CEL - Challenger Gold

[Sean K]

I just still don't trust their concept of using these channel samples to create a JORC compliant MRE. If that's how the historical MRE was done, I'm a bit perplexed.

I assume they're not drilling this area because the hills are a bit steep and they can't be bothered putting a track and a pad in somewhere...

 

[Beaches]

With 8 rigs now on site turning and 120,000m of cores to examine, there should be plenty of hard evidence over the next 3 quarters.

On another note, I got busy with year end stuff and missed the 22c entry. I would appreciate if everyone could sell their shares tomorrow so I can get the 22c entry.

 

[Sean K]

With 8 rigs now on site turning and 120,000m of cores to examine, there should be plenty of hard evidence over the next 3 quarters.

On another note, I got busy with year end stuff and missed the 22c entry. I would appreciate if everyone could sell their shares tomorrow so I can get the 22c entry.

I was waiting for the 20-22 support to firm before pulling the trigger for a short term chart trade. Missed a 20% jizzem.

 

[Sean K]

Missed a 34% jissem.

I've been googling what 'rock saw trench channel sampling' means and trying to understand how this can lead to anything JORC compliant and can't find anything. I mean, 64m @ 28 g/t AuEq is obviously not a hole going down. Where the hell did they take it from? Cut into some old working veins from the 1800s that couldn't be done with 1800s tech?

I just don't understand this deposit and this 'drilling' plan. It smells.

 

[The Triangle]

Missed a 34% jissem.

I've been googling what 'rock saw trench channel sampling' means and trying to understand how this can lead to anything JORC compliant and can't find anything. I mean, 64m @ 28 g/t AuEq is obviously not a hole going down. Where the hell did they take it from? Cut into some old working veins from the 1800s that couldn't be done with 1800s tech?

I just don't understand this deposit and this 'drilling' plan. It smells.

View attachment 126946

Below last capex raise price of 28 cents. With this many rigs turning they will be pumping out the news flow and can afford to selectively dump good news on market. Took a punt at 27. Same price as 2 weeks ago. Certainly not a cheap company at 215 million. But worth a short term trade like a TIE.

Agree using questionable methods in a developing nation is not a good look. Trench is just a super special directors special. Can't see how far they are away from an updated resource. Will stick it out to that point.

 

[Sean K]

Below last capex raise price of 28 cents. With this many rigs turning they will be pumping out the news flow and can afford to selectively dump good news on market. Took a punt at 27. Same price as 2 weeks ago. Certainly not a cheap company at 215 million. But worth a short term trade like a TIE.

Back finding some support at .27, looks like a good entry to me with those 'bonanza' grades they announced on 1 Jul.

Still, it's 'rock saw channel sampling'. ?

Not sure how effective these 'man portable rigs' are to complete decent drilling into the hills. Maybe they should be taking complete rigs up by donkey in pieces and putting them together. Or, how about a decent track they can drive up to make a pad or two. I'm just a bit perplexed how doing a channel sample at what depth, say 5m?, can result in knowing the true dimensions of any deposit to complete a JORC MRE.

 

[The Triangle]

I am interested to see how the drilling progresses at their Ecuador leases. It was flagged to start in June/July but suspect this has been pushed out to August/September. Might be wrong.

Reading a few old reports it looks like copper was maybe ignored by newmont years ago as they were focused on gold. Could be very intetesting if there is something with 0.5% copper and 1g+ gold.

Im a believer of picking up the scraps of big players.

 

[Sean K]

Finally some actual drill results I can sort of understand. Looks pretty good.

It's the steep topo of the Hualilan Hills which is really getting in the way of them finding out what's going on under that particular region where they're ramping up those amazing grades listed above. Plan seems to be to drill from the east into the hills and see what pops up. By the photos they've published though I don't understand why they can't build a decent couple of tracks up the hill to get some drills up there. They've got the cash to do so. Doing man portable drill rigs seems like a second rate plan to me. Unless they have some Quechuan Inca Trail Porters who can carry them, they could take a complete rig up each by themselves.

 

[Sean K]

My last chart had the bottom support level around .19-20c and I missed the entry. Poor me. :-( But, I bought some anyway as I do think they've got a lot of gold there, especially in the porphyry which is getting bigger. Can't trust these trench samples though, imo. Hopefully support at .25ish holds. Once the 'man portable' rig get up the hill, hopefully they can put a few holes into the right places. They could have helicoptered a couple of proper rigs up there, they've got the cash. ?

 

[Beaches]

On another note, I got busy with year end stuff and missed the 22c entry. I would appreciate if everyone could sell their shares tomorrow so I can get the 22c entry.

Clearly you have all ignored my request for you people to sell this down so I could get an entry at 22c. It's very disappointing that I had to settle for an entry at 26.5c.


Assay results should start to filter through soon.
.

 

[Beaches]

@kennas they must have heard your complaints about the channel samples. Drill results released today.

With 8 rigs turning there are still a lot of assay results pending that will be of interest

▪ This new zone in the footwall has significant width and down-dip extent with deeper ​

drilling (assays pending) intersecting this new footwall zone a further 200 metres down dip. ​

▪ Ten additional holes completed (assays pending) with another nine holes planned in the
current Sentazon drilling which, based on these early results, is likely to be extended.​

 

[Sean K]

@kennas they must have heard your complaints about the channel samples. Drill results released today.

These are some very good widths and grades amongst a few others less inspiring but shows that there's a gold zone expanding over two kms and it looks like it might join up and be open at depth. It's really hard to work out the continuity of the deposit as it shifts between high grade skarn over short widths and intrusion/porphyry over 100s of m at low Au. They've had some significant hits of Ag and Zn within the system as well. How they work out an MRE will be very interesting. Lots of rigs spinning so should have a constant flow of results.

 

[Sean K]

More decent gold intersections at Sentazon following on from the last ann and in line with expectations but they're going a bit OTT on the grades over such short width with so much space between the hits. This hole was 350m deep but they've only reported about 25m of it. Even in Table 1 where you normally find the entire drill hole by meterage they report nothing. So, 25m of mineralisation dispersed over 350m. Sure, bonanza grades over one short section, but does it turn into a mine? I don't know. I suppose if that width and grade extends for a km horizontally it's worth digging up. Sill open at depth. This overall deposit confuses me a little. It's all over the shop. I'm still piecing together the various lodes and trying to decipher where's skarn v intrusion/porphyry. In this case they're reporting this is skarn, inside intrusive zone... Interesting how much Zn is down there.

 

[Sean K]

KK, the MD, is a pretty good ramper of his company. Claiming the entire strike length is one big deposit. I'm not too sure about that, but sounds like a lot of ounces once they get a JORC MRE out.

Looking forward to 'surprises' out of Ecuador.

He's pretty confident they're going to double and double again and be taken over. LOL.

I like his confidence.

 

[Sean K]

He's pretty confident they're going to double and double again and be taken over. LOL.

Ann today saying they now own 100% of their main project which is nice. Boring, but nice.

In the ann they had to include this picture of their project location, surrounded by Newmont and Glencore. hint hint.

My crystal ball says these guys are just drilling this out to set up for a take over and a handy pay day.

 

[Sean K]

Ann out yesterday regarding over 50 drill holes. Only a handful of really good ones so while I'm happy this Verde Zone has a strike length of 1.5km there seems to only be some patches where there's 1 g/t or better and very few 2 g/t +. There's really only 4 great hits out of 50+ holes here. I suppose this is the 'low grade, bulk tonnage' part of the project but I'm hopeful they find some higher grade zones closer to surface. I'm not even sure if most of it is open pittable with the huge gaps in mineralisation. There seems to be a lot of waste in there. MD seems to think they're eventually just going to make this one giant open pit down to 300m.

Investor Centre – Challenger Gold Limited

challengerex.com

 

[Sean K]

Ann out yesterday regarding over 50 drill holes. Only a handful of really good ones so while I'm happy this Verde Zone has a strike length of 1.5km there seems to only be some patches where there's 1 g/t or better and very few 2 g/t +.

Another ann out. Much happier with these widths and grades at depth showing that this system does get better deeper. If this can be proved to be relatively consistent over a 1.5km strike length then we're looking at multi million ounces in the 'low grade, bulk tonnage' part of the project.

 

[The Triangle]

Another ann out. Much happier with these widths and grades at depth showing that this system does get better deeper. If this can be proved to be relatively consistent over a 1.5km strike length then we're looking at multi million ounces in the 'low grade, bulk tonnage' part of the project.

View attachment 130846

Kris is very good at sounding like a confident competent geologist... but not that far off sounding like a crazy used car salesman. 0.5 - 1.5 g/t is not impressive and certainly won't support two doublings of the share price. That would put CEL at 1.4-1.6 billion market cap after adding in some additional dilution likely to come. I would like that - but don't think its possible unless there are some spectacular results from Ecuador or we see grades and widths increase.

I'm over his citadel and degrey references and would like to see CEL start to throw out initial ideas on how to develop Hualilan deposit.

 

[Sean K]

Kris is very good at sounding like a confident competent geologist... but not that far off sounding like a crazy used car salesman. 0.5 - 1.5 g/t is not impressive and certainly won't support two doublings of the share price. That would put CEL at 1.4-1.6 billion market cap after adding in some additional dilution likely to come. I would like that - but don't think its possible unless there are some spectacular results from Ecuador or we see grades and widths increase.

I'm over his citadel and degrey references and would like to see CEL start to throw out initial ideas on how to develop Hualilan deposit.

Agree on his ramping. I think his objective is to market it to an experienced mine developer and get bought out.

 

[Sean K]

0.5 - 1.5 g/t is not impressive and certainly won't support two doublings of the share price.

I meant to add, there's two parts to this project. The intrusive hosted / porphyry low grade/bulk tonnage style thing and then there's the high grade bit, that they have as shown in the histerical drilling and in some of their hits as mentioned in these pages. They have a 'man portable' rig in the hills drilling for the high grade stuff and we're eagerly awaiting results from that. So, the low grade stuff you mention is just the normal porphyry type grades you get anywhere in the World, like in the NSW Lachy Ford Belt or the Golden Triangle in Canuck Land which can be economical between 0.05-1g/t as long as the tonnage is there. With a strike of 1.5km, the tonnage will be there.

I'm pinning my hopes on Kris' salesmanship in selling this to a major nearby who have the wherewithal to dig it up and ship it to China. I'm sure he's a facebook friend of Tony Palmer sending him DMs 5 x a day. Hey! Look at all this gold ready to be picked up!

Chart looking OK at the moment, slowly creeping back to a wave of resistance. I wish they'd hurry up with some more high grade numbers or an initial MRE that supersedes the non-JORC one that can't be trusted.