Challenger Gold Limited · ASX:CEL
Challenger Gold — Corporate Update (December 2023)
27 slides from Challenger Gold's corporate update, Dec 1, 2023
Slide 1: Shareholder Webinar ASX Release
ASX Release 1 December 2023 Shareholder Webinar 11.30am AEDT Friday 1 December 2023 Challenger Gold (ASX: CEL) ("CEL" the "Company") is pleased to invite shareholders and investors to a webinar where Challenger's CEO and Managing Director, Kris Knauer, will provide a Company update and engage in a Q
Slide 2: Challenger Gold Shareholder Webinar - Hualilan Gold Project Scoping Study
For personal use only ASX: CEL Challenger Gold Shareholder Webinar Hualilan Gold Project Scoping Study December 2023 Hualilan Gold Project : Cerro Sur looking north to Cerro Norte Challenger Gold Limited Argentina and Ecuador Gold / Copper Projects 1
Slide 3: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER DISCLAIMER This presentation is for informational purposes only and does not constitute an offer to sell, or solicitation to purchase, any securities. Such Offer can be made only through proper subscription documentation and only to investors meeting strict suitabili
Slide 4: Important Notices and Disclaimer - Scoping Study Cautionary Statement
IMPORTANT NOTICES AND DISCLAIMER SCOPING STUDY CAUTIONARY STATEMENT For personal use only The Scoping Study referred to in this presentation has been undertaken to determine the viability of a development of Challenger Gold Limited's (CEL) Hualilan Gold Project and confirm the business case to progr
Slide 5: Challenger Exploration Snapshot
CHALLENGER EXPLORATION SNAPSHOT Two significant discoveries, both with grade and scale, provide strategic flexibility Hualilan Gold Project El Guayabo Gold-Copper Project 100% Owned 50-100% - El Oro; Ecuador For personal use only 2.8 Moz1 Gold Resource EL GUAYABO/COLORADO V GOLD - Our New Asset COPP
Slide 6: The Hualilan Gold Project
THE HUALILAN GOLD PROJECT An Outstanding Asset with Significant Upside Exceptional Asset For personal use only ▪ Study forecast for Challenger Gold (CEL) to be one of the lowest cost Top 20 ASX-listed producers (refer Slide 25 Appendix 2) ▪ Comprehensive and robust Scoping Study with most capital an
Slide 7: Scoping Study Highlights
SCOPING STUDY HIGHLIGHTS An Exceptional Outcome Production and Operating Costs For personal use only ▪ Average annual production target of 116,000 oz gold, 440,000 oz silver and 9,175 tonnes zinc (141,000 oz AuEq). ▪ Global lowest-quartile C1 cash cost of US$527/oz (A$811) and AISC of US$830/oz (A$1
Slide 8: Scoping Study - Key Deliverables
SCOPING STUDY – KEY DELIVERABLES Study targeted the high-grade core of the deposit to improve capability of a credible funding pathway Objectives of the Scoping Study targeting ▪ The Scoping Study focussed on the high-grade core of the mineralisation (1.5 Moz at 5 g/t AuEq). For personal use only ▪
Slide 9: Scoping Study Highlights
SCOPING STUDY HIGHLIGHTS Aspiration to become a Top 20 ASX Producer based on Study Forecasts Production Revenue Commodity Price Assumptions For personal use only 953koz AuEq : LOM US$1.5Bn Au (US$1700/oz), Ag (US$20/oz) 141koz : Average Annual A$2.3Bn Zn (US$1.15/lb), Pb (US$0.94/lb) Open Pit Mining
Slide 10: Total Pre-Production Capital US$137M
TOTAL PRE-PRODUCTION CAPITAL US$137M (excluding contingency) 1.25 Year payback with the ability to optimise Capex Estimate Capital Intensity ASX Developers For personal use only ▪ Prepared by Mining Plus and external consultants. (Pre-production capex/oz annual production) ▪ Limited use of benchmark
Slide 11: Mining
MINING Three independent underground working áreas provide flexibility and mitigate mining risk ▪ Vanilla open pit operation For personal use only split across three zones (four single cutback pits) targeting 200 kt of mining per month. ▪ Small OP fleet, low operator labour quantities, shallow pits,
Slide 12: Combined Mine Production Schedule
COMBINED MINE PRODUCTION SCHEDULE Low risk startup with flexibility to start processing earlier with 500kt on ROM Pad when processing starts ▪ Approximately 500kt of ore 1,500 8.0 stockpiled prior to commissioning. For personal use only 1,400 7.5 7.0 ▪ Optionality of earlier process 1,300 startup an
Slide 13: Process Plant
PROCESS PLANT Conventional Flotation with Gravity and Flotation Tails Leach (FTL) ▪ Conventional flotation with gravity and FTL and schedule LOM throughput of 1.05Mtpa For personal use only • Crusher, SAG mill, and ball mill; • Gravity recovery circuit; • Conventional sulphide floatation; and • Floa
Slide 14: Forecast Processing and Production Summary
FORECAST PROCESSING AND PRODUCTION SUMMARY ~ 1 million ounces over a 7-year mine life on a gold equivalent basis ▪ Financial and production metrics expected to improve significantly. ▪ Re-optimisation using US$1750/oz Au and final unit cost for underground mining and development expected to add addi
Slide 15: Strong Cash Generation and Rapid Payback
STRONG CASH GENERATION AND RAPID PAYBACK Free cashflow of over A$1 billion at current spot prices and 12-month payback ▪ Pre-tax and using US$1750/oz gold price the project is forecast to deliver A$810 million of free cash flow (FCF). ▪ Increases to A$1.1 billion FCF at spot prices (US$2040 Au, US$2
Slide 16: Immediate Project Upside
IMMEDIATE PROJECT UPSIDE Several material opportunities to significantly improve the Study Outcome identified Study focussed on the high-grade core to ensure credible, low-CAPEX pathway to fund Recovery of the 1.7 Moz AuEq (@ 1.0 g/t AuEq) production in the current challenging market conditions. For
Slide 17: Mineral Resource Estimate (MRE)
MINERAL RESOURCE ESTIMATE (MRE) Grade tonnage distribution provides significant optionality and flexibility ▪ Mineral Resource Estimate (MRE) 2.8 million ounces (AuEq)1 . Total MRE at various cut off grades For personal use only ▪ Scoping Study focussed on the 1.5Moz high-grade core of the MRE Cut-o
Slide 18: Large Open Pit Case
LARGE OPEN PIT CASE Upside through parameter optimisation For personal use only Larger Pit Case (Optimisation post Scoping Study) Scoping Study Case 17
Slide 19: Pseudoflow Analysis
PSEUDOFLOW ANALYSIS Used US$1700/oz Au assumption and unit cost assumptions 10-20% above final unit costs Costs Pseudoflow Final Cost ▪ A Pseudoflow analysis, which reoptimizes stope selection accounting for Profile A (5.5m x 5.5m arch) US$4,000/m US$2828/m access development cost, was completed on
Slide 20: Mining Unit Costs
MINING UNIT COSTS Produced by external cosultants via a bottom up analysis targeting accuracy of +/- 15% Unit Cost ($/t Component Inclusions Underground Mining and Development Unit Costs Unit Cost mined) For personal use only Equipment: 1x Epiroc D65 or equivalent Drill 0.32 Price Incl: Labour, Fuel
Slide 21: Process Unit Costs
PROCESS UNIT COSTS An outstanding asset with significant upside Process Operating Costs and GA Costs Type C (Au ≥1.5 g/t Au, Zn ≥1.5%) Sequential Flotation + FTL Cost Category ▪ Derived from first principles cost analysis prepared by external consultants, rather Annual US$ Unit US$/t Ore For persona
Slide 22: The Exciting Opportunity at Hualilan
THE EXCITING OPPORTUNITY AT HUALILAN Exploration has only focussed on one side of the intrusion responsible for Hualilan Initial regional exploration delivers ▪ Less than 5% into the program with early results For personal use only developing significant new targets. ▪ High-grade Au-Ag stream sedime
Slide 23: Next Steps
NEXT STEPS Potential to add material value to Hualilan in the current round of studies Next Steps Ecuador ▪ Take receipt of results from column leach, optimise leach pad OPEX and CAPEX 4.5 Moz For personal use only model, integrate into OP optimisation and validate potential viability of HL. If resu
Slide 24: Challenger Gold Limited
CHALLENGER GOLD LIMITED (ASX:CEL) ACN 123 591 382 Level 1, 1205 Hay Street, West Perth WA 6005 | P: +61 8 6380 9235 For personal use only Kris Knauer Sergio Rotondo Jane Morgan CEO & Managing Director Executive Chairman Media Relations +61 411 885 979 +1 (646) 462 9273 +61 405 555 618 kris.knauer@ch
Slide 25: Appendix - Mineral Resource Estimates and AuEq Information
APPENDIX 1 - MINERAL RESOURCE ESTIMATES AND AUEQ INFORMATION JORC 2012 Compliant MRE’S released March 2023 and June 2023 Au Ag Zn Pb AuEq AuEq 1 Gold Equivalent (AuEq) values Hualilan Gold Project- Requirements Domain Category Mt under the JORC Code (El Guayabo Gold-Copper Project) (g/t) (g/t) (%) (
Slide 26: Appendix - Positioning Data Source
APPENDIX 2 – POSITIONING DATA SOURCE 1 of 2 ASX Producers/Developers >40,000 oz pa annual production/forecast Company ASX ASIC Current Capex Forecast Capital Intensity Original Data Source CEL Source Verification Code Production Name ($/oz) ($M) Production ($/oz) (koz) For personal use only (koz) Li
Slide 27: Appendix - Positioning Data Source
APPENDIX 2 – POSITIONING DATA SOURCE 2 of 2 Company ASX ASIC Current Capex Forecast Capital Intensity Original Data Source CEL Source Verification Code Production Name ($/oz) ($M) Production ($/oz) (koz) For personal use only (koz) Sihayo Gold SIH 1,598 351 75 4,654 Gold Nerds Sept Update Sihayo Gol