Chalice Mining is moving further down the track towards a mining and processing development at its rich Julimar prospect northeast of Perth, announcing on Monday the appointment of an experienced mining executive to oversee the project’s progress via the newly created role of General Manager – Project Development.
Chalice said Mike Nelson had been named to the newly- created role with effect from 1 February 1 this year.
“Mr Nelson will lead all aspects of the studies and development of the Julimar Nickel-Copper-Platinum Group Element (PGE) Project in Western Australia, with his appointment marking another important step in the Company’s advancement of its world-class, green metals asset,” Chalice said in the release to the ASX on Monday.
“The appointment further strengthens the Company’s senior leadership team, and Mr Nelson’s expertise and global experience with major resource project developments will be critical in progressing the Julimar Project towards development.
“Mr Nelson is a highly experienced mining executive and project director, bringing over 30 years’ experience in both operational and project technical leadership roles.
“He has broad international experience and has been instrumental in leading several mega-projects, including Reko Diq (copper-gold project currently in the feasibility update phase, operated by Barrick Gold Corporation) and Quebrada Blanca Phase II (copper project under construction, operated by Teck Resources) amongst others.
“His metallurgy, engineering and project management expertise in large-scale precious and base metals operations and proven ability to deliver significant projects make him uniquely qualified to lead the Julimar Project,” the release said.
Chalice said Mr Nelson holds a Bachelor of Science (Hons) from the University of Western Australia, a Master of Applied Finance from FINSIA (now known as KAPLAN) and a Post Graduate Diploma in Management from Deakin University.
Chalice Managing Director and CEO Alex Dorsch, said, “I am delighted to welcome Mike to our executive ranks at such a critical and exciting period for Chalice. He brings a wealth of experience in precious and base metals processing, operations and project development.
“Mike’s unique skill- set will be critical in ensuring that the technical foundations for the Julimar Project are well laid and that our development plan is de-risked. Given that Julimar is one of the most significant PGE-Ni-Cu-Co discoveries in recent times, Mike’s experience leading some of the world’s largest recent mega-projects makes him uniquely qualified for the role.”
Mr Nelson said in the statement: “The opportunity to lead the Julimar Project was highly attractive, given the uniqueness and scale of the Resource, the solid foundational work completed to date, and the growing demand for green metals.
He will start overseeing the growing work burden for Chalice’s executive team.
December’s ASX statement revealing an extension of the deadline for the scoping study at Julimar (which is principally based on the initial Gonneville prospect and its 350 million tonnes of palladium, platinum, copper, nickel cobalt and gold) made it clear the company is facing a lot more work.
“Initial mining optimisation studies have indicated that the conceptual open pits are constrained by the limit of drill data only,” the report stated.
“Selective mining approaches, which are being evaluated in the Scoping Study require modelling utilising data from the detailed infill drilling to accurately assess these options.
“The Scoping Study has made good progress evaluating a broad range of scale, mining and flowsheet options, which is necessary given the size, uniqueness and significant optionality of the Resource.
“To fully evaluate options, the Scoping Study will be extended to allow the new metallurgical testwork results and the updated Resource to be modelled and incorporated.
“A revised study completion timeline will be determined once the Resource is updated in late Q1 2023.
“An independent review of the key study areas completed to date has provided a strong endorsement of the quality and scope of the work completed to date.
“External reviews of the metallurgical testwork to date and flowsheet design has also identified further opportunities for improvement, which will be evaluated in the next phase of studies.”
Chalice shares edged up 0.9% to $6.80 on Monday.
