Scoping Study Commences

Challenger Exploration (ASX: CEL) (“CEL” the “Company”) is pleased to announce the commencement of a Scoping Study ("the Study") at its flagship Hualilan Gold Project, San Juan Argentina.

Highlights

• Mining Plus appointed as managers for the Hualilan Gold Project Scoping Study¹
  
• Study includes a senior team that has worked on the majority of Argentina's significant mines
• Study will be based on an updated Mineral Resource Estimate (MRE) expected in Q1 next year
  
• Study will include the option of a staged start-up based on the existing high-grade core of mineralisation at Hualilan of 1.1 million ounces AuEq at 5.6 g/t AuEq^{2, 3}
  
• Study will evaluate the use of renewable power options as well as local grid power

Mining Plus has been appointed as managers of the Scoping Study. Mining Plus is a leading international mining consultancy group with a global team of 150+ mining professionals servicing projects across continents including Australia, North and South America, Europe, Africa and Asia. The Scoping Study will utilise consultants from the Mining Plus South American office based in Lima Peru. The two key principals overseeing the Scoping Study are Australians with over 15 years combined experience living and working in Latin America.

In addition to Mining Plus, the Scoping Study work will be augmented by a team of leading Senior Consultants based in San Juan, Argentina appointed by the Company. This team includes local Infrastructure and Power specialists, Environmental and Hydrological Engineers, Mining Geologists and Open Pit and Underground Mining Engineers. The local San Juan team has collectively worked on the majority of Argentina's significant mines including, Velerado (Barrick Gold), Cerro Nego (Newmont), Alumbrera, Casposo, and Lundin Mining's Jose Maria project which currently undergoing a Feasibility Study.

The scoping Study will include an evaluation of a staged start-up option focussing on the existing high- grade core of 1.1 million ounces AuEq at 5.6 g/t AuEq ^{2, 3} at Hualilan. Additionally, the Study will evaluate the use of renewable power options in addition to local grid power.

The final Scoping Study will be based on a planned update to the current 2.1 million ounce AuEq² Mineral Resource Estimate ("MRE")² which will be completed in the first quarter 2023. It is anticipated the Scoping Study will be completed during Q2 2023.

Work Streams

Significant progress has been made towards defining the scope of study with preliminary pit optimisation work and a preliminary high-level economic evaluation completed. This work will be updated when the new MRE is available in Q1.

Stage 1 Metallurgical testing has been completed at SGS’s Lakefield office, Canada, which has defined the flow sheet. Stage 2 metallurgical testing, also being undertaken by SGS in their Lakefield office, has commenced, which will include variability open circuit flotation testwork, comminution testing, solid liquid separation and concentrate and tailings thickening, filtering and dewatering testing, and viscosity testing of tailings for pumping design.

An Archaeological Study has been completed with environmental baseline monitoring underway. Social and Community Streams are ongoing, are well organised and in progress as part of the Company’s normal day to day operations.

The open pit geotechnical evaluation is to commence shortly. Initial hydrology is underway with the drilling of the first water well completed and pump out testing expected to start in January. Geotechnical logging of this first well is encouraging. At least one more water well will be drilled and pump out testing completed as part of the Study.

Benchmarking from comparable mining operations in South America and Argentina is largely completed. The Study will include deriving costs calculated from first principles based on material take offs, preliminary budgets and factorised costs, to allow a seamless transition into a Pre-Feasibility Study.

Click here for the full ASX Release

This article includes content from Challenger Exploration, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.