Drilling Expands The Colorado V Discoveries In Ecuador, Next Three Holes All Returning Significant Intersections

Challenger Exploration (ASX: CEL) (“CEL” the “Company”) is pleased to announce results from the next three drill holes CVDD-22-003 to CVDD-22-005 in the Colorado V concession in El Oro Province, Ecuador, where the Company is farming in to earn an initial 50% interest.

Highlights

• Next drill holes on the CV-A and CV-B soil anomalies in Colorado V, Ecuador, significantly expand the scale of the mineralisation with results including (refer Table 1):
  • 564.1 m at 0.4 g/t AuEq2 - 0.2 g/t Au, 2.3 g/t Ag, 0.1 % Cu, 44.1 ppm Mo from 8.1m including;278.0 m at 0.6 g/t AuEq2 - 0.3 g/t Au, 3.2 g/t Ag, 0.1% Cu, 68.2 ppm Mo from 8.1m including;146.5 m at 0.7 g/t AuEq2 - 0.4 g/t Au, 3.2 g/t Ag, 0.1 Cu, 101 ppm Mo from 8.1m (CVDD-22- 005)
  • 509.9 m at 0.4 g/t AuEq2 - 0.2 g/t Au, 1.4 g/t Ag, 0.1% Cu, 31.3 ppm Mo from 2.5m including;242.5 m at 0.6 g/t AuEq2 - 0.4 g/t Au, 1.8 g/t Ag, 0.1% Cu, 44.8 ppm Mo from 2.5m Including 156.9m at 0.7 g/t AuEq2 - 0.4 g/t Au, 1.8 g/t Ag, 0.1% Cu, 54.7 ppm Mo from 2.5m including 75.8 m at 0.8 g/t AuEq2 - 0.6 g/t Au, 2.0 g/t Ag, 0.1% Cu,59.1 ppm Mo (CVDD-22-003)
• Mineralisation extended at CV-A 400 metres southwest and outside the boundaries of the CV-A soil anomaly confirming the mineralisation has a true width of over 600 metres
• CVDD-22-004, the second hole on the CV-B soil anomaly, extends the mineralisation at CV-B some 200 metres to the north of the CVDD-22-002 discovery hole with mineralisation remaining open
• Confirms two Au-Cu-Ag-Mo discoveries of significant scale. Both Au-soil anomalies are 1 kilometre long and 500 metres wide and lie within a structural corridor over a 3 kilometre strike distance.
• CEL has drilled five of fifteen regionally significant Au-soil anomalies with over 500 metres of mineralisation intersected at all anomalies, confirming the potential for a major bulk gold system.

“These next three holes from Colorado V confirm that we have made two significant discoveries at Colorado V. The intersections significantly extend the mineralisation in the discovery holes at the CV-A and CV-B anomalies both of which are just a few kilometres on strike from the 22-million ounce Cangrejos Gold Project1. The anomalies have the same geology and surface footprint as Cangrejos and drilling is showing us they have similar mineralisation.

We have drilled five of fifteen regional gold-soil anomalies and all five have returned significant mineralisation. The results continue to crystalise our strategy that our high-grade resource of 1.1 million ounces at 5.6 g/t gold equivalent in Argentina, which is continuing to grow, will fund a large bulk gold discovery in Ecuador."

Figure 1 - Regional Au-soil anomalies and drilling results at El Guayabo and Colorado V

They follow CVDD-22-001 and CVDD-22-002, both of which intersected significant mineralisation, and confirm Au-Cu-Ag-Mo discoveries in the first two regional gold in soil anomalies in Colorado V to be drilled by the Company. Additionally, the results extend the mineralisation outside the boundary of the CV-A soil anomaly and confirm the CV-A mineralisation has a true width of at least 600 metres.

The new discoveries have significant scale with both the CV-A and CV-B Au-soil anomalies 1 kilometre long and 500 metres wide. The Colorado V concession adjoins CEL's 100% owned El Guayabo concession to the south and the Cangrejos concession to the north which hosts the 22-million ounce Cangrejos Gold Project¹.

¹ Source : Lumina Gold (TSX : LUM) July 2020 43-101 Technical Report

CVDD-22-003: CV-A anomalyCVDD-22-003 was the Company's second drill hole targeting the CV-A soil anomaly at Colorado V. The hole was drilled as a follow up to CVDD-22-001 which intersected 528.7m at 0.5 g/t AuEq from surface to the end of the hole including 397.1m at 0.6 g/t AuEq from surface. CVDD-22-003 was drilled from the same pad as CVDD-22-001 in the opposite direction outwards from the CV-A soil anomaly to test the entire 500 metre width.

As can be seen from Figure 2 (Plan view) CVDD-22-003 drilled outside the projected CV-A soil anomaly at approximately 200 metres down hole. This makes the intercept of 509.9m at 0.4 g/t AuEq (0.2 g/t gold, 1.4 g/t silver, 0.1 % copper, 31.3 ppm molybdenum) from surface until the end of the hole more impressive as it confirms that the mineralisation extends significantly beyond the boundary of the CV-A soil anomaly.

The hole intersected a higher-grade zone of 242.5 metres at 0.6 g/t AuEq (0.4 g/t gold, 1.8 g/t silver, 0.1% copper, 44.8 ppm molybdenum) including 156.9 metres at 0.7 g/t AuEq (0.4 g/t gold,1.8 g/t silver, 0.1% copper, 54.7 ppm molybdenum) and 75.8 metres at 0.8 g/t AuEq (0.6 g/t gold, 1.8g/t silver, 0.1% copper, 59.1 ppm molybdenum), all from surface. This higher-grade zone correlates with the area below the CV-A soil anomaly, which is an extension of mineralisation intersected in CVDD-22-001 (397.1m at 0.6 g/t AuEq from surface), confirming mineralisation at the CV-A anomaly begins at surface and has higher-grades at surface.

The intersection confirms that the CV-A soil anomaly which is a gold, silver, and copper soil anomaly some 1 kilometre long and 500 metres wide is mineralised across its entire 500 metre width and beyond. The mineralisation is consistent and pervasive throughout the hole and appears to have similar paragenetic relationships to mineralisation intersected in the discovery holes 3 kilometres to the south at El Guayabo, as well as Lumina Gold's Cangrejos Project 6 kilometres to the northeast.

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