Cavalier Resources Lifts Crawford Gold Project NPV 50% Amid Financing Advances

Updated PFS Shows Strong Economics Despite Cost Pressures

Cavalier Resources Limited (ASX:CVR) has delivered a significant boost to the economic outlook of its Crawford Gold Project, with an updated Pre-Feasibility Study (PFS) lifting the Stage 1 net present value (NPV) by 50% to A$77.2 million at a gold price of A$6,500 per ounce. This uplift comes despite incorporating higher capital and operating costs driven by ongoing global supply chain disruptions and elevated energy-linked input prices.

The revised PFS also reports a pre-CAPEX undiscounted cash flow of A$106.4 million, reinforcing the project's resilience in a challenging cost environment. Notably, the physical pit design and ore reserve estimate remain unchanged, indicating that the value increase stems from updated cost assumptions and gold price inputs rather than resource expansion.

Drilling Confirms Mineralisation Extensions at Miranda Target

Complementing the PFS update, Cavalier completed approximately 5,000 metres of near-mine reverse circulation drilling in late 2025, including a focused program at the Miranda Target roughly one kilometre north-northwest of the planned Stage 1 pit. The drilling confirmed continuous gold mineralisation over a strike length exceeding 100 metres, with intercepts such as 6 metres at 1.29 grams per tonne gold including 1 metre at 3.44 grams per tonne.

These results support a growing northern corridor of mineralisation and provide a clear pathway to expand the Mineral Resource Estimate beyond the Stage 1 starter pit. The company plans to upgrade the current resource model to incorporate these latest findings, which could enhance project scale and longevity.

Secures US$18.7 Million Gold Sale and Loan Facilities

On the financing front, Cavalier has executed a non-binding term sheet for a US$13 million (approximately A$18.7 million) gold sale and purchase agreement with Raptor Capital International Ltd. This facility involves the prepayment for 6,265 ounces of refined gold at US$2,075 per ounce, with delivery scheduled as every third ounce produced from the mine.

In parallel, the term sheet includes indicative terms for an additional A$5 million gold loan facility with Ottomin Pty Ltd, subject to due diligence and binding documentation. The loan is structured with repayments in cash followed by gold deliveries, providing flexible funding aligned with production.

Pre-Production Placement Raises $4 Million

Further strengthening its cash position, Cavalier completed a $4 million pre-production placement at $0.30 per share, representing discounts ranging from 6.25% to nearly 12% against recent VWAPs. The funds are earmarked for critical early development activities including ordering long-lead processing plant equipment, site establishment, haul road construction, and recruitment of key personnel.

Executive Technical Director Daniel Tuffin has personally committed to subscribing for $60,000 of the placement, signaling management confidence in the project's trajectory. This capital raise complements the ongoing financing negotiations and positions Cavalier to advance towards mining operations.

Ore Reserve and Funding Position

The Crawford Stage 1 Ore Reserve remains steady at 1,002,000 tonnes grading 0.91 grams per tonne gold, equating to an estimated 29,300 ounces of recoverable gold. The reserve is calculated at a gold price of $2,900 per ounce and is confined to the oxide portion of the resource within the current pit design.

Despite the progress, Cavalier’s cash balance stood at A$460,000 at quarter-end, with estimated funding to cover just over one quarter of current operating and exploration outgoings. The company acknowledges ongoing negative cash flows typical of the exploration and development stage but expects to maintain operations through successful capital raises and project financing, including the recently announced placements and term sheets.

The updated PFS and financing arrangements follow a series of drilling and resource expansion announcements, including the recent confirmation of gold continuity at Miranda and earlier near-mine development drilling programs. These efforts collectively underpin the project's advancing development status and economic robustness in a complex market environment.

Cavalier’s ability to finalise binding financing agreements and successfully transition into production will be critical to watch in the coming months, as will the outcome of the resource upgrade incorporating the latest drilling results. The company’s strategic moves to secure funding and demonstrate strong project economics may set the stage for a pivotal phase in its Leonora Gold Project development.

The increased capital costs and supply chain challenges reflected in the PFS highlight the balancing act facing junior miners in today’s market, where robust project fundamentals must be weighed against inflationary pressures and financing risks.

Investors tracking Cavalier’s progress will note the company’s proactive approach to funding and resource definition, which could influence the timing and scale of its mining operations. The next key milestones will likely include finalising binding finance agreements and reporting an upgraded Mineral Resource Estimate that incorporates the Miranda Target extensions.

Meanwhile, the company’s recent $4 million placement, detailed in the pre-production placement announcement, and the earlier PFS update showing the NPV uplift despite rising costs, as covered in the NPV increase report, provide important context for Cavalier’s advancing development story.