Challenger Gold Unveils Ambitious Roadmap for Hualilán Project in Argentina

Challenger Gold has outlined its development roadmap for the Hualilán project in Argentina, aiming to reach first production by early 2029. The company's new leadership team has established a plan to accelerate production through technical, exploration, project financing, and execution initiatives.

The recent pre-feasibility study highlighted the unique opportunity for near-term production from a fully permitted low-capex, large-scale development project in one of South America's top-ranked mining jurisdictions. The company is now bringing forward expenditure on engineering and earthworks related to construction of a mining camp, access roads, and main gate to support an accelerated development schedule.

Challenger expects the staged development approach to reduce its pre-production capital requirements to approximately US$267 million (including contingency), while generating $1.1 billion in post-tax net present value and a 35% post-tax internal rate of return over a 2.25 year payback period, assuming a gold price of US$3,500 per ounce.

The company is also launching a 35,000-metre drilling campaign to expand the Hualilán resource and reserves base, convert mineral resources to ore reserves, and support mine plan optimisation. Challenger has made significant progress in talks regarding a potential transition to an ore purchase agreement for the stockpiled ore at the site.

Challenger is progressing an application for Argentina's large investment incentive regime (RIGI) with potential to materially enhance Hualilán's fiscal and financing framework. If successful, this could provide a range of benefits including a reduced corporate income tax rate of 25%, accelerated depreciation, indefinite carry-forward of tax losses, select customs and tax exemptions, and flexibility over foreign exchange access for export proceeds.