9 April 2025
Perth, Western Australia
Challenger Gold Limited (ASX: CEL) is pleased to announce a significant milestone in its exploration strategy, with the Mineral Resource Estimate (MRE) at its Ecuadorian gold-copper projects doubling to 9.1 million ounces gold equivalent (AuEq), up from 4.5 million ounces. This transformational update places Challenger’s Ecuador portfolio among the largest undeveloped gold resources in South America.
The updated MRE includes:
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A maiden 4.4Moz AuEq resource at the Colorado V Project (CEL 50%), and
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An updated 4.7Moz AuEq resource at the adjoining El Guayabo Project (CEL 100%).
This equates to a net attributable resource of 6.9Moz AuEq to Challenger Gold, based on the Company’s 100% interest in El Guayabo and 50% interest in Colorado V.
Managing Director, Kris Knauer commented:
“I would like to congratulate our exploration team in Ecuador for their outstanding work in doubling project resources from 4.5Moz to 9.1Moz AuEq, including a high-grade core of 2.1Moz at 1.0g/t AuEq.
This resource update represents a transformational milestone for Challenger Gold shareholders, enabling us to move forward with unlocking significant value from our Ecuador assets while focusing entirely on bringing our flagship Hualilan project into production.
This is only the beginning for the asset – the current resource is based on drilling just five of fifteen major anomalies identified across our Ecuador projects, with all thirteen anomalies drilled so far returning significant mineralisation."
Key Highlights:
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9.1Moz AuEq total resource (567Mt @ 0.50g/t AuEq)
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High-grade component: 2.1Moz @ 1.0g/t AuEq, including 1.2Moz @ 1.2g/t AuEq
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Exploration upside: Only 5 of 15 major anomalies drilled; all 13 anomalies tested have returned mineralisation
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Strategic location: Adjacent to Lumina Gold’s 20.5Moz Cangrejos project
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Development ready: Located 35km from a deepwater port, with access to power, water, and roads
Monetisation Strategy for Ecuador Assets
With exploration at Colorado V and El Guayabo now complete, Challenger will now pursue monetisation options for its Ecuadorian assets to maximise shareholder value. These include:
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Spinning out the assets onto the TSX, where comparable companies trade at a premium;
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Strategic divestment to unlock near-term capital; or
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Farm-in agreements with major producers to fund development.
This strategy will allow Challenger to concentrate on its flagship Hualilan Gold Project in Argentina, where it holds a 2.8Moz AuEq resource (including 1.5Moz @ 5.6g/t AuEq in high-grade zones) and is progressing toward near-term production via a toll milling agreement. Cash flow from Hualilan will be directed toward the construction of a standalone operation, positioning it as one of South America’s leading near-term gold developments.
About us:
Challenger Gold Limited’s aspiration is to become a globally significant gold producer.
The Company is developing two complementary gold/copper projects in South America with a 2.8 million ounce resource estimate recently announced for the Hualilan Gold Project in San Juan, Argentina. In the 100% owned portion of its El Guayabo project in Ecuador the Company has announced a maiden 4.5 million ounce resource estimate.
The Company strategy is for the 100% owned Hualilan Gold Project to provide a high-grade low capex operation in the near term while it prepares for much larger bulk gold operations at both Hualilan and El Guaybo in Ecuador.
Contact details:
Jane Morgan, Jane Morgan Management
+61 405 555 618
[email protected]