CAVALIER RESOURCES OUTLINES MAIDEN ORE RESERVE AT CRAWFORD

PFS Completion Sets Stage for Heap Leach Gold Mining

Cavalier Resources Ltd (ASX:CVR) has announced the completion of the Pre-Feasibility Study (PFS) for the Crawford Gold Project, revealing a Maiden Ore Reserve that solidifies the project’s profitability and operational potential.

Corporate Milestones Achieved:

  • The PFS concentrated on the oxidised portion of the Mineral Resource, suited for heap leach processing, with an emphasis on high recovery and low-cost operations.
  • The Maiden Ore Reserve boasts 1,002,000 tonnes at 0.9 g/t for 29,300 ounces of gold, projecting an impressive pre-CAPEX undiscounted cashflow of A$24.6M, with a remarkable IRR of 130% at a gold price of A$2,900/oz.
  • The project life is estimated at 18 months, with a rapid payback period within 13 months and C1 AISC of A$1,777/oz.
  • Potential revenue boosts are expected, as gold price increases to A$3,300/oz could elevate pre-CAPEX undiscounted cashflow to A$33.8M.
  • Significant growth opportunities are identified with the Resource remaining open and unexplored.

Executive Commentary:

Daniel Tuffin, Executive Technical Director of Cavalier Resources, shared his insights:

The completion of the Crawford PFS marks a major milestone for both the project and Company, proving the viability of mining and processing of a gold deposit that until recently remained underexplored and underdeveloped.

The PFS focused on the oxidised portion of the Indicated Resource, which is highly recoverable and amenable to low-cost heap leach processing. This strategic approach has culminated in a Maiden Ore Reserve of 1Mt at 0.9g/t for 29,300oz of gold, underpinning a pre-CAPEX undiscounted cash flow of A$24.6 million based on a conservative gold price of A$2,900 per ounce.

The current upward trend in gold prices, coupled with the resource remaining open, positions the Company favorably for a possible increase in revenue streams and sustained growth.

Our focus for Crawford now shifts to advancing with necessary application works and to actively seek out and engage with potential partners in investment, mining, and processing. Our commitment to becoming a self-funded explorer remains at the forefront of our endeavors, in line with our corporate strategy since listing 18 months ago.

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