Challenger Gold Improves Hualilan Economics By Unlocking Zinc Potential

Challenger Gold Ltd (ASX: CEL) has improved the economics of its Hualilan Project in Argentina by unlocking its zinc potential.

The company’s ongoing metallurgical test work has shown that zinc at head grades as low as 0.4% Zn can be economically recovered.

This compares favourably with the 1.5% Zn cut-off grade used in the scoping study.

211,500 tonnes of zinc

Challenger Managing Director Kris Knauer said: “We are excited to announce that our latest metallurgical test work has significantly improved our Hualilan Project.

 “By unlocking the potential to economically recover zinc at head grades as low as 0.4%, we are now able to access 211.5 kt of zinc within the Hualilan Mineral Resource Estimate.

 “This is a substantial increase compared to the 62 kt of zinc initially included in the Scoping Study mine plan.”

 Potential for higher revenue

This 62 kt of Zn contributed revenue of $US132 million to the overall scoping study revenue of $US1,1572 million.

Thus, the additional zinc recovery has the potential to provide a material increase in the revenue and overall value of Hualilan.

Read: Challenger Gold Grows Cash Reserves to Accelerate Hualian Project Towards Production

Hualilan currently hosts a JORC 2012 resource of 60.6 million tonnes at 1.4 g/t gold equivalent for 2.8 million ounces gold equivalent.

The resource remains open in most directions.

Next steps

The next phase of variability testing has started and will evaluate the performance of the low-grade zinc concentrate flow sheet.

Additionally, cost modelling to determine the zinc cut-off grade above which this low-grade zinc concentrate pathway increases project value is underway.

This will allow the low-grade Zn pathway to be incorporated into the Hualilan pre-feasibility study (PFS).



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