Challenger Gold (CEL) Q2 2024 TU earnings summary

Executive summary

• Advanced Pre-Feasibility Study (PFS) at Hualilan Gold Project with all critical path elements completed, including geotechnical, hydrogeological, and metallurgical work.

• Significant progress in open pit and underground mine design, with optimizations indicating a larger open pit scale.

• Ongoing drilling at Colorado V in Ecuador, with strong gold-copper intercepts and a maiden Mineral Resource Estimate (MRE) anticipated.

• Strategic review underway to monetize or spin-off Ecuadorian assets.

Financial highlights

• Cash at bank at quarter-end: $5.75 million.

• $4 million raised via placement, with a prominent Argentinian investor acquiring a 5% stake.

• Net exploration spend: $3.1 million, with $0.76 million in Ecuador and $2.3 million in Argentina.

• Administration and corporate costs: $1.4 million, including $0.4 million in one-off items.

Outlook and guidance

• Hualilan PFS to incorporate five matured opportunities for improved project economics.

• Ecuador resource drilling expected to complete in late August, with assays pending for four holes.

• Strategic process to monetize Ecuador assets to commence after MRE completion.