Cavalier’s Crawford Project Set to Deliver A$24.6M Cash Flow at A$2,900 Gold Price

Regulatory Milestone Achieved

Cavalier Resources Ltd has reached a pivotal milestone in advancing its Crawford Gold Project, located just 20km east of Leonora, Western Australia. The company announced that it has finalised and submitted all required compliance reports, works approvals, and applications necessary to commence mining operations for Stage 1 of the project. This includes key permits under the Mining Act and Environmental Protection Act, with the Project Management Plan already approved and other permits like the Native Vegetation Clearing Permit and water applications in the final stages of assessment.

This comprehensive regulatory package follows extensive groundwork, including environmental flora and fauna surveys, hydrogeological and geotechnical studies, metallurgical testing, and a detailed Pre-Feasibility Study (PFS). The submission signals readiness to move toward operational commencement, pending final regulatory approvals and native title agreements.

Financial Outlook Strengthened by Gold Prices

The PFS, released in March 2024, outlined an Ore Reserve of approximately 1 million tonnes at 0.9 g/t gold, yielding 29,300 ounces with a pre-capital expenditure undiscounted cash flow of A$24.6 million based on a gold price of A$2,900 per ounce. Since then, the spot price of gold has surged well beyond this benchmark, significantly enhancing the project's financial prospects.

Updated sensitivity analyses indicate that at current gold prices, the project could generate substantially higher free cash flows, potentially exceeding Cavalier’s current market capitalisation. This improved outlook underscores the project's potential to deliver strong returns and supports the company’s strategic focus on advancing Stage 1 without diluting shareholder equity.

Funding and Partnerships in Focus

Cavalier is actively engaged in advanced discussions with international gold streaming funds, debt providers, and potential mining joint venture partners. The company aims to secure non-dilutive funding solutions to fully finance the development of the Stage 1 open pit and support near-mine infill drilling to upgrade resources to reserves, laying the groundwork for future expansions.

Securing such funding is critical to maintaining shareholder value while enabling the company to progress detailed process plant designs and procurement activities. The emphasis on non-dilutive capital reflects a strategic intent to maximise earnings per share as the project moves toward production.

Community and Environmental Engagement

Ongoing consultation with traditional owners remains a key component of the project’s development, particularly concerning Native Title agreements. Environmental baseline studies have indicated no significant factors triggering higher-level environmental approvals, which bodes well for timely project progression.

The company has also completed extensive environmental and safety planning, including mine closure plans and works approvals, demonstrating a commitment to responsible mining practices in line with regulatory expectations.

Strategic Positioning in a Rich Gold District

The Crawford Gold Project sits within a prolific gold region near Leonora, surrounded by established operations and resources held by companies such as Kin Mining, Red5 Ltd, and Genesis Minerals. Cavalier’s ambition to establish Crawford as a new gold mining hub aligns with its broader strategy to become a self-funded explorer and developer in the region.

With the resource remaining open at depth and along strike, the potential for resource growth adds an attractive upside to the project’s near-term production plans.