CEL makes new gold discovery at its Hualilan Project which is expected to substantially increase scale

Challenger Exploration (ASX: CEL)

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 (refer Table 1):

• 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 of

• 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

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