Challenger Gold published the outcomes of the Pre-Feasibility Study (“PFS”) on its 100% owned Hualilan Gold project, located in San Juan province. Hualilan presents a large low-cost and low-risk development opportunity.
By Panorama Minero
The PFS, led by Ausenco, is based on a conservative approach and there are several optimisation opportunities being pursued in the definitive feasibility study (“DFS”) to further improve project economics.
“More than 900 new jobs are projected to be created, with a strong commitment from the company to prioritize the hiring of local residents from San Juan. In addition, community development and technical training programs for students in the region will be implemented, while also encouraging the participation of local and regional suppliers,” stated Executive Director Sonia Delgado.
PFS highlights Hualilan as a robust, large-scale, high-quality development opportunity:
· Production target of 1.84 Moz of AuEq (Gold Equivalent) across a life-of-mine (LOM) of 14.25 years.
· The PFS presents a compelling economic proposition, modelled using US$3500 gold price:
· Low upfront capital: Capex is US$203M (including US$35M contingency) plus US$64M preproduction mining costs for total estimated startup capital of US$232M2 (excl. contingency).
· Meaningful production: Projected production target of over 105koz AuEq in Year 1 and Year 2 (the staged startup phase) followed by 12 years of production averaging 135koz AuEq per annum.
· Ore Reserves containing 1.5Moz Au (Gold), 7.7Moz Ag (Silver) and 170kt Zn (Zinc).
· Open-pit with flexible processing strategy: a conventional 1.5Mtpa flotation plant and 8Mtpa capacity heap leach circuit fed from a single open-pit sees significant increase in operational flexibility and reduction in operational risk compared to 2023 Scoping Study.
· Significant positive social impact creating 900 new jobs, paying provincial royalties of US$287M (US$375M at spot) and Argentinian corporate taxes plus export duties of US$542M.
· The PFS excludes any Hualilan ore being mined and processed during ongoing toll milling.
