project are also being sought after.
At West Yilgarn, new untested, high-conductance ground electromagnetic plates were defined during the quarter at the Schrodinger South and Howard Kelpie targets located within the joint venture Chalice shares with Northam Resources (Northam JV project).
A new untested, high-priority soil anomaly was also defined at the Kann target within the Northam JV project, which highlighted an approximate 10km trend of prospective ultramafic rocks.
Chalice plans to begin drilling at these targets as soon as possible once land access approvals have been obtained.
A reconnaissance air core drilling program was completed across the Julimar Ni-Cu-PGE project during the quarter, with pending assays to determine the next exploration steps.
Several gold-in-soil anomalies were also defined at the Barrabarra Ni-Cu-PGE project, with current extensional programs in progress.
Chalice is of several companies impacted by the nickel downturn. The company announced in January it would reduce its expenditure by 40 per cent.
Despite the ongoing effects, Chalice is gearing up for a solid period of Ni-Cu-PGE exploration.
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