Chalice Mining Limited · ASX:CHN

Chalice Mining — Morgans Conference 2023

44 slides from Chalice Mining's conference presentation, Oct 18, 2023

  1. Slide 1: Western Australia's new nickel-copper-PGE frontier

    For personal use only Western Australia’s new nickel-copper- PGE frontier Morgans Conference 2023 18 OCTOBER 2023 ASX:CHN

  2. Slide 2: Cautionary statements and competent person(s) disclosure

    Cautionary statements and competent person(s) disclosure Authorisation Forward-Looking Statement This Presentation has been authorised for release by the Disclosure Committee. This Presentation may contain forward-looking statements and forward information, (collectively, forward-looking For persona

  3. Slide 3: Cautionary statements and competent person(s) disclosure (cont'd.)

    Cautionary statements and competent person(s) disclosure (cont’d.) Reliance on Third Party Information Production Targets and Forecast Financial Information The views expressed in this Presentation contain information that has been derived from third party sources that have The production targets an

  4. Slide 4: Chalice is a leading ASX200 green metals explorer-developer

    Chalice is a leading ASX200 green metals explorer-developer with a track record of creating shareholder value Our purpose – to find the metals Our aspiration – to create a world For personal use only needed to decarbonise the world class, multi-district green metals (the green metals) province in th

  5. Slide 5: Gonneville Ni-Cu-PGE Project Overview

    Gonneville Ni-Cu-PGE Project Overview A new long-life, low-cost, low-carbon green metals project in Western Australia For personal use only Strategic and rare green metals1 project in a western jurisdiction – strong potential for a western and green premium Scoped to have world-class sustainability

  6. Slide 6: Gonneville positioned to become a strategic asset for Australia and the western world

    Gonneville is positioned to become a strategic asset for Australia and the western world, given its rare palladium-nickel-cobalt content Gonneville is the first major PGE discovery in Australia Global Palladium and Nickel Primary Supply Market Share (2022)3 For personal use only and one of the few r

  7. Slide 7: Gonneville potential long life asset with tier-1 scale production profile

    Gonneville has the potential to become a long life asset with a tier-1 scale production profile and highly competitive financial metrics Scoping Study modelled outputs and metrics (15-30Mtpa cases) – indicative metrics with limited engineering/optimisation to date For personal use only Annual produc

  8. Slide 8: Scale, quality and location of the Resource underlie robust financial metrics

    The scale, quality and location of the Resource underlie the study’s robust financial metrics, generating ~A$6.6-9.9 billion in free cash Total Free Cash and Cashflow Gross Revenue split by commodity For personal use only A$Bn, real terms, post-tax % LOM Gross Revenue 11 30Mtpa LOM avg ~A$9.9Bn 10 A

  9. Slide 9: Both Gonneville cases modelled in the 2nd quartile of the PGE cost curve

    Both Gonneville cases are modelled in the 2nd quartile of the PGE industry cost curve (after base metal by-product credits) PGE Industry Cost Curve – Net total cash costs per 4E oz (after by-product credits), CY2022, US$/oz 2 For personal use only Quartile 1 Quartile 2 Quartile 3 Quartile 4 2,000 Av

  10. Slide 10: Tier-1 scale Gonneville Resource has high-grade optionality and growth potential

    The rare, tier-1 scale Gonneville Resource has high-grade optionality and compelling growth potential Mineral Resource Estimate1: 3D view (looking ENE) of Gonneville Resource domains and pit shell For personal use only • 560Mt @ 0.88g/t 3E, 0.16% Ni, 0.09% Cu, 0.015% Co (~0.54% NiEq or ~1.7g/t PdEq)

  11. Slide 11: Flat grade-tonnage curve highlights higher-grade component

    Flat grade-tonnage curve highlights the significant higher-grade component – providing the project with development optionality Gonneville Nickel Equivalent Grade-Tonnage Curve in-pit (on NiEq cut-off grade basis) Mass (Mt) Grade (% NiEq) For personal use only 800 1.7 1.8 1.6 1.6 700 677 1.5 1.6 646

  12. Slide 12: Resource remains open down-dip with ongoing drilling

    The Resource remains open down-dip, with ongoing drilling demonstrating potential for material growth of the deposit • Residual Resource unmined beyond Study 3D view (looking SSW) of Gonneville Intrusion, >0.8% NiEq Resource blocks and drilling modelled life of 90-200Mt for 540-1,100kt For personal

  13. Slide 13: Processing flowsheet targeting Cu-PGE-Au concentrate, Ni-Co MHP and PGE-Au doré

    The processing flowsheet envisaged is targeting production of a Cu-PGE- Au concentrate, a battery-grade Ni-Co MHP and a PGE-Au doré Sizing Grinding For personal use only Oxide feed bypasses flotation and goes to leach circuit – 75% Pd and 90% Au overall recovery from oxide modelled Oxide feed Potent

  14. Slide 14: Inherent options and upside needing further evaluation

    Going forward, there are inherent options and upside that need further evaluation in mining, processing and commercial areas [Orange] = Near term priorities Assessed upside potential For personal use only • Early high-grade underground mining in parallel to open-pit phase and block/sub-level caving

  15. Slide 15: Development schedule: FID in 2026 and first production in 2029

    Targeted project development schedule outlines a Final Investment Decision in 2026 and first production in 2029 For personal use only Today FID Start Construction First Production 2023 2024 2025 2026 2027 2028 2029 Scoping study development Studies and Prefeasibility study Feasibility study Engineer

  16. Slide 16: Gonneville occupies ~2km of the >30km long Julimar Complex

    The Gonneville Resource occupies just ~2km of the >30km long Julimar Complex – its development could be a province opening play 3D view (looking NW) of the Julimar Complex, Gonneville Deposit, regional targets, soil geochemistry over magnetics For personal use only State Forest Flinders Target (unte

  17. Slide 17: Deeper drilling at Hooley indicates thickening of the Complex

    Recent deeper drilling at Hooley (~5km from Gonneville) indicates a thickening of the Complex at depth – drilling to restart in early Q4 2023 South Julimar Complex 3D View (looking ENE) – drill holes and Julimar Complex intrusive geology For personal use only 17

  18. Slide 18: Regional exploration drilling and strategic partnering key upcoming catalysts

    Regional exploration drilling and the ongoing strategic partnering process represent key upcoming catalysts Chalice’s multi-track value creation strategy at the Gonneville Project is to advance development studies and progress regulatory approvals for a For personal use only potential mine at Gonnev

  19. Slide 19: Gonneville discovery kick-started the West Yilgarn Ni-Cu-PGE Province

    The Gonneville discovery has kick-started the new West Yilgarn Ni-Cu- PGE Province, which could deliver more major mineral discoveries For personal use only N • The ‘giant’ ortho-magmatic nickel-copper-PGE sulphide deposits Narryer Terrane such as Norilsk, Jinchuan, Thompson and Voisey’s Bay are loc

  20. Slide 20: Fate of decarbonisation rests on explorers who must find the green metals

    The fate of decarbonisation rests on the explorers who must find the green metals – the big discoveries are very rare 50 only Post WWII boom and new Rise of China and surge in 60 modern exploration tools exploration expenditure (11x) 40 use ~60% drop in 10 personal exploration expenditure and shallo

  21. Slide 21: Highlights

    Highlights For personal use only Chalice owns 100% Chalice’s team has There is significant of a new long-life, a track record of exploration upside low-cost, low- discovery and value across the exciting carbon green metals creation new West Yilgarn Ni- project in WA Cu-PGE Province 21

  22. Slide 22: Appendix

    For personal use only Appendix

  23. Slide 23: Company Overview

    Company Overview Top Shareholders3 Our Achievements Corporate snapshot – ASX:CHN For personal use only Tim Goyder (Founder) 10% Goldman Sachs 11% • World class Gonneville Ni-Cu-PGE discovery Market Capitalisation1 State Street 8% recognised with PDAC Thayer Lindsley Award ~A$800m Shares on issue (20

  24. Slide 24: Chalice is actively growing its organisational capability

    Chalice is actively growing its organisational capability Board of Directors Management For personal use only Derek La Ferla, Non-Exec Chair Richard Hacker, GM Strategy and Commercial • Highly regarded ASX200 chair and company director with 30+ years experience as a • Chartered Accountant with 20+ y

  25. Slide 25: Since our 2006 IPO, we have acquired quality assets and generated exceptional returns

    Since our 2006 IPO, we have acquired quality assets, advanced projects quickly and generated exceptional returns 2012 For personal use only 2022 Zara Gold Project in 2020 $100M raised 2006 Eritrea sold for 2016 Major PGE- to progress 2023 NI-Cu-Co- Julimar $7.5M raised in ~US$114M Gonneville IPO on

  26. Slide 26: Decarbonisation will underpin long-term demand for the green metals

    The need to decarbonise the global economy will underpin long-term demand for the green metals at Gonneville For personal use only Electric Hybrid Energy Semi- Wind & Importance of metals Hydrogen Vehicles Vehicles Storage conductors Solar PV Nickel and Cobalt • Key industrial and electrification me

  27. Slide 27: Nickel, copper and palladium have escalated in real terms

    Over the last 20 years, well before decarbonisation demand levers have emerged, nickel, copper and palladium have escalated in real terms Nickel, copper and palladium prices have increased at an avg of 3-9% CAGR* in real terms over the last 20 years, reflecting the scarcity of economic deposits, dec

  28. Slide 28: Committed to strong environmental stewardship at Gonneville

    Chalice is committed to strong environmental stewardship and has a unique opportunity at Gonneville to demonstrate this For personal use only Strong environmental stewardship • The Gonneville Project is located on Chalice-owned Gonneville Project Biodiversity Goal farmland, which has been subject to

  29. Slide 29: Gonneville positioned as one of the lowest carbon intensity nickel projects

    Gonneville is positioned to be one of the lowest carbon intensity nickel projects globally, due to its location, scale and sulphide mineralogy • Gonneville MHP 2030 forecast Scope 1 & 2 site emissions (tCo2Eq / tNiEq), cumulative NiEq production (x-axis, kt) carbon intensity For personal use only es

  30. Slide 30: Significant benefits for the local community and wider region

    The Gonneville Project has the potential to deliver significant benefits for the local community and wider region For personal use only Chalice has engaged early, actively and Chalice is committed to achieving lasting social Gonneville could deliver significant jobs, skills transparently to build re

  31. Slide 31: Building collaborative relationships with Whadjuk and Yued Traditional Owners

    Chalice is building collaborative relationships of mutual benefit with Whadjuk and Yued Traditional Owners Actively engaging and working together to protect cultural heritage and environmental values For personal use only Our Commitment to Whadjuk Collaboration with Yued South-West Heritage Agreemen

  32. Slide 32: Mining: two open-pit development cases scoped

    MINING Given the significant development optionality of the Resource and price uncertainty, two open-pit development cases are scoped Two open-pit development concepts will be progressed into the next study phase (the Pre-Feasibility Study): For personal use only • 15Mtpa Case: Open-pit mining, with

  33. Slide 33: Processing: tier-1 production profile over 18-19 years

    PROCESSING Study models a tier-1 production profile over 18-19 years: ~280-470kozpa 3E PGE, 9-16ktpa Ni, 10-16ktpa Cu and 0.8-1.4ktpa Co 15Mtpa Case (unoptimised) – 3E total production 30Mtpa Case (unoptimised) – 3E total production For personal use only koz, 3E recovered LOM average koz, 3E recover

  34. Slide 34: Marketing: offtake terms expected to be excellent

    MARKETING Offtake terms are expected to be excellent given high-grade of products, low impurities and IRA-compliant source For personal use only Copper-PGE-Au Nickel-Cobalt Mixed PGE-Au doré Concentrate Hydroxide Precipitate (MHP) • High value concentrate • High quality lithium-ion • Industry standa

  35. Slide 35: Infrastructure: proximity to Perth allows access to highways, rail, power and port

    INFRASTRUCTURE The proximity to Perth allows direct access to major highways, rail, power and port infrastructure and a highly skilled local workforce Western Australia Ranking of jurisdiction attractiveness for mining For personal use only consistently ranked as the investment (Fraser Institute, 20

  36. Slide 36: Infrastructure: existing and potential common use water and power

    INFRASTRUCTURE The Project will benefit from existing infrastructure, and new potential common use water / power infrastructure is being investigated For personal use only • ~132kV connection to South West Interconnected System grid (Western Power) – ~25km from Project Electricity • Project to benef

  37. Slide 37: Permitting: State and Commonwealth assessment process

    PERMITTING The Gonneville Mine proposal will require State and Commonwealth assessment, with opportunities for community and stakeholder input Environmental factors and studies Permitting process For personal use only Baseline surveys including targeted surveys for threatened Flora and 2024 - Chalic

  38. Slide 38: Permitting: Boddington open-pit mine in similar topography

    PERMITTING The ~40Mtpa Boddington open-pit mine is located in a similar topography and is within a comparable distance from Perth For personal use only A large operating mine in Successful expansion approvals Significant social and an environmentally and environmental mgmt economic contributions sen

  39. Slide 39: Highly competitive cost profile with short ~2yr payback

    Highly competitive cost profile with LOM avg cash costs of US$160- 230/oz 3E after base metal by-product credits and short ~2yr payback 15Mtpa Case 30Mtpa Case 15Mtpa Case 30Mtpa Case For personal use only Pre-production CapEx estimate A$M OpEx estimate LOM avg Sulphide Flotation Plant 450 750 Open

  40. Slide 40: Modelled cash flows robust under range of macroeconomic scenarios

    Gonneville’s modelled cash flows are robust under a range of macroeconomic scenarios Commodity Price Assumptions Study NPV Sensitivity Analysis (A$Bn, post-tax, 6.5% WACC) For personal use only (AME forecast, avg LOM, 2023 real terms) 30Mtpa Case: A$4.2Bn Nickel US$/t 24,000 PGE prices (+/- 25%) 2.1

  41. Slide 41: Gonneville Mineral Resource Estimate (JORC Code 2012), March 2023

    Gonneville Mineral Resource Estimate (JORC Code 2012), 28 March 2023 Cut-off Domain Category Mass Grade Contained Metal Grade For personal use only Pd Au NiEq PdEq Pd Pt Au NiEq PdEq (Mt) Pt (g/t) Ni (%) Cu (%) Co (%) Ni (kt) Cu (kt) Co (kt) (g/t) (g/t) (%) (g/t) (Moz) (Moz) (Moz) (kt) (Moz) Measure

  42. Slide 42: Higher-grade sulphide component of Gonneville Resource

    Higher-grade sulphide component of Gonneville Resource (in pit and underground), 28 March 2023 Cut-off Domain Category Mass Grade Contained Metal Grade For personal use only Pd Au Co NiEq PdEq Pd Pt Au NiEq PdEq (Mt) Pt (g/t) Ni (%) Cu (%) Ni (kt) Cu (kt) Co (kt) (g/t) (g/t) (%) (%) (g/t) (Moz) (Moz

  43. Slide 43: Metal equivalent assumptions of Gonneville Resource

    Metal equivalent assumptions of Gonneville Resource, 28 March 2023 Based on metallurgical testwork completed to date for the sulphide domain, it is the Company’s opinion that all the quoted elements included in metal equivalent For personal use only calculations (palladium, platinum, gold, nickel, c

  44. Slide 44: Visit our website and sign up to receive our latest news

    For personal use only Visit our website and sign up to receive our latest news chalice-mining @ChaliceMining www.chalicemining.com Level 3, 46 Colin Street West Perth WA 6005, Australia +61 8 9322 3960 info@chalicemining.com ABN 47 1 16 648 956 44

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