Cavalier (ASX:CVR) opens ore reserves for Leonora liquidity

Cavalier Resources has completed its pre-feasibility study and revealed a maiden ore reserve for 29.3 thousand ounces as it looks toward short-term mining and self-funded exploration from its Crawford Gold Project, part of an asset collection surrounding the West Australian gold hub of Leonora.

The one million tonnes at 0.9 grams per tonne maiden ore reserve is currently limited to an easily recovered, low-cost oxidised portion of an open mineral resource Cavalier believes holds significant revenue and growth upside.

But the restrained reserves alone have offered a pre-capital expenditure undiscounted cash flow of $24.6 million based on $2900 per ounce pricing, with current prices now lying closer to the $3300 mark.

It currently stands as a short 18-month project life with a 13-month payback at an all-in sustaining cost of $1777 per ounce.

Cavalier Executive Technical Director Daniel Tuffin said the completed PFS marked a major milestone for project and company, proving the viability of a gold deposit that until recently, remained under explored and underdeveloped.

“The current upward trend in gold prices, coupled with the resource remaining open, positions the Company favourably for possible increase in revenue streams and sustained growth,” Tuffin said.

“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 endeavours, in line with our corporate strategy since listing 18 months ago.”

Cavalier now can and will progress to permits as it looks toward discussions with potential investment, mining, and processing partners.

Greater Leonora

An enticing gold price has offered significant returns on short-lived mining operations, and Cavalier sees a greater growth opportunity from its two Leonora sub-projects covering prolific gold zones a short 25km skip from the St Barbara Mill.

Becoming a self-funded explorer would allow Cavalier to further develop mature gold assets and a youthful green field Ella’s Rock lithium asset sitting within the world class Forrestania lithium belt.

Leonora is firmly under the eye of consolidation, but for now at least, Cavalier is moving towards its own ounces and to make the turn from explorer to producer.

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