Chalice Mining Ltd (ASX: CHN) shares are starting the week strongly.
In morning trade, the ASX 300 mining stock is up 9% to $1.68.
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Why is this ASX 300 mining stock jumping?
Investors have been scrambling to buy the mineral exploration company's shares this morning after its 100%-owned Gonneville PGE-Ni-Cu-Co Project was given a big boost.
According to the release, the Federal Government has awarded Major Project Status to the Western Australia-based project.
The company notes that this recognises the project's "national significance" to the development of Australia's critical minerals sector.
What is Gonneville?
The Gonneville Project is located on the ASX 300 mining stock's farmland, 70km northeast of Perth. Management notes that the large-scale project has the potential to produce a rare mix of critical and strategic minerals required for decarbonisation and urbanisation. These include nickel, copper, cobalt, palladium, and platinum.
Large-scale critical and strategic mineral resources like Gonneville are very rare in the Western world and have high strategic value. Russia, South Africa, Indonesia, and the Democratic Republic of Congo dominate the current global production of palladium, platinum, nickel, and cobalt.
Gonneville is currently in the pre-feasibility stage, with regulatory approvals progressing in parallel.
Speaking of approvals, Commonwealth Major Project Status enables strategically significant projects to obtain extra support and coordinated approvals.
It will see the Major Project Facilitation Agency (MPFA) within the Commonwealth Department of Industry Science and Resources provide case management support to assist Chalice in navigating Commonwealth approval processes.
The ASX 300 mining stock also advised that the MPFA will liaise with the Western Australian Department of Jobs Tourism, Science and Innovation (JTSI) to ensure that its case management support complements that provided by the Western Australian Government.
'National significance'
Chalice Mining's CEO and managing director, Alex Dorsch, appeared to be pleased with the news. He said:
Chalice would like to thank Minister Husic and the Australian Federal Government for recognising the national significance of the Gonneville Project as the first major Platinum Group Element discovery in Australia, and an important part of Australia's future critical minerals ambitions.
It is particularly pleasing to receive this support from the Commonwealth in addition to the Strategic Project status recently granted by Western Australian Premier Roger Cook.
We look forward to continuing to work with the Commonwealth and Western Australian Governments, local communities, Traditional Owners, and Mitsubishi Corporation under our strategic MOU as we progress approvals and project studies to advance this important project towards development.
