Cavalier Resources Delivers High-Grade Gold Intercepts at Crawford Project
Cavalier Resources Limited (ASX: CVR) has announced exceptional drilling results from its 100% owned Crawford Gold Project, with standout intercepts including 7m at 5.07g/t gold and 5m at 6.26g/t gold from the Northern Development Area. The results demonstrate significant potential for expanding the current mine plan beyond the Stage 1 starter pit.
The company completed 4,647m of reverse circulation drilling targeting near-mine extensions, with assay results from the Southern Development Area and Miranda Target still pending. These latest results build upon an already robust project foundation, with a Probable Ore Reserve of 1,002kt at 0.91g/t supporting the planned Stage 1 operation.
Outstanding Northern Development Area Results
The Northern Development Area, located immediately north of the Stage 1 starter pit, has delivered the most compelling results from the recent drilling campaign. Thirteen holes totalling 1,300m systematically tested mineralisation extensions with remarkable success.
Furthermore, these results showcase the project's exceptional depth potential. The systematic approach to drilling has revealed consistent high-grade zones that extend well beyond initial expectations.
Key Intercepts Include:
- 7m at 5.07g/t gold from 88m (including 2m at 13.60g/t gold) – Hole 25CFRC04
- 5m at 6.26g/t gold from 87m (including 1m at 21.30g/t gold) – Hole 25CFRC07
- 7m at 1.16g/t gold from 85m – Hole 25CFRC01
- 11m at 0.93g/t gold from 68m – Hole 25CFRC02
These results build upon impressive historical intersections from 2022-2023, including 6m at 7.19g/t gold and 11m at 2.85g/t gold. Consequently, this confirms the continuity and quality of mineralisation in this area.
"These northern, deeper intercepts further highlight the potential for a high-grade cutback or a future underground operation at Crawford. The northern near-mine development drilling has delivered strong results at depth, building on shallow historic intercepts along strike," commented Daniel Tuffin, Executive Technical Director and CEO.
The tenor of mineralisation in fresh rock, particularly in holes 25CFRC04 and 25CFRC07, indicates significant opportunity for bedrock mineralisation delineation. Moreover, this could support future underground mining operations at the Crawford Gold Project.
Understanding Reverse Circulation Drilling
Reverse Circulation (RC) drilling represents a cost-effective exploration technique particularly suited to oxide and transitional mineralisation zones. Unlike diamond drilling, RC drilling produces rock chips rather than core samples, allowing for rapid sample collection and processing.
In addition, this drilling method offers several strategic advantages for exploration programmes. For instance, it enables companies like Cavalier Resources to efficiently evaluate large areas whilst maintaining cost control.
Key advantages include:
- Fast drilling rates enabling large-scale exploration programmes
- Immediate sample availability for geological logging
- Cost-effective for oxide zone exploration
- Suitable for grade control and resource definition
For investors, RC drilling results provide reliable grade and thickness information at a fraction of the cost of diamond drilling. Therefore, this makes it an efficient tool for resource expansion programmes like Cavalier's current campaign at the Crawford Gold Project.
Robust Project Economics Drive Expansion Strategy
The April 2025 Pre-Feasibility Study established the Crawford Gold Project as a compelling development opportunity, providing the economic foundation for current expansion drilling. The study demonstrates exceptional returns that justify continued investment in resource expansion.
Financial Highlights at A$4,600/oz Gold:
| Metric | Value |
|---|---|
| NPV8 | A$51.7M |
| IRR | 580% |
| Payback Period | 9 months |
| Mine Life | 18 months |
| Gold Production | 23,467 ounces |
| C1 AISC | A$1,574/oz |
The project demonstrates exceptional returns across multiple gold price scenarios, with NPV ranging from A$39.1M at A$4,000/oz to A$68.5M at A$5,400/oz. Furthermore, these metrics position the project in the top tier of Australian gold developments.
Capital Requirements:
- Pre-production CAPEX: A$9.0M
- Total undiscounted pre-CAPEX cash flow: A$66.7M
- Gross revenue: A$103.6M (including royalties)
What Makes These Results Significant?
The recent drilling results from the Crawford Gold Project represent more than just high-grade intersections. They demonstrate systematic exploration success that could fundamentally change the project's scale and economics.
Additionally, the consistency of mineralisation across multiple drill holes suggests a robust geological system. This provides confidence in the reliability of future resource estimates and mine planning activities.
The grades encountered, particularly the 21.30g/t gold intersection, indicate exceptional mineralisation that could support selective mining operations. Consequently, this could significantly improve the overall project economics beyond current estimates.
Strategic Growth Beyond Stage 1
The current drilling programme targets systematic resource growth to support potential Stage 2 development. With mineralisation remaining open along strike and at depth, Cavalier is positioning for significant resource expansion at the Crawford Gold Project.
However, the company's approach extends beyond simple resource expansion. The systematic testing of multiple targets demonstrates a comprehensive understanding of the geological system.
Upcoming Catalysts:
- Assay results pending from Southern Development Area drilling
- Miranda Target results expected to add new mineralisation vectors
- Mineral Resource Estimate update incorporating all new drilling
- Stage 2 pit optimisation studies based on expanded resource
The company's methodical approach to testing extensions beyond the current pit limits demonstrates a clear pathway for organic growth. Moreover, this strategy provides multiple opportunities for mine life extension.
Investment Thesis: Exceptional Returns Meet Expansion Potential
Cavalier Resources presents a compelling investment opportunity combining immediate cash generation potential with significant exploration upside. The Crawford Gold Project's exceptional economics provide a strong foundation for investment consideration.
Furthermore, the ongoing drilling continues to demonstrate the property's expansion potential. This creates a unique investment profile that combines development certainty with exploration upside.
Key Investment Drivers:
- Rapid payback: 9-month capital recovery period
- Low-cost operation: Bottom quartile AISC of A$1,574/oz
- Resource expansion: Systematic drilling targeting multiple growth vectors
- Exploration upside: Open pit cutback and underground potential
- Strategic location: 25km from Leonora with established infrastructure
The combination of high-grade intercepts, robust project economics, and multiple expansion opportunities positions Cavalier as a standout opportunity. In addition, the current gold market environment provides favourable conditions for project development.
Why Should Investors Follow Cavalier Resources?
Cavalier Resources has demonstrated its ability to systematically advance a high-quality gold project from exploration through to development-ready status. The Crawford Gold Project's exceptional economics and ongoing exploration success create a compelling investment narrative.
Moreover, the company's track record of delivering on exploration programmes provides confidence in future results. The systematic approach to resource expansion demonstrates professional project management capabilities.
Key reasons to track CVR:
| Factor | Value Proposition |
|---|---|
| Near-term Production | 18-month mine life with 9-month payback |
| Exploration Upside | Open mineralisation with underground potential |
| Financial Returns | 580% IRR with robust economics across gold price scenarios |
| Strategic Assets | 100% owned project in established mining region |
| Experienced Team | Proven track record in project development |
With pending assay results from the Southern Development Area and Miranda Target, investors have multiple near-term catalysts to monitor. Additionally, a planned Mineral Resource Estimate update provides another significant value driver.
The combination of immediate cash generation potential and significant exploration upside makes the Crawford Gold Project a unique opportunity. Consequently, this dual value proposition creates multiple pathways for investor returns in the Australian gold sector.
Cavalier Resources has established Crawford as a high-return, short-payback gold project whilst simultaneously demonstrating significant expansion potential through systematic exploration. With exceptional drilling results continuing to emerge and multiple value catalysts ahead, CVR represents a compelling opportunity for investors seeking exposure to both development and exploration upside in a single investment.
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