Challenger Gold Limited (CEL) Earnings Call Transcript & Summary

Morning. Kris Knauer from Challenger Exploration. And this morning, we've announced the first results from our regional exploration program around Hualilan in San Juan Argentina. Hualilan, we've got a 2.8 million ounce resource, opening all directions and will get bigger. However, at 2.8 million ounces as we work through a scoping study, it's got a critical mass. It will be a mine. So the focus is now switched to exploring the 30 kilometers of prospective strike we've got around Hualilan. Effectively, the intrusives are the engine, they create the fluids that form the mineralization. And wherever we see these intrusives, and then around the edges, we're getting high-grade gold. And there's 30 kilometers of what we map is as intrusives now that are basically unexplored. Off to a great start. We're only sort of 5% into the program at El Penon, 10 kilometers northwest of Hualilan, really high-grade strength sediment samples, 54 grams gold, 12.1 grams silver. Now we stream sediment samples, you normally measure anomalous gold in past for billion, not grams a tonne or parts for million. This sign of high-grade gold and silver covers about 1.2 kilometers of strike. It actually sits on the edge of a circular zone about 2 kilometers in diameter. It's anomalous for copper and molybdenum in soil. So we think this is potentially the top of a porphyry system where you've got the high-grade copper in the stream sediment and soils and the high-grade gold as a scare mineralization wrapping around it. More sampling and mapping going on there now. And ultimately, we'll drill some holes there to test that system. At Andacollo, we've identified a series of old workings that extends from the northern margin of that Hualilan resource 2K's North. These high-grade samples at Andacollo, the first one is we've got 26.9 grams gold, 423 grams silver, 20.6 grams gold, 1,785 grams silver, there from the very northern end of that. We've mapped the structure there that's about 200 meters long. We have drilled a couple of holes under it. However, these holes basically orientated East West. And now that we've mapped it properly, we think this is an east-west structure similar to the Magnata or Sanchez faults. So we'll need to do some more mapping and then we'll probably change the orientation of the holes. But again, exciting, and we're only just starting mapping that entire 2K trend where we've got old workings that we haven't recognized. Finally, and probably just as importantly, if not more important, we've done some sampling in the Hills up to 300 meters east of the Hualilan resource along the entire strike of that resource. Basically identified extensions along the entire 2.2 kilometers of that resource, really high-grade gold up there in the hills, 90.7 grams gold, 42 grams silver, 46.7 grams gold, 31.4 grams silver and another sample. Basically, a series of these high-grade rock chip results along the entire 2.2 kilometers of strike. Some of these look like new zones of mineralization. Some are actually extending the existing zones of mineralization up to 300 meters up dip and some are effectively extending the mineralization north as well. But a great set of results and showing that Hualilan still is open in all directions. And now next step there is get a portable to rig up and we'll start to drill some of these targets out and extend the high-grade mineralization to the resource. So really exciting results, again, only just starting a bunch more of regional work to come through Hualilan. It does now look like it will generate some exciting drill targets to find another Hualilan. And you don't find 2.8 million ounces in isolation. So thanks very much for your time, and have a great day.