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Challenger Gold Limited (ASX:CEL)

ALERT: Price-sensitive ASX Announcement for CEL
Current share price for CEL : $1.635 -0.395 (-19.46%)+
Announcement
Release
10 Sep 2026 9:08AM
Price at Release
$2.030
Full Release
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Summary
Challenger Gold Limited announced an integrated roadmap to bring its 100%-owned Hualilán Gold Project in San Juan, Argentina, into commercial production from a stand-alone Phase 1 heap leach operation by early 2029, making this the new leadership team’s primary objective. The plan is anchored by the May 2026 Pre-Feasibility Study, which outlined 1.8 million gold equivalent ounces over a 14.25-year mine life, average annual production of 135,000 gold equivalent ounces after the first two years, pre-production capital of about US$267 million, post-tax NPV of about US$1.1 billion, post-tax IRR of 35%, and a 2.25-year payback at a US$3,500/oz gold price. To accelerate and de-risk development, CEL has started detailed engineering with BBA Consultants, is running optimisation work on geology, mining, processing and infrastructure, and is assessing improvements including higher heap leach recoveries, better mine-to-process integration, alternative processing design options and third-party financing for the power connection. The company is also advancing a 35,000-metre drilling program with four rigs to support resource growth, reserve conversion and mine plan optimisation, targeting an exploration update in Q4 2026 and updated resource and reserve estimates in 2H 2027. Financially, CEL plans to refinance its US$15 million convertible debenture due in September 2026, with available cash and refinancing proceeds expected to fund exploration, corporate obligations and Phase 1 activities through mid-2027 while a full project financing plan is prepared, and it is also considering a secondary listing to broaden investor access. The company expects to submit its RIGI application in Q3 2026, targeting confirmation in H1 2027, and noted early works and small-scale mining have already built an ore stockpile of 79,897 tonnes at 0.72 g/t gold for future processing, while previous 2025 toll milling production targets are no longer to be relied upon following the move away from toll treatment.
Key Points
  • Challenger Gold has set commercial production at Hualilán’s Phase 1 heap leach operation as its primary objective, targeting early 2029.
  • The roadmap is based on the May 2026 Pre-Feasibility Study, which outlined 1.8 million gold equivalent ounces over a 14.25-year mine life.
  • The 2026 PFS reported about US$267 million in pre-production capital, a post-tax NPV of about US$1.1 billion, a 35% post-tax IRR and a 2.25-year payback at US$3,500/oz gold.
  • BBA Consultants has been engaged for detailed engineering and optimisation studies to improve capital certainty, de-risk execution and strengthen project economics.
  • Potential project improvements include enhanced geological modelling, better mine-to-process integration, increased heap leach recovery and reduced upfront capital through third-party power connection financing.
  • Challenger is progressing a 35,000-metre drilling program, including 5,500 metres of geotechnical drilling, with four rigs operating at Hualilán.
  • The drilling program is intended to support resource growth, reserve conversion, mine plan optimisation and updated Mineral Resource and Ore Reserve estimates in the second half of 2027.
  • The company plans to refinance its US$15 million convertible debenture due on 14 September 2026.
  • If refinancing is completed, existing cash and debenture proceeds are expected to fund exploration, corporate obligations and Phase 1 project activities through mid-2027.
  • Challenger is evaluating potential secondary listing options to broaden access to international and North American institutional investors.
  • The company expects to submit its RIGI application in Q3 2026, with confirmation anticipated in the first half of 2027.
  • RIGI could improve Hualilán’s fiscal and financing framework through benefits such as a reduced corporate income tax rate, accelerated depreciation and greater foreign exchange flexibility.
  • Early site works are being brought forward, including the mining camp, access roads and main gate, to support an accelerated development schedule.
  • Small-scale mining completed by the end of June 2026 had stockpiled 79,897 tonnes of ore at an average grade of 0.72 g/t gold for future processing.
  • Challenger stated that the 2025 toll milling production targets and forecast financial information are superseded and should no longer be relied upon, while the larger Hualilán standalone 2026 PFS remains unaffected.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.