Challenger Exploration (ASX: CEL) has completed a series of exploration holes designed to test new concepts and extend mineralisation away from existing boundaries at the company’s flagship Hualilan Gold Project in San Juan, Argentina.
The latest results are from a series of exploration drill holes designed to test new targets and geological concepts and extend mineralisation well beyond the existing boundaries. These exploration focused drill holes returned significant intercepts opening several new and material targets for drilling including:
▪ A possible third high-grade east-west fault 400 metres north of the Sanchez Fault in GNDD394 (5.0m at 8.7g/t AuEq including 3.0m at 14.3 g/t AuEq)
▪ A new high-grade target on a second magnetic trend west of the current Hualilan mineralisation in GNDD-326 (2.0m at 7.5 g/t AuEq)
▪ An extension of the high-grade Verde Zone mineralisation 400 metres south of the existing mineralisation in GNDD-450 (97.8m at 2.2 g/t AuEq including 16.8m at 9.7 g/t AuEq)
▪ High-grade mineralisation which remains open at the eastern limit of the Sanchez Fault drilling in GNDD-441 and GNDD-434 (67.6m at 2.6 g/t AuEq including 5.4m at 28.7 g/t AuEq)
▪ A new zone of high-grade mineralisation over 1000 metres downhole below the Verde Zone with GNDD-308e ending in 4.0m at 5.8 g/t Au
The Eastern Extension of the Sanchez Fault – GNDD-425, GNDD-434, GNDD-441 GNDD-434 was drilled with the portable rig and is the deepest and most westerly hole on the Sanchez Fault for which results have been received.
The hole was collared approximately 100 metres up into the Hualilan Hills at the eastern limit of the current drill access road. The closet hole to GNDD-434 is CEL’s fourth drill hole GNDD-004 collared 120 metres to the east.
The company said it should be noted, GNDD-004 was designed to test under the Dona Justa Open Pit and wasn’t drilled to intersect the Sanchez Fault.
GNDD-434 extended the Sanchez Fault mineralisation almost 200 metres to the east intersecting 5.4 metres at 28.7 g/t AuEq (28.6 g/t gold, 11.1 g/t silver) from 24.4m including 2.4 metres at 60.2 g/t AuEq (60.0 g/t gold, 20.4 g/t silver).
This intersection was located directly above a 3-metre void with the void interpreted as old workings, given the proximity of the hole to surface and the access tunnels noted in the vicinity of the collar location.
Historical mining generally, did not take ore grading less than 10 g/t, hence it is anticipated that the true width of the high-grade section of the Sanchez Fault mineralisation is almost 9 metres at this location.
Additionally, the hole intersected a much broader zone of mineralisation around this high-grade zone, with GNDD-434 intersecting 67.6 metres at 2.6 g/t AuEq (2.5 g/t gold, 2.6 g/t silver) from 24.4m.
This lower grade halo is typical of the Sanchez Fault Zone mineralisation to date with drillholes such as GNRC-068 collared 200 metres east along the Sanchez Fault intersecting 69.0 metres at 4.7 g/t AuEq, including 27.0 metres at 11.2 g/t AuEq.
“Beyond the areas where previous drilling has been focused, this series of exploration drill holes demonstrates that Hualilan has a lot more to offer,” Managing Director, Kris Knauer, said.
“This first series of exploration focused drill holes has significantly extended the mineralisation in multiple locations. Intercepts such as 97.8m at 2.2 g/t and 3.0m at 14.3 g/t gold equivalent, both of which extend the mineralisation 400 metres, are outstanding. These results open several new areas that have considerable potential to add significant ounces to the Hualilan Gold Project.”
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