Chalice Mining joins forces with Mitsubishi to advance Gonneville nickel-copper-PGE project

Chalice Mining (ASX: CHN) has signed an agreement with Mitsubishi Corporation to advance the development of its wholly-owned Gonneville nickel-copper-PGE (platinum group elements) project in Western Australia.

The agreement establishes a framework for collaboration on the technical, financing, marketing and offtake aspects of the project during an ongoing pre-feasibility study (PFS).

The companies will work together to further refine the project scope prior to the study’s release in mid-2025, with discussions to be held regarding the possibility of further joint engagement following the PFS.

‘Foundational’ relationship

Chalice managing director Alex Dorsch said the agreement marked the beginning of a foundational, long-term relationship with Mitsubishi.

“Mitsubishi’s involvement in Gonneville follows extensive due diligence and discussions over the past year and highlights the longer-term strategic nature and value of this project as a potential large-scale, long-life and low-carbon source of critical minerals for western markets,” he said.

“We consider Mitsubishi to be one of the most impressive and best-suited strategic partners for Gonneville, based on its decades-long development, operational and trading track record,” he added.

“We are excited to work with their team towards delivery of the PFS next year and targeted final investment decision in 2026.”

Mining connections

Mitsubishi has strong connections with the mining industry, boasting significant long-term investments in tier-1 assets worldwide.

The company brings a broad range of capabilities and experience to the Chalice agreement, including relationships with the Japanese government and commercial banking groups to facilitate low-cost funding for its joint venture projects.

Mitsubishi general manager (battery minerals office) Kota Ikenishi welcomed the opportunity to be involved with the Gonneville project.

“This project has the potential to become a large-scale, globally-significant critical minerals asset which could have strategic importance for Japan in the future,” he said.

“We are excited to leverage our complementary skillsets to advance Gonneville and explore the possibility of formalising a potential long-term partnership with Chalice.”

Gonneville discovery

The large-scale Gonneville orthomagmatic palladium-platinum-nickel-copper-cobalt sulphide deposit was discovered by Chalice in early 2020.

More than 1,200 drill holes for a total of 320,000 metres have been completed since then to define the resource, which remains open to the northwest and down-dip.

Chalice released a new resource estimate for the project in April, based on a combined open-pit/underground starter project.

It sits at 59 million tonnes grading 2.0 grams per tonne 3E (platinum, palladium and gold combined), 0.20% nickel, 0.21% copper and 0.019% cobalt for 3.8 million ounces 3E, 120,000 tonnes nickel, 120,000 tonnes copper and 11,000 tonnes cobalt.