Challenger Gold Limited (ASX: CEL) (“Challenger” or the “Company”) has signed key production drilling and explosives services contracts for its Hualilán Gold Project in Argentina, marking another significant milestone as the Company advances toward first gold production under its Toll Milling Phase.
The Company’s Argentine subsidiary, Golden Mining S.A., has executed:
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a contract with global explosives leader ORICA for the provision of blasting products and on-site blasting services; and
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a 24-month drilling services contract with THOR S.A., one of Argentina’s most experienced drilling contractors, for blasthole drilling and ore control.
THOR is the preferred drilling partner for ORICA’s contract blasting operations in Argentina, operating one of the nation’s largest drill fleets. Mobilisation of both ORICA and THOR to site is scheduled for late October 2025, with blasthole drilling expected to commence in early November, followed by the first blast shortly thereafter.
Challenger CEO Kris Knauer said the Company was pleased to formalise partnerships with experienced local operators.
“We are pleased to partner with ORICA and THOR as we take this next step toward production at Hualilán. Their technical strengths and established operational footprint in Argentina make them ideal partners for a project of this scale. These contracts ensure safe, efficient, and reliable drilling-and-blast execution as we commence mining operations for toll milling.
“We are aligned with both ORICA and THOR not only commercially, but also in our shared goal of creating lasting value in San Juan through local employment, training, and the development of regional suppliers.
The Toll Milling Phase is a critical milestone in Challenger’s growth strategy, providing near-term cash flow and de-risking the development of the broader Hualilán Gold Project, one of Argentina’s most advanced undeveloped gold assets.”
Toll Milling and Operational Update
The Casposo Toll Milling Plant, owned by Austral Gold Limited (ASX: AGD), has successfully completed refurbishment and commissioning, with processing now underway on lower-grade stockpiles. The facility, located 165 kilometres from Hualilán, historically produced over 323,000 ounces of gold and 13.2 million ounces of silver and achieved recoveries of 90% for gold and 79% for silver.
Under the Toll Milling Agreement, a minimum of 450,000 tonnes of near-surface Hualilán mineralised material will be processed over three years.
The strategy aims to capitalise on the current high gold price—above US$4,000/oz—to generate early cash flow for development of Challenger’s standalone Hualilán Gold Project.
A recent Pre-Feasibility Study (PFS) highlighted:
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EBITDA of US$195M and post-tax NPV5 of US$110.4M at spot prices;
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AISC of ~US$1,454/oz AuEq; and
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operations extracting just 3% of Hualilán’s 2.8Moz AuEq Mineral Resource Estimate.
De-risking Through Local Partnerships
Engagement with ORICA and THOR represents a strategic move to de-risk start-up operations by leveraging their technical expertise, established logistics, and long-term presence in San Juan. Both companies maintain strong community engagement programs and a proven track record in safe, efficient mining support services.
About us:
About Challenger Gold
Challenger Gold Limited (ASX: CEL) aspires to become a globally significant gold producer. The company is advancing two complementary gold/copper projects in South America. Its flagship project, the Hualilán Gold Project in San Juan, Argentina, contains resources of 2.8 Moz AuEq.
Hualilán Gold Project:
Located in San Juan Province, Argentina, the Hualilán Gold Project presents a near-term development opportunity with extensive drilling history. The project boasts over 150 historical drill holes and nearly 900 CEL holes, defining a JORC (2012) Compliant resource of 2.8 Moz AuEq, including a high-grade core of 9.9 Mt at 5.0 g/t AuEq for 1.6 Moz AuEq.
El Guayabo Gold/Copper Project:
Located in southern Ecuador, the 35km² El Guayabo Project lies five kilometres along strike from the 20.5Moz Cangrejos Gold Project. CEL’s drilling programs have confirmed a major gold-copper-silver-molybdenum system, with a maiden 4.5Moz AuEq resource reported and mineralisation open in all directions.
Contact details:
For further information, please contact:
Kris Knauer – Managing Director & CEO
+61 411 885 979
[email protected]
Sergio Rotondo – Executive Vice-Chairman
+1 (646) 462 9273
[email protected]
Media Enquiries
Jane Morgan
+61 405 555 618
[email protected]