Cavalier’s Crawford PFS Shows A$51.7M NPV and 580% IRR at A$4,600 Gold

Leadership Strengthens Operational Readiness

Cavalier Resources Limited (ASX – CVR) has taken a significant step forward in advancing its Crawford Gold Project by appointing Colin Bald as General Manager Operations. With three decades of experience spanning global mining operations, including pivotal roles at major producers such as Barrick, Anglogold, Ashanti, and Evolution Mining, Bald brings a wealth of expertise in mine start-up, operation, and closure. His familiarity with Western Australia's goldfields, notably his involvement in the early development and ramp-up of the Tropicana Mine, positions him well to lead the transition from pre-production to full-scale operations at Crawford.

Revised Pre-Feasibility Study Affirms Project Viability

Alongside this leadership update, Cavalier released a revised Pre-Feasibility Study (PFS) for Stage 1 of the Crawford Gold Project, maintaining the previously established pit design and Ore Reserve estimates. The study uses a base case gold price of A$4,600 per ounce and outlines capital expenditure of approximately A$9.8 million, covering site establishment, processing infrastructure, pre-strip mining, and site closure costs.

The PFS projects production of 23,467 ounces of gold over an 18-month mine life, with an impressive net present value (NPV8) of A$51.7 million and an internal rate of return (IRR) of 580%. The payback period is estimated at under nine months, reflecting a rapid return on investment. Operating costs remain competitive, with all-in sustaining costs (AISC) in the lowest quartile at A$1,574 per ounce, underscoring the project's cost-efficiency.

Financial and Operational Outlook

The financial projections incorporate royalties and assume an 80% recovery rate, with total gross revenue forecasted at A$107.9 million. The company’s focus now shifts to closing out pre-production activities and ramping up to first gold production, a process expected to be overseen closely by the newly appointed General Manager Operations.

However, the announcement also includes cautionary notes regarding the contingent nature of financing arrangements with Raptor, a potential streaming partner. The transaction remains subject to approvals and due diligence, introducing an element of uncertainty to the project's funding pathway. Additionally, the resource estimates include a small proportion of inferred mineral resources, which carry inherent geological risk.

Strategic Positioning in Western Australia

Cavalier’s broader strategy involves establishing the Crawford Project as a self-funded gold hub near Leonora, complementing its other assets such as the Ella’s Rock lithium-nickel-gold project. The company’s focus on mature assets in a prolific mining region aims to leverage operational synergies and regional expertise.

With the appointment of an experienced operations leader and a robust PFS underpinning the project’s economics, Cavalier appears well-positioned to advance toward production. Yet, the market will be watching closely for the finalisation of financing and the execution of operational milestones under new management.