The proposed nickel-copper-platinum group metal Gonneville mine is located in the Wheatbelt region, just 70km from Perth, and within 25km of regional centres such as Toodyay and Bindoon.
Chalice’s proposal will result in the clearing of up to up to 9.4sq.km of native vegetation within a 35sq.km mine and infrastructure corridor envelopes to support operations of an open pit or underground development with an expected life of 30 years.
The development also includes a 300 million tonne tailings storage facility, a 56km-long water pipeline connecting to a proposed Alkimos desalination plant, and a 26km connection to the Southwest grid.
Gonneville has a potential A$2.3 billion price tag and would create an expected 500 jobs in the local area.
Chalice already owns the freehold farmland on which the deposit sits, at the southern edge of the Julimar state forest, so landholder access isn’t an issue.
Recent pressure on the nickel price has it considering its options for a smaller $1.6 billion, 15 million tonne per annum operation rather than the full 30Mtpa proposal canvassed by last year’s scoping study.
The August 2023 scoping study was based on a resource of 16 million ounces of 3E PGM, 860,000t of nickel, 520,000t of copper and 83,000t of cobalt, but was priced for a higher metal price environment.
A prefeasibility study is already underway and is targeted for completion by mid-2025.
Chalice hopes to find a partner ahead of a final investment decision in 2026 and start construction in 2027.
There are concerns the development will impact the forest, and there are calls for it to be made a national park, which would effectively limit Gonneville to just 2km of a 30km-long trend.
Chalice shares have tumbled from over $8 to as low as 86c over the past year over concerns about its ability to develop the mine.
