Challenger Gold targets 2029 production for Hualilán project

Challenger Gold has announced an accelerated development roadmap for its Hualilán gold project in Argentina, targeting commercial production from a Phase 1 heap-leach operation by early 2029.

The plan utilizes a staged development approach to minimize initial capital requirements. The project is expected to produce 1.8 million gold equivalent ounces over a 14.25-year mine life, averaging 135,000 ounces per year after the first two years. The initial heap-leach stage will be followed by the addition of a flotation circuit approximately two years later.

According to a pre-feasibility study, the project requires approximately US$267 million in pre-production capital. At a gold price of US$3,500 per ounce, the project is estimated to generate a post-tax net present value (NPV) of US$1.1 billion with a 35% post-tax internal rate of return.

To support this timeline, the company is bringing forward expenditure on engineering and early earthworks, including the construction of a mining camp, access roads, and a main gate. BBA Consultants has commenced detailed engineering for the Phase 1 mine, process facilities, and site services.