Challenger Gold Secures Explosives Permit for Hualilan Toll Milling
Challenger Gold Limited (ASX: CEL) has received the final explosives permit required to begin drill and blast operations at its flagship Hualilan Gold Project in San Juan, Argentina. The approval, issued by Argentina’s Ministry of National Security, allows Toll Milling to commence.
The Toll Milling Agreement with Casposo Argentina Mining Limited covers the processing of 450,000 tonnes of near-surface Hualilan material over three years at the Casposo Plant, 165km from site. A recently completed Pre-Feasibility Study demonstrated strong economics, including forecast EBITDA of US$142.8M and post-tax free cash flow of US$91.8M at current spot prices.
The strategy aims to capitalise on record-high gold prices to generate early cash flow and fund development of the larger standalone Hualilan project. Importantly, Toll Milling will process only ~3% of the current 2.8Moz AuEq resource, preserving significant growth potential.
Key Highlights
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Explosives permit granted – final approval required for drill and blast operations at Hualilan.
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Toll Milling Agreement secured with Casposo Argentina Mining Limited to process 450,000 tonnes of near-surface Hualilan mineralised material over three years.
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Compelling project economics – Pre-Feasibility Study demonstrates robust margins, low upfront capital of US$8.9M, and rapid three-month payback.
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Fully funded – recent A$37.5M equity raising covers development through to first cash flow.
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Strategic upside – Toll Milling plan extracts only ~3% of the 2.8Moz AuEq Hualilan resource, preserving substantial growth potential.
About us:
About Challenger Gold
Challenger Gold Limited (ASX: CEL) is an emerging gold developer focused on becoming a globally significant producer. Its flagship Hualilan Gold Project in San Juan, Argentina hosts a 2.8Moz AuEq JORC resource, including a high-grade core of 1.6Moz AuEq at 5.0 g/t. The Company has executed a Toll Milling Agreement with Casposo Plant to generate near-term cash flow, with proceeds to fund development of a larger standalone operation.
In addition, Challenger holds the El Guayabo Gold/Copper Project in southern Ecuador, located near the 20.5Moz Cangrejos deposit. El Guayabo has delivered a 9.1Moz AuEq resource and remains open in all directions, providing longer-term optionality. The Company is currently assessing strategic options to monetise or spin out its Ecuadorian assets.
Contact details:
Media Enquiries
Jane Morgan
+61 405 555 618
[email protected]