Location

The Colorado V concession adjoins Challenger’s 100% owned El Guayabo concession to the south and the Cangrejos concession which hosts the 17 million ounce Cangrejos Gold Project, to the north.

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 17-million ounce Cangrejos Gold Project.

The CV-A and CV-B discoveries have similar scale to Cangrejos with both the CV-A and CV-B Au-soil anomalies being 1 kilometre long and 500 metres wide. Drilling by the company has now intersected mineralisation over 500 metres of strike length in both the CV-A and CV-B anomalies (Figure 2).

CVDD-22-001 – First test CV-A anomaly CVDD-22-001 was the Company’s first drill hole targeting the CV-A soil anomaly at Colorado V. The CV-A anomaly is a gold, silver, and copper soil anomaly some 1 kilometre long and 500 metres wide which forms part of a greater 3 kilometre linear trending gold in soil feature at Colorado V. The CV-A anomaly, like the other fifteen regionally significant Au-Ag-Cu-soil anomalies across the Company’s 35.7 km² tenement package has a peak gold value some 50 times above background.

Additionally, it is coincident with significant underlying magnetic anomalies indicative of porphyry systems. Limited historical drilling had been undertaken outside the CV-A soil anomaly targeting vein and breccia mineralisation which is currently being exploited by small scale mining. Results included:

These historic results had not been followed up with drilling which directly targeted the CV-A anomaly prior to the Company’s current program of which CVDD-22-001 was the first hole.

The intersection of 528.7m at 0.5 g/t AuEq (0.3 g/t Au, 2.0 g/t Ag, 0.1 % Cu, 13.2 ppm Mo) from surface until the end of the hole in the first hole to test the CV-A anomaly confirms a significant gold discovery. The mineralisation is consistent and pervasive throughout the hole and appears to have a similar paragenetic relation to mineralisation intersected in the companies’ discovery holes 3 kilometres to the south at El Guayabo, as well as Lumina Gold’s Cangrejos Project 3 kilometres to the north.

Importantly, from an open pit mining perspective, hole CVDD-22-001 includes a higher-grade section near surface, with an intersection of:

The CV-B anomaly is a Au-Ag-Cu soil anomaly 1 kilometre long and 500 metres wide which, with CV-A, forms part of a greater 3 kilometre linear trending gold in soil feature at Colorado V. Similar to CV-A, the anomaly is also coincident with significant underlying magnetic anomalies indicative of porphyry systems.

Limited historical drilling had been undertaken on the flanks of the CV-B anomaly with historical results including:

These historic results had not been followed up with drilling which directly targeted the CV-B anomaly prior to the Company’s current program of which CVDD-22-002 was the first hole.

CEL’s first two holes to test the CV-B anomaly both intersected over 450 metres of mineralisation. Results included:

570.0m at 0.4 g/t AuEq from surface to the end of the hole, including 306.7m at 0.5 g/t AuEq from surface (CVDD-22-002).

The Company reported a combined Exploration Target defined for CV-A and CV-B of:

Figure 2 – CV-A and CV-B Au-soil anomalies with drilling results at Colorado V

Table 1 – Selected Colorado V Intercepts