Mineral will be processed at Casposo plant.
By Panorama Minero
Challenger Gold announced Hualilán Prefeasibility Study Results. Highlights include:
Toll Milling Pre-Feasibility Study (PFS) delivers compelling financial metrics:
• Robust margins on conservative commodity prices: using US$2,500/oz Au (Gold) and US$27.50/oz Ag (Silver), the three-year toll-milling plan generates EBITDA of US$88.0M, post-tax NPV of US$50.5M, and cumulative post-tax free cash flow of US$56.7M.
• Leverage to spot prices: at today’s ~US$3,300/oz Au and US$33/oz Ag, EBITDA rises to US$142.8M and post-tax NPV to US$82.2M, with post-tax free cash flow of US$91.8M.
• Low upfront capital and quick payback: total upfront spend is just US$8.9M (A$13.8M) which is US$4.2M upfront capex and US$4.7M working capital, and achieves payback by December 2025 (or 3 months from the commencement of mining).
• Competitive cost structure: forecast All-In Sustaining Cost ("AISC") is ~US$1,454/oz AuEq, comfortably below spot prices and achievable thanks to toll milling and a short haulage distance.
• Financing risk removed: recent A$33.9M equity placement fully funds development through to first cash flow and acceleration the development of the larger stand-alone Hualilan development.
• Significant upside: Toll Milling is based on extracting only 3% of the 2.8 Moz Hualilan MRE (Mineral Resource Estimate).
Key operational findings of the PFS for Toll Milling to support
• High grade reserve-only schedule: mining focuses on three shallow open pits producing 465,000 wet metric tonnes ("wmt") of mineralized material above the cut-off grade at an average mined grade of 6.2 g/t Au and 35 g/t Ag; Inferred Resources are excluded.
• Payable Metal: Production Target of 76.6 koz payable Au and 338.5 koz Ag over a 30-month processing campaign.
• Low strip ratio: total material movement of 3.27 Mt with a life-of-mine strip ratio of 6:1 w:o and a forecast mining cost of US$8.12/t.
• Logistics & processing: ore is hauled 165 km on sealed highway to the fully-permitted Casposo plant, where recoveries are expected at 84.4% Au and 65.7% Ag; all-in processing, haulage and access charges of ≈ US$133/t processed.
• Campaign rhythm: Casposo batch treats Hualilan ore at ~25 kt/ month, running three months-on/ three months-off, with the toll program spanning 33 months in total.
Hualilán and Casposo are both located in San Juan Province.
