Challenger Gold Limited has shifted its development strategy for the Hualilán Gold Project in San Juan Province, Argentina, moving away from a small-scale toll treatment model toward a larger, integrated standalone mining and processing operation backed by an A$85 million equity raising and a refreshed leadership team.

The operational review concluded that the previous toll milling model is less suited to the broader, more disseminated grade distribution now understood within the orebody, reinforcing the strategic rationale for an integrated operation.

By comparison, the standalone Pre-Feasibility Study outlines a 14.25-year life-of-mine production target of 1.84 million ounces of gold equivalent, averaging approximately 135,000 ounces per annum after a staged start-up period. The standalone case estimates a post-tax NPV5 of US$1.10 billion and a pre-tax NPV5 of US$1.45 billion at a US$3,500 per ounce gold price, alongside life-of-mine AISC of US$1,618 per ounce of payable gold and estimated start-up capital of US$232 million excluding contingency.

During an orderly transition period of approximately four months, Challenger will focus on mining, preparing, stockpiling and commercialising suitable material while assessing the replacement of the existing toll arrangement with an ore purchase agreement with Casposo to maintain cashflow generation.

To support this expanded scope, the company has appointed Peter Marrone as Non-Executive Chairman, Yohann Bouchard as Chief Operating Officer, Felipe Riquelme as Chief Financial Officer, and Luke Buchanan as VP Project and Strategic Planning.

Parallel to the strategic transition, Challenger has commenced an initial minimum 35,000-metre diamond drilling campaign at Hualilán, marking its first exploration drilling program at the project in over three years. Progressive results from the drilling are expected to provide technical inputs and value catalysts.

"The published PFS demonstrates the scale of the opportunity, including a 1.84Moz AuEq production target, a 14.25-year mine life, low upfront capital intensity, a competitive AISC profile and significant NPV leverage to the gold price environment. The commencement of the 35,000-metre drilling campaign is an important next step in unlocking further value, with drilling focused on resource growth, conversion within the open pit design, geotechnical support for the Phase 1 standalone Heap Leach project and the generation of broader district-scale exploration targets."

"The operational learning from the initial campaign has sharpened our understanding of the orebody and reinforced the merits of an integrated processing strategy. With new leadership, a strengthened balance sheet, a fully funded exploration program and a clear technical pathway, Challenger is well positioned to advance Hualilán toward construction and operations."

— Challenger Gold Limited, Corporate Attribution

Subject to engineering studies, permitting, financing and regulatory processes—including potential approval under Argentina's Incentive Regime for Large Investments—Challenger is targeting the commencement of construction activities during 2027, followed by rapid progression toward standalone production in early 2029.

Read the full announcement: Challenger Gold Sharpens Hualilan Development Pathway