Challenger Exploration is advancing towards a maiden mineral estimate at its El Guayabo gold-copper project in Ecuador, which is separated by a tenement boundary from the massive 17-million-ounce Cangrejos gold project.

In fact, El Guayabo is essentially the other half of Cangrejos project, where earlier this week Lumina Gold announced US$300 million metals streaming agreement with Wheaton Precious Metals for 6.6% of the payable gold produced from the project in exchange for US$48 million of pre-construction funding and US$252 million of construction funding.

The deal will de-risk the execution of the project and form a significant part of the US$1 billion construction capital required from what will be one of the largest gold producers in the world once built – which only bodes well for neighbour Challenger’s (ASX:CEL)

Drilling to date at El Guayabo has already confirmed the potential for large-scale Au-Cu-Ag-Mo gold system gold system at the project, with the latest results from Phase 2 drilling including:

  • 805.3m at 0.6g/t AuEq2 – 0.5g/t Au, 1.6g/t Ag, 0.05 % Cu, 4.2ppm Mo from 4.6m including;
  • 546.7m at 0.8g/t AuEq2 – 0.7g/t Au, 2.0g/t Ag, 0.1 % Cu, 3.5ppm Mo from 4.6m including;
  • 231.2m at 1.5g/t AuEq2 – 1.4g/t Au, 2.5g/t Ag, 0.05 Cu, 3.7ppm Mo (GYDD-23-039) 

Mineral resource estimate pending

The current drill program in Ecuador is now complete, with assays pending from drillholes GYDD-23- 040 to drillhole GYDD-23-043.

“This is another solid set of results which pave the way for our first resource in Ecuador,” CEL MD Kris Knauer said

“Of note is drill hole GYDD-23-039 which intersected over 800 metres at 0.6g/t AuEq including 231.2 metres at 1.5g/t AuEq.

“This hole has opened the potential for the third of the anomalies in our 100% owned ground, GY-C, to make a significant contribution to a Mineral Resource Estimate.

“Adding to the potential it appears that GY-B and GY-C join forming one continuous zone at least 700 metres wide, open at depth and in both directions along strike.

“The Main Discovery Zone, or GY-A, also remains open at depth and along strike.”

The company intends to report a maiden Mineral Resource Estimate in accordance with the JORC 2012 Code this month.

 

 

 

 

 

This article was developed in collaboration with Challenger Exploration Limited, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Read MoreGoldGold NewsGold Stocks

Featured Companies

You might be interested in