Challenger Gold has notched up another significant milestone, a few weeks after several key announcements.
Challenger Gold has notched up another significant milestone, a few weeks after several key announcements.
Kris Knauer-led Challenger told investors on Tuesday that it successfully poured first gold from its Hualilán gold project in Argentina.
Facilitated courtesy of a toll processing agreement with Casposo Argentina Mining, the processing was conducted at Casposo’s treatment plant – which like Hualilán, is located in the province of San Juan.
Approximately 15,000 tonnes of ore were processed during the initial pour, which from 200kg of doré, contained around 500 ounces of gold and 6000 ounces of silver.
Mr Knauer, who in conversation with Business News last year spoke about the company’s passion for engaging and working closely with local personnel within the region, outlined the importance of Tuesday’s announcement.
“The first of many gold pours at Hualilán marks a transformative moment for Challenger Gold and signifies our formal transition from explorer to producer,” he said.
“Delivering our maiden doré bars reflects the dedication of our on‑site operations team and the invaluable contribution of the people of San Juan.
“We are fortunate to be able to draw on the skills and commitment of the local community, whose support has been essential to achieving this milestone.”
Mr Knauer also said early production would further de-risk the project.
“Proceeds from the first doré sale represent the company’s first source of non-dilutive capital since listing and mark an important milestone in further strengthening the balance sheet,” he said.
“Early gold production materially de-risks Hualilán and provides growing confidence in the company’s capacity to fund the next phase of development.
“This initial cash flow is particularly timely as Challenger mobilises at least four rigs to continue core drilling and accelerate the project’s progression toward construction, positioning Hualilán strongly for its next stage of growth.”
On May 18, Challenger announced that along with the completion of Hualilán’s pre-feasibility study, it had appointed Allied Gold chair and chief executive Peter Marrone as its chair-elect and Yohann Bouchard as chief operating officer.
It also tapped investors for $85 million, with proceeds primarily set aside towards the completion of Hualilán’s definitive feasibility study and a major resource growth drilling campaign.
Two days following the announcements, Mr Marrone told investors he felt there was plenty of upside at the project.
“The current resource base and scope of the recently released pre-feasibility study undertaken by management should be seen as the foundation for the asset, not the limit of its potential,” he said.
“While substantial geological, engineering and development work has already been completed at Hualilán, significant additional value can be unlocked through further exploration work, both infill to upgrade inferred resources to measured and indicated and exploration work, both to infill to upgrade inferred resources to measured, indicated and exploration drilling to determine what is the true size and scale of the project.”
Mr Marrone also described Mr Bouchard as a “problem solver” and “sees mines as great puzzles to be solved for optimal value and returns”.
Challenger last traded at 15 cents.
