Challenger Exploration is nearing a maiden mineral estimate at its El Guayabo gold-copper project, which is separated by a tenement boundary from the huge Cangrejos gold project.
In fact, El Guayabo is essentially the other half of Cangrejos project, where earlier this week Lumina Gold announced $US300 million metals streaming agreement with Wheaton Precious Metals for 6.6 per cent of the payable gold produced from the project, in exchange for $US48 million of pre-construction funding and $US252 million of construction funding.
The deal will de-risk the execution of the project and form a significant part of the $US1 billion construction capital required by what will be one of the largest gold producers in the world once built – which only bodes well for neighbour Challenger (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 per cent 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 per cent 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 800m at 0.6g/t AuEq including 231.2m at 1.5g/t AuEq.
“This hole has opened the potential for the third of the anomalies in our 100 per cent 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 700m 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.