Chalice Mining (ASX:CHN) started a feasibility study for its Gonneville palladium-nickel-copper project in Western Australia, with activities progressing across all key work streams, including geology, mining, processing, and infrastructure, according to a Thursday Australian bourse filing.

The company said an eight-week continuous pilot of the full flowsheet is planned in the second half of the year, representing the final de-risking step for the process flowsheet ahead of the feasibility study and project financing.

The company said it has received strong interest from royalty and streaming companies, offtakers, credit agencies, and commercial lenders, with its funding strategy currently focused on byproduct streams, offtake-linked finance, sovereign credit agencies, and strategic investment.

The company's shares fell nearly 4% in recent Thursday trade.