Chalice Mining Ltd (CHN.AU) saw its stock soar by 5.02% in intraday trading on Tuesday, following the company's announcement of significant improvements in its Gonneville project in Western Australia. The surge in share price comes as investors respond positively to the enhanced project outlook.

According to a filing with the Australian Securities Exchange (ASX), Chalice Mining reported "significant" increases in metal recoveries from both flotation and carbon-in-leach processes at its Gonneville platinum group element-nickel-copper-cobalt project. This improvement is particularly noteworthy for the first four years of the mine plan, which are expected to have higher feed grades, potentially leading to increased profitability in the initial years of operation.

Adding to the optimism, the company also revealed the production of a potentially new iron byproduct during metallurgical testwork. This unexpected development could open up an additional revenue stream for Chalice Mining, further enhancing the project's economic potential. The company is now conducting geological modeling to better quantify the iron content in the project, which will inform the completion of the pre-feasibility study scheduled for the fourth quarter. As Chalice Mining continues to optimize its processes and explore new opportunities within the Gonneville project, investors appear increasingly confident in the company's growth prospects.