Challenger Exploration (ASX: CEL) reports that deep drilling has confirmed ‘high grade’ gold intercepts at scale at the Verde Zone prospect within its flagship Hualilan Gold Project in Argentina’s San Juan province.
CEL says that assays received for the first three of 27 drill holes at the prospect returned ‘significant’ intercepts, with standout hits including:
- Hole GNDD-336: 49.0m @ 2.4 g/t AuEq from 310m, 2.9m @ 17.7 g/t AuEq from 312m, 17.6m @ 3.5 g/t AuEq from 341.5m
- Hole GNDD-337: 13.9m @ 2.4g/t AuEq2 from 258.6m, 10.3m @ 3.2 g/t AuEq from 262.2m
- Hole GNDD-341: 110.4m @ 0.6g/t AuEq from 60.6m, 47.0m @ 1.1 g/t AuEq from 78m, 5.5m @ 6.7 g/t AuEq from 81.5m
The company reports that the results from all three holes significantly exceeded expectations, and confirmed wide zones of higher-grade intrusion-hosted mineralisation at depth.
“The results from each of the first three of the 37 Verde Zone drill holes…have significantly exceeded our expectations”
Addressing the results, Challenger Exploration Managing Director Kris Knauer said: “The results from each of the first three of the 37 Verde Zone drill holes, for which we are yet to receive final assays, have significantly exceeded our expectations with each hole producing an important outcome. The results confirm our model that we will find higher-grades at depth; extend the Verde Zone 50 metres south into the one gap in drilling where we have over 1.5 kilometres of strike; and demonstrate that earlier drilling at the Verde Zone was short of the main zone of mineralisation. Overall, this reinforces our view that the best results from the Verde Zone are yet to come.”
The company notes that earlier drilling was not deep enough to intersect the main Verde Zone mineralisation, which remains open at depth.
The Verde Zone prospect is a recent discovery at Hualilan, targeted using surface magnetics and IP survey. The prospect covers 1.5km of strike between the Magnata and Sanchez Faults, with mineralisation ranging from 50m to 100m in width.
An infill and extensional drill program is currently underway, with 3 rigs in operation. Drilling is expected to cover the entire 1.5km trend to depths of 300m, with 80m hole spacing. In addition, the company will extend several holes that ended in mineralisation.
Challenger notes that the ultimate aim of the program is to deliver a JORC-compliant inferred resource.
