CEL - Challenger Gold

[Sean K]

I don't think anyone is assigning any value to Eduador but they might have to look now. This is a huge intercept. Low grades in AuEq, but this is Andes porphyry. Thinking of it gram gold meters it's 313 g/m gold. That's the same as about 100m @ 3 g/t. Interesting development.

Hopefully the follow up holes into the higher priority targets come up with something similar. Very early days in Ecuador.

 

[The Triangle]

I don't think anyone is assigning any value to Eduador but they might have to look now. This is a huge intercept. Low grades in AuEq, but this is Andes porphyry. Thinking of it gram gold meters it's 313 g/m gold. That's the same as about 100m @ 3 g/t. Interesting development.

Hopefully the follow up holes into the higher priority targets come up with something similar. Very early days in Ecuador.


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Those smaller intercepts are looking like 0.30% to 0.37% Copper equivalent (yes I know there's bugger all copper). That's not enough to be economic. I've discounted the moly to zero. Not even sure it would be recoverable? I think a copper project is probably easier to fund on a mega scale vs a gold project, but it's definitely gold dominant.

"a low priority hole, collared significantly east of the main high-grade section of the 1.8km gold in soil anomaly"

So it's only the first hole and supposedly was not going to be great... so we'll see a few more and then decide. I'm not excited or depressed by this announcement. a CuEq of > 0.6 or a AuEq of > 1g/t would excite me over 800+ meters. But 0.5%/0.8g/t would certainly be enough to keep things interesting to justify more drilling. If we hit more of the same then dump the project and keep on Argentina.

 

[Sean K]

a CuEq of > 0.6 or a AuEq of > 1g/t would excite me over 800+ meters. But 0.5%/0.8g/t would certainly be enough to keep things interesting to justify more drilling.

Agree. Needs better grades, or huge tonnage.

There are other porphyrys around the place with similar grades going into production so I wouldn't completely discount these grades if the tonnage is there.

Their aim is to sell the company off once they've established sufficient value I think, so if they make this look prospective they could sell off either project to different companies or as a package. They're only half way through their drilling program at Hualilan so I don't think they'll let anybody see the books until that's done around the EOY.

 

[The Triangle]

Argentina wants to triple mining exports, despite social conflicts

Government introducing new incentives to grow the sector over next decade, but social and environmental organisations warn of impact.

www.batimes.com.ar

Always helpful.

 

[Sean K]

These guys seem to come out with over 100g/m gold hits in every ann. Extending he Verde Zone 400m is probably the most significant to me. That's the intrusion / bulk tonnage area which is the long life part of the project and is already about 50-60Mt or ore - according to one of the presentations KK gave and quoted in here previously. Not sure if that makes it into the initial MRE though. No mention of how the MRE is going or when the cut off is.

 

[Sean K]

I'm sure I've said this before, but not wanting to sound like a broken record, if an explorer hit 460 ggm in WA the stock would be going bananas.

Verde is at least 1.5km of continuous mineralisation with these sorts of grades in amongst the intrusive 1g/t stuff.

This is going to be one hell of an open pit.

The major problem that I see at the moment is that there's a heck of a lot of waste between the high grade mineralised sections of the overall deposit. The MD keeps telling us that it all links up, which is fine, but there's a lot of dirt between the stuff that links up. My only concern and maybe why the stock isn't doing a DEG.

 

[The Triangle]

Seems only Blackrock cares about a measly 70m at 7g/t....

Have to think if gold didn't go up this week CEL would probably still be 27-28 cents!

 

[frugal.rock]

Going by the plan posted by Sean K, there's a heap of assays outstanding...mostly in "open down dip" area. ?

 

[Sean K]

Seems only Blackrock cares about a measly 70m at 7g/t....

Have to think if gold didn't go up this week CEL would probably still be 27-28 cents!

I agree, CEL have been pretty good at bringing out regular results that on the surface seem outstanding, but there's been muted responses. Numerous intersections above 50 gold gram meters and a large number of over 100 along the entire known mineralised zone. If these drilling results came out in WA it'd be front page of the Mining Weekly.

Latest video presentation below.

Investor Centre – Challenger Gold Limited

challengerex.com

The problem I see is the gaps between the mineralisation that the MD has addressed at least three times in other video presentations that I've seen. He says things along the lines of 'I know some people have said 'the deposit doesn't link up' or something like that, which I think he means there's big gaps between the stacks, and it looks like there is.

At about the 7min mark he starts talking about the deposit with some cartoons displaying the intersections and you can clearly see the gaps in the mineralisation. It's just how they strip and mine those high grade areas that I'm not sure about. He's continually said it's just one giant open pit, but that's a lot of waste.

Initial MRE was due early this year, but he's now saying it may be later this quarter but probably early next quarter. The aim is to have done half of the 200,000m of planning drilling for an initial MRE just so the market can appreciate the scale of what they've got. They're done 78,000m of drilling so far, so there's more to go for the MRE. I expect it may even be mid next quarter due to lab turn around times.

Going by the plan posted by Sean K, there's a heap of assays outstanding...mostly in "open down dip" area. ?

As above, and they haven't found the bottom of the system in the slightest, but they're focussed on the top 400m or so which will be amenable to open pit.

Ecuador drilling update due next week will be interesting. They could have a huge porphyry system there, which most Australian's won't get as they are low grade, but massive tonnage.

 

[The Triangle]

I agree, CEL have been pretty good at bringing out regular results that on the surface seem outstanding, but there's been muted responses. Numerous intersections above 50 gold gram meters and a large number of over 100 along the entire known mineralised zone. If these drilling results came out in WA it'd be front page of the Mining Weekly.

Latest video presentation below.

Investor Centre – Challenger Gold Limited

challengerex.com

The problem I see is the gaps between the mineralisation that the MD has addressed at least three times in other video presentations that I've seen. He says things along the lines of 'I know some people have said 'the deposit doesn't link up' or something like that, which I think he means there's big gaps between the stacks, and it looks like there is.

At about the 7min mark he starts talking about the deposit with some cartoons displaying the intersections and you can clearly see the gaps in the mineralisation. It's just how they strip and mine those high grade areas that I'm not sure about. He's continually said it's just one giant open pit, but that's a lot of waste.

Initial MRE was due early this year, but he's now saying it may be later this quarter but probably early next quarter. The aim is to have done half of the 200,000m of planning drilling for an initial MRE just so the market can appreciate the scale of what they've got. They're done 78,000m of drilling so far, so there's more to go for the MRE. I expect it may even be mid next quarter due to lab turn around times.



As above, and they haven't found the bottom of the system in the slightest, but they're focussed on the top 400m or so which will be amenable to open pit.

Ecuador drilling update due next week will be interesting. They could have a huge porphyry system there, which most Australian's won't get as they are low grade, but massive tonnage.

They'll for sure have a resource modeled up on their computers by now. It seems clear that the average grade is going to be quite low, so the game is about adding bulk ounces. Better off holding out for as long as possible on publishing an MRE to get as many drill results back to maximize total ounces.

I'm waiting for the typical massive dilution from the Blackrock/institutional/executives 'mates' capital raising to 'accelerate resource growth' or whatever line the current power brokers are using these days. I just hope KK is smart enough (and has enough of a holding) that he can avoid that being done in the mid-high 20s.

 

[Sean K]

I'm waiting for the typical massive dilution from the Blackrock/institutional/executives 'mates' capital raising to 'accelerate resource growth' or whatever line the current power brokers are using these days. I just hope KK is smart enough (and has enough of a holding) that he can avoid that being done in the mid-high 20s.

I think they'll go back to market when the initial MRE comes out. KK says the have enough cash 'for the foreseeable future', but that foreseeable future might be just 2 months away. Hopefully the stock is high 30s by then to avoid too much dilution. They're only half way through the drill program, so it's gotta come around soon with 9 rigs spinning.

 

[Sean K]

As usual, Australians wont understand the significance of this as it's a porphyry discovery. But, it might get more attention due to the polymetallic nature of it with some significant copper. And, it's just the start. Would have liked to see some higher Eq overall grades though.

Not sure what their longer term plan with this is. They definitely want a buyer for Hualian and they'll end up selling both the major projects but perhaps to different buyers.

 

[The Triangle]

As usual, Australians wont understand the significance of this as it's a porphyry discovery. But, it might get more attention due to the polymetallic nature of it with some significant copper. And, it's just the start. Would have liked to see some higher Eq overall grades though.

Not sure what their longer term plan with this is. They definitely want a buyer for Hualian and they'll end up selling both the major projects but perhaps to different buyers.


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Maybe interesting, but still not very exciting. Over long intercepts continues to look like high 0.3X% CuEq so I think it's completely uneconomic so far. Not everything is a winner, but this is why you do exploration. At least glad these guys had a crack at this site rather than spinning it off in to some IPO. What nonsense reporting 0.8m intercepts on holes like this. I also don't think gram meters should be published either.

Why is there no talk of hole 007?

On a side note at the bottom of page 1 they said they rushed assays and expect results in 2-3 weeks. So there you go. If Ecuador and CEL can get lab results back on diamond Core in 2-3 weeks then why are some of the other small juniors taking months and months??? (Rhetorical question, its because the results are bad and the MD/CEO can claim there is an issue with the lab to get around releasing the results to the market)

 

[Sean K]

Why is there no talk of hole 007?

Well picked up. Even if it was dirt it should have been announced. They do every other hole. Maybe an oversight.

 

[Sean K]

Blackrock Group have added 14m shares to their holdings over the past two weeks, which has what has probably driven the price up, along with POG. Now holding just under 10%. Maybe some M&A action on the horizon.

 

[Sean K]

Ecuador shaping up to be something. I don't think there's any value assigned to this in CEL's SP.

200 gold gram meters plus is very significant. Especially the high grade zones.

 

[The Triangle]

Ecuador shaping up to be something. I don't think there's any value assigned to this in CEL's SP.

200 gold gram meters plus is very significant. Especially the high grade zones.

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Nice to see a professional junior which actually gets assays back in a timely manner. They need a lot more results like this to see if this could be economic but definitely 260 at 1.4 AuEq is good enough to me to justify the expenditure to keep drilling around the area, especially considering these hits start pretty well from surface.

Just need to get a handle on what kind of recoveries would be expected with ag, au, cu, mo.

 

[Sean K]

Nice to see a professional junior which actually gets assays back in a timely manner. They need a lot more results like this to see if this could be economic but definitely 260 at 1.4 AuEq is good enough to me to justify the expenditure to keep drilling around the area, especially considering these hits start pretty well from surface.

Just need to get a handle on what kind of recoveries would be expected with ag, au, cu, mo.

I think they'll drill enough to farm it out. Their overall intent is to sell to a major, so they could sell Argentina to someone and Ecuador to someone else. Might just mean who is locally best suited to buy them out of each project. I still don't think Ecuador is factored into their MC at all at the moment and if they have a few more hits like that then it could be a game changer.

Approaching ATHs again and might only need one more significant intercept at either Hualilan or El Guayabo to free them up. Maybe the initial MRE at Hualilan will be the catalyst for a re-rating.

I'm actually really curious as to how much zinc is in Hualilan. It's adding considerably to the AuEq score at the moment.

My only concern with Hualilan remains the gaps in the resource. There's going to be a huge strip ratio in sections of the deposit if they're thinking one giant open pit, as KK has stated is the throw away mine plan. The more obvious thing is to selectively mine the high grade skarns first and use the cash for the bulk mining open pit Verde Zone.

 

[Sean K]

Initial MRE must be close. Was planned to be end of first quarter pending assays and haven't seen any assays out for 6 weeks at Hualilan, so must be very close. Will just be half way through the 200Km they've planned to drill, but still substantial. Hopefully surprises to the upside. Very hard to guestimate due to the gaps in the mineralisation but the MD keeps talking it up to be substantial. MC hovering around $330m so I think the market has factored in about 3Moz. Still no value assigned to Ecuador which the MD thinks would be worth $100m if it was a standalone project. 35-38c developed as a wall to break through.

 

[Sean K]

I thought we'd have the MRE by now. A bit tardy.

I noticed BlackRock have now accumulated more that 10% of the company. Interesting.