Challenger (ASX:CEL) find renewable upside on gold project

Challenger Exploration has established a productive alliance with a subsidiary of Argentina’s foremost energy company to provide affordable and sustainable energy to the Hualilan Gold Mine.

The mine’s preliminary study is well underway and is anticipated to benefit from lowered electricity costs, offset by power purchase agreement pricing.

This is a significant accomplishment for the project, which is progressing towards its development with an estimated 2.8 million ounces of gold already in its possession.

“It provides the project with much more than just a low cost and secure source of renewable power that will underpin project economics,” Mr Knauer said.

“With other measures already in train, it has the potential to see Hualilan emerge as one of the world’s lowest carbon intensity gold mines. Additionally, it allows Challenger the flexibility to move any capital costs associated with the provision of power to the Project off-balance sheet.”

The Hualilan Project sits in a San Juan province proven as the leading gold producer and most mining-friendly province in the Argentine Republic, and it now holds access to low-cost renewable power with the potential for a much lower carbon intensity compared to its peers as the world’s largest investors increasingly look towards ESG-friendly assets.

And Challenger is firing up around its tentpole resource, with initial exploration delivering high-grade gold in several locations up to 10 kilometres away from Hualilan as it advances the scoping study to completion – with the option in hand to go directly to pre-feasibility.

Project location map

CHAL GOLD FPO [CEL]

Sector: Basic Materials

Industry: Other Precious Metals & Mining

Employees:

Challenger Gold Limited engages in the exploration of gold, silver, and copper deposits. Its flagship project is the Hualilan Gold project that comprise 15 mining leases and an exploration license application covering an area of 600 square kilometers located in San Juan, Argentina. The company was formerly known as Challenger Exploration Limited and changed its name to Challenger Gold Limited in June 2023. Challenger Gold Limited was incorporated in 2007 and is based in West Perth, Australia.

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