Challenger eyes a maiden mineral resource as Ecuadorean neighbour nabs streaming deal

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.