Thanks, Nick. Great to be here, as always, and lovely to see a lot of familiar faces. So, as Nick said, I guess two parts to Chalice. We're developing a major platinum group metal, nickel, copper, cobalt mine in WA, as most people would know, following our discovery in 2020. We're also very active targeting copper all around Australia at the moment, which is quite exciting. So, our usual cautionary statements, competent persons disclosures, please take a read of this on the website if it interests you.
So, Chalice, as Nick said, we own basically the largest, lowest cost deposit of its type in the world. Our Gonneville project is a platinum group metal, nickel, copper, cobalt reserve now, following the PFS, and it's not only the largest in the Western world, but it's the lowest cost as well. So, it's a fantastic asset. It's in that regulatory approvals, off-take negotiation, project financing period now. We've spent $250 million on that asset, so we're very, very comfortable that we understand it very, very well now. And it's rapidly moving forward towards construction and ultimately operations by 2030.
We're one of the most active copper explorers in Australia. We're very, very active across three areas at the moment in WA, South Australia, and NT. We've just finished drilling a new 30-kilometre long strike length belt in Gonneville, just northeast of Perth, and Warrego in the Tennant Creek area of Northern Territory. We're getting very active there in the coming weeks. So, both very, very exciting programs.
Financially strong, so it's important when you're a junior company, you can never run out of money. So, we like to maintain a strong balance sheet, almost 60 million in cash and listed investments, zero debt. So, we get to do what we want to do and we're very careful with that capital.
We've got a development team in place now. I'm joined here today by Paul Dupont, my new project director for the Gonneville project. He's just joined me in July. I've also appointed Tim Langmead, a very well-known government affairs sort of corporate guy in WA formerly, 10 years at Fortescue. So, we've got a great complement now in the executive team. And we've got two of the most recognized people in the PGM sector globally, Mark Cutifani and Tony O'Neill, on our strategic advisory board. So, we've got the right team now to complement what is the world-class Gonneville project.
And yet the market sort of trades at a steep discount to NAV. We think it is absurdly cheap at the moment. We're not in the sexiest metals with palladium and nickel, but certainly copper is absolutely flying, as Charlie mentioned this morning. So, I think as we continue to progress, we expect that our stock will start to re-rate as we get closer to that FID. And of course, obviously exploration success is, as everyone knows in the room, one of the most rewarding things to do as a junior company.
So, we're part of the ASX 300. We've got a very stable, highly institutional shareholder base, about half of our stock sort of tied in and held by very, very stable, sticky, long-term shareholders. Tim Goyder, founder, Paradise small cap fund in Sydney, Gina Rinehart's Hancock, BlackRock, Ellie Griffiths, Kuwait Investment Office. These are fantastic long-term holders. They've been with me for a number of years. I'm very, very appreciative of their support. Market cap today, about 500 million. Like I mentioned, strong balance sheet, very well covered across the sector. And I think post putting our PFS out in last year, you know, we've got a universal understanding now with those research analysts of what is a complicated polymetallic asset. Now, you know, it's been very, very well studied and well understood by that part of the sector.
Stock trading sort of close to the lowest, which provides, I guess, opportunities for those looking to pick up a very, very high quality asset sort of at the bottom of the commodity price cycle.
So, our mine, or our future mine, in WA just outside of Perth as most people know, it's going to become a 220,000 oz per annum precious metal mine plus about 16,000 t of base metals per year over an initial 23-year period in an open pit. It's going to go for many, many decades beyond that, we think, into a future underground operation. So, we've left it at really the study has focused on the open pit phase only. It's going to become the lowest cost in the world, $370 an oz all-in sustaining cost, so that is on par at the moment with where Russia, the lowest cost operation, sits. It's got a $1.4 billion NPV8, 23% IRR, 2.7-year payback at conservative bottom-of-the-cycle prices. So, we were criticized a number of years ago sort of we didn't really have a full understanding of the metallurgy. We were needing higher prices to incentivize the asset. We've really stripped it back now, simplified, reduced the scale a little bit to make it absolutely bulletproof at the bottom of the cycle.
And it's a two-stage project. It's a very low strip ratio through a 20-plus year mine life, which is somewhat unbelievable. It's going to average about 1.2 strip ratio, which is far, far lower than most open pit mines you see. Simple process flowsheet now, we've really understood the metallurgy now, we've got that de-risked. Like I mentioned, $250 million gone into the project. It's a huge resource, 17 million ounces of precious metals. We've converted 7 million of those into reserve. So, we've got a bulletproof proven and probable reserve now, 7 million ounces of precious metals, 400,000 tons of nickel, 260,000 tons of copper.
70 km from Perth, we've got fantastic support from government. It's going to become the first PGM mine in Australia. As most people would know, Russia and South Africa produce almost the entirety of PGM supply. So, this is a very, very novel thing for the country. We're very proud of that. You know, we're going to deliver something that Australia has never done before. And we're really on track to make a construction decision or a final investment decision, as it says there, in the first half of 2028.
And what gives you comfort with these types of things, polymetallic projects are a bit more complicated because you're dealing with lots of metals, but once they are in operation, they have the benefit of all the byproducts. So, you get this very diverse split of revenues, and that means when some metals are up, some metals are down, you get sort of that natural diversification.
So, as you can see there, the annual production really is just a fraction of what's in resources. So, this thing is going to be operating for a very, very long time. So, long life project on the outskirts of Perth, super high quality, simple open pit. There's a lot to like in terms of this deposit.
So, palladium at the moment, it's been on a volatile ride over the last few years. It sort of hit the 3-year high back in January when silver and gold were also flying. It has characteristics where it trades like a scarce precious metal. So, it has some financial asset appeal, but it is, you know, primarily an industrial metal, somewhat similar to silver. So, it's had a tough few months following the Iran conflict. But what we're seeing at the moment is China is importing this stuff at record highs even while the price is not really showing up in the prices at the moment. And palladium can go absolutely berserk in the right sort of deficit market conditions. It went from 1,000 an oz to 3,000 an oz in 2 and 1/2 years all the way back in sort of 2019-20.
And really it's very, very supply constrained. There is just not many mines and not many deposits out there. So, there is almost no supply response when you do get prices running.
And what's probably most exciting for us at the moment is, you know, palladium is known to be associated very, very intimately with petrol engines and hybrid vehicles. As the world electrifies, there's a little bit of resistance out there. Consumers are still saying they prefer the flexibility of hybrids. The consensus though out in the market is that everyone's going to buy an electric vehicle. We don't think that is real. We think there's going to be at least a 20-year transitionary period, which makes palladium a very, very attractive metal in that sort of contrarian type view.
The other component is AI. So, data centers, as Charlie said this morning, they consume a lot of weird and wacky base but also very, very small little precious minor metals. AI is forecast to add sort of somewhere between half a million ounces and 1.5 million ounces a year to palladium demand. And the market is only 9 million ounces per annum. So, even if there is a small amount of demand destruction from people going and buying battery electric vehicles, we think data centers and electronics demand is well and truly going to make up that gap. And so, then it's going to keep the market very, very tight. And as I said, 90% of palladium supply from deep aging Russian, South African operations. And those operations need to see over 2 and 1/2 thousand US per ounce to incentivize growth. And currently the price is about 1,300 US an ounce. So, these existing supplies are nowhere near committing to add any growth or even maintain supply at the current price.
So, on the left-hand side of this chart you can see the different financial metrics of our project NPV8 as well as IRR flex to different copper and palladium prices. Copper currently sitting just shy of 15,000 US a ton and on the rise. And palladium sitting just shy of 1,400 US an ounce, which implies about a 2 billion Australian dollar NPV8 at current prices. And this thing is very, very leveraged. Obviously, if you get, you know, every 100 US an ounce increase to the palladium price adds 250 million dollars of value to our project on an NPV8 basis. So, it is very, very levered to movements in the palladium price, but also, as you can see there, copper prices. And yet the recovery in those metals in the last 12 months has really not been reflected in the CHN share price. So, on the right-hand side there you can see we're still trading very close to the lows on a ratio to our NAV or our NPV8 for the project. So, now is a great time if you're looking for quality long life mining project exposure in metals that aren't flying, that are, you know, that are sitting still at the bottom of the cycle, this is a fantastic time to invest.
And history shows single asset developers like Chalice between releasing PFS, as most people know there's this concept of the Lassonde curve. There's a period where miners have to go through sort of less sexy feasibility studies, regulatory permits, financing. That's exactly where we are at the moment. That typically provides a window of opportunity for longer-term shareholders. And so between PFS release and FID, share prices typically do re-rate just on the basis of executing basically to plan. So you can see here that my standout example is Foremost in Canada. That re-rated 29 times between PFS and FID, and they've actually now been acquired by Eldorado.
But likewise in Australia, it's not unusual you can see there between 2 and 1/2 and 4 times, you know, just simply by holding the stock or buying it around the PFS and holding it until you really get to that investment decision, which like I said for us is only 2 years from now or less than 2 years.
So what are we doing? We're working closely with off-takers. We know there are nickel and copper smelters that are very, very hungry for our types of products. So we're working with all of them to get to binding off-take approvals. We're about to submit our review documentation. Like I said, about 18 to 24 months to go on those major environmental approvals, but very much got strong government and community support. Feasibility studies underway. I mentioned Paul, our new project director, he's here. We're about to launch an 8-week pilot program of the full flow sheet as well. So that's going to prove to our lenders, who we expect about half to sort of 60% of our pre-production CapEx is going to come through senior debt. So showing them that the full flow sheet operates as expected over a continuous 8-week period is what we're sort of gearing up to do at the moment. That pilot plant is going to be finished by the end of the year and then our feasibility study will be finished likely in the third quarter of next year, 2027, and only about 25 million dollars to spend to get the project to a definitive bankable feasibility study. And we're live at the moment on a byproduct stream financing process. We're really engaging with all the debt providers early as well and all those things obviously happening in parallel ahead of that FID targeted in the first half of 2028.
And shortly, I mean pivoting to the copper exploration portfolio for a moment, as most people would know Kevin Frost, who's, you know, a two-time winner of prospector of the year, winner of the international discovery award, the Fair Lindsay award for the Gonneville discovery. Kevin and team remain, you know, very, very hungry and active, you know, looking at early stage entry opportunities in Australia and we've set them the task of really sort of putting us into some of the best copper provinces in Australia where there's real sort of tier one discovery potential.
And this area just south of Caravel's project has come on the radar just a few months ago. We found some fantastic coherent soil anomalies, copper, moly, silver, gold, as well as some fantastic heavy rare earths in soils and rock chips. We just finished an RC program and we announced yesterday we've hit some copper, silver and gold, so we've confirmed that set going south of Caravel's project which hosts 3 million tons of contained copper. We've confirmed that belt is live and it is yet to be really drilled. So we're going to continue to drill, continue to do soil sampling, IP, and hopefully really add what that project needs, which is a small amount of high grade material and a small amount of higher grade copper near surface could really move the dial for that area and for that region. So, watch this space.
The one that's most sort of near term, we're drilling on the western end of the Tennant Creek mineral field. If those who know Tennant Creek, it's set up some fantastic companies in Australia like Normandy. You know, the Warrego mine was a beautiful high grade operation, small tonnage, but 1.4 million ounces of 6.5 grams gold, 130,000 tons of copper as well at 2% copper. So, we are literally, you know, 10 to 15 K's to the west of that. It took us years and years unfortunately to get access to this ground. It is in Aboriginal Freehold land, but we've got a whole bunch of gravity mag targets within 20 km of the Warrego mine that have never seen a drill hole or never been effectively tested. So, we're going to do several rounds of RC drilling and that's going to start in the next couple of weeks there in Tennant Creek. We've got an 8 meter 1.7 copper 0.4 gold intersection that remains wide open as well that needs to be tested. So,
quality asset, you know, underpinned by fantastic long life open pit mine in WA. You've got an opportunity here to buy at the bottom of the cycle, but you can also buy ahead of the crowd. So, bottom of the cycle in terms of where nickel and palladium are, ahead of the crowd in terms of where all the big institutional investment comes in. They typically buy, you know, in the lead up to FID, but on top of that you also get exposure to a fantastic copper portfolio across Australia. So, please come and have a chat to us if you'd like to learn more and wishing you all the best and certainly I have the under invested feeling after hearing Charlie this morning. So, I wish everyone the best.
