en.Wedoany.com Reported - Challenger Gold has transitioned from developer to producer, producing its first doré bars at the Hualilán gold project in Argentina through a toll-milling agreement with Austral Gold.
The first production was achieved after processing approximately 15,000 tonnes of Hualilán ore at the Casposo plant.
The first pour produced approximately 200 kilograms of doré, estimated to contain 500 ounces of gold and 6,000 ounces of silver, with processing ongoing.
Hualilán is moving from the development stage into production ramp-up, providing the company with its first source of self-funded cash flow.
Chief Executive Officer Kris Knauer said the pour was a transformative moment, significantly de-risking Hualilán and enhancing confidence in Challenger's ability to fund the next stage of development.
Kris Knauer said this initial cash flow comes at a particularly opportune time, as Challenger is mobilizing at least four drill rigs to continue core drilling and accelerate the project toward the construction phase, laying a solid foundation for Hualilán's next phase of growth.
The toll-milling agreement with Casposo secures Challenger Gold (ASX: CEL) a processing capacity of 150,000 tonnes per year, with a committed capacity of 450,000 tonnes over three years.
The agreement provides a clear near-term processing pathway for Challenger as it advances the broader Hualilán development.
Early plant performance has been strong, with unreconciled recoveries consistently meeting or exceeding expectations.
Processing during the first 11 days treated low-grade gold ore at a grade of 1.5 grams per tonne to reduce operational risk, before transitioning to higher-grade feed.
The company is now processing higher-grade ore and expects recoveries and production to improve as activities continue.
Further updates will be provided once processing is reconciled, including final milled tonnage and grade, ounces of gold and silver produced, and the average realized sales price for the campaign.
Challenger is also accelerating mining at the Magnata pit, where the first production blast has been completed.
The company is mobilizing at least four drill rigs to continue core drilling, advancing Hualilán into the next development phase.
The March 2023 Hualilán mineral resource estimate stands at 60.6 million tonnes at 1.4 grams per tonne gold equivalent, containing 2.8 million ounces of gold equivalent.
The company recently released a pre-feasibility study for a larger standalone project, which is expected to produce 1.8 million ounces of gold equivalent at an all-in sustaining cost of $1,618 per ounce.
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