Challenger Gold has defined an accelerated roadmap for the San Juan project. Construction will gain momentum in 2027, while engineering, exploration and financing continue to advance.
By Panorama Minero
Challenger Gold Limited presented a new roadmap to advance the development of Hualilán, in San Juan Province, with the goal of reaching commercial production in early 2029 through an initial standalone phase based on heap leaching.
The company’s new management team has defined bringing the 100%-owned project into production as its main objective. The schedule provides for parallel progress on engineering, exploration, optimization, financing and execution, with construction activities accelerating during the second half of 2027.
The strategy is based on the results of the Pre-Feasibility Study (PFS) presented in May 2026, which projected production of 1.8 Moz of gold equivalent over a 14.25-year mine life, averaging approximately 135,000 gold equivalent ounces per year after the first two years.
The development plan includes an initial heap leach stage, followed by the addition of a flotation circuit approximately two years later. Estimated capital prior to the start of production amounts to approximately US$267 million, including contingency.
Engineering and Construction
Challenger appointed BBA Consultants to advance the detailed engineering for Phase 1, including the mine, heap leach pad, process facilities and associated services.
In parallel, optimization studies are being carried out on the mine plan, processing and infrastructure. Among the alternatives under consideration is a potential improvement in gold recovery through heap leaching, which could increase from 69.7% to 74.7%, subject to additional metallurgical work.
Another area under review concerns electrical infrastructure. The company estimates that third-party financing and construction of the power connection could reduce its initial capital requirements by approximately US$48 million.
The submission of a technical report under NI 43-101 standards is also planned for the first quarter of 2027.
Four Rigs and 35,000 Metres of Drilling
On the exploration front, Challenger is advancing a 35,000-metre drilling program, currently with four rigs operating.
The work is aimed at expanding the resource base, converting Mineral Resources into Ore Reserves and optimizing the mine plan. The company expects to provide an exploration update during the fourth quarter of 2026, while updated Mineral Resource and Ore Reserve estimates are scheduled for the second half of 2027.
RIGI and Financing
In parallel with technical progress, Challenger is working on the financial structure required to develop Hualilán.
The company plans to submit its application for inclusion in the Large Investment Incentive Regime (RIGI) before the end of September 2026 and expects a decision during the first half of 2027. According to Challenger, approximately US$30 million in historical investments made at Hualilán could count toward the investment threshold required under the regime.
On the financing front, the company plans to refinance an existing US$15 million convertible obligation and aims to have a comprehensive project financing plan in place by mid-2027.
It is also considering a potential secondary listing aimed at increasing its exposure to North American institutional investors.
Early Works and Stockpiled Ore
Early activities are already advancing in San Juan and include work related to the mine camp, access roads and the project’s main entrance.
By the end of June, small-scale mining activities had resulted in the accumulation of 79,897 tonnes of ore grading an average of 0.72 g/t gold, intended for future processing.
Challenger has also moved away from its previous third-party processing strategy. According to the company, this change does not affect the larger-scale standalone project defined in the May 2026 PFS.
Under the new roadmap, 2027 is emerging as a decisive year for Hualilán: Challenger plans to advance full project financing, complete new technical studies and accelerate construction activities, with the goal of reaching commercial production during the first months of 2029.
