Challenger Gold Limited (ASX:CEL) has delivered a significant milestone with the completion of the Pre-Feasibility Study (PFS) for its toll milling operation at the Hualilan Gold Project in San Juan, Argentina, confirming a high-margin, low-capex pathway to near-term cash flow.
The PFS outlines robust economics for a 33-month toll milling campaign at the Casposo plant, operated under an existing agreement with Austral Gold (ASX:AGD). At current spot metal prices (US$3,300/oz Au, US$33/oz Ag), the project is forecast to deliver an EBITDA of A$221 million (US$142.8M), post-tax NPV5 of A$127 million (US$82.2M), and cumulative post-tax free cash flow of A$142 million (US$91.8M).
Importantly, the toll milling operation requires just A$13.8 million (US$8.9M) in upfront capital and working capital, which is already fully funded through Challenger’s recent A$33.9 million equity placement.
Key Highlights:
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High margin at conservative pricing: At base case metal prices (US$2,500/oz Au, US$27.50/oz Ag), the PFS forecasts EBITDA of US$88.0 million, post-tax NPV5 of US$50.5 million, and post-tax free cash flow of US$56.7 million
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Low-cost, rapid development: The project’s AISC is estimated at US$1,454/oz AuEq, with project payback expected just three months from the start of mining
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High-grade reserve base: The production target is 450,000 wet metric tonnes at an average mined grade of 6.2 g/t Au and 35 g/t Ag, producing 76,600 oz of payable gold and 338,500 oz of silver
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Permitted processing route: Ore will be trucked 165km to the fully-permitted Casposo plant, where metallurgical recoveries are estimated at 84.4% for gold and 65.7% for silver
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Minimal development risk: The PFS is based entirely on Indicated Resources and excludes Inferred Resources, de-risking the reserve and cash flow projections
About us:
Challenger Gold Limited is an Australia-based gold and copper exploration company. The Company’s projects include the Hualilan project, El Guayabo project, and Karoo Basin Gas project. Challenger Gold Limited (ASX: CEL) is developing the Hualilan Gold Project in San Juan, Argentina. Hualilan is one of the highest-grade undeveloped gold projects globally, with a current 2.8Moz gold equivalent Mineral Resource Estimate. The Company is advancing both a low-capex toll milling opportunity and a larger standalone development strategy, with a focus on rapid cash generation, resource growth and value creation.
Contact details:
Jane Morgan [email protected]
