Chalice Mining Limited has recently announced a series of technical breakthroughs at its Gonneville Project that promise to further enhance the economics of the operation. Updated flowsheet testwork conducted in April 2025, compared to earlier results from February 2025, has produced significant improvements in overall metal recoveries for key commodities including palladium, nickel, copper, cobalt, platinum, and gold. For instance, improvements in recovery percentages of up to 7% for nickel in the initial production years have been noted, while later years also show modest gains. These enhanced recoveries are expected to allow the operation to achieve competitive processing costs, even at lower metal price scenarios. In addition to higher metal recoveries, the Company’s latest testwork has identified the potential for generating a saleable iron byproduct from a low-cost magnetic separation pre-treatment. This process produces an iron concentrate, predominantly magnetite, with a grade of approximately 64-66% Fe and minimal palladium losses. Independent technical review supports the saleability of this byproduct to specialist steel mills, adding a possible new revenue stream. The process improvements have also led to a reduction in reagent consumption, thereby lowering operating costs further. The announcement outlines that these flowsheet optimizations support a revised open pit mining plan with a low strip ratio and simplified processing circuits. While output recoveries have been marginally adjusted, the overall process enhancements result in significant capital and operational cost reductions relative to the 2023 Scoping Study. With the ongoing Pre-Feasibility Study targeted for completion in Q4 CY25 and additional geological modelling underway, the Company remains on track with its development program. Chalice Mining Limited also reported a strong balance sheet, holding A$83 million in cash and listed investments as of the end of March 2025. Market sentiment can be seen from both a bullish and bearish perspective. On the bullish side, the technical breakthroughs that boost metal recoveries and uncover a potentially valuable iron byproduct significantly enhance the project’s economics, reducing processing costs and opening up extra revenue opportunities even when commodity prices are at the lower end. Strong government support and progress in environmental modelling further add confidence to the project’s future. Conversely, on the bearish side, uncertainties remain regarding the commercialisation of the new iron concentrate and the challenges inherent in transitioning from testwork to full-scale production. In addition, further optimisation and confirmatory studies are required before final investment decisions can be made, leaving some risk as the project moves to the next phases. Overall, the latest technical developments at Gonneville underline the potential of the project to deliver competitive processing efficiency and improved margins, while personal risk considerations remain tied to the pace of clinical optimisation and market acceptance of the byproduct innovation.