Cavalier Resources announced an update on the Stage 1 oxide-only pit at its Crawford Gold Project, showcasing the financial potential driven by high gold prices.
A recent gold price analysis by Auralia Mining Consulting revealed positive projections without any design changes.
The pre-feasibility study originally used a gold price of $2,900/oz, recording an NPV8 of $15.7 million and an IRR of 130%.
With current gold price trends reaching $3,700/oz, the project's NPV8 and IRR are projected to rise to $32.8 million and 289%, respectively.
Daniel Tuffin, executive technical director and CEO of Cavalier Resources, remarked, "Current high gold prices present a significant upside for the Stage 1 Crawford open pit, shifting the PFS IRR from 130% and a NPV8 of $15.7 million at a gold price of $2,900/oz to an IRR of 289% and a NPV8 of $32.8 million at a gold price of $3,700/oz."
Mining approval processes for the open pit are progressing as planned.
Cavalier Resources has started soliciting tenders from qualified mining contractors and advanced detailed studies for heap leach circuits.
The company continues to focus on obtaining necessary environmental and mining approvals.
The Crawford Gold Project, located 20km east of Leonora, Western Australia, aims to become a new gold mining hub.
With high recoverable ore and robust financial forecasts, Cavalier Resources is poised to begin mining operations for Stage 1 early next year.
Cavalier Resources is a mineral exploration company. The company has interests in tenements in Western Australia, collectively known as the Leonora Gold Project, Hidden Jewel Gold Project, and Ella's Rock Nickel-Gold Project, which are prospective for gold and nickel mineralisation.