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(Kitco News) - On Tuesday, Challenger Gold (ASX: CEL) announced an initial mineral resource estimate (MRE) for its El Guayabo gold-copper project in Ecuador.
The company said that the project’s maiden inferred mineral resource estimate amounted to 270 mt at 0.52 g/t AuEq for 4.5 Moz AuEq, adding that the MRE is predominantly based on drilling at the GY-A and GY-B anomalies and is constrained by drilling with mineralization remaining open in both directions along strike and at depth.
Importantly, Challenger noted that the MRE does not include drill holes GYDD-23-039 (805.3m at 0.6 g/t AuEq) or GYDD-23-040 to 043 (assays pending) and will be updated upon the receipt of assays for these final five holes.
The company also said that the El Guayabo project adjoins the 17 million ounce Cangrejos gold project owned by Lumina Gold, adding that Cangrejos and El Guayabo have the same geology, surface footprint, and mineralization style, and are interpreted as being part of the same system.
Commenting on the resource, Managing Director Kris Knauer said, “I would like to congratulate our Exploration team in Ecuador for this outstanding start. An initial resource of 4.5 million ounces, particularly given its higher-grade core of 1.5 Moz at 1.0 g/t AuEq, is a great start and has significant value in its own right.
“It is, however, only our starting point. This resource is focused on 2 of the 7 targets at El Guayabo that have produced mineralized intercepts greater than 500 metres. Mineralization on these two targets remains open in all directions along strike and at depth with the resource limited by a lack of drilling. Additionally, the final five holes in the program are yet to be included in the estimate which will be updated when assays for these holes are received."
Challenger is developing two complementary gold-copper projects in South America. The company has a mineral resource of 2.8 million ounces AuEq at the flagship Hualilan gold project in Argentina. The company has also established a 4.5 million ounce AuEq resource at the El Guayabo project in Ecuador.
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