Also some exciting exploration targets which we've just started drilling. There's two pillars to the Chalice business. There's Gonneville, that's the big one. It was discovered in 2020 by Chalice geologists. It's one of the largest and lowest cost undeveloped palladium, nickel, and copper deposits in the Western world. It's the next big critical minerals project in Australia, and we're rapidly advancing it towards a final investment decision in 2028. The second pillar is our discovery business. That's how we found Gonneville. We've got eight new copper gold targets across W.A., S.A., and the Northern Territory. We've just started drilling our Deep Blue target in Western Australia last week, and the geos are really liking what they see so far. We have AUD 63 million in cash and listed investment and no debt. That will take us through to FID in 2028.
We have a proven, passionate, and invested team. We've just brought on a new Project Director, Paul Dupont, a GM corporate affairs. His name is Tim Langmead, and we brought on Odin Partnership as strategic advisors earlier this year. Odin is headlined by Mark Cutifani and Tony O'Neill. Most of you would know Tony and Mark. Mark is one of the biggest and best names in PGMs and base metals. He was the CEO and Managing Director of Anglo American, and more recently, the Chair of Vale Base Metals. Together with Tony, they've built some of the biggest and best open-pit operations around the world. They like what they see with Gonneville, particularly the leverage that it has to the next uptick in the commodity cycle. Bringing them on was excellent validation for the project. We are trading at a significant discount to Gonneville's net asset valuation.
This is a great investment for the counter-cyclical types who see things early and like outsized returns. Chalice is listed on the ASX. The Founder and Major Shareholder is Tim Goyder. He owns six percent. He's well-supported with half of the register being made up of long-term, strong institutional funds across Australia, the U.S., U.K., and Asia. We trade about 2 million shares a day. The balance sheet is strong. What's the headline on Gonneville? This is a tier 1 scale project. The Pre-Feasibility Study, which we released at the end of last year, outlined a 23-year mine life that is going to produce 220,000 ounces of PGMs, 7,000 tons of nickel, 8,000 tons of copper per year. It has compelling financial metrics, a pre-tax NPV8 of AUD 1.4 billion, an IRR of 23%, and a payback of less than three years.
That is all at conservative long-term base case assumptions. The all-in sustaining cost is US$370 an ounce. That puts us at the bottom end of the cost curve. We've designed this project to survive all price cycles. It's located 70 km from Perth. It's on Chalice-owned farmland. It has strong government support. That strong government support is going to see it attract significant capital from government-sponsored funds. Permitting is the critical path for Gonneville. We are well on track. The project has strategic project status from the W.A. State Government. It has major project status from the federal government. It's on 100% Chalice-owned farmland. It's not in the state forest. There's no native title. It's got minimal visual impact. It's on flat topography. The nearest town is 25 km away. The W.A. government is openly pro-development, particularly for critical minerals projects.
Five of Gonneville's six metals are on Australia's list of critical minerals. This is a project that all levels of government want to go ahead. We're going to submit our environmental review documents at the end of this year and expecting a ministerial decision in the first half of 2028. Gonneville does have a unique metals mix. 51% comes from palladium, 17% from copper, and 22% from nickel. If we were doing that at today's spot prices, palladium would be just below 50%, copper would be above 20%, and nickel would be just below. The remainder is made up of gold, platinum, and cobalt. I'm guessing that most in this room would be happy with an exposure to copper, gold, platinum, even cobalt. Most of the questions I get are, why do we want exposure to the bigger piece of the pie in palladium and nickel?
Well, it's the counter-cyclical types that are most excited by palladium and nickel. I'm going to take you through what they're seeing and the rest of the market is not. This is a price history chart of palladium. It is a niche metal. There is only about 9 million ounces of palladium traded every year. In comparison to gold, that's an order of magnitude less. Being a niche metal makes it very, very volatile. Recently, it has been systematically under-invested, and in nine of the last 10 years, it has been in supply deficit. About 18 months ago, we started seeing material curtailments come out of the mines, and we think that is just the start of the next upcycle. Just as supply was coming out of the market, the Chinese government started importing palladium at record levels.
They are now the largest consumer of any country on the planet. Let's just dwell on that point for a second. The largest market for battery electric vehicles is China. Battery electric vehicles don't need PGMs, yet China are the largest consumer of PGMs of any country on the planet, and they're importing PGMs at record levels. Why are they doing that? Well, I was in China a couple of weeks ago, and I can tell you that half of the cars that they're still making are hybrids or internal combustion engines, which need PGMs. They know the world is short on this metal, and they know that we're going to need PGMs for a lot longer than what most people think.
The last time palladium went on a price rise, it ran to more than $3,000 an ounce, and we think that we're on just the start of the next up price cycle. On to nickel. What's been the narrative with nickel for the last few years? Well, it's been that with the help of Chinese investment, the Indonesians have ramped up supply, taken over 65%-70% of market share, and now the market is oversupplied. In the last six months, that narrative has started to change. The Indonesian government want a better return on their minerals, and given they control such a large proportion of the market, they can also control the price. What are they doing now? Well, they've cut the mining quotas by 30%.
They've increased their royalties from 10% to between 14% and 19% based on price, and supply is now starting to come out of the market. This was evidenced by Weda Bay, a major mining production center in Indonesia, halting production earlier this year. The prevailing view now is that nickel is going to be in deficit very soon, if it isn't already. The Indonesian government want to repair their currency, and with their history of resource nationalization, if I was a nickel producer in Indonesia, I'd be feeling pretty nervous right now. Now that we're comfortable with the Chalice basket of metals, what exposure does Gonneville give us? At long-term base case assumptions, we've got an NPV of AUD 1.4 billion and an IRR of 23%.
If I was standing here in January when the spot price was north of AUD 2,000 an ounce, the spot valuation of Gonneville would be north of AUD 3 billion, and the IRR would be closer to 40%. For every AUD 100 an ounce you add to the palladium spot price, you add AUD 250 million in NPV. This really is Lassonde curve investing. We're currently trading at about 0.2, 0.3 of Gonneville's net asset valuation, which is a significant discount for a project that's delivered its pre-feasibility study, working through its permits, and has strong government support. That valuation will rerate over the next 12-24 months as we de-risk the project on the way to FID. How are we going to fund it? After the pre-feasibility study was released in December of last year, we had inbounds from export credit agencies, from metals traders, from off-takers, from streamers.
They all had a look at the study and said, "Hmm, I can see this project's going ahead now. How can we help you get this thing funded?" Unsurprisingly, we're going to target the lowest cost of capital, and that's going to come from the export credit agencies. We're in dialogue with all of the major export credit agencies that want to help fund critical minerals projects in the West. Export Finance Australia will take the lead on this one, and then the others will fall in behind. Initial feedback that we've had is that 60%-70% of our capital bill will come from these ECAs, and the balance will be made up of a combination of a prepay or a stream. Where are we at in summary with Gonneville? We've drilled out the resource. We own the land. The flowsheet's been proven.
We've identified the infrastructure, and we've delivered PFS. Where to from here? We're doing off-take and finance. We're going ahead with the mining permit, and we're going to deliver the bankable feasibility study on the way to an FID in the first part of 2028. Two years to build it, and we'll be in production in 2030. On to discovery, and Deep Blue is the target that I was talking about earlier. We just started drilling this late last week. This is a long, strong, coherent copper soil anomaly, coincident with magnetic and gravity features. It's about 150 km outside of Perth. It's 15 km along strike from the Caravel Copper Project. Caravel's got 3 million tons of copper contained. What Deep Blue has copper anomalies, but we've also found some rock chips with rare earths grading more than 15%.
When we have a look at these assays, the rare earths in these assays are the ones that you want to see. They're the magnetic rare earths like neodymium, praseodymium, dysprosium, terbium, and also the defense-critical rare earths like samarium, gadolinium, and yttrium. We've interpreted this as a large-scale hydrothermal system. Anyone, any geo with any experience, they have a look at the assays, they have a look at these photos, and they go, "Ooh, gee, this looks a bit different." Well, with exploration geology, we like funky, we like different. As I said, the drill started last week. We're intrigued and excited to see what comes back in those assays. Over to the Northern Territory, this is a target that's been in the Chalice portfolio for over eight years. We just haven't been able to have access to go and drill it.
Earlier this year, we signed an agreement. Now we've got that access. It's located 20 km northwest of the old Warrego mine. The old Warrego mine produced 1.4 million ounces of gold, 130,000 tons of copper at some pretty juicy grades. What we've got at Warrego are coincident gravity and magnetic anomalies. These are the sorts of anomalies that are consistent with IOCG systems. Drilling is going to start in September of this year. In contrast, Callabonna is a new project to the Chalice portfolio. We signed an earn-in agreement with Red Metal earlier this year to go and explore the area. Similar to Warrego, IOCG-style alterations. These are magnetic, gravity coherent anomalies. Again, drilling is going to start in September of this year. On the drilling front, we're very much back in discovery mode and watch this space.
What should you take away from this talk is that Chalice owns the largest undeveloped PGM project in the Western world. It sits at the bottom of the cost curve. It has compelling financial metrics. There is significant upside. We are trading at a significant discount. We've got some of the most exciting drill targets back in the portfolio since the discovery of Gonneville. Thanks for having me today. If you'd like to talk about anything further, please come and say hello at the booth.