Challenger Exploration Ongoing drilling at Hualilan solidifies outlook for significant uplift to recently reported maiden MRE

Challenger Exploration (ASX: CEL)
  • First drilling post the CEL’s 2.1 million ounce (AuEq)1 MRE significantly expands mineralisation, particularly the high-grade core of 1.1 Moz at 5.6 g/t AuEq1 , in multiple directions.
  • Significant intersections outside the current MRE boundary include (see Table 1):
    • 28.5 metres at 5.3 g/t AuEq (5.0 g/t Au, 23.9 g/t Ag, 0.02 % Pb, 0.03 % Zn) – (GNDD-530) Extends the Verde Zone 60 metres below the current resource boundary and GNDD-500 (40 metres at 0.8 g/t AuEq) and demonstrates significantly improved grades at depth
    • 2.4 metres at 64.7 g/t AuEq (60.8 g/t Au, 53.4 g/t Ag, 0.04 % Pb, 7.1 % Zn) – (GNDD-520) Confirmed a high-grade zone at depth in the Verde Zone that remains open at depth and along strike and, based on recent drilling (assays pending), has significant upside potential
    • 6.6 metres at 6.4 g/t AuEq (4.2 g/t Au, 50.0 g/t Ag, 0.01 % Pb, 3.4 % Zn) – (GNDD-536) 24.2 metres at 0.9 g/t AuEq (0.7 g/t Au, 1.7 g/t Ag, 0.02 % Pb, 0.2 % Zn) Intersected a new zone of near surface mineralisation (24.2m at 0.9) and extended the Verde Zone 200 metres below the current MRE boundary (6.6m at 6.4 g/t AuEq)
    • 15.0 metres at 3.9 g/t AuEq (3.9 g/t Au, 3.7 g/t Ag, 0.03 % Pb, 0.2 % Zn) – (GNDD-547) 3.7 metres at 8.5 g/t AuEq (2.6 g/t Au, 50.5 g/t Ag, 4.9 % Pb, 9.3 % Zn) Extends the Gap Zone mineralisation to near surface and intersected a new zone of high grade mineralisation (3.7m at 7.3 g/t AuEq) 50 metres east of the current MRE boundary
    • 14.4 metres at 2.1 g/t AuEq (1,2 g/t Au, 69.4 g/t Ag, 0.06 % Pb, 0.1 % Zn) – (GNDD- 532) 37.0 metres at 1.4 g/t AuEq (1.3 g/t Au, 8.6 g/t Ag, 0.01 % Pb, 0.1 % Zn) 10.9m metres at 2.6 g/t AuEq (2.0 g/t Au, 14.8 g/t Ag, 0.2 % Pb, 0.9 % Zn) Returned significantly higher grades than surrounding holes and intersected a new zone of higher-grade Verde style mineralisation 125 metres below the current MRE boundary
  • The maiden MRE was based on 125,700 metres and the Company has now completed 197,000 metres with assays to be received progressively as core is sampled and sent for assay.
  • Challenger Exploration (ASX: CEL) (“CEL” the “Company”) is pleased to announce results from recent drilling targeting extensions to the mineralisation at the Company’s flagship Hualilan Gold Project, in San Juan Argentina. The results include the first drill holes that were not included in the Company’s recent maiden 2.1 million ounce AuEq1 Mineral Resource Estimate (MRE) which includes a high-grade core of 1.1 Moz at 5.6 g/t AuEq1.

    Commenting on the first drilling results after the resource, CEL Managing Director, Mr Kris Knauer, said:

    “We indicated when we released our Maiden Resource Estimate at Hualilan it was very much an interim and we expect it to increase significantly. It was based on 126,000 metres of our 204,000 metre drill program and 2.2 of the 3.5 kilometres of strike, over which the high-grade mineralisation has been intersected. These first results following the Mineral Resource Estimate confirm this.

    All the more exciting, is that if assays confirm what we have logged in several recent holes, we have some significant new zones to follow up in addition to the areas we are currently targeting. It now firmly appears that mineralisation at Hualilan will remain open at the end of the current 204,000 metre program.”

    About us:

    Challenger Exploration Limited’s (ASX: CEL) aspiration is to become a globally significant gold producer. The Company is developing two complementary gold/copper projects in South America. The strategy for the 100% owned Hualilan Gold project is for it to provide a high-grade low capex operation in the near term. This underpins CEL with a low risk, high margin source of cashflow while it prepares for a much larger bulk gold operation at both Hualilan and El Guaybo in Ecuador.

    The Company is well funded with cash at bank of $19.6 million and it has committed to a 120,000 metre drill program at its Flagship Hualilan Gold project.

    /Public Release.