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Challenger Exploration confirms high-grade gold mineralisation in sampling at Hualilan Gold Project in Argentina

Follow-up drilling is being planned to confirm historic resource estimates and enable the company to deliver a JORC-compliant estimate.

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Challenger has the rights to earn up to 75% of the project which comprises 15 mining licences and one exploration licence application

Challenger Exploration Ltd (ASX:CEL) has confirmed the high-grade nature of historically reported gold mineralisation through channel and underground stockpile sampling at its Hualilan Gold Project in Argentina.

Sampling as designed to provide a representative grade of the mineralisation and initial results demonstrate the existence of high-grade gold, silver and zinc mineralisation.

Completed sampling to provide basis for engineering studies

Challenger managing director Kris Knauer said he was delighted to see the initial high-grade channel sampling and bulk sampling results at Hualilan are consistent with historically reported results.

He added: “In 2003, La Mancha released an NI 43-101 mineral resource estimate of 627,000 ounces at 13.7 g/t which we are looking to validate.

“We are working towards a modern drilling campaign to confirm the historic resource estimates that will then enable us to prepare a JORC code compliant resource.

“Once completed the results will hopefully provide the basis for us to progress engineering studies on a high-grade gold project.”

Further sample results are expected

Highlighted results include:

  • 1-metre channel sample at Magnata Manto: 30.9 g/t gold, 248 g/t silver and 4.45% zinc;

  • 1-metre channel sample at Magnato Manto: 26.8 g/t gold, 192 g/t silver and 2.46% zinc;

  • Bulk sample Sentazon mine stockpile: 16.2 g/t gold 22.8 g/t silver and 2.96% zinc; and

  • Bulk sample Magnata mine stockpile: 13.3 g/t gold, 61 g/t silver and 6.42% zinc.

An additional 62 samples covering many of the known mineralised zones at Hualilan are anticipated to be received in the coming weeks.

READ: Challenger Exploration restarts trading on ASX and progresses two South American project

Hualilan is a high-grade gold and silver prospect associated with a multi-phase porphyry intrusive.

Extensive historical drilling with more than 150 drill holes dating back to the 1970s is present but has limited reported historical production despite more than 6 kilometres of underground workings.

TSX-listed La Mancha Resources last explored the property in 2006 and its resource estimates remain open in most directions.

Previous exploration attempted to assess the continuity of mineralisation across the property, but this is yet to be tested by systematic drilling.

Quick facts: Challenger Exploration Ltd

Price: 0.044 AUD

ASX:CEL
Market: ASX
Market Cap: $20.63 m
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