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Highlights

  • Revised Pre-Feasibility Study (PFS) raises net present value (NPV) to AU$51.7 million.

  • Internal Rate of Return (IRR) at 580%, with a nine-month capital payback period.

  • CVR shares surged 23% to 21 cents following the update.

Cavalier Resources Ltd (ASX:CVR) has unveiled an updated pre-feasibility study (PFS) for its Crawford Gold Project in Western Australia, significantly improving financial projections for Stage 1. The study now estimates a net present value (NPV) of AU$51.7 million, with an undiscounted pre-CAPEX cash flow of AU$66.7 million.

The internal rate of return (IRR) has surged to 580%, reflecting the strong profitability potential of the project. Cost estimates place C1 costs at AU$1,574 per ounce and C3 costs at AU$1,793 per ounce.

The first stage of the project is expected to have an 18-month mine life, with capital payback achieved within nine months. Given that this phase focuses solely on the central oxide part of the deposit—leaving significant expansion opportunities—Cavalier anticipates further growth in revenues.

Project Advancements and Regulatory Progress

With Stage One nearing commencement, the company has been progressing regulatory approvals, including:

  • Project management plan submission.

  • Native vegetation clearing permit application.

  • Groundwater extraction licences processing.

Cavalier has also been engaging with Native Title holders, with site visits scheduled for early April. Meanwhile, the company is moving forward with equipment procurement for the oxide heap leach operation.

Market Reaction and Outlook

Following the announcement, CVR shares soared 23% on Tuesday, closing at 21 cents per share.

CEO Daniel Tuffin expressed optimism, stating that the revised PFS "underscores the outstanding potential of the greater Crawford Gold Project."