Challenger Gold Confirms Toll Milling Viability with Independent Audit

Sydney, Australia – December 13, 2024 – Challenger Gold Limited (ASX: CEL) has confirmed the viability of its toll treatment strategy for the Hualilan Gold Project following the successful completion of an independent technical audit of the Casposo Processing Plant. The audit, conducted by a leading process group, identified the plant as well-maintained and capable of efficiently processing ore with projected gold recoveries exceeding 90%.

The Casposo plant, owned by Austral Gold Limited, is located 170 km from Hualilan and features a processing capacity of 300,000 tonnes per annum—double the annual requirement for Challenger Gold's 150,000-tonne commitment. The audit validated the plant’s suitability for treating Hualilan’s oxide material, with no fatal flaws identified in the infrastructure or strategy.

The audit’s highlights include:

• Projected gold recoveries above 90%, surpassing the 80–85% assumption in previous models.

• Optimized leach kinetics, achieving maximum recovery within 24 hours compared to historical 72-hour requirements.

• Estimated refurbishment capital expenditure of US$4 million, aligning with expectations.

Managing Director Kris Knauer stated:
"The independent audit builds on our extensive due diligence into the toll milling opportunity for Hualilan. It confirms the viability of our toll treatment strategy via the Casposo Plant. The recommended plant throughput comfortably exceeds our requirements, and the plant is well suited to treat oxide material that will comprise the bulk of the toll milling ore from Hualilan. Additionally, the independent review of the metallurgical results indicates potential for better recoveries than originally modeled.

Toll Milling provides a clear pathway to early production at Hualilan that will enable us to fund the larger stand-alone Hualilan Gold project development out of cash flow."

With over 323,000 ounces of historical gold production and a proven track record in processing, the Casposo plant offers a cost-effective and reliable solution for Challenger Gold’s early production goals. The company now advances toward finalising operational agreements, confirming metallurgical results, and initiating pre-commissioning activities."

Jane Morgan
[email protected]