Thanks, Nick. Great to be here, as always, and lovely to see a lot of familiar faces. As Nick said, I guess two parts to Chalice. We are developing a major platinum group metal, nickel, copper, cobalt mine in W.A., as most people would know, following our discovery in 2020. We are also very active targeting copper all around Australia at the moment, which is quite exciting. Our usual cautionary statements, competent persons disclosures. Please take a read of this on the website if it interests you. Chalice, as Nick said, we own basically the largest, lowest cost deposit of its type in the world. Our Gonneville project is a platinum group metal, nickel, copper, cobalt reserve now following the PFS. It is not only the largest in the Western world, but it is the lowest cost as well. It is a fantastic asset.
It is in that regulatory approvals, offtake negotiation, project financing period now. We have spent AUD 250 million on that asset, so we are very, very comfortable that we understand it very, very well now. It is rapidly moving forward towards construction and ultimately operations by 2030. We are one of the most active copper explorers in Australia. We are very, very active across three areas at the moment in W.A., South Australia and N.T. We have just finished drilling a new 30 km long strike length belt in Goomalling, just northeast of Perth and Warrego in the Tennant Creek area of Northern Territory. We are getting very active there in the coming weeks. Both very, very exciting programs. Financially strong, it is important when you are a junior company, you can never run out of money. We like to maintain a strong balance sheet.
Almost AUD 60 million in cash and listed investments, zero debt.
We get to do what we want to do and we are very careful with that capital. We have got a development team in place now. I am joined here today by Paul De Ponte, my new Project Director for the Gonneville Project. He has just joined me in July. I have also appointed Tim Langmead, a very well-known government affairs corporate guy in W.A., formerly 10 years at Fortescue. We have got a great complement now in the executive team, and we have got two of the most recognized people in the PGM sector globally, Mark Cutifani and Tony O'Neill, on our strategic advisory board. We have got the right team now to complement what is the world-class Gonneville project. The market sort of trades at a steep discount to NAV. We think it is absurdly cheap at the moment.
We are not in the sexiest metals with palladium and nickel, but certainly copper is absolutely flying, as Charlie mentioned this morning. I think as we continue to progress, we expect that our stock will start to rerate as we get closer to that FID. Of course, obviously exploration success is, as everyone knows in the room, one of the most rewarding things to do as a junior company. We are a part of the S&P/ASX 300. We have got a very stable, highly institutional shareholder base, about half of our stock sort of tied in and held by very, very stable, sticky, long term shareholders. Tim Goyder, founder, Paradice Small Cap Fund in Sydney, Gina Rinehart's Hancock, BlackRock, Eley Griffiths, Kuwait Investment Office. These are fantastic long-term holders. They have been with me for a number of years. I am very, very appreciative of their support.
Market cap today, about AUD 500 million. Like I mentioned, strong balance sheet. Very well covered across the sector and I think post putting our PFS out last year, we have got a universal understanding now with those research analysts of what is a complicated polymetallic asset now has been very, very well studied and well understood by that part of the sector. Stock trading sort of close to the lows still, which provides, I guess, opportunities for those looking to pick up a very, very high quality asset sort of at the bottom of the commodity price cycle. Our mine or our future mine in W.A., just outside of Perth, as most people know, is going to become a 220,000 ounce per annum precious metal mine, plus about 16,000 tons of base metals per year over an initial 23-year period in an open pit.
It is going to go for many, many decades beyond that, we think, into a future underground operation. We have left it at, really the study is focused on the open pit phase only. It is going to become the lowest cost in the world, $370 an ounce all-in sustaining cost. That is on par at the moment with where Russia, the lowest cost operation sits. It has got a $1.4 billion NPV8, 23% IRR, 2.7 year payback at conservative bottom of the cycle prices. We were criticized a number of years ago, sort of, we did not really have a full understanding of the metallurgy. We were needing higher prices to incentivize the asset. We have really stripped it back now, simplified, reduced the scale a little bit to make it absolutely bulletproof at the bottom of the cycle. It is a two-stage project.
It is a very low strip ratio through a 20+ year mine life, which is somewhat unbelievable. It is going to average about 1.2 strip ratio, which is far, far lower than most open pit mines you see. Simple process flow sheet. Now we have really understood the metallurgy. Now we have got that de-risked. Like I mentioned, AUD 250 million gone into the project. It is a huge resource, 17 million ounces of precious metals. We have converted 7 million of those into reserve. We have got a bulletproof proven and probable reserve now, 7 million ounces of precious metals, 400,000 tons of nickel, 260,000 tons of copper. 70 km from Perth. We have got fantastic support from government. It is going to become the first PGM mine in Australia. As most people would know, Russia and South Africa produce almost the entirety of PGM supply.
This is a very, very novel thing for the country. We are very proud of that. We are going to deliver something that Australia has never done before. We are really on track to make a construction decision or a final investment decision, as it says there, in the first half of 2028. What gives you comfort with these types of things are polymetallic projects are a bit more complicated because you are dealing with lots of metals. But once they are in operation, they have the benefit of all the by-products. So you get this very diverse split of revenues, and that means when some metals are up, some metals are down, you get that natural diversification. As you can see there, the annual production really is just a fraction of what is in resources. This thing is going to be operating for a very long time.
Long life project on the outskirts of Perth, super high quality, simple open pit. There is a lot to like in terms of this deposit. Palladium at the moment, it has been on a volatile ride over the last few years. It hit the three-year high back in January when silver and gold were also flying. It has characteristics where it trades like a scarce precious metal, so it has some financial asset appeal. But it is primarily an industrial metal, somewhat similar to silver. It had a tough few months following the Iran conflict. What we are seeing at the moment is China is importing this stuff at record highs, even while it is not really showing up in the prices at the moment. Palladium can go absolutely berserk in the right deficit market conditions.
It went from AUD 1,000 an ounce to AUD 3,000 an ounce in two and a half years, all the way back in 2019, 2020. Really it is very supply constrained. There is just not many mines and not many deposits out there. There is almost no supply response when you do get prices running. What is probably most exciting for us at the moment is palladium is known to be associated very intimately with petrol engines and hybrid vehicles. As the world electrifies, there is a little bit of resistance out there. Consumers are still saying they prefer the flexibility of hybrids. The consensus out in the market though, is that everyone is going to buy an electric vehicle. We do not think that is real.
We think there is going to be at least a 20-year transitionary period, which makes palladium a very attractive metal in that sort of contrarian type view.
The other component is AI. Data centers, as Charlie said this morning, they consume a lot of weird and wacky base, but also very small little precious minor metals. AI is forecast to add somewhere between 0.5 million ounces and 1.5 million ounces a year to palladium demand, and the market is only 9 million ounces per annum. Even if there is a small amount of demand destruction from people going and buying battery electric vehicles, we think data centers and electronics demand is well and truly going to make up that gap. That is going to keep the market very tight. As I said, 90% of palladium supply from deep aging Russian, South African operations. Those operations need to see over $2,500 U.S. per ounce to incentivize growth. Currently, the price is about $1,300 U.S. an ounce.
These existing suppliers are nowhere near committing to add any growth or even maintain supply at the current price. On the left-hand side of this chart, you can see the different financial metrics of our project, NPV8, as well as IRR flexed at different copper and palladium prices. Copper currently sitting just shy of $15,000 U.S. a ton and on the rise, and palladium sitting just shy of $1,400 U.S. an ounce, which implies about a AUD 2 billion NPV8 at current prices. This thing is very leveraged. Obviously, if you get every $100 U.S. an ounce increase to the palladium price, adds AUD 250 million of value to our project on an NPV8 basis. It is very levered to movements in the palladium price, but also, as you can see there, copper prices.
Yet the recovery in those metals in the last 12 months has really not been reflected in the CHN share price. On the right-hand side there, you can see we are still trading very close to the lows on a ratio to our NAV or our NPV8 for the project. Now is a great time if you are looking for quality, long life, mining project exposure in metals that are not flying, that are sitting still at the bottom of the cycle. This is a fantastic time to invest. History shows single asset developers like Chalice between releasing PFS, as most people know, there is this concept of the Lassonde curve. There is a period where miners have to go through less sexy feasibility studies, regulatory permits, financing. That is exactly where we are at the moment. That typically provides a window of opportunity for longer-term shareholders.
Between PFS release and FID, share prices typically do re-rate just on the basis of executing basically to plan. You can see here the most standout example is Foran in Canada that re-rated 29x between PFS and FID, and they have actually now been acquired by Eldorado. Likewise in Australia, it is not unusual. You can see there between 2.5x and 4x , just simply by holding the stock or buying it around the PFS and holding it until you really get to that investment decision, which like I said, for us is only two years from now or less than two years. What are we doing? We are working closely with off-takers. We know there are nickel and copper smelters that are very, very hungry for our types of products. We are working with all of them to get to binding off-take approvals.
We are about to submit our review documentation. Like I said, about 18 to 24 months to go on those major environmental approvals, but very much got strong government and community support. Feasibility study is underway. I mentioned Paul, our new Project Director, he is here. We are about to launch an eight-week pilot program of the full flow sheet as well. That is going to prove to our lenders, who we expect about half to sort of 60% of our pre-production CapEx is going to come through senior debt. Showing them that the full flow sheet operates as expected over a continuous eight-week period is what we are sort of gearing up to do at the moment. That pilot plan is going to be finished by the end of the year, and then our feasibility study will be finished likely in the third quarter of next year, 2027.
Only about AUD 25 million to spend to get the project at a binding, a definitive, or bankable feasibility study. We are live at the moment on a by-product stream financing process. We are really engaging with all the debt providers early as well. All of those things obviously happening in parallel ahead of, like I said, that FID targeted in the first half of 2028. Shortly, pivoting to the copper exploration portfolio for a moment. As most people would know, Kevin Frost, who is a two-time winner of Prospector of the Year, winner of the International Discovery Award, the Thayer Lindsley Award for the Gonneville discovery. Kevin and team remain very hungry and active, looking at early-stage entry opportunities in Australia.
We have set them the task of really putting us into some of the best copper provinces in Australia where there is real Tier 1 discovery potential. This area, just south of Caravel's project, has come on the radar just a few months ago. We found some fantastic coherent soil anomalies, copper, moly, silver, gold, as well as some fantastic heavy rare earths, in soils and rock chips. We just finished an RC program and we announced yesterday we have hit some copper, silver, and gold. So we have confirmed that going south of Caravel's project, which hosts 3 million tons of contained copper, we have confirmed that belt is live and it is yet to be really drilled.
We are going to continue to drill, continue to do soil sampling IP and hopefully really add what that project needs, which is a small amount of higher grade material and a small amount of higher grade copper near surface could really move the dial for that area and for that region. So, watch this space. The one that is most near term, we are drilling on the western end of the Tennant Creek Mineral Field. If those who know Tennant Creek, it has set up some fantastic companies in Australia like Normandy. The Warrego mine was a beautiful high-grade operation. Small tonnage, but, 1.4 million ounces of 6.5 g gold, 130,000 tons of copper as well at 2% copper. We are literally 10 km-15 km to the west of that. It took us years and years, unfortunately, to get access to this ground.
It is in Aboriginal freehold land. But we have got a whole bunch of gravity mag targets within 20 km of the Warrego mine that have never seen a drill hole or never been effectively tested. We are going to do several rounds of RC drilling, and that is going to start in the next couple of weeks up there in Tennant Creek. We have got an 8-m at 1.7 copper, 0.4 gold intersection that remains wide open as well that needs to be tested. So quality asset underpinned by a fantastic long-lived open-pit mine in WA. You have got an opportunity here to buy at the bottom of the cycle, but you can also buy ahead of the crowd. So bottom of the cycle in terms of where nickel and palladium are. Ahead of the crowd in terms of where all the big institutional investment comes in.
They typically buy in the lead up to FID. But on top of that you also get this exposure to our fantastic copper portfolio across Australia. So please come and have a chat to us if you would like to learn more. Wishing you all the best. I certainly have the under-invested feeling after hearing Charlie this morning. So I wish everyone the best.