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Outstanding high-grade drill results continue from the Hualilan Gold Project

Hualilan Gold Project
Cross Section showing GNRC-068 and Sanchez Fault

Challenger Exploration (ASX: CEL) (“CEL” or the “Company”) is pleased to report drilling results from the Company’s 7,500 metre second drilling program at the Hualilan Gold Project, located in San Juan Province Argentina.

Cross Section showing GNDD-046

Highlights: 

  • First hole into the Sanchez Zone target returned outstanding high-grade near surface results:  
    • 69.0m at 4.8 g/t AuEq 2 – 3.4 g/t gold, 8.1 g/t silver, 2.8% zinc from 9.9 metres, including
    • 27.0m at 11.4 g/t AuEq2 – 7.9 g/t gold, 16.0 g/t silver, 7.0% zinc from 9.9 metres, including  
    • 4.0m at 48 g/t AuEq2 – 41.7 g/t gold, 54.2 g/t silver, 12.0% zinc from 14 metres (GNRC-068)
  • The intersection is one of the best recorded to date at the Hualilan Gold Project1 and significantly upgrades this structure which has not previously been drilled below 50 metres sub-surface.
  •  A step-out, hole down dip at Sentazon successfully extended the Sentazon Manto 50 metres down plunge demonstrating significantly higher grades with intercept of:  
    • 2.9 m at 40.3 g/t AuEq2 – 29.5 g/t gold, 522 g/t silver, 10.8% zinc from 124.1 metres(GNDD046)
  • Significant intercept in altered dacite porphyry has increased the strike extent of this target to 1.5 kilometres, with GNDD-047 recording a broad zone in altered dacite to the end of the hole: 
    • 38.5 m at 1.3 g/t gold, 1.2 g/t silver from 61 metres including,  
    • 6.0m at 6.3 g/t gold, 3.5 g/t silver from 62.5 metres
  • Unsampled core from the first ten holes, drilled in 2019, was assayed returning significant mineralisation both above, and below, the previously reported intercepts. Highlights include:
    •  Bottom 1.5 metres of drill hole GNDD-002 ending in 5.1 g/t gold, 5.8 g/t silver (Cerro Norte)
    • New zone of mineralisation above the main zone in GNDD-005 with an intercept of 4.0 metres at 5.1 g/t gold, 22.0 g/t silver, 0.5% zinc, and broad zones of bulk mineralisation above the main zones of mineralisation in drill holes GNDD-007 and GNDD-008 (Magnata)
    • Intercept of 7.0m at 2.3 g/t gold, 102.0 g/t silver above the main zone in GNDD-009, which correlates well with nearby holes (Sentazon)

Commenting on the results, CEL Managing Director, Mr Kris Knauer, said These results begin to demonstrate the true potential of our flagship Hualilan Gold Project. The intercept in GNRC-068, our first drill hole into the Sanchez Zone, is exceptional in terms of its near surface location and the sheer width and grade of the intercept

This has considerably upgraded the Sanchez Zone, which has been mapped over 500 metres of strike, yet only tested with a couple of holes, which have merely gone to a depth of to 50 metres. 

We now have four rigs on site and expect the fifth rig to arrive any day now. With mineralisation still open in all directionsit is an exciting time for shareholders, directors and management alike.”

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