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CEL new gold discovery at Hualilan Project

CEL makes new gold discovery at its Hualilan Project
Figure 1 - Showing conceptual Intrusion-hosted gold target bridging the Gap Zone with the location of GNDD-025 and other drill holes that have Intercepted altered dacite with assays pending

Challenger Exploration (ASX: CEL) (“CEL” or the “Company”) is pleased to announce the discovery of a new style of Intrusion-hosted gold mineralisation contiguous to the Company’s Hualilan Gold Project, located in San Juan Province Argentina.

  • Drill hole GNDD-025, located in the Gap Zone between Cerro Sur and Cerro Norte, 300 metres along strike from prior CEL drilling, has returned:
    • 50m at 1.4 g/t gold, 3.4 g/t silver in altered dacite porphyry which remains open with assays pending, including a higher-grade zone in oxides
    • 37 metres at 1.8 g/t gold, 4.2 g/t silver from 53 metres
  • This is a new type of mineralisation hosted in dacite porphyry with significant tonnage potential. The historical mineralisation at Hualilan occurs in faults or limestone units
  • A conceptual, near surface, target covering 1-kilometre in strike, up to 100 metres wide, has been defined by historical drilling and altered surface exposure
  • Whilst the high-grade mineralisation remains the focus, CEL is now extending exploration to this dacite porphyry given it is adjacent to the historical higher-grade mineralisation
  • Drill hole GNDD-051 (assays pending) was completed to test this conceptual target and successfully intersected altered dacite under cover from 69 metres to the end of hole
  • The recently completed IP Survey conducted at Cerro Norte shows an interpreted dacite intrusion of significant scale underlying the mineralisation
  • GNDD-047,GNDD-052, and GNDD-053 (assays pending) have intersected significant widths to the end of hole of strongly altered dacite porphyry at Sentazon over 1.5 km south of GNDD-025, and outside the conceptual target
  • As this new discovery in dacite intrusives is contiguous to, and underlies, the existing high- grade mineralisation it will have significant synergies from a mine development perspective
Figure 2 – Showing distribution of dacite intrusives beyond the conceptual Intrusion-hosted gold target in the Gap Zone

Commenting on the results, CEL Managing Director, Mr Kris Knauer, said “We are excited by this development at our flagship Hualilan Gold Project. Whilst the high-grade mineralisation will remain the Company’s main focus, uncovering a new, large-tonnage target, which is expected to substantially increase scale significantly enhances the project and adds to its robust nature.” 

“In the context of what now appears to be extensive near-surface high-grade historical mineralisation at Cerro Norte, the discovery of 37 metres of oxide material grading 1.8 g/t gold, over a potential strike length of 1 kilometre, is material and we simply cannot ignore the optionality to quickly add significant ounces to the project”

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