Chalice celebrates strong third quarter

Chalice Mining has reported strong financial health in its latest quarterly report, holding up to $111 million in cash and investments with no debt at quarter end.

Being in such a good position, Chalice said the company won’t need to raise capital in the foreseeable future.

Chalice has implemented significant strategies to reduce expenditure while maintaining an expenditure rate of $2.4 million per month.

The company expects to continue this traction into the 2024–25 financial year to deliver the Western Australia-based Gonneville nickel-copper-cobalt mine’s pre-feasibility study (PFS).

The Gonneville mine remains a primary focus for Chalice, with significant progress made towards development. The June quarter saw Chalice sign a strategic memorandum of understanding with Mitsubushi Corporation to collaborate on the technical, financing and marketing aspects of the project.

The partnership aims to investigate the potential for a future binding partnership post PFS completion, with a focus on optimising metal recovery process.

Chalice said preliminary PFS metallurgical test work results at Gonneville suggest potential improvements in metal recoveries, particularly with the addition of specific reagents and pre-treatment processes.

Both state and federal environmental agencies have confirmed that the project will undergo a public environmental review, ensuring rigorous environmental assessment.

Chalice also advanced exploration efforts across the West Yilgarn nickel-copper-platinum group elements province, identifying 44 untested greenfield targets, with six greenfield targets reaching drill-ready status.

A key strategic move during the quarter was Chalice’s $7.7 million investment in Encounter Resources, which saw the company acquire a 6.1 per cent stake valued at roughly $20 million by the quarter end.

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