A timely turn at Crawford as Cavalier Resources (ASX:CVR) rewrites the math

In an era where gold producers are scrambling to recalibrate margins against the backdrop of a record Aussie dollar gold price, Cavalier Resources (ASX:CVR) has done more than sharpen its pencil—it’s rewritten the equation entirely.

The junior explorer’s revised Pre-Feasibility Study (PFS) for its Crawford Gold Project, located just 20km east of Leonora, has returned a near-cartoonish internal rate of return (IRR) of 580% and a capital payback period of just nine months.

That’s not a typo.

At a time when most gold juniors are lucky to break into triple-digit IRRs, Cavalier’s revised figures are bolstered by a higher gold price assumption of A$4,600/oz and modest capital costs of A$9.0 million.

Highlights:

• NPV8: A$51.7 million

• Pre-CAPEX cashflow: A$66.7 million

• C1 AISC: A$1,574/oz – placing it in the lowest global quartile

• Life of mine: 18 months, all from the oxide cap

• Gold recovered: 23,467 oz at 80% recovery

But what makes Crawford truly intriguing is what’s not included.

The current mine plan only taps the central oxidised core of the resource, which itself remains open along strike and at depth.

That’s not so much a mine as it is a starting point.

As Executive Technical Director & CEO Daniel Tuffin put it,

“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”.

Indeed, heap leach recoveries between 77.4% and 92.5%—combined with minimal reagent consumption and low-cost infrastructure—have positioned the project as a textbook example of low-capex, high-margin development.

And unlike many aspirants, Cavalier already has key permits in hand, including its Project Management Plan and Groundwater Extraction Licences.

A recently signed non-binding term sheet with US-based Raptor Capital International for US$11 million in precious metals streaming further tilts the risk-reward ratio in Cavalier’s favour.

Due diligence is underway, with site visits scheduled in early April.

Cavalier Resources PFS still applies a conservative 80% recovery rate, despite metallurgical tests peaking at 98% in bottle rolls and a consistent 88% average across four of six samples.

The upside, it seems, is yet to be fully captured.

While no mining project is without risk—gold price sensitivity and permit finalisation loom large—the revised study marks a decisive step forward.

Crawford might only be scratching the surface of its value, but the economics speak loudly: Cavalier’s small-scale start could become something much more golden.

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified.