Mining Intelligence and News
Argentina

Hualilan Project

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Summary

Mine TypeOpen Pit
Study CompletedPrefeasibility
Study in ProgressPrefeasibility Update
StageFully Permitted
Commodities
  • Gold
  • Silver
Mining Method
  • Truck & Shovel / Loader
Mine Life... Lock
SnapshotThe Hualilan Pre-Feasibility Study (2025) demonstrates robust toll milling outcome for while only taking 3% of Hualilan’s Mineral Resource Estimate. Hualilan ore will be transported to Casposo processing plant located 165 km away and with whom the Challenger Gold has a Toll Treatment Agreement in place.

Technical and economic studies are currently underway to assess the feasibility of on-site extraction and recovery of ore at the Hualilan Project. These studies are focused on evaluating the transition from toll milling operations to a full-scale, self-sustained processing facility in the future.

Near term production via toll milling at Hualilan prior to targeted standalone Hualilan development. Recent equity raising fully funds CEL through to production via toll milling in Q4 2025.

Toll milling can provide a pathway to fund stand-alone Hualilan development and prepare it for full-scale production starting in 2028.

Hualilan project is fully permitted.

Owners

SourceSource
CompanyInterestOwnership
Challenger Gold Limited 100 % Indirect
Challenger Gold Limited fully owns the Hualilan Gold project.

Contractors

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Deposit type

  • Skarn
  • Intrusion related
  • Manto

Summary:

The Project is the site of extensive zinc skarn mineralisation with a gold overprint which makes it a somewhat unique style of mineralisation.

Commonly zinc skarns occur in continental settings associated convergent tectonic plate margins as is the case at Hualilan, located in the pre-cordillera of the western South American convergent plate margin. Zinc skarns commonly contain high grade zinc, lead, and silver although zinc is usually dominant. Mineralisation and skarn alteration at Hualilan occurs in all three main rock types.

1. Limestone (San Juan Formation of Ordovician age) contains high grade mineralisation (manto style) controlled by bedding parallel faults, cross faults, and contacts with other rock types.

2. Shale and sandstone (of Silurian age) contains lower grade replacement style skarn mineralisation which preferentially occurs parallel to bedding with 30m of the Limestone contact.

3. Dacitic intrusions (of Mid-Miocene age) contain stockwork fracture and locally breccias which host lower grade skarn mineralisation.

In all host rocks, the zinc skarn mineralisation is overprinted by a slightly later phase of gold – silver mineralisation. This second phase of mineralisation is mesothermal to deep epithermal and may be related to but is separate from the zinc skarn. Importantly, the gold mineralisation is deposited in the same reactivated faults and fractures as the zinc skarn. Precise mineral paragenesis and hydrothermal evolution of the deposit is the subject of on-going work which is being used to guide exploration and detailed geometallurgical test work.

The dacitic intrusions which are part of the host rock sequence at Hualilan may be related to the hydrothermal activity that formed the skarn, although the timing relationships have not been determined. At this stage, we use the term “intrusion-hosted” rather than “endoskarn” to describe the skarn mineralisation in the dacite.

Gold occurs in native form as inclusions with sulphide (predominantly pyrite) and in pyroxene-garnet skarn alteration. The mineralisation commonly occurs with pyrite and the zinc skarn assemblage of sphalerite and galena with rare chalcopyrite, pyrrhotite and magnetite. Importantly, mineralisation contains very low levels of arsenic, mercury, and other deleterious metals.

Complete oxidation of the surface rock due to weathering is thin. A partial oxidation/fracture oxidation layer near surface is 1 to 40m thick and has been modelled from drill hole intersections. Where oxidation is more intense, native gold can be observed.

Dimensions
31 separate domains were interpreted over a strike length of 2.3kms. The domains vary in width and orientation from 2m up to 100m in width. The deepest interpreted domain extends from the surface down approximately 600m below surface.

Reserves

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Mining Methods

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Required Heavy Mobile Equipment

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Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

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Commodity Production

CommodityProductUnitsLOM
Gold Payable metal oz 76,559
Gold Metal in doré oz 76,789
Silver Payable metal oz 338,511
Silver Metal in doré oz 339,530
Gold Equivalent Payable metal oz 80,283

Operational metrics

Metrics
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Tonnes processed, LOM  ....  Subscribe
* According to 2025 study.

Production Costs

CommodityUnitsAverage
Cash costs Gold Equivalent USD  ....  Subscribe
All-in sustaining costs (AISC) Gold Equivalent USD  ....  Subscribe
Assumed price Silver USD  ....  Subscribe
Assumed price Gold USD  ....  Subscribe
* According to 2025 study / presentation.

Project Costs

MetricsUnitsLOM Total
Pre-Production capital costs $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Closure costs $M USD  ......  Subscribe
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OP OpEx $M USD  ......  Subscribe
Refining and transportation $M USD  ......  Subscribe
Refining and treatment costs $M USD  ......  Subscribe
Transportation (haulage) costs $M USD 7.9
G&A costs $M USD 6.3
Total OpEx $M USD  ......  Subscribe
Mining Taxes $M USD  ......  Subscribe
Royalty payments $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
Net revenue (LOM) $M USD  ......  Subscribe
Operating margin (LOM) $M USD  ......  Subscribe
EBITDA (LOM) $M USD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 5% $M USD  ......  Subscribe
After-tax NPV @ 5% $M USD  ......  Subscribe
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Personnel

Mine Management

Job TitleNameProfileRef. Date
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Workforce

EmployeesContractorsTotal WorkforceYear
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Aerial view:

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