Toll milling contract to process Hualilán ore executed, with mobilisation to site now complete.
By Panorama Minero
Challenger Gold Limited announced that its Argentine subsidiary, Golden Mining S.A., has entered into a 24-month mining services contract with MAPAL Constructions and Mining S.A. for the Toll Milling Phase of the Hualilán Gold Project, located in San Juan Province.
The contract encompasses load and haul, auxiliary works, and run-of-mine (“ROM”) handling activities associated with approximately 3.37 million tonnes of material movement. Mobilisation to site commenced in late October 2025 under a mutually agreed early-works authorisation, issued after the parties had settled commercial terms and were finalising minor schedule details. This authorisation enabled the contractor to begin approved preparatory works in anticipation of contract execution.
Mobilisation is now complete, with preparatory activities progressing through November 2025. Production mining activities remain on track to commence formally under the Mining Contract on 1 December 2025.
Highlights include:
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Blast-hole drilling commenced on schedule on 1 November.
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Mining contract executed with MAPAL Constructions and Mining S.A. for the Toll Milling phase.
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MAPAL mobilisation completed, with mining preparatory works underway.
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Orica explosive charging operations commenced on site; with the first blast completed 20 November.
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MAPAL remains on track to commence mining on 1 December.
Challenger CEO Kris Knauer, said: “Engaging MAPAL provides a low-risk and capital-efficient path to execute our Toll Milling Phase while keeping the broader standalone development program on track. MAPAL’s depth of experience, established workforce, and long history in the San Juan mining community give us strong confidence in their ability to deliver. Appointing an established local contractor for mining production materially reduces execution risk and positions us for long-term success at Hualilán.”
The ore will be processed at the Casposo plant, located approximately 165 km from Hualilán, with a minimum of 450,000 tonnes of mineralised material to be processed over a period of three years.
