Ore Haulage Begins at Hualilán Mine, Backed by 2.8Moz Resource and 3-Year Reserve

Ore Haulage Marks Operational Milestone

Challenger Gold Limited (ASX: CEL) has taken a significant stride forward by commencing ore haulage from its Hualilán Mine in Argentina to the Casposo processing plant. This development is a critical milestone in the company’s Toll Milling strategy, designed to accelerate near-term production and generate cash flow without the immediate capital outlay of building a dedicated processing facility.

The initial haulage rate is set at approximately 500 tonnes per day, ramping up to 1,000 tonnes per day with continuous day and night shifts planned. This controlled and staged logistics operation is supported by three experienced local haulage contractors, reinforcing Challenger’s commitment to regional employment and community engagement.

Infrastructure Enhancements Boost Safety and Efficiency

To facilitate safe and efficient ore transport, Challenger completed a 3-kilometre bypass road around the town of Calingasta well ahead of schedule. This bypass significantly reduces haulage traffic through the town, mitigating community disruption and enhancing operational safety. Additionally, the company is installing a modular Bailey bridge over the Río de los Patos, expected to be completed in the second quarter of 2026. This dedicated crossing will further remove haulage traffic from the existing town bridge, streamlining logistics and improving safety.

Robust Resource and Reserve Foundations

Alongside operational progress, Challenger has provided detailed updates on its mineral resource estimates (MRE) for both the Hualilán and El Guayabo projects. The Hualilán Gold Project boasts a JORC-compliant resource of 2.8 million ounces gold equivalent, with a high-grade core underpinning the resource base. The company’s Pre-Feasibility Study outlines a 3-year mine life based on toll treatment of 450,000 tonnes of ore, supported by strong metallurgical recoveries; 84.4% for gold and 65.7% for silver.

The Ore Reserve estimate reflects a technically and economically viable mine plan, incorporating realistic mining dilution and recovery factors. The toll treatment agreement with Austral Gold Limited is central to this plan, allowing Challenger to leverage existing processing infrastructure and reduce upfront capital expenditure.

Environmental and Community Considerations

Challenger has secured environmental approvals, including an Environmental Impact Assessment granted in October 2024, with an addendum pending to cover the current mine plan. The company’s engagement with local authorities and communities, including agreements on haulage routes, underscores its commitment to responsible mining practices and social licence to operate.

Looking ahead, Challenger plans to continue exploration and drilling to extend resources and enhance the project’s long-term potential. The company’s methodical approach to development, combining operational milestones with rigorous technical studies, positions it well to advance towards becoming a globally significant gold producer.