Surface sampling by Challenger Gold at El Guayabo copper-gold project indicates extension of high-grade core

Challenger Exploration (ASX: CEL) reports that surface channel sampling at the El Guayabo project in Ecuador has shown the potential for an extension of existing mineralisation from the deeper core to the surface.

The first surface channelling by the company has lifted the start of mineralisation 200 metres above the limit of the current mineral resource estimate.

Most of the channels are limited by exposed outcrop, and remain open in both directions

Mineralisation ‘well beyond’ of current drilling

Challenger Exploration managing director Kris Knauer said the results were an excellent outcome for an initial channelling program.

“The program has extended the mineralisation well beyond the limits of the current drilling,” he added.

Mr Knauer highlighted one assay of 174m returning 1.1 grams per tonne gold, 1.9g/t silver and 0.04% copper, with this ground open in both directions. The hole included a higher-grade interval of 6.1m at 13.4g/t gold, 7.5g/t silver and 0.06% copper.

Another hole returned 9m at 12.4g/t gold, 11.2g/t silver and 0.02% copper, also being open in both directions.

El Guayabo is located in El Oro province on the southern part of Ecuador’s portion of the Andean copper belt.

It sits just 1,000m above sea level and can be worked all year round.

The project site is 30.5km from Machala, Ecuador’s fourth largest city where there is a deep-water port, and the city is served by the Pan American Highway.

Existing resource of 4.5 million ounces of gold equivalent

Historically, 33 holes had been drilled at El Guayabo with one intersection recorded over 136m with 2.6g/t gold, 9.7g/t silver and 2% copper.

Challenger believes most of its ground to be under-explored.

The current 4.5Moz gold equivalent mineral resource estimate contains what the company describes as the high-grade core with 1.5Moz at 1.0g/t gold equivalent (AuEq).

In turn, this comprises two discrete zones of high-grade mineralisation, one within the GY-A anomaly called Copper Breccia and the other in the GY-B anomaly known as Gold Breccia.

Copper Breccia has been well defined by drilling spaced at 50m intervals with drill intercepts including 257m at 1.4g/t AuEq, including 79m at 3.8g/t.

Challenger says it has not yet drilled the top 200m of this anomaly due to topography.