Challenger Gold (ASX:CEL) has achieved its first gold pour from the Hualilán Gold Project in Argentina, producing approximately 200kg of doré.
This first batch is estimated to contain 500 ounces of gold and 6,000 ounces of silver from processing 15,000 tonnes of ore under a toll milling agreement with Austral Gold (ASX:AGD).
The toll processing agreement with Casposo Argentina Mining provides Challenger with an annual guaranteed processing capacity of 150,000 tonnes over three years — a total of 450,000 tonnes committed.
“The first of many gold pours at Hualilán marks a transformative moment for Challenger Gold and signifies our formal transition from explorer to producer,” CEO Kris Knauer says.
“Delivering our maiden doré bars reflects the dedication of our on-site operations team and the invaluable contribution of the people of San Juan.”
The company reports that unreconciled recoveries consistently met or exceeded forecast levels despite the start-up approach.
As plant performance stabilises, processing is now transitioning to higher-grade ore, further supporting improvements in recoveries and production outcomes.
Knauer says the proceeds from the first doré sale represent the company’s first source of non-dilutive capital since listing and mark an important milestone in strengthening the balance sheet.
“Early gold production materially de-risks Hualilán and provides growing confidence in the Company’s capacity to fund the next phase of development,” Knauer notes.
“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 … for [Hualilán’s] next stage of growth.”
Challenger Gold Chairman Eduardo Elsztain acknowledged the support of the San Juan Government, particularly Governor Marcelo Orrego and Mining Minister Juan Pablo Perea.
“This achievement would not have been possible without their partnership, which has been essential to reaching this significant milestone for the Province and the Company,” Elsztain says.
Write to JC Villarba at Mining.com.au
Images: Challenger Gold
