Limited samples of high-grade sulphide mineralisation from the G1 Zone, as well as disseminated sulphide mineralisation and oxide mineralisation from the Gonneville intrusion, were submitted for early stage sighter metallurgical testwork.

The results showed all sulphides in the G1 zone float readily under standard conditions at a 75 micron grind size. 

Combined nickel-copper-platinum group elements concentrates were produced.

Sulphide flotation of the disseminated sample also returned encouraging results, and recovery of gold and PGEs within the oxide sample was achieved under high temperature, pressure oxidative leach conditions.

Further work to evaluate mineralogy, grind size, blending and differential flotation variables will be completed as part of future testwork.  

All concentrates produced exhibited low levels of deleterious elements.

Further mineralogical studies and metallurgical testwork will focus on the variability of the various lithologies, mineralised zones and mineralisation types, including initial testwork on new high-grade zones.

Chalice managing director Alex Dorsch said the early work gave the company good encouragement that the sulphide-hosted mineralisation would be amenable to conventional flotation.

"While it is still early days in what is likely to be an extensive metallurgical testwork program, this is an encouraging step forward in de-risking the project and lays the foundation for a comprehensive program of metallurgy and mineralogical studies on the various mineralisation styles at Gonneville, to be completed in the lead up to mining feasibility studies," he said.

Chalice has three rigs drilling at Julimar, 70km northeast of Perth, after initially making the discovery in March.

The company had about A$46 million in cash at June 30.

Chalice shares hit an all-time high of $1.642 last week, but were down 6.9% today to $1.48, valuing the company at $452 million.