Challenger Gold (ASX:CEL) has outlined a development road map to reach commercial production at the Hualilán Gold Project in San Juan, Argentina, in early 2029.
The team’s primary objective is to establish Hualilán as a stand-alone gold producer through a phase-one heap leach operation by early 2029.
This goal is underpinned by Challenger’s 2026 Prefeasibility Study, which was announced in May this year.
Key priorities for reaching commercial production in this time frame include engineering and optimisation studies, exploration and resource growth, financing and capital markets, and project execution and financial discipline.
Challenger has engaged BBA Consultants to commence a detailed engineering program for the development of the phase-one heap leach operation.
By addressing engineering activities early, Challenger intends to improve capital cost certainty, support early procurement planning for long-lead items, and accelerate project readiness.
In parallel, the contractor is undertaking optimisation studies to evaluate geological, mining, processing, and infrastructure opportunities.
Challenger will also undertake a 35,000m drilling campaign to expand the resource and reserve base, convert resources to ore reserves, and to support mine plan optimisation.
The company has four drill rigs in operation to date, with an exploration update expected in Q4 2026.
Challenger is also considering secondary listing options to increase its exposure in the market to a broader group of international institutional investors.
To support the company’s finances, Challenger is considering refinancing its US$15 million ($20.8 million) convertible debenture due this month. If successful, funds will be used to support exploration, corporate obligations, and phase-one activities through mid-2027.
Challenger intends to submit an application under Argentina’s Régimen de Incentivo para Grandes Inversiones. Confirmation of this application is expected during the first half of 2027.
In a statement, Challenger says its objective is clear: “To transition Hualilán from a development asset to a producing gold operation”.
“With a fully permitted project, a robust Prefeasibility Study, and a strengthened leadership team, we believe Hualilán has a compelling pathway to commercial production,” the company says.
“The priorities outlined today provide a structured framework to support commercial production from the phase-one heap leach operation by early 2029, while preserving the significant long-term growth opportunities across the broader Hualilán district.”
Write to Maddison Elliott at Mining.com.au
Main Image: Challenger Gold
