Can Cavalier Sustain Growth Amid Geological and Market Uncertainties?

Capital Raise to Accelerate Resource Growth

Cavalier Resources Limited (ASX – CVR) has successfully completed a $2.14 million share placement priced at $0.23 per share, representing an 11.9% discount to the 15-day volume weighted average price. The capital raise was led by Sanlam Private Wealth and is earmarked primarily for resource development and extensional drilling at the company’s flagship Crawford Gold Project in Western Australia.

This placement underscores investor confidence in Cavalier’s strategy to advance the project towards production while expanding its resource base to support future mine stages.

Extensional Drilling Program Commences

Following the placement, Cavalier has initiated a 5,000-metre drilling campaign targeting extensional zones beyond the Stage 1 starter pit. The drilling aims to increase the mineral resource to support open pit mining and future expansions. The Stage 1 starter pit is designed to deliver early production within three months, with expected gross revenue of approximately A$103.6 million based on a gold price of A$4,600 per ounce.

CEO Daniel Tuffin highlighted the importance of this phase, noting that early cash flow from Stage 1 will provide a foundation for growth as the company focuses on unlocking the full potential of the Crawford Gold Project.

Robust Project Economics Confirmed

The company’s revised Pre-Feasibility Study (PFS), released earlier in 2025, remains unchanged in its key parameters but incorporates updated gold prices and capital cost estimates. At a gold price of A$4,600 per ounce, the PFS reports a net present value (NPV8) of A$51.7 million and an internal rate of return (IRR) of 580%, with a payback period of nine months.

The study forecasts total gold production of 23,467 ounces over the life of the Stage 1 project, with all-in sustaining costs (AISC) in the lowest cost quartile at A$1,574 per ounce. Capital expenditure is estimated at A$9.8 million, covering site establishment, processing infrastructure, pre-strip mining, and closure costs.

Financial Position and Operational Outlook

As of 30 September 2025, Cavalier reported a cash balance of A$2.297 million, supported by the recent placement. The company estimates it has sufficient funding to cover approximately 6.4 quarters of operations at current expenditure levels. Exploration expenditure for the quarter was $172,000, primarily focused on mining lease applications and approvals.

No substantive development activities were reported during the quarter, but the initiation of the extensional drilling program marks a critical step towards resource expansion and mine planning.

Tenement Holdings and Governance

Cavalier maintains 100% ownership of multiple tenements across the Leonora region, including the Crawford Gold Project, Hidden Jewel Gold Project, Ella’s Rock Li-Ni-Au Project, and Maleta Creek Nickel-Gold Project. Payments to related parties totaled $161,000 for the quarter, covering consulting and director fees.

The company confirmed no changes to its board or executive team during the period and reiterated that all technical and financial information complies with relevant reporting standards.