Challenger reports first results from exploration around Hualilan gold project
Hualilan has a current resource comprising 2.8Moz of gold equivalent.
Challenger Exploration (ASX: CEL) has reported first results from regional and near-resource exploration programs at its flagship Hualilan gold project in Argentina.
The regional program was designed to generate targets along 30 kilometres of prospective strike away from the current mineral resource estimate of 2.8 million ounces gold equivalent.
Challenger is exploring for potential Hualilan repeats near the contact between the intrusives and sediments.
The work is based on historical evidence which shows discoveries like Hualilan seldom occur in isolation.
This exploration program is in its infancy with first-pass rock chip and stream sediment samples received for only a small portion of the high-priority areas being targeted.
Peak assays from rock and soil sampling results announced today were 90.7g/t gold and 1,785g/t silver.
The peak gold was from a rock chip collected 200m east of the mineral resource and the bonanza silver result was from a rock chip taken 2km north of the resource at the Andacollo prospect.
Less than 5% of the 600 square kilometre tenement package has been mapped since the program started in February.
Challenger has already identified two high-grade targets well away from the existing resource including El Peñon which is located 10km to the northwest on a parallel trend.
El Peñon sampling
Reconnaissance stream sediment sampling at El Peñon returned up to 54.4 grams per tonne gold and 151g/t silver ,which are considered to be “exceptionally high”.
The target’s main structural feature is a north-to-south limestone range interpreted as a repeat of a large thrust belt which controls the Hualilan Hills.
It is reported to contain structures, fractures and breccias developed along different tectonic cycles which have created the same favourable conditions for mineralisation present at Hualilan.
Sample results received to date define an area of 2sq km at the southern end of the El Peñon concession, anomalous for copper and molybdenum.
The current working interpretation is that the anomaly may represent the top of a porphyry system with the high-grade gold samples related to skarn or epithermal mineralisation.
Near-resource exploration
Challenger’s near-resource exploration has involved detailed mapping and rock chip sampling in the Hualilan Hills up-dip and to the east of the existing resource.
It has identified possible high-grade extensions to the mineralisation along a large portion of the estimate’s 2.2km strike.
Final assays for 368 samples have been returned to date, with highlights of 4.1g/t gold, 16.2g/t silver and 28.9% zinc; 10.3g/t gold, 20.7g/t silver, 3.1% zinc and 2.7% lead; 47.6g/t gold, 31.4g/t silver, 1.3% zinc and 0.5% lead; 9.9g/t gold, 17.7g/t silver, 5.4% zinc and 0.2% lead; and 90.7g/t gold, 42.8g/t silver, 0.7 zinc and 2.1% lead.
The work will be followed up with rock saw channel sampling over new zones of mineralisation as well as drilling using a track-mounted or portable rig.