Chalice Mining Limited · ASX:CHN
Chalice Mining — Bell Potter Emerging Leaders Conference 2023
42 slides from Chalice Mining's conference presentation, Sep 13, 2023
Slide 1: Western Australia's new nickel-copper-PGE frontier
For personal use only Western Australia’s new nickel-copper- PGE frontier Bell Potter – Emerging Leaders Conference 13 SEPTEMBER 2023 ASX:CHN
Slide 2: Cautionary statements and competent person(s) disclosure
Cautionary statements and competent person(s) disclosure Authorisation There is a low level of geological confidence associated with Inferred Mineral Competent Persons Statement This Presentation has been authorised for release by the Disclosure Committee. Resources and there is no certainty that fu
Slide 3: 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
Slide 4: Company Overview
Company Overview Our Achievements Corporate snapshot – ASX:CHN Top Shareholders3 For personal use only Tim Goyder (Founder) 10% • World class Gonneville Ni-Cu-PGE discovery Market Capitalisation1 Goldman Sachs 11% recognised with PDAC Thayer Lindsley Award ~A$1.2Bn (2023) and AMEC Prospector of the
Slide 5: Gonneville Ni-Cu-PGE Project Overview
Gonneville Ni-Cu-PGE Project Overview Scoping Study outlines a new long-life, low-cost, low-carbon green metals project in Western Australia For personal use only Strategic and rare green metals1 project in a western jurisdiction – strong potential for a western and green premium Scoped to have worl
Slide 6: Gonneville potential long life asset with tier-1 scale production profile
Gonneville has the potential to become a long life asset with a tier-1 scale production profile and highly competitive financial metrics Scoping Study modelled outputs and metrics (15-30Mtpa cases) – indicative metrics with limited engineering/optimisation to date For personal use only Annual produc
Slide 7: Both Gonneville cases modelled in 2nd quartile of PGE cost curve
Both Gonneville cases are modelled in the 2nd quartile of the PGE industry cost curve (after base metal by-product credits) PGE Industry Cost Curve – Net total cash costs per 4E oz (after by-product credits), CY2022, US$/oz 2 For personal use only Quartile 1 Quartile 2 Quartile 3 Quartile 4 2,000 Av
Slide 8: Scale, quality and location of 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
Slide 9: 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
Slide 10: Inherent options and upside in mining, processing and commercial areas
In addition, 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 op
Slide 11: Processing flowsheet: Cu-PGE-Au concentrate, Ni-Co MHP and PGE-Au doré
PROCESSING 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
Slide 12: 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
Slide 13: 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 late Q3 2023 South Julimar Complex 3D View (looking ENE) – drill holes and Julimar Complex intrusive geology For personal use only 13
Slide 14: 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
Slide 15: Regional exploration drilling and strategic partnering are key 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
Slide 16: 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 16
Slide 17: Appendix
For personal use only Appendix
Slide 18: 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
Slide 19: Since 2006 IPO, 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
Slide 20: Gonneville positioned as 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
Slide 21: Decarbonisation will underpin long-term demand for 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
Slide 22: Nickel, copper and palladium prices 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
Slide 23: 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
Slide 24: 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
Slide 25: Significant benefits for 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
Slide 26: 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
Slide 27: Rare, tier-1 scale Gonneville Resource with high-grade optionality
RESOURCE 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 ~1.7
Slide 28: Two open-pit development cases are 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
Slide 29: Study models 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
Slide 30: 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
Slide 31: Proximity to Perth allows access to infrastructure and workforce
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
Slide 32: Project will benefit from existing infrastructure
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
Slide 33: Targeted schedule: FID in 2026 and first production in 2029
SCHEDULE 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
Slide 34: Gonneville Mine proposal requires State and Commonwealth assessment
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
Slide 35: 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
Slide 36: Highly competitive cost profile with LOM avg cash costs
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
Slide 37: 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
Slide 38: 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
Slide 39: 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
Slide 40: 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
Slide 41: Metal equivalent assumptions of Gonneville Resource, March 2023
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
Slide 42: 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 42
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