Challenger Gold (ASX:CEL) has announced the execution of contracts with Orica and THOR S.A. for production drilling and explosives services at its Hualilán Gold Project in Argentina. Challenger Gold aspires to become a globally significant gold producer and is advancing two complementary gold/copper projects in South America. The contracts will support the toll milling phase of the Hualilán project.
The agreement with Orica, a global leader in explosives, covers the provision of blasting products and services. THOR S.A., which operates one of Argentina’s largest drilling fleets, will provide blasthole drilling services. Both companies are expected to mobilise to the site by the end of October, with drilling commencing in early November, followed shortly by the first blast. The company emphasises the strategic engagement of specialised local contractors for drill & blast and mining operations.
The company also announced the completion of the Casposo Toll Milling plant refurbishment and commissioning. The plant is now processing lower-grade Casposo stockpiles. According to Challenger CEO Kris Knauer, partnering with Orica and THOR represents a crucial step towards production at Hualilán. Knauer noted their technical expertise and established presence in Argentina made them ideal partners, ensuring safe, efficient, and reliable execution of drilling and blasting operations.
Challenger Gold states that the toll milling phase is a critical component of its growth strategy, providing near-term cash flow while reducing risk in the broader Hualilán Gold Project development. The company also expressed alignment with Orica and THOR in creating lasting value within the San Juan region through local employment, training, and the development of regional suppliers.
