Chalice Mining Ltd (ASX:CHN) saw its stock price soar 5.02% during intraday trading on Tuesday, following the company's announcement of significant improvements in metal recoveries at its Gonneville project in Western Australia.

According to a filing with the Australian Securities Exchange, Chalice Mining reported "significant" increases in metal recoveries from flotation and carbon-in-leach processes at the Gonneville platinum group element-nickel-copper-cobalt project. The company also revealed the potential for a new iron byproduct, adding another dimension to the project's value proposition.

Investors responded positively to the news, particularly the company's statement that the first four years of the mine plan are expected to have higher feed grades, which will drive even higher recoveries during the initial period. The ongoing testwork and optimizations on oxide and transitional composites, coupled with the geological modelling to quantify the iron content, have seemingly boosted market confidence in the project's potential. With the pre-feasibility study scheduled for completion in the fourth quarter, Chalice Mining's stock appears to be gaining momentum on these promising developments.