Cavalier Resources Southern Development Area Results Extend Crawford Gold Project

Cavalier Resources Strikes High-Grade Gold Extensions South of Crawford Gold Project

Cavalier Resources Limited (ASX: CVR) has delivered another exceptional drilling campaign at its 100% owned Crawford Gold Project, with assay results from the Southern Development Area confirming significant high-grade gold mineralisation. The latest cavalier resources crawford gold project results extend well beyond the planned Stage 1 starter pit, reinforcing the company's position as a developer with substantial near-term production potential and resource expansion opportunities.

Outstanding Southern Development Area Results Continue Resource Growth Story

The latest drilling campaign has returned some of the best intersections seen to date at Crawford, with standout cavalier resources crawford gold project results including several remarkable intersections. These demonstrate the exceptional grade continuity across the deposit.

The standout intersections include:

• 7m at 5.90g/t gold from 99m, including 1m at 19.1g/t gold (25CFRC24)
• 24m at 1.09g/t gold from 69m, including 1m at 9.22g/t gold (25CFRC29)
• 15m at 2.69g/t gold from 84m to end of hole, including 3m at 7.03g/t gold (25CFRC39)

These results complement the exceptional Northern Development Area results announced in early December. Those included 7m at 5.07g/t gold and 5m at 6.26g/t gold, demonstrating that high-grade mineralisation extends in multiple directions from the existing resource base.

The cavalier resources crawford gold project results comprised 26 holes totalling 2,638 metres, systematically testing mineralisation extensions. The drilling specifically aimed to incorporate these zones into an upcoming Mineral Resource Estimate update. The consistency of high-grade intersections across the area indicates robust geological continuity that could significantly expand the project's mining inventory.

CEO Daniel Tuffin commented: "The latest assay results from the Southern Development Area confirm further high-grade gold mineralisation south of the Stage 1 Starter Pit. Key intersections, including 7m at 5.90g/t and 15m at 2.69g/t gold, reinforce the continuity of mineralisation to the south and support the potential for a cutback or further mining stage within the Southern Development Area."

Understanding Grade Continuity: Why These Results Matter for Crawford

Grade continuity refers to how consistently gold mineralisation maintains economic grades across a deposit. This geological characteristic determines the predictability and reliability of ore production during mining operations. Furthermore, at Crawford, the cavalier resources crawford gold project results demonstrate excellent grade continuity when combined with the northern development zones.

This consistency translates to lower mining risk and more predictable cash flows during production phases. However, the fresh rock mineralisation encountered in holes 25CFRC24, 25CFRC29, and 25CFRC39 is particularly significant. It indicates potential for future underground mining operations once the open pit is exhausted.

This dual mining potential (immediate open pit followed by potential underground operations) significantly extends the project's life-of-mine prospects. In addition, grade continuity becomes crucial during production phases as it allows mining engineers to plan extraction sequences with confidence.

The consistent high-grade intersections across both northern and southern development areas suggest Crawford's mineralisation system maintains economic grades across a substantial area. Moreover, this reduces the risk of encountering unexpected dilution zones during mining operations.

What Makes These Results Exceptional?

The geological characteristics demonstrated by these drilling results showcase several key advantages. For instance, the mineralisation shows excellent structural control, which typically indicates more predictable ore bodies. Additionally, the presence of both oxide and fresh rock mineralisation provides flexibility for different processing approaches.

The intersection widths and grades compare favourably to other successful Western Australian gold operations. Furthermore, the depth of mineralisation suggests potential for both open pit and underground mining scenarios, maximising resource extraction potential.

Crawford's Compelling Economics Set Stage for Near-Term Production

The project's economics remain highly attractive based on the April 2024 Revised Pre-Feasibility Study. The study outlined a Stage 1 project generating A$51.7 million NPV at current assumptions, demonstrating the project's robust financial fundamentals.

The study utilised a conservative A$4,600/oz gold price, well below current spot prices, providing substantial upside leverage to gold price movements. At A$5,000/oz gold, the NPV increases to A$60.1 million with an IRR of 711%.

Ore Reserve Provides Solid Foundation

The project is backed by a Probable Ore Reserve of 1.002 million tonnes at 0.91g/t gold for 29,300 ounces. This reserve calculation used conservative parameters including a A$2,900/oz gold price and 0.3g/t cut-off grade. Consequently, this suggests significant upside potential as the current drilling results continue to identify higher-grade zones.

The reserve calculation methodology incorporated rigorous geotechnical studies and metallurgical test work. However, with the new high-grade intersections from the Southern Development Area, there's substantial scope for reserve growth in upcoming updates.

Strategic Development Timeline Points to Multiple Near-Term Catalysts

Cavalier is now advancing toward several key milestones that should drive continued investor interest. The company's systematic approach positions Crawford for multiple value-adding events over the coming months.

Immediate Priorities

The company has identified several immediate priorities that could drive near-term value creation:

• Updated Mineral Resource Estimate incorporating latest drilling results
• Pending assay results from the Miranda Target area
• Continued step-out drilling along the northern corridor

Medium-Term Catalysts

Looking ahead, several medium-term catalysts could significantly enhance the project's value proposition:

• Development decision on Stage 1 starter pit
• Potential expansion into Southern Development Area mining
• Underground mining feasibility assessment

The company's systematic approach to resource definition (testing both near-mine extensions and regional targets) positions Crawford as a project that could deliver immediate cash generation. Moreover, this approach simultaneously builds a longer-term mining operation with substantial growth potential.

Investment Thesis: Premium Development Asset in Tier-One Jurisdiction

Crawford stands out in the junior gold development space for several compelling reasons. The project combines exceptional economics with significant resource expansion potential in one of the world's premier mining jurisdictions.

Exceptional Economics Drive Investment Appeal

With a 9-month payback period and lowest quartile operating costs, Crawford offers among the most attractive development economics in the Australian gold sector. Furthermore, the project's financial metrics compare favourably to much larger development projects, highlighting its efficiency and value proposition.

Resource Growth Potential Supports Long-Term Value

The latest drilling results confirm that high-grade mineralisation extends well beyond the initial starter pit, supporting potential resource upgrades and mine life extensions. Additionally, the systematic exploration approach continues to identify new mineralisation zones that could further enhance the project's economic profile.

Strategic Location Advantages

Located just 25km from Leonora in Western Australia's proven Goldfields region, Crawford benefits from established infrastructure, skilled labour, and regulatory certainty. This strategic positioning reduces development risks and accelerates time to production compared to more remote projects.

Proven Metallurgy Reduces Processing Risk

Test work has confirmed gold extractions of 78-93% using standard heap leaching techniques, with rapid kinetics and low reagent consumption. This metallurgical predictability reduces processing risks and supports the project's robust economic projections. Moreover, the established processing methodology allows for accurate cost estimation and production planning.

Experienced Management Team

The technical team brings extensive Western Australian mining experience, evidenced by the systematic exploration approach and robust study work completed to date. This experience proves particularly valuable when navigating the transition from exploration to development and production.

Why Investors Should Follow Cavalier Resources

Crawford represents a rare combination of near-term production potential and significant exploration upside in one of the world's premier mining jurisdictions. The latest drilling results demonstrate that the project's high-grade mineralisation extends well beyond initial expectations. Consequently, this supports both expanded starter pit scenarios and longer-term development options.

With pending assay results from the Miranda Target and plans for an updated resource estimate, Cavalier is positioned to deliver multiple catalysts over the coming months. The project's exceptional economics, combined with proven metallurgy and strategic location, make it a standout development opportunity in the Australian gold sector.

For investors seeking exposure to a high-quality gold development project with immediate production potential and significant resource expansion opportunities, Crawford offers a compelling investment proposition. This proposition is backed by consistent high-grade drilling results and robust economic studies that demonstrate the project's exceptional value potential.

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