Challenger Exploration (ASX:CEL) – Initial Mineral Resource Estimate of 4.5 Moz gold-equivalent1 at CEL’s 100% owned El Guayabo Project, Ecuador and Completion of $10 million Placement

Highlights

• Initial Inferred Mineral Resource Estimate (MRE) of 270 mt at 0.52 g/t AuEq1 for 4.5 Moz AuEq1 at CEL's 100% owned El Guayabo Project in Ecuador (refer Table 1).
• The 4.5 Moz1 MRE contains a significant higher-grade core of mineralisation (refer Table 2):
  • 1.45 Moz at 1.0 g/t AuEq1 (0.65 g/t AuEq cut-off) including;
  • 1.01 Moz at 1.2 g/t AuEq1 (0.8 g/t AuEq cut-off) ) including;
  • 0.63 Moz at 1.5 g/t AuEq1 (1.0 g/t AuEq cut-off).
• The MRE is predominantly based on drilling at the GY-A and GY-B anomalies and is constrained by drilling with mineralisation remaining open in both directions along strike and at depth.
• MRE does not include drill holes GYDD-23-039 (805.3m at 0.6 g/t AuEq) or GYDD-23-040 to 043 (assays pending) and will be updated upon the receipt of assays for these final five holes.
• Discovery Cost of approximately US$1.202 per ounce.
• Transforms CEL into a two-project company with gold equivalent resources of 2.8 Moz4 in Hualilan and 4.5 Moz1 in Ecuador, both of which remain open.
• Firm commitments received to raise $10 million by way of an institutional placement, with strong support received from domestic and offshore institutional investors
• Funds from the capital raising to be primarily applied to:
  • Completion of a Pre-Feasibility Study (PFS) at CEL's Flagship Hualilan Gold Project;
  • Regional exploration activities and drilling at Hualilan.

Commenting on the resource, CEL Managing Director, Mr Kris Knauer, said 

“I would like to congratulate our Exploration team in Ecuador for this outstanding start. An initial resource of 4.5 million ounces1 , particularly given its higher-grade core of 1.5 Moz at 1.0 g/t AuEq, is a great start and has significant value in its own right. 

It is, however, only our starting point. This resource is focused on 2 of the 7 targets at El Guayabo that have produced mineralised intercepts greater than 500 metres. Mineralisation on these two targets remains open in all directions along strike and at depth with the resource limited by a lack of drilling. Additionally, the final five holes in the program are yet to be included in the estimate which will be updated when assays for these holes are received."

Challenger Gold (ASX: CEL) (“CEL” the “Company”) is pleased to announce a first Mineral Resource Estimate (MRE) which is reported according to JORC (2012) for the Company's El Guayabo Gold Copper Project, in El Oro Province, Ecuador. 

Jane Morgan

jm@janemorganmanagement.com.au