Understanding Heap Leaching: Cavalier Resources’ Gold Extraction Approach

Cavalier Resources' Crawford Gold Project Shows Exceptional PFS Results

Cavalier Resources' Crawford Gold Project has delivered outstanding Pre-Feasibility Study (PFS) results, positioning it for near-term production and remarkable returns.

Gold Project Delivers Exceptional Economics

The revised PFS for Cavalier Resources' Crawford Gold Project has returned truly exceptional financial metrics. Standout figures include:

• NPV8 of A$51.7 million with pre-CAPEX undiscounted cash flow of A$66.7 million
• Internal Rate of Return of 580%
• Industry-leading C1 costs of A$1,574/oz and C3 costs of A$1,793/oz
• Rapid capital payback period of just 9 months within an 18-month Stage 1 project life

These results represent a significant improvement over the previous PFS completed in March 2024, driven by current higher gold prices and refined capital and operating cost estimates. The impact of gold price fluctuations on profitability is clearly demonstrated in these revised projections.

A Simple, Low-Cost Development Path

The Crawford Gold Project is designed as a straightforward heap leach operation targeting oxide material, which allows for:

• Low initial capital expenditure of A$9.8 million
• Simple mining of near-surface oxide material
• Heap leach processing with recoveries of 80%
• Minimal need for crushing and no requirement for grinding or complex processing

The project's simple design and deployment strategy mirrors successful operations across Western Australia's goldfields, where oxide heap leaching: an effective extraction method for gold has consistently delivered strong returns with minimal technical risk.

Development Ready with Regulatory Approvals in Place

Cavalier Resources has already secured key regulatory approvals necessary for mining commencement, including:

• Project Management Plan
• Native Vegetation Clearing Permit
• Groundwater Extraction Licenses

This removes significant regulatory hurdles that often delay mining projects and positions Crawford for a rapid transition to production once funding is secured.

Understanding Heap Leach Processing: Why It Works for Crawford

Understanding heap leaching with Cavalier Resources Ltd requires examining why this process is particularly well-suited to the Crawford oxide deposit. Extensive metallurgical testing and gold recoveries demonstrated recoveries between 77.4% and 92.5%, confirming the suitability of this processing method for the project.

Heap leaching involves a series of straightforward steps:

1. Mining oxide ore material
2. Crushing material where necessary (much of Crawford's oxide material may not require crushing)
3. Stacking ore on a lined leach pad
4. Applying a dilute cyanide solution that percolates through the ore, dissolving gold
5. Collecting the gold-bearing solution for processing through carbon adsorption
6. Recovering gold through standard elution and electrowinning processes

Understanding heap leaching with Cavalier Resources Ltd points to several advantages for projects like Crawford:

• Lower capital costs than conventional CIL processing
• Reduced operating expenses with no grinding circuit required
• Faster construction timeframes
• Simplified operations with fewer technical requirements

The metallurgical testing conducted on Crawford ore samples showed high recoveries, rapid extraction rates, low cyanide consumption, and minimal cement requirements for agglomeration. These characteristics make heap leaching an ideal processing method for this type of oxidised material.

Funding Progress and Path to Production

The company is advancing funding discussions, having signed a non-binding term sheet with Raptor Capital International Limited for US$11 million in stream financing. Due diligence is underway with site visits scheduled for April 2025.

This funding arrangement would provide sufficient capital to develop the project while minimising equity dilution for existing shareholders. Understanding Cavalier Resources' path to production shows how the company has strategically positioned itself for development.

Significant Upside Potential

The current PFS only addresses the central oxide portion of the Crawford resource, which represents just a fraction of the total resource potential. Significant upside exists through:

• Resource expansion – The deposit remains open along strike and at depth
• Gold price leverage – Every A$200/oz increase in the gold price adds approximately A$4.2 million to project NPV
• Processing optimisation – Metallurgical test work indicates potential for higher recoveries than the conservative 80% used in the PFS

Understanding heap leaching with Cavalier Resources Ltd also reveals opportunities for processing optimisation. The PFS applied a conservative top cut to the gold recovery of 80%, yet metallurgical studies based on heap leach processing returned an average of 88% for four of the six samples, while bottle roll testing has returned recoveries peaking at approximately 98%.

Why Investors Should Take Notice

Cavalier Resources presents a compelling investment case for several reasons:

1. Exceptional financial returns with 580% IRR and rapid payback
2. Near-term production potential with all major approvals in place
3. Simple, low-risk development using proven heap leach technology
4. Significant exploration upside beyond the initial Stage 1 pit
5. Strong leverage to gold price in a robust precious metals market
6. Tight capital structure with potential value re-rating as development progresses

Understanding heap leaching with Cavalier Resources Ltd provides insight into why this processing method is an ideal fit for the Crawford oxide deposit, offering a cost-effective path to production with strong financial returns. The combination of near-term production potential, strong economics, and substantial resource growth opportunities positions Cavalier Resources as an attractive option for investors seeking exposure to gold development stories with rapid pathways to cash flow generation. For those considering the project, exploring various investment strategies for gold projects may be beneficial.

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