Cavalier Faces Geological Uncertainty as It Pushes Toward Production at Crawford

Corporate Capital Raise Bolsters Growth Ambitions

Cavalier Resources Limited (ASX: CVR) closed the December 2024 quarter on a strong footing, having raised A$1.735 million through a non-renounceable rights issue. The capital raise saw robust participation from existing shareholders, who contributed over 73% of the funds, complemented by new sophisticated and institutional investors. This injection of capital is earmarked primarily to advance the Stage 1 open pit at the Crawford Gold Project, signalling Cavalier's commitment to transitioning from exploration to production.

Crawford Gold Project: Financial Upside Amid Record Prices

The Crawford Gold Project, located just 20km east of Leonora, continues to demonstrate significant economic potential. Updated financial metrics reveal an internal rate of return (IRR) soaring to 404% at a gold price of A$4,300 per ounce, with a net present value (NPV8) of A$44.2 million. These figures reflect the resource's open-ended nature and the advantage of current record gold prices, nearly 50% higher than the project's original feasibility study assumptions.

Mining approvals and native title negotiations have advanced steadily, clearing critical regulatory hurdles. The project’s probable ore reserve stands at just over 1 million tonnes at 0.91 g/t gold, translating to an estimated 29,300 ounces of gold production in Stage 1. While the company acknowledges the geological uncertainty inherent in inferred resources, the outlook remains optimistic for further resource conversion and expansion.

Ella's Rock Project: Emerging Lithium and Rare Earth Element Potential

Beyond gold, Cavalier is also progressing its Ella's Rock Li-Au-Ni Project within the world-class Forrestania lithium belt. Recent drilling and geochemical analysis have identified promising pathfinder elements, including lithium and titanium. Notably, hole ERAC035 intercepted 15 metres at 3.15% titanium from 23 metres depth and returned anomalous rare earth element (REE) assay results. These findings have prompted the commissioning of mineralogy testing to better understand the deposit’s composition and potential value.

Financial Position and Outlook

The company ended the quarter with A$1.285 million in cash, supported by the recent capital raise. Exploration expenditure during the quarter was modest at $281,000, focused mainly on advancing mining approvals. No substantive mining production or development activities were reported, consistent with the project’s development stage. Payments to related parties, including directors’ fees and consulting services, totalled $203,000.

Executive Technical Director and CEO Daniel Tuffin emphasised the importance of the quarter’s achievements, highlighting the groundwork laid for production commencement and value unlocking across the portfolio. With gold prices at historic highs, Cavalier is well positioned to capitalise on market conditions as it moves towards production.

Strategic Positioning in Leonora’s Mining Hub

Cavalier’s assets are strategically located within the prolific Leonora gold district, surrounded by established mining operations and infrastructure. The company’s vision to establish the Crawford Gold Project as a new mining hub aligns with regional growth trends and the increasing demand for gold and battery metals. The combination of gold, lithium, and nickel projects offers diversified exposure to key commodities underpinning the energy transition.