Challenger Gold Limited has outlined a structured development roadmap for its 100%-owned Hualilán Gold Project in San Juan, Argentina, prioritizing commercial production from its stand-alone Phase 1 heap leach operation by early 2029.

The strategy marks a shift from Challenger's previous reliance on a smaller-scale toll milling model. The company replaced that setup following an operational review that highlighted a broader, more disseminated grade distribution across the orebody. The current standalone Pre-Feasibility Study outlines a post-tax NPV of approximately $1.1 billion, compared to an estimated post-tax NPV of up to US$82.2 million under the previous 2025 toll milling plan.

Challenger is advancing a 35,000-metre drilling program across four operational rigs to support resource growth, reserve conversion, and mine plan optimization, alongside an initial exploration update scheduled for the fourth quarter of 2026. Detailed engineering is underway with BBA Consultants to support early procurement planning ahead of an anticipated construction ramp-up in the second half of 2027.

The company is also progressing an application under Argentina's Régimen de Incentivo para Grandes Inversiones fiscal incentive regime, targeting submission in the fourth quarter of 2026 and confirmation during the first half of 2027. To maintain funding through this development phase, Challenger plans to refinance a US$15 million convertible debenture due in September 2026, aiming to establish a full project financing plan by mid-2027.

“Our objective is clear: to transition Hualilán from a development asset to a producing gold operation. With a fully permitted project, a robust Pre-Feasibility Study and a strengthened leadership team, we believe Hualilán has a compelling pathway to commercial production.”

“The priorities outlined today provide a structured framework to support commercial production from the Phase 1 heap leach operation by early 2029, while preserving the significant long-term growth opportunities across the broader Hualilán district.”

— Management

Read the full announcement: Hualilan Roadmap Targets Production by Early 2029