Nov 13, 2024

Challenger Gold Hits 537.6m @ 0.5 g/t AuEq at Colorado-V Project, Ecuador

Introduction:

Challenger Gold (ASX:CEL) (Market Cap: $81M | Last Close: $0.051) has reported drill results from its Colorado-V Project in Ecuador, highlighted by 537.6m at 0.5 g/t AuEq from surface.

Drill Results:

537.6m @ 0.5 g/t AuEq from surface (including 60.9m @ 0.6 g/t AuEq from 42.1m) [CVDD-24-026]
461.0m @ 0.5 g/t AuEq from 52.3m (including 103.6m @ 0.8 g/t AuEq from 137.6m) [CVDD-24-028]
401.1m @ 0.5 g/t AuEq from surface (including 210.9m @ 0.6 g/t AuEq from surface) [CVDD-24-024]
302.6m @ 0.3 g/t AuEq from 250.3m (including 134.2m @ 0.5 g/t AuEq from 263.3m) [CVDD-24-027]
230.4m @ 0.3 g/t AuEq from 176.3m [CVDD-24-025]‍
152.9m @ 0.4 g/t AuEq from 247.3m [CVDD-24-023]

Project Overview:

The Colorado-V Project adjoins CEL's 100%-owned El Guayabo project in Ecuador. El Guayabo has a reported Mineral Resource Estimate of 4.5 Moz AuEq at a grade of 0.5 g/t AuEq. The Colorado-V Project is located in a tier 1 mining jurisdiction with established infrastructure access.

CEL is earning an initial 50% interest in Colorado-V by investing US$8 million. The current resource drilling program is expected to fulfill the Company's earn-in commitments under the Colorado-V farm-in agreement.

Program Details:

The results reported are from six holes of a 15-hole program, with 11 holes now completed. Drilling has focused on the CV-A anomaly, covering an area of 400 x 800 meters. The program has confirmed that the entire CV-A anomaly is mineralized from surface and remains open at depth. Mineralization has been extended a further 400 meters along strike to the south-west at the CV-A anomaly.

Understanding These Results:

The reported intersections represent significant extensions beyond the current resource envelope. The wide zones of mineralization, particularly in CVDD-24-026 with 537.6m @ 0.5 g/t AuEq from surface, demonstrate the nature of the mineralizing system.

Higher-grade zones within the broader mineralized envelopes, such as 103.6m @ 0.8 g/t AuEq from 137.6m in CVDD-24-028, indicate potential for higher-grade sections within the deposit.

Management Commentary:

Kris Knauer, Managing Director of Challenger Gold, stated:

"Our resource drilling program in Ecuador continues to deliver positive results. These intersections are highergrade and wider than those from the first holes in the program. This round of drilling has produced intersections of over 700 metres and confirms that the entire CV-A anomaly covering an area of 400 metres x 800 metres is mineralised from surface and open at depth. We are excited to see what this will mean in terms of a maiden Colorado V Mineral Resource Estimate when the program is complete.”

Next Steps & Catalysts:

Assay results from the final four holes in the 15-hole drilling program, including three holes in the western half of the CV-B anomaly, are still pending. The Company anticipates releasing these results in the near future.

Challenger Gold is preparing to release a maiden Mineral Resource Estimate for the CV-A anomaly upon completion of the drilling program.

Commodity Outlook:

Gold serves multiple markets, including investment assets, central bank reserves, jewellery manufacturing and industrial applications in electronics. Currently trading at US$2,622/oz (November 12, 2024), the metal has experienced record highs in 2024 despite recent volatility linked to U.S. political shifts and Federal Reserve policy expectations.

Gold continues to maintain strong fundamentals as a safe-haven asset. The project's copper and silver credits provide additional value potential. Ecuador represents a growing mining jurisdiction with established infrastructure.

Conclusion:

With mineralization remaining open at depth and along strike, the project continues to demonstrate characteristics of a growing gold-copper system with further growth potential. The upcoming maiden Mineral Resource Estimate will be a key catalyst for Challenger Gold as it seeks to advance its Ecuadorian assets.

Sources:

CEL Drill Results Announcement

Additional Figures:

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Nov 6, 2024