Higher Gold Price Lifts Value of Cavalier's Crawford Gold Project in PFS Study

Cavalier Resources Limited (ASX: CVR) has unveiled an updated Pre-Feasibility Study (PFS) for its Crawford Gold Project, delivering significantly improved financial metrics and reinforcing the 117,800oz project's potential amid record gold prices.

Exceptional Financial Metrics

The revised PFS using a gold price of A$4,600 outlines a net present value (NPV8) of A$51.7 million, with an internal rate of return (IRR) surging to 580%. Pre-CAPEX undiscounted cash flow stands at A$66.7 million, while the capital payback period is estimated at just 9 months within the total 18-month Stage 1 project life.

Operating cost estimates include C1 cash costs of A$1,574 per ounce and C3 all-in sustaining costs (AISC) of A$1,793 per ounce, positioning the project within the lower quartile of global production costs.

Growth Potential Beyond Stage 1

Cavalier emphasized the project's substantial upside, noting that Stage 1 is constrained to the central oxide portion of the resource, which remains open along strike and at depth. Further expansion and increased revenues remain key strategic goals. The company is evaluating additional drilling programs to define and extend the resource, with a focus on deeper mineralization and lateral extensions. Future development phases may incorporate expanded processing infrastructure to accommodate increased ore throughput and to optimize gold recovery.

All necessary compliance reports, works approvals, and mining applications for Stage 1 have been submitted, with approvals secured for the Project Management Plan, Vegetation Clearing Permit, and Groundwater Extraction Licences. Discussions with traditional owners regarding Native Title remain ongoing.

Funding Advances with Raptor Capital

In relation to financing, Cavalier recently signed a non-binding term sheet with precious metals streaming fund Raptor Capital International Limited for US$11 million to advance Stage 1 into production. Due diligence processes are ongoing, with Raptor representatives scheduled to visit the site in early April.

Daniel Tuffin, Executive Technical Director & CEO of Cavalier, highlighted the improved financial outlook and ongoing project de-risking: “This revised PFS update reflects a significantly improved financial outlook for Stage 1 and further underscores the outstanding overall potential of the greater Crawford Gold Project... The combination of robust project economics, a record gold price, and continued project advancement positions Stage 1 for even greater returns and development potential.”

Key PFS Updates

The revised PFS factors in updated mining and heap leach capital costs while maintaining the existing physical pit design and Ore Reserve estimates. Key financial assumptions include a gold price of A$4,600 per ounce, total capital costs of A$9.8 million, and processing cost assumptions based on an 80% recovery rate. Other estimated highlights include:

• Gross revenue of A$103.6 million

• Gold production of 23,467 recovered ounces

• Life-of-mine (LOM) mining costs of A$11.08 per bcm mined

• General and administration costs of A$4.84 per tonne of ore

• Processing costs of A$11.13 per tonne of ore

  
  

At the time of publishing, CVR is trading at about 21 cents per share with a market capitalisation of about $12.1M. CVR's cash at the end of the December 2024 financial quarter was reported as A$1.28M.