Continuous Mineralisation Encountered At Hualilan Gold Project
Challenger Exploration (ASX: CEL) has received excellent results from drilling targeting the recent Verde and Gap Zone discoveries from the Company’s flagship Hualilan Gold Project in San Juan, Argentina.
Highlights from this series of 55 drill holes, designed to test below previous drilling and extend drilling over the entire 1.5 kilometres of strike between the Sanchez and Magnata Faults, include:
▪ GNDD-254 intersecting five zones of mineralisation including 62.0m at 2.1g/t AuEq from 173.0m and 26.8m at 1.9 g/t AuEq from 363.0m confirming better grades at depth.
▪ GNDD-292 intersected four zones of mineralisation including 63.0m at 1.0 g/t AuEq.
▪ GNDD-322 intersected 50.0m at 1.0g/t AuEq from 132.0m and a second zone of 8.9m at 2.0 g/t AuEq from 382.2m downhole.
The upper zone extends the Gap Zone 100 metres south with the deeper intersection interpreted as the bottom of the hole drilling across the Gap Zone mineralisation into the western margin of Verde Zone
. ▪ GNDD-277 intersected 35m at 2.3 g/t AuEq from 63.0m and confirmed the Gap Zone mineralisation extends to near surface and can contain a high-grades near surface.
This extension programme at the Verde Zone, following the initial discovery only 6 months ago, has been an overwhelming success. Only five of the current 55 holes failed to intersect significant mineralisation and CEL has intersected continuous broad zones of mineralisation over 1.3 kilometres of the 1.5-kilometre-long Verde Zone.
The remaining 200 metres of strike has yet to be systematically drilled, however GNDD-322, drilled at the reverse angle targeting the Gap Zone within this undrilled 200 metres, intersected strong mineralisation near the base of the hole interpreted as the Verde Zone.
The current Verde Zone drilling includes a number of deeper drill holes which confirm the companies model that the Verde Zone contains significantly higher-grade intrusion-hosted mineralisation underneath the halo of lower grade mineralisation hosted in sediments. This deeper drilling indicates the potential for several stacked zones of mineralisation at the Verde Zone.
Additionally, several drill holes at the Verde Zone ended in mineralisation and are being extended. Based on the current drilling, and logging of the next 37 Verde Zone drill holes (assays pending), the company’s expectation is that the Verde Zone forms a continuous zone of mineralisation covering at least 1.5 kilometres with a vertical extent of 300 metres that remains strong and open at depth.
The go forward plan is to complete infill drilling over the entire 1.5 kilometre Verde/Gap Zone trend down to 300 metres vertically with at least three of the current drill rigs on site. Drilling is being conducted on fences of holes spaced 80 metres along strike with drilling on each fence of holes spaced at no more than 80 metres.
This drilling has been designed to allow the calculation of an inferred resource in accordance with the JORC Code along the entire 1.5 kilometre long Verde Zone trend. In addition to the infill drilling program targeting a resource, a series of holes will be collared to test another 50-100 metres below the existing drilling at Verde/Gap Zone and both north both and south along strike where mineralisation remains open.
Commenting on the results, CEL Managing Director, Mr Kris Knauer, said
“The Verde Zone provides a snapshot of our recent experience at Hualilan. It was discovered in March this year with the discovery hole intersecting 125.5 metres at 1.1 g/t gold and 28.8 metres at 1.5 g/t gold.
“A little over six months later the Verde Zone has emerged as what appears to be a continuous zone of mineralisation 1.5 kilometres long with a vertical extent of 300 metres. Additionally, mineralisation remains open at depth and grades seem to be improving as we drill deeper.
“We have now drilled 117 holes on the 1.5 kilometre Verde Zone trend and I expect the most exciting part of this drilling will be the results of the 37 holes for which we are yet to receive final assays.”
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