The Preliminary Feasibility Study for the Hualilan Toll Milling Project in San Juan Province, Argentina, outlines a low‐capital, high‐margin operation designed to process 450,000 wet metric tonnes of ore over a three‐year toll milling period at Austral Gold’s Casposo process plant. The project, with a total mine life of 34 months (including 24 months of open pit mining), is based on production from three sequential open pits (Norte, Magnata, and Sanchez) and is expected to deliver average ore grades of roughly 6.16 gpt gold and 35.33 gpt silver, translating into recoveries of approximately 76,789 oz of gold and 339,530 oz of silver over the life of mine. Under base metal price assumptions of US$2,500 per ounce for gold and US$27.50 per ounce for silver, the study projects pre-tax EBITDA of about US$88 million and pre-tax cash flows of roughly US$82.5 million. If higher spot prices (US$3,300 per ounce gold and US$33 per ounce silver) are realized, EBITDA could climb to US$142.9 million with cash flows around US$137.3 million. The pre-tax net present value at a 5% discount rate is estimated at US$73.8 million, with a remarkably short payback period of roughly seven months from project commencement or two months from the start of mining; post-tax figures are US$50.5 million, with potential upside to over US$80 million at elevated metal prices. Capital expenditures are modest—approximately US$4.2 million initially, with an additional US$4.7 million allocated for working capital. This low CAPEX base is largely achieved through a toll milling arrangement that eliminates the need for an on-site processing facility and by using a rent-to-buy model for mining equipment, thereby deferring heavy upfront capital investment. The study details an operational plan that calls for seven-day, day-shift mining operations (with the option to add night shifts) and a strategic approach to ore blending and stockpiling. Production is designed so that higher-grade ore is prioritized early on, ensuring strong initial cash flow while maintaining a consistent feed to the Casposo process plant. Comprehensive metallurgical test work conducted at two independent laboratories supports recovery estimates—averaging around 84.4% for gold and 65.7% for silver—and indicates that the ore is less abrasive than originally assumed, leaving opportunities for further process optimization through adjustments in grind size and reagent consumption. Sensitivity analysis shows that the project’s economics are particularly responsive to changes in the gold price. For instance, a 30% drop in gold prices could reduce pre-tax NPV to roughly US$28.9 million, while a 30% increase might enhance NPV to nearly US$118.8 million. Operating costs also have a notable impact, although the project is less sensitive to CAPEX variations given the low level of initial investment. In addition to the economic and technical merits, the study outlines a pragmatic infrastructure plan that includes temporary and modular facilities for power generation (via diesel generators), water supply sourced from a nearby creek and supplemental boreholes, and improvements to access roads. Regulatory approvals have been secured, including a landmark Environmental Impact Assessment approval—the first for a gold project in San Juan Province in 17 years—and the project is committed to local employment, community development, and preferential procurement from the region. From a financing perspective, the project enjoys 100% ownership by Challenger Gold with US$17 million of unsecured debt and has recently raised AUD$28.4 million, reinforcing its financial flexibility. An initial US$2 million tranche has already been drawn from a project finance facility, and further funding is anticipated on favorable terms due to the strong technical and economic fundamentals. In summary, the Hualilan Toll Milling Project presents a compelling opportunity with its short payback period, robust cash flow generation, low capital intensity, and the flexibility to optimize operations during commissioning. However, as with any mining venture, the project remains exposed to risks associated with metal price fluctuations, exchange rate volatility, potential technical and geotechnical uncertainties, and reagent or operational challenges at the toll processing facility. Ongoing studies and optimization initiatives are expected to further refine these parameters and improve the project’s overall economics.