Regional exploration at Argentine project finds more gold targets for Challenger

Challenger Exploration (ASX: CEL) reports that a new mineralised system is among the new targets identified at the Hualilan gold project in San Juan province, Argentina.

A regional stream sediment sampling program covering about 70 sq km has identified a new mineralised system 2.5km west of the Magnata Fault, where the company recently discovered historical alluvial workings.

Fieldwork is already underway following satellite data covering the company’s 200 sq km tenement package, revealing several anomalies.

Ground magnetic survey begins

Challenger has begun a 48 sq km ground magnetic survey at the El Penon prospect.

The company says this will define drill targets associated with high-grade stream sampling.

There is also grid mapping and rock chip and soil sampling covering the strike extensions north and south of Hualilan.

This regional exploration is designed to explore for Hualilan repeats along the 30 km of known strike.

Hualilan is located 120 km northwest of San Juan city in northwestern Argentina.

Several new targets identified

Although still in its initial stage, the new regional exploration program has already identified several targets.

At El Penon, surface grades up to 54.4 grams per tonne gold are associated with a stream sediment anomaly along a 1.2 km strike.

Surface material up to 26.9 g/t gold and 423 g/t silver occurs at the Andacollo target, and the company has recently discovered underground workings there.

Channel sampling at the Hualilan up-dip has identified extensions with grades up to 90.7 g/t gold and 43.8 g/t silver.

First detailed exploration beyond historical workings

Managing director Kris Knauer says the regional program is progressing well and should allow the company to plan its first drill hole at El Penon.

“Our program is the first detailed exploration focused outside the historical mineralization conducted at Hualilan, so it is not a surprise that it continues to generate several new targets,” he added.

Mr. Knauer said Challenger has a large backlog of samples for which assays are pending.

Challenger has previously noted that Hualilan has had extensive historical drilling with more than 150 holes dating back to the 1970s.

The property was last explored by Toronto-listed La Mancha Resources in 2004.

That work produced a resource estimate of about 627,000 oz of gold at an average of 13.7 g/t.