CEL - Challenger Gold

[System]

Challenger Energy Limited (CEL) was formerly known as Sunset Energy Limited (SEY).

Previous discussion of this company can be found in the SEY thread: https://www.aussiestockforums.com/forums/showthread.php?t=19710

http://challengerenergy.com.au

 

[philly]

The last ASX announcement regarding the Triple Crown Prospect was back on 21-1-11. There was talk of preparing the well for fraccing but no news since. What is happening?

I suspect that there must be something stirring because in the past fortnight 2 new investors have lodged a Form 603 with ASX. A Queensland Super Fund has picked up a6.71% interest and a NSW Absolute Return Fund has picked up a 5.97% interest. Strange bedfellows. Watch this space.... any thoughts welcome.

Yes, it's good news to have a couple of funds involved. I think Pitt St is related to Novus who were the broker for a recent placement. If this is the case, then I'd be surprised if they weren't party to some good, reinforcement lets say of recent announcements.

It's been very quiet on the testing front, I'd dearly like to get a little news some time soon on progress/forward programme. Maybe this Friday? It may be that the next announcement is regarding new acreage. If this is the case, I'd say we really are on to a good thing here. After new acreage is secured we might start getting info regarding a test programme.

I'm holding CELO.

The last news regarding the Triple Crown Prospect was on 21-1-11 that is now 69 days ago. IMHO shareholders need to be better informed and up dated.

 

[galumay]

Does anyone know anymore about this stock? I have been given a 'tip' by a friend that works for the company and he is hopeful they are about to have a run up. He bought it at .20 a while ago - looks they fell after that to a low of round .08 and have been slowly rising again with a bit of a bump recently.

There seems to be some good news coming out of South Africa about their ground there and they have been 'pushed' by a guy called James Gerrish on the Finance News Network, looks like he is an senior advisor for Novus Capital. This is what he had to say/spruik about CEL,

Lelde Smits: "Finally gentlemen, if you were given $1 million for Christmas – what’s the first stock or sector you’d put it in to generate the greatest returns over 2013?"

James Gerrish: "I’ll put it on one stock and put it out on the line there, Challenger Energy Limited (ASX:CEL) is one I’ve been looking at for a long time- CEL- owner of the stock, I have a lot of clients in the stock, it’s a shale gas play, it’s just got some good news coming out of South Africa. If I had my choice I’d spread the $1 million around but if I had to put it on one name, it would be Challenger Energy, CEL."

Its not the sort of stock I would invest in, but I am considering a pure speculation/gamble play with some spare coin that I am prepared to lose!

 

[bigbankerbroker]

CEL has an application to drill for Shale Gas in the Karoo Basin (South Africa). The application is for 1 million acres around Cranmere CR 1/68, the only well in the entire Karoo Basin to flow significant gas to surface. In 1968, Cranmere CR 1/68 had flowed more than 8 million cubic feet of gas per day from a 158 foot (48 metre) shale interval. Large players such as Chesapeake, Statoil, Sasol and Falcon Oil & Gas have also moved in on the action. The US department of energy estimated that 485 trillion cubic feet of recoverable shale gas resources could be hosted in the Karoo. CEL has a potential asset worth $1.9b with a current market cap of $33.79M.
CEL has noted in its last announcement that they are looking to source a JV partner to help develop the asset. If this happens, and presuming that CEL retains 50% of the asset, and based on initial estimates, that leaves them with 4.25 Trillion Cubic Feet (TCF) With Bandu (partially owned by CEL) has a 10% share leaving CEL with 45% net. With net risked recoverable gas to CEL of around 3.8TCF and given that most gas sales are in the range of US$0.40-US$0.60 per MCF (or about $US500m per TCF), CEL has a potential asset worth $1.9b.
I expect the share price to triple from 0.07 to 25 cents in the next few months.

 

[galumay]

I expect the share price to triple from 0.07 to 25 cents in the next few months.

Well unless the South African Government legislate to allow fracking it wont be worth anything.

I do hold in my speccy portfolio in case they get lucky, but its been talked up for a long time with nothing yet.

 

[System]

On May 13th, 2019, Challenger Energy Limited changed its name to Challenger Exploration Limited.

 

[willoneau]

Interesting chart, but volume very low. With monthly volume not exceeding 2million shares and price below 10 cents would be very volatile to trade and more of a gamble trade at moment. imho

 

[galumay]

Not a squiggly line type, but its had a 40-1 consolidation recently, so make sure thats accounted for!

 

[Cam019]

This is my top pick for the CY2020 tipping competition. Chart looking good with CEL up 250% since the 04/07/2019. See below:

 

[galumay]

It was in a trading halt for most of the 12 months proceeding July this year, its also had a 40 for 1 consolidation. If it goes up by 250% a few more times I may actually end up turning a profit on this speculative piece of crap! I bought a small parcel years ago for all the wrong reasons, a tip from someone else, a speculative bet that I had no probalistic insight on, in a sector I never put money into!

I treat it as a reminder of how not to invest!!

 

[Sean K]

This looks a little bit interesting. A couple of highly prospective projects with some results out today indicating a large extension of the resource envelope in the Hualilan Project. Pretty high MC for what is basically an explorer. Maybe there's more to it.

 

[Sean K]

Looks like they'll be able to extend the current resource to the south through these channel samples in previous workings and exploration adits. Seems to be some upside if they can get some rigs down there and drill some holes.

 

[Beaches]

From the announcement today

The sampling was undertaken using a rock saw to cut and recover a continuous channel measuring approximately 40cm x 40cm, with sample weight averaging 4.8 kg per metre. Samples were logged, and submitted for assay with QAQC samples (blanks and standards) using the same procedure as drill core. The channel sample is analogous to a drill core sample, and it is expected that the data can be incorporated into a resource estimation in the same way as drilling results.​

In light of the recent results from this program, notably the broader zones of mineralisation which appear to have been missed by the selective historical sampling, the program was extended to include channel sampling of all underground workings and exploration adits throughout the project including those located outside of the footprint of the known mineralisation.​

​

Channel Sampling Program​

The channel sampling program has been designed to allow the inclusion of the component of the historical high-grade mineralisation which is up-dip of the Company's drilling in a resource estimate that can be reported according to JORC. This includes the majority of the mineralisation within 40 vertical metres of surface and the extensions of mineralisation up into the hills at Cerro Norte and Cerro Sur. ​

They are hoping to use the channel samples as drill cores for a JORC resource and if that comes off, would be the equivalent of another rig.

Currently with 5 drill rigs on site for a 20,000 program for this quarter (Q4 21). Another 3 rigs are planned to be brought in to make it 8 rigs for 30,000 metres in each of Q1, Q2 and Q3 FY22, for a total of 120,000 metres plus the channel samples. The maiden JORC resource is due in Q3 22 and a PFS hopefully in Q4 22.

The recent $42mil cap raise fully funds them to PFS and has brought the price down from 0.36c to 0.29.5c currently for a market cap of $209mil.

Should present some good trading opportunities for the rest of the year.

 

[Sean K]

They are hoping to use the channel samples as drill cores for a JORC resource and if that comes off, would be the equivalent of another rig.

When I read this I questioned how it could be possible to include these samples into a JORC resource estimate. How can you tell the true depth, width, length of the mineralisation with a channel? Surely they need to drill it out to be able to create a model and have some fidelity of the grades over the entire ore body.

 

[Beaches]

When I read this I questioned how it could be possible to include these samples into a JORC resource estimate. How can you tell the true depth, width, length of the mineralisation with a channel? Surely they need to drill it out to be able to create a model and have some fidelity of the grades over the entire ore body.

The channels are from the underground workings of the old mines and I am assuming they are vertical channels into the wall face rather than horizontal trenches. There will still be drilling in the area but I am assuming these channels will be small localised cores of the direct wall face area which will supplement the drilling cores and slightly reduce the drill meters required by the 8 rigs.

This is only my assumption and there is no confirmation in the announcements to date.

 

[Sean K]

This thing is definitely getting bigger with quite a long strike length, still open by length and depth. Lots of rigs on site with tons of results still to be announced.

The grades they're getting don't seem to match up with the historical MRE for the project though. 627K @ 13.7g/t? Perhaps what they're drilling into now is just a different type of deposit.

 

[Sean K]

Wow, these guys have been smashed the past few weeks. The 16 June 'positive drilling results' smashed them. Obviously not that positive...

As mentioned above the grades they're coming up with there just don't seem to fit the historical MRE. Maybe that's it. There's two types of ore bodies a high grade skarn and then an intrusion hosted material/porphyry. The original MRE must have focussed on the high grade area. Or, maybe that historic MRE (non-JORC) is crap.

 

[Sean K]

Found some support around .22c.

They really need to confirm the high grades from the historic MRE, IMO. The non-JORC MRE is questionable until they drill a few more holes in that region for confirmed grades.

The intrusion or porphyry zones are OK grades but lack widths for a porphyry. Needs to have a huge strike length.

8 rigs running, but not many results coming out...

 

[Sean K]

You'd have to think 20-22c is long term support here. Will be interesting to watch. I don't trust the fundamentals at this stage.

 

[Sean K]

OK, I think these grades are pretty OK. I take some of my skepticism back. But, it is 'rock saw channel sampling' whatever that is.