Challenger Gold Limited (“Challenger”) is pleased to announce significant progress towards mining and toll milling at its flagship Hualilan Project, located approximately 120 km north-northwest of San Juan, Argentina. The Company has secured multiple mining contracts and entered a toll milling agreement to expedite production and cash flow generation.
Challenger has executed mining contracts for the extraction of high-grade gold ore at Hualilan, a project renowned for its robust mineralization. These agreements mark a pivotal step towards transitioning from exploration to production. Additionally, the Company has secured a toll milling agreement with a regional processing facility, providing a cost-effective pathway to process the extracted ore.
Recent drilling results continue to reinforce the project’s exceptional potential, with high-grade gold intersections confirming extensive mineralization across multiple zones. The results underscore the strong economics of the Hualilan Project as Challenger advances towards production.
Kris Knauer, the Managing Director of Challenger Gold commented: "We are making excellent progress towards being mining and Toll Milling ready with all key workstreams on schedule.
The completion of Toll Milling pit design and mining schedules is a significant milestone as it allows us to finalize quotes for contract mining and trucking of material to Casposo.
The final mining schedule for tolling itself represents a significant improvement over our initial case. It shows a 10% improvement in grade; delivers 6-months toll milling feed in the first 3- months of mining; front loads cashflows with grades of 8.7 g/t Au and 34.5/t Ag during the first year of tolling and provides significant flexibility and optionality with only 3 of the 4 pits required and an additional 120,000 of toll milling material available in the toll milling pits. Finally, Austral Gold, the Toll Mill operator, has indicated that refurbishment of the Casposo Plant is progressing”
Challenger Gold remains focused on unlocking the full value of Hualilan by advancing its development strategy, maximizing efficiency through toll milling, and rapidly progressing towards production. Further updates will be provided as the Company advances key milestones.