Challenger Gold Ltd

After an operational review, Challenger will move away from Casposo toll treatment, which suits the small-scale selective mining model poorly given the more disseminated grade. It plans a roughly four-month transition and is assessing an ore purchase deal with Casposo, aiming at the Phase 1 heap leach. Luke Buchanan is named VP Project and Strategic Planning.

joint venture update

The A$85m raise is fully settled: A$10m from Marrone and lead investors and A$5.3m from Elsztain affiliates. Marrone is now Chairman, Bouchard COO, and Elsztain a non-executive director. Shares were also issued for the Blue Spruce Holdings (Australia) acquisition. Knauer stays as consultant for 6 months.

capital raising announcement

A$69.7m institutional placement completed. Peter Marrone is appointed Non-Executive Chairman and Yohann Bouchard COO, both subject to the remaining A$15.3m settling. Felipe Riquelme becomes CFO from 10 August. CEO Kris Knauer retires; Bouchard is interim CEO.

director officer appointment

Exploration drilling restarts at Hualilan, the first in over three years: two of four rigs running on a minimum 35,000m program (about 5,000m geotechnical). Targets are extensions at depth and along strike plus resource conversion; El Guayabo data review also begun.

drilling spud

First gold poured at Hualilan via Casposo toll milling: about 200kg doré, est. 500oz gold and 6,000oz silver (unreconciled) from roughly 15,000t of ore, fed deliberately low-grade (~1.5 g/t). Resolves the first-gold thread; first Magnata blast done and at least four drill rigs being mobilised.

production update

Challenger raised A$85m at A$0.12 a share (about 708m shares), with one free option at A$0.156 for every two shares, to fund Hualilan resource drilling and the DFS. Peter Marrone was named Chairman-elect, subject to a June EGM vote, and Yohann Bouchard COO. Chairman Eduardo Elsztain was to become a non-executive director.

capital raising announcement

Stand-alone Hualilan PFS completed, resolving the Q1 2026 thread: 14.25-year mine, 1.84Moz AuEq, start-up capex US$232m. At US$3,500 gold, pre-tax NPV5 is US$1.45bn and AISC US$1,618/oz. Maiden Ore Reserves of 1.5Moz Au.

resource reserve update

March quarter: toll processing at Casposo to start 1 May 2026 and first gold sales expected in May. Cash A$20.6m after A$15.8m spend (A$36.2m at December). Mined grade in the top 30-40m of Norte and Sanchez pits ran about 50% below forecast, blamed on channel-sample data in the resource model; the stand-alone PFS is due next week.

quarterly activities report

Ore haulage from Hualilan to Casposo has begun, starting at about 500t/day and rising to about 1,000t/day. Three local contractors are used and a 3km Calingasta bypass is finished. This is the step before processing and first gold.

production update

Executed a 24-month mining contract with MAPAL (about 3.37Mt of material movement). Drilling began on 1 November and the first blast was completed on 20 November. Mining is on track to start 1 December, moving Hualilan from permitting into production.

contract award

Raises about A$30m via 230.8m shares at A$0.13, a 7.1% discount to last close. Funds toll-milling working capital (A$21m), Hualilan drilling (A$5m) and standalone development capital (A$4m). Mining is expected in December and first gold in January 2026.

capital raising announcement

Signed Orica for blasting (2025-2028) and THOR S.A. for a 24-month blasthole drilling contract covering about 3.2Mt. Casposo plant refurbishment and commissioning is reported complete (per Austral Gold), ahead of CEL ore, with blasting due by early November.

contract award

The EIA amendment for hauling Hualilan ore to Casposo was approved, the last government approval needed. Hualilan is now fully permitted for toll milling, resolving the road-transport EIA thread; mining and drill-and-blast contracts are expected within weeks.

regulatory community update

Heap-leach column tests on Hualilan's low-grade halo gave average gold recovery of 75% (up to 85%) at half-inch crush. This could let material treated as waste in the 2023 Scoping Study be processed; full stand-alone PFS metallurgy due early Q4 2025.

drilling result

Toll-milling pre-feasibility study done, completing the thread open since the Scoping Study: 76.6koz payable gold from 465kt at 6.2 g/t, US$8.9m upfront. At US$2,500/oz, NPV5 US$50.5m; at US$3,300/oz, US$82.2m. Recoveries assumed 84.4%.

resource reserve update

Raises about A$34.5m at A$0.08 per share (431m shares, 16.7% below last close), with one free option per two shares at A$0.12. A$30m from L1 and Helikon; A$4.5m from Elsztain Group needs shareholder approval. Funds toll milling, Hualilan drilling and studies.

capital raising announcement

Signs an Investment Protection Agreement with Ecuador's government for the 100%-owned El Guayabo project: regulatory stability and international arbitration (London, ICC), covering US$75m of investment through 2027, for an initial 8 years, renewable. Supports the planned Ecuador monetisation.

material agreement

Ecuador resource doubles from 4.5Moz to 9.1Moz AuEq (570Mt at 0.50 g/t), including a maiden 4.4Moz at Colorado V; 6.9Moz is attributable to CEL. Exploration there is declared complete, with TSX spin-off, sale or farm-in under consideration.

resource reserve update

Draws the first US$2m (~A$3.2m) of a US$20m toll-milling project finance facility. Unsecured, 8.5% if repaid before 7 Dec 2025 (12.75% after), repayable from first toll-milling cash flow; 4% fee. Funds mining preparation and working capital; later tranches need due diligence.

debt financing

Eduardo Elsztain becomes Non-Executive Chairman with immediate effect, as foreshadowed in January after his 12.7% placement. Sergio Rotondo moves to Executive Vice Chairman and stays on the board.

director officer appointment

The company retracted the production target information on pages 5 to 7 of its 11 February 2025 release, saying it lacked a reasonable basis to disclose it. Investors were told to disregard that information, and a revised announcement was attached.

admin correction

The A$6.6m placement is complete: 147.7m shares at 4.5c to Elsztain's IFISA, with 2-year warrants, making him the largest shareholder at 12.7%. The US$2m toll-mill upfront payment has been paid. Elsztain is to join as Non-Executive Chairman, with Saul Zang as a director.

capital raising announcement

Definitive toll processing agreement signed with Casposo: 150,000t a year for three years (450,000t), US$8.80/t access fee, US$110k monthly minimum, US$2m upfront (refundable if plant not running by 31 July 2025 or recovery under 70%). The A$6.6m Elsztain placement is also finalised, due to settle 2 January 2025.

material agreement

An independent audit of Austral Gold's Casposo plant found it suitable for toll treating Hualilan ore, with 300,000t a year capacity (double the 150,000t needed), US$4m refurbishment capex and projected recoveries above 90% (vs 80-85% modelled). No fatal flaws found; further testwork pending.

other

Binding agreement with Casposo to toll-mill Hualilan ore: 150,000t a year, 450,000t over three years, US$2m upfront (refundable if the plant is not running by 31 July 2025). Long-form agreement expected in 15–20 days. The A$6.6m placement is nearing completion.

material agreement

Six more Colorado V holes in Ecuador, with intercepts up to 711.6m at 0.4 g/t AuEq, confirm the 400x800m CV-A anomaly is mineralised from surface. The program is complete, with four holes pending, and a maiden resource is expected before the planned monetisation of Ecuador.

drilling result

Environmental Impact Assessment approved for Hualilan, covering 19 mining rights, and the company says it is the first gold project in San Juan to get one in 17 years. It enables mine construction and sectoral permits. Resolves the EIA application lodged with the toll-milling plan.

regulatory community update

SPP closed heavily oversubscribed with over A$7.8m of applications against a A$1m target. The board accepted A$4m at 4.5c, scaling back pro rata and issuing 88.9m shares. Adds to the A$6.6m placement, but dilutes holders at a price far below April's 8.5c.

capital raising announcement

Share purchase plan offered to eligible shareholders at 4.5 cents, a 17% discount to the last close, targeting up to A$1m (A$30,000 cap each). Same price as the A$6.6m strategic placement, well below the 8.5c April raise. Offer runs 4–18 October.

capital raising announcement

Binding term sheet for a A$6.6m placement to Elsztain-group Dolphin Real Assets and a toll-milling deal to process 450,000t of Hualilan ore (85,550oz gold) over three years, targeting Q2 2025 production. Marks a shift from the PFS-led path; TSX listing and board renewal planned. Closing needs due diligence and approvals.

material agreement

A further A$4m placement to one investor on the same terms as Elsztain's (8.5c, free 14c option to March 2025), lifting the total to A$9.6m. Funds the last 8,000m of Colorado V drilling for a maiden resource, after which Ecuador assets may be sold or spun off (company intention).

capital raising announcement

A$5.64m placement of 66.4m shares at 8.5c, a 6% premium, to an affiliate of Argentine businessman Eduardo Elsztain (about 5%), with a free 14c option for 12 months. Investor gets a board nominee. Funds the PFS while strategic funding talks continue.

capital raising announcement

Hualilan Scoping Study: 7-year mine, about 116,000oz gold a year, pre-tax NPV US$409m, 75% IRR, payback under 1.25 years, AISC US$830/oz. Needs about US$150m funding. It is preliminary and resolves the long-pending Scoping Study; 19% of the plan is Inferred.

other

Co-founder Sergio Rotondo becomes Executive Chairman, with pay unchanged. Fletcher Quinn, chairman since before the July 2019 relisting, stays as non-executive director. The company says the move reflects its focus on taking Hualilan toward production.

director officer appointment

Cyanide leach tests on Hualilan material gave 89% gold recovery, versus under 40% in historical tests, opening a possibly cheaper CIP/CIL route than flotation. The Scoping Study, due H1 2023, is delayed to assess this; heap leach of low-grade material moves to the PFS.

other

First El Guayabo resource: 270Mt at 0.52 g/t AuEq for 4.5Moz (Inferred), with a 1.45Moz core at 1.0 g/t. Resolves the maiden resource thread; excludes the final five holes. Firm commitments for a A$10m placement, mainly for the Hualilan pre-feasibility study and regional work.

resource reserve update

CEL appoints former Australian Ambassador to Argentina Brett Hackett as non-executive director, Dr Sonia Delgado as Argentina Country Manager, and ex-Barrick Veladero manager Mike Zivcic as COO. Zivcic and Hackett are to be paid wholly in shares, as CEL prepares Hualilan for production.

director officer appointment

Six more El Guayabo GY-A holes hit mineralisation, including 1,190m at 0.3 g/t AuEq in GYDD-22-025, the longest intercept yet. GY-A and GY-B appear to merge into one zone over 1km thick. Maiden resource is expected in May.

drilling result

Hualilan resource upgraded to 2.8Moz AuEq from the maiden 2.1Moz, with a high-grade core of 1.6Moz at 5.0 g/t. 67% is now Indicated (38% before), supporting a possible move from the Scoping Study straight to a PFS. Resource remains open.

resource reserve update

Two new high-grade zones found at Magnata, including 15.2m at 4.7 g/t AuEq, plus Sentazon extensions. CEL also agreed to acquire 20,000 ha of land covering Hualilan to simplify permitting. Updated resource still expected in March.

drilling result

Pini Althaus, New York-based former CEO of USA Rare Earth, joins as Non-Executive Director to build CEL's North American investor profile as it moves from explorer to developer. Unpaid in cash; receives 3m performance rights tied to share price hurdles, subject to shareholder approval.

director officer appointment

All 11 remaining El Guayabo regional holes hit, with discoveries on 4 of 8 anomalies. GY-B Phase 2 hole GYDD-22-024 returned 108.5m at 2.4 g/t AuEq including 54.2m at 4.0. Resource drilling on GY-A is underway toward the maiden resource.

drilling result

Mining Plus is appointed to manage the Hualilan Scoping Study, which includes a staged start-up option on the 1.1Moz at 5.6 g/t high-grade core. It will use the updated resource due Q1 2023; completion is expected Q2 2023, in line with the earlier first-half 2023 plan.

material agreement

Hualilan drilling finds a new deep high-grade zone, 'Sentazon Deeps', including 50.0m at 3.4 g/t AuEq with 22.5m at 7.0 g/t. Mineralisation extends over 100m south and 400m downdip of the 2.1Moz resource boundary, feeding an updated resource planned for Q1 2023.

drilling result

Next five Colorado V holes extend both discoveries, including 402.8m at 0.6 g/t AuEq and 62.4m at 1.8 g/t within 773.9m at 0.4 g/t. First wide higher-grade zone there; three holes ended in mineralisation. Builds on earlier 500m-plus hits.

drilling result

CEL signed US$15m (about A$22.1m) of unsecured convertible debentures with Queen's Road Capital, convertible at A$0.25, a 30% premium to the 5-day VWAP, 9% coupon, four-year term. Its largest shareholder adds A$2.6m at market, for A$24.7m total. This follows cash falling to A$10.4m; funds a Hualilan scoping study and more drilling.

capital raising announcement

First two Colorado V holes both hit about 500m of mineralisation from surface, e.g. 528.7m at 0.5 g/t AuEq, confirming two discoveries on soil anomalies 1km long. Two more El Guayabo holes confirm 1km of continuous mineralisation. Five of fifteen soil anomalies now drilled, all hit. Grades are modest.

drilling result

Maiden JORC resource for Hualilan of 2.1 million oz AuEq: skarn 6.3Mt at 5.6 g/t (1.1Moz) and intrusion/sediment-hosted 41.4Mt at 0.8 g/t (1.0Moz). Based on 125,700m of the drilling; scoping study to start after drilling finishes. Replaces the old non-JORC historical estimate.

resource reserve update

Hualilan metallurgy: average gold recovery lifted to 95% across ore types, with zinc (89%) and lead (77%) recoverable from skarn. Better concentrates and a direct rail route to Rosario Port cut transport costs. Supports the planned scoping study; further testing ongoing.

drilling result

Six more El Guayabo holes each hit over 300m of mineralisation, including 809.9m at 0.3 g/t AuEq. The main zone now extends to 1km of strike and up to 1km wide; the first two of fifteen new soil targets also hit. Grades are mostly low.

drilling result

Hualilan drilling extended high-grade mineralisation in several zones; 48 of 58 holes hit. GNDD-491, the first deeper western Magnata hole, hit 27.0m at 8.9 g/t AuEq; Sentazon was extended 250m down dip. Follows earlier Magnata and Sentazon results; more assays pending.

drilling result

El Guayabo hole GYDD-21-008, the pending result, hit 257.8m at 1.4 g/t AuEq from near surface, including 53.7m at 5.3 g/t. With historical holes, it outlines a higher-grade zone 100-150m wide that is open. Colorado V drilling has begun.

drilling result

Four more El Guayabo holes all hit; GYDD-21-006 returned 309.8m at 0.7 g/t AuEq, including 53.6m at 1.5 g/t. Six holes now outline a zone 500m long and 300m wide, open along strike and at depth. Hole 008 assays are pending.

drilling result

Verde Zone's best hole, GNDD-458, hit 67.7m at 7.7 g/t AuEq from an undrilled 200m section, including 0.5m at 834 g/t. Results from 64 holes (97% hit) support Verde as a continuous 1.5km zone, open at depth; 4 of 9 rigs now drilling it.

drilling result

Exploration holes pushed Hualilan mineralisation beyond known limits: Verde Zone found 400m south (97.8m at 2.2 g/t AuEq), a possible third fault 400m north of Sanchez, and a 1,000m-deep hole ending in 4.0m at 5.8 g/t. Strike extent now 3.5km.

drilling result

First El Guayabo hole in Ecuador (GYDD-21-001) hit 784.3m at 0.4 g/t AuEq to the end of hole at 800.5m, including 30.0m at 1.1 g/t. Company calls it a major gold-copper system. Grade is low but the interval is very wide; higher-priority holes are pending.

drilling result

Eighteen Magnata Fault holes all hit, extending high-grade mineralisation up to 240m deeper and 130m west; one hole hit 1.1m at 44.5 g/t Au at 530.7m. The fault now spans 520m of strike and 500m vertically, still open, building on the earlier 14.2m at 13.6 g/t hit.

drilling result

First shallow hole into the Hualilan Hills (GNDD-397) hit 5.0m at 19.9 g/t AuEq, including 3.0m at 32.5 g/t. Supports the company's view that the best grades lie up-dip of earlier drilling. 49 up-dip holes planned; 12 done, assays pending.

drilling result

Sentazon hole GNDD-378 hit 63.3m at 9.8 g/t AuEq, including 24.1m at 23.3 g/t. It is the best Hualilan hole on a gram-metre basis, beating the historical record by over 50%. Sentazon now extends over 400m down dip and remains open.

drilling result

CEL took a 4-year option over the 97.5 sq km Cordon del Peñon licences next to Hualilan, lifting its land from about 80 to 177.5 sq km. Full purchase costs US$450,000; US$7,000 paid upfront. Prior sampling showed gold in stream sediments, but the source is unidentified.

asset acquisition disposition

Verde Zone drilling, found in March, now suggests continuous mineralisation over 1.5km and 300m depth, with grades improving at depth, e.g. 62.0m at 2.1 g/t AuEq. 37 more holes' assays pending; infill drilling aims at a JORC inferred resource.

drilling result

CEL completed the acquisition of 100% of Hualilan, allotting the shares (US$3.69m cash paid in July). Sergio Rotondo joins the board as Executive Director. Shares on issue rose to 975.4m; 110,401m of drilling remains over about 10 months with nine rigs.

asset acquisition disposition

First 13 holes of the Sentazon follow-up program doubled the dip extent of high-grade mineralisation to 200m and confirmed a second footwall zone, including 16.9m at 16.9 g/t AuEq. The program is expanded to 32 holes, with at least one of nine rigs dedicated.

drilling result

33 step-out holes on the Magnata Fault all hit mineralisation; GNDD-288 returned 14.2m at 13.6 g/t AuEq, over 100m deeper than before. Mineralisation now spans 400m strike and 400m depth, open in all directions. A third high-grade zone was identified.

drilling result

CEL agreed to move from 25% to 100% of Hualilan: 50m shares for the 50% previously needing a DFS, plus 64m shares and US$3.69m cash for the last 25%. Needs shareholder approval; cash is due by 30 July. COO Sergio Rotondo joins the board.

asset acquisition disposition

Channel sampling in the Hualilan Hills returned the highest grades yet, including 15.6m at 71.7 g/t AuEq (4.0m at 203.8 g/t) and 64.8m at 28.3 g/t. The company will buy a ninth, man-portable rig to drill the undrilled up-dip zone.

drilling result

Drilling at Verde, found in March, shows mineralisation over 1km of strike, including 155.5m at 0.7 g/t AuEq and 52.0m at 1.2 g/t. The company thinks it may be a continuous 1.2km zone, still open. Eight rigs are expected on site by end-June.

drilling result

Underground channel sampling found high-grade mineralisation 550m south of previous drilling, including 13.0m at 15.5 g/t AuEq, extending Hualilan's strike from 2.1km to 3.1km (about 50%). Completed adit sampling supports a continuous high-grade zone from Magnata to Sentazon.

drilling result

First metallurgical test on lower-grade intrusion-hosted material gave 94.9% gold recovery by gravity plus flotation, better than the 91-94% on high-grade skarn in February. Concentrate from high-grade material is very low in arsenic; the company says early off-taker talks suggest high payability.

drilling result

Firm commitments for an A$42.1m placement at A$0.28, to fund buying the remaining 25% of Hualilan, 120,000m of drilling and studies. Also, Hualilan ground is lifted four-fold to about 80 sq km via the 'Ayen' licence grant, three more licences and a farm-in. Cash would reach A$54.2m before costs.

capital raising announcement

New Hualilan holes include 69.2m at 3.4 g/t AuEq (GNDD-196) and 44.0m at 3.3 g/t (GNDD-204). Magnata intrusion-hosted mineralisation is extended 200m north, with a 400m northern target. Gap Zone infill found unexpected high-grade zones. Further assays pending.

drilling result

The 45,000m program finished and a new fully funded five-rig, 30,000m program started at Hualilan, backed by a A$3.5m advance from RiverFort against deep in-the-money options. The advance carries 6% interest, a A$105,000 fee and conversion at 40 cents via 10m options. Cash is about A$14.5m.

capital raising announcement

Hole GNDD-182 unexpectedly hit 4.3m at 36.6 g/t AuEq (31.8 g/t gold) of high-grade skarn, almost 200m from the nearest previous high-grade skarn hole. It is the first such skarn found west of the Gap Zone intrusives, and a down-dip follow-up hole is being fast-tracked.

drilling result

First rock-saw channel samples from the Main Manto at Hualilan return 71m at 10.8 g/t AuEq, including 6m at 89.3 g/t gold. Results suggest near-surface mineralisation is thicker than historical sampling showed, supporting a planned JORC resource; the sampling program is being expanded.

drilling result

Three step-out holes at Hualilan's Cerro Norte, in an area with no outcrop or previous drilling, hit mineralisation, including 125.5m at 1.1 g/t AuEq (GNDD-169). The company calls it a second 'Western Zone' trend about 200m west of the Gap Zone, with similar geophysical targets still to test.

drilling result

Phase 1 metallurgical tests on Hualilan skarn at SGS give gold recoveries of 91-94% and silver 84-86% by gravity plus flotation, versus about 80% in historical testing. Resolves the pending Phase 1 results; Phase 2 and intrusion testing follow.

drilling result

Gap Zone intrusion holes return 227m at 1.0 g/t AuEq (GNDD-113A), 209m at 1.1 g/t and 207.5m at 0.8 g/t. The company says the intrusion-hosted system now spans 2km of strike and the Gap Zone footprint has doubled. Many southern assays still pending.

drilling result

Full results for GNDD-157 give 130.8m at 2.5 g/t AuEq, confirming a new high-grade zone in intrusives south of the Magnata Fault, with visible gold in outcrop up-dip. Defines a block 500m along strike and 400m deep, open in all directions. Two rigs refocus on it.

drilling result

Hualilan drilling finds a new high-grade zone below the Sentazon Manto (GNDD-142: 40.5m at 6.2 g/t AuEq) and 12m at 20.9 g/t south of the Magnata Fault (GNDD-157). Mineralisation now reaches about 500m depth. 27,000m of 45,000m is drilled and 67 holes await assay.

drilling result

First six holes into the Hualilan intrusion confirm a large intrusion-hosted gold system over at least 1km, including 39m at 5.5 g/t gold (5.7 AuEq) and 61m at 1.2 g/t AuEq. This confirms the earlier GNDD-025 and 032 discovery and extends it 300m into the Gap Zone.

drilling result

Surface mapping and rock chips at Colorado V show high-grade gold across almost 2km of strike, including 14.4 g/t gold and 10.2 g/t gold with 498 g/t silver. The company says this lifts the potential strike of its bulk gold system from 500m to 2.5km; no drilling yet.

drilling result

CEL renegotiates to buy 100% of the El Guayabo concession now, for 18m shares issued 5 July 2021, instead of 180m earn-in shares after A$5m of spending. Saves two years of earn-in spending. Shareholder approval is required, to be sought at the AGM.

asset acquisition disposition

First hole into the Sanchez Zone (GNRC-068) returned 69m at 4.8 g/t AuEq from near surface, including 27m at 11.4 g/t, described as one of the top three Hualilan intercepts. A Sentazon step-out hit 2.9m at 40.3 g/t AuEq, and porphyry target strike extends to 1.5km.

drilling result

New Colorado V assays from the edges of two 1km gold-copper soil anomalies led CEL to report a JORC Exploration Target of 442-468 million tonnes at 0.5-1.0 g/t gold. It is conceptual only, with no resource defined. Company compares the area to the Cangrejos project 5km away.

resource reserve update

Hualilan drilling program expanded from 35,000m to 45,000m at no extra cost, which the company attributes to lower contractor rates. Two new rigs are drilling, with five to six expected on site, and about 6,000m a month planned over the next 7-8 months. A ground magnetics survey shows new targets.

drilling scheduled

Hole GNDD-035 hit 5.75m at 11.5 g/t gold-equivalent in high-grade skarn, extending Cerro Norte 100m south to 400m of strike. The company says Cerro Norte holds about half of the historical resource and that the skarn is open south into the Gap Zone.

drilling result

Hualilan hole GNDD-032 hit 116m at 1.2 g/t gold-equivalent in porphyry, 1km south of the GNDD-025 discovery hole. This extends the new intrusion-hosted gold target to 1km of strike, and includes 6m at 10.2 g/t AuEq. Later corrected by an addendum.

drilling result

Placement raises A$20m through 100m shares at 20c, a 13% discount to the last close. Funds a 35,000m Hualilan drilling program and 5,000m at Colorado V; a maiden JORC resource is targeted this calendar year. Directors intend to take up A$335,000 more, subject to approval.

capital raising announcement

Hualilan hole GNDD-025 found a new style of gold in dacite porphyry between Cerro Sur and Cerro Norte: 50m at 1.4 g/t gold, including 37m at 1.8 g/t. The company says it could substantially increase scale; the target is conceptual, with assays pending.

drilling result

Three more historical Colorado V holes confirm the Ecuador discovery: ZK1-5 returned 146m at 1.5 g/t gold including 87m at 2.1 g/t, 80m along strike from ZK0-2. Five more holes are submitted for assay.

drilling result

CEL has earned an initial 25% of Hualilan after spending at least A$1m, and will issue 5m and 6.67m shares (escrowed to 4 July 2021) to the Cerro Norte and Cerro Sur owners. Going from 25% to 75% requires a feasibility study within 5 years and a further 50m shares.

farm in farm out completion

First 8 holes of the second Hualilan program all hit mineralisation, including 8.3m at 21.1 g/t AuEq (GNDD-020), extending high-grade strike to 1.8km. Program is now about 85 holes; 35 holes (4,400m) drilled, with 27 more awaiting assay.

drilling result

First assayed historical Colorado V hole, ZK-02, returned 151m at 0.9 g/t gold from 225m, including 63m at 1.6 g/t. Company calls it a large-scale gold discovery. It is one of 56 historical holes; more results are due, and the hole was not on the main porphyry targets.

drilling result

Company says CY2020 programs are fully funded, with $6.1m cash at 31 March and about A$2.4m forecast at program end. Management and staff will take 40–100% of pay in shares for six months (about $600,000 saved). Ecuador field work suspended until 1 May for worker safety.

other

Second Hualilan drilling campaign started 10 February 2020: about 7,500m in three stages, with the first 2,325m (18 holes) to extend mineralisation and support a JORC resource. Follows the 10-hole first program; first assays expected within two weeks.

drilling spud

Farm-in signed for the adjoining 957-hectare El Guayabo 2 tenement, lifting the Ecuador footprint to 3,545 hectares. CEL earns up to 80% by funding exploration through a feasibility study, with 50% after US$2m spend. Subject to 90-day due diligence; CEL can withdraw at any time.

farm in farm out agreement

Placement to raise $6.5m (before costs) via 65m shares at 10c, a 9% discount to the 10-day VWAP. The Chairman's $1.3m portion needs shareholder approval. Funds go to larger Hualilan drilling and Ecuador work; bids were reported at more than double the amount raised.

capital raising announcement

Farm-in signed for the adjoining 2,331-hectare Colorado V tenement in Ecuador, owned by Goldking Mining. CEL funds exploration for 5 years to earn up to 50% of any discovery. Needs shareholder approval under Chapter 11. Existing gold operations are excluded.

farm in farm out agreement

Next three Hualilan holes all hit high-grade gold, including 10.3m at 12.9 g/t AuEq (GNDD-009) drilled 500m further south. Mineralisation is now shown over 1.7km of strike and open in all directions. Next drilling phase is on track for January.

drilling result

First assays from Hualilan maiden drilling (7 holes) show high-grade gold over 1.5km of strike, including 6.1m at 36.2 g/t AuEq (GNDD-003) and 6.7m at 19.3 g/t AuEq (GNDD-007). First phase expanded about 50% to ~1,500m; second phase to restart late January.

drilling result

Maiden Hualilan drilling began 11 October; first hole GNDD-001 finished at 109m, showing brecciation, veining and sulphides at 70-90m as predicted. Part of a 9-hole, 1,055m first campaign. No assays yet; first results expected in 2-3 weeks.

drilling spud

All approvals granted and a contract signed for a maiden 2,000m diamond drilling program at Hualilan, in two 1,000m campaigns over 3 months. Rig due in 2-3 weeks. 3,333,334 shares will be issued to the Argentine partners when drilling starts.

drilling scheduled

First sampling at Hualilan: the first eight of 70 underground samples confirm high grades, including 30.9 g/t gold over 1m. Backs the historical 627k oz at 13.7 g/t estimate, which is non-JORC and still to be validated by drilling. Remaining results due in weeks.

drilling result

Fletcher Quinn (Chairman), Kris Knauer (Managing Director, $240,000 salary) and Scott Funston (Finance Director/CFO/Secretary, $150,000) take office, as planned at the 29 April meeting. Fry, Willes, Carey and Lees resign. New management now runs the company.

director officer appointment

Company says it has completed the $5m raise at 3c per share and resumes trading about 10am on 4 July 2019. Funds go to Hualilan (Argentina) and El Guayabo (Ecuador). 306m securities are escrowed to 4 July 2021. Completes the re-listing.

capital raising announcement

Company confirms the AEP acquisition is complete, with 180m shares, 78.4m options and 120m performance shares issued to vendors. $300,000 of loans converted into 10m shares, and 25m shares issued to repay AEP's loan facility. Completes the deal announced in February.

asset acquisition disposition

ASX says shares will be reinstated on 4 July 2019 after re-compliance, ending the suspension that began 7 August 2018. 364,893,459 shares will be quoted; vendor shares, options and 120m performance shares are restricted for 24 months.

listing compliance notice

The prospectus closed over-subscribed, raising its $5.0m maximum via 166,666,667 shares at 3c. The company has applied to ASX for reinstatement of its shares, suspended since August 2018. Completes the raise announced in the prospectus.

capital raising announcement

Re-compliance prospectus offers 166,666,667 shares at 3c to raise $5.0m, plus 180m shares, 78.4m options and 120m performance shares to AEP vendors. Also 10m shares to lenders and 6m to lead managers. Conditional on completion; company renamed Challenger Exploration. Advances the AEP deal.

capital raising announcement

Challenger signs a binding conditional deal to buy AEP Corporation, which can earn 75% of Hualilan (Argentina) and 100% of El Guayabo (Ecuador). Payment is 180m shares, 78.4m options and 120m performance shares (post 1-for-5 consolidation), plus a $5m raise at 3c. Resolves the suspension thread; this is a strategy shift from South Africa, which it will still pursue. New board: Knauer, Quinn, Funston.

business combination

September 2018 quarter: the minister withdrew the long-delayed mining law amendment bill on 20 September; a new petroleum-specific bill is being drafted. Shares remain suspended since 7 August. Rights issue stays on hold. No exploration right granted.

quarterly activities report

ASX suspended Challenger's shares immediately after an announcement of a transaction that could change its activities. They stay suspended until it meets listing rule Chapters 1 and 2 or satisfies ASX otherwise. This follows the earlier Listing Rule 12.1 query.

listing compliance notice

Challenger plans a 1-for-4 non-renounceable rights issue at 1 cent to raise about $973,000, with major holders backing about $500,000. Clinton Carey replaces Bill Bloking as director, and accrued director fees are to be settled. The company reports the Select Committee has finished voting on the bill amendments.

capital raising announcement

ASX has questioned whether Challenger's assets and operations justify continued quotation under Listing Rule 12.1. It has until 30 November 2018 to show compliance or face possible suspension. The company says it is reviewing proposals, none yet needing disclosure.

listing compliance notice

Challenger has commitments for a A$900,000 placement of 30 million shares at 3c, each with an attaching option at 5c expiring 30 June 2020. It will fund the licence application process and working capital. The price is half the 6c of the Nov 2014 raise.

capital raising announcement

South Africa's Minister of Mineral Resources gazetted the Technical Regulations for petroleum exploration and production. Under the earlier moratorium, no fracking was allowed until they were published. The MD calls it progress toward exploration rights, but no right has been granted yet.

regulatory community update

Bundu lodged its updated environmental programme with the regulator on 27 Feb 2015, meeting the deadline. The Minister now has 120 days to consider approving it. Challenger anticipates a decision on the exploration right may come in the second or third quarter of 2015.

regulatory community update

Challenger raised A$1.2m before costs through a placement of 20 million shares at 6c to sophisticated investors, mostly existing shareholders. The company says it will fund the South African permit application process. This follows cash of A$0.485m at 30 Sep 2014.

capital raising announcement

South Africa's Petroleum Agency told Bundu it will proceed with processing its Karoo shale gas exploration right application, on hold since 2011. Bundu must update its environmental programme and consult communities by 27 Feb 2015. This moves the long-awaited Cranemere award a step closer, but no right is granted yet.

regulatory community update

Prospectus for a fully underwritten loyalty options offer: one option per five shares at 1.5c, exercisable at 20c, up to $988,447 raised. Novus Capital underwrites. Small raise following cash of only A$0.44m at 31 December.

capital raising announcement

Challenger raised A$1.0m via a placement of 16,666,667 shares at 6c to existing sophisticated shareholders. This follows cash falling to A$282k at 30 June. The company says it supports the South African permit process.

capital raising announcement

Robert Willes, ex-BP and former Eureka Energy CEO, becomes Managing Director from 8 April 2013, replacing Paul Bilston, who stays as non-executive director. Mike Much resigns from the board. Willes is offered A$375k salary plus 4m shares and a 16m-share incentive plan, subject to shareholder approval.

director officer appointment

Challenger agreed to sell its 50% of the 120-acre Maricopa property; total price US$1.25m, so US$625,000 to Challenger before costs, with closing expected 31 Jan 2013. Proceeds are to fund the South African application and farm-out. Chevron joining Falcon in the Karoo is also noted.

asset acquisition disposition

ASX queried cash of only A$155,000 at 30 September against A$379,000 quarterly operating outflow. Company says it will rely on a Cranemere farm-out, Maricopa sale, and possible equity or debt raising, and believes it has sufficient cash. Funding remains dependent on these unfinished deals.

listing compliance notice

South Africa's Cabinet approved the shale gas task force report and lifted the moratorium on Karoo exploration applications in place since May 2011. Challenger's 90%-owned Bundu application (~800,000 acres after game reserves) can now progress; the MD hopes to conclude farm-in talks.

regulatory community update

Barnett production testing is finished. Gas rates fell as the well loaded with frac water, and the engineer does not expect improvement without artificial lift. Operations have ceased and the well will be suspended. This reverses the earlier positive rates; company blames geological complexity.

well test result

The Mercury Stetson Barnett frac (17 May) has produced gas, building from ~405 mcf/d to ~630 mcf/d over 36 hours while still slugging water. Company calls it the first Barnett gas in the area. Unlike the failed Woodford test, but rates are unstable.

well test result

Barnett frac at Mercury Stetson to start within 24 hours across 11,085–11,425 ft. The company attributes the weak Woodford result to a possible nearby shear fault. It will let the core Triple Crown lease expire mid-June to focus on Mercury Stetson and South Africa.

drilling progress report

The Woodford test produced enough gas to light a flare, but the flow was not sustained as water influx killed the well. The company says the frac was not effective in contacting the reservoir broadly. Well shut in; Barnett frac planned late May.

well test result

Logs show about 600 ft of Barnett shale, roughly 200 ft more than expected, with gas throughout and 8–14% porosity. Woodford top hit at 11,766 ft with gas to 670 units, so the well is being deepened. A further A$1.2m placement at 6.5c was announced.

drilling result

Mercury Stetson sidetrack reached 11,750 ft, with strong gas shows (over 550 units in Barnett, ~600 in Woodford). Company says this proves gas is present in the new province; logging, casing then frac expected in 4–6 weeks. Gas shows are not a flow test.

drilling result

Challenger places about A$2.8m at 5c per share, mainly to fund Mercury Stetson drilling and testing. Tranche 1 is 30m shares (A$1.5m); Tranche 2 is up to 26m shares (A$1.3m), subject to a mid-March shareholder vote. The price is well below the 15c April 2011 placement.

capital raising announcement

After failed casing attempts, Challenger abandons the old-well re-entry at Mercury Stetson and will sidetrack from about 5,100 ft, needing a drilling rig in the new year for about 7,000 ft. It says re-entry was only partially successful, and it is discussing adjusted farm-in obligations with the JV.

drilling result

Mercury Stetson operations begin: lease construction approved and equipment mobilised, with the rig due mid-November. The 3-5 week re-entry is followed by a frac, possibly late Dec/early Jan. Management calls it 'transformational' after the Triple Crown disappointment.

drilling spud

The Triple Crown Ellenburger lateral reached 6,112 ft. Significant drilling breaks were seen, but gas shows did not rise and no commercial gas flow was observed. The Ellenburger (1.6 TCF) test is disappointing; the hybrid zone frac is now 6-8 weeks away because of a frac equipment shortage.

drilling result

Challenger agrees to earn up to 50% of the Mercury Stetson Prospect in North Texas (Barnett and Woodford shales, up to 55,000 acres, OGIP 360 BCF/sq mile) by drilling two wells, renewing leases and running seismic, as operator. Up to US$2.2m is payable; the rest of the terms were truncated.

farm in farm out agreement

Testing at Triple Crown is expected to start next month: a short horizontal sidetrack into the Ellenburger (1.6 TCF), then a large slick-water frac at about 5,200 ft in the hybrid zone (7.4 TCF). Land leasing is progressing. This sets the plan after the 9 TCF estimate.

drilling scheduled

South Africa's Department of Mineral Resources said it will neither accept new shale gas applications nor finalise existing ones until a study is completed. Challenger expects the Cranemere exploration right award to be delayed, though the application's validity is unaffected.

regulatory community update

Challenger raises A$7.1m at 15c per share via a placement managed by Patersons: 30.667m shares now (A$4.6m) and 16.66m (A$2.5m) subject to shareholder approval in late May. Funds go to Triple Crown land, fracture stimulation and testing, and the Cranemere application.

capital raising announcement

Challenger assesses 9.0 TCF of original gas in place across its 45,000 acres: Canyon Sands 1.5, unconventional 5.9, Ellenburger 1.6 TCF. It will focus on the Canyon hybrid play and drill a new horizontal Ellenburger well, since lost-circulation material likely filled fractures in the current well.

resource reserve update

The first Triple Crown well reached TD of 7,431 ft, with a gross gas column over 2,300 ft and over 1,300 ft of gas-charged Ellenburger. It appears to have missed fracture swarms, so a horizontal well or fracture stimulation is the likely next step.

drilling result

Petrophysics confirms high gas saturation across the Lower Canyon Sands from 4,530 to 5,685 ft, a mix of conventional and unconventional zones. The Ellenburger top is at 6,020 ft with dry cuttings. The well is at 6,533 ft and is to be suspended for testing.

drilling result

The Triple Crown well hit a gross gas-charged Canyon Sands interval from 4,520 to 4,790 ft, with stronger gas shows and a main sand over twice as thick as expected. Evaluation awaits logs; the Ellenburger remains the primary target.

drilling result

More gas sands are reported between 3,370 and 3,620 ft, with the well at 3,740 ft; assessment awaits logs. Challenger also agrees a second unsecured facility of up to A$1.5m at 10% interest with 10 options per $1, to be converted to equity at a general meeting in early 2011.

debt financing

Air drilling hit hole instability from a fresh water aquifer at about 1,500 ft, so the rig will skid and drill a new hole with mud. Sunset also arranges an unsecured facility of up to A$1.4m at 10% interest, with 10 options per $1 advanced, to be converted to equity.

debt financing

The rig is on site and the first Triple Crown well spuds on 9 November, targeting gas in the Ellenburger Dolomite, Canyon Sands and an unconventional play. This is the long-awaited first test of the project acquired in June 2010.

drilling spud

Sunset finalises two South African empowerment partners who will each take 5% of Bundu, leaving Sunset with 90%. The Cranemere environmental plan has been submitted, and PASA's decision is expected in 3 to 6 months.

regulatory community update

Sunset expects to spud its first Triple Crown well in mid-October. A contract operator and rig are secured, the drilling permit is obtained and the pad is built. The well targets the Ellenburger Dolomite, with timing dependent on the rig finishing its current hole.

drilling scheduled

Sunset completes a placement of 16,042,000 shares at $0.085 to raise $1,363,570, to fund Triple Crown exploration and South Africa. A one-for-two options offer is coming. Triple Crown drilling locations are chosen; a Cranemere environmental plan is due by end September.

capital raising announcement

Sunset agrees to acquire an 80% working interest (100% before payout) in about 45,000 acres around the Triple Crown Prospect, Edwards County, Texas, a new gas project. Management cites potential of over 1 TCF per formation; an initial well is targeted for the rest of 2010.

asset acquisition disposition

South Africa's petroleum agency (PASA) accepted Sunset's new Cranemere application of about 1,040,000 acres in the Karoo Basin, covering the earlier refused 85,000-acre area. Because of this, Bundu will not pursue a legal appeal over the 17 May refusal.

regulatory community update

South Africa's mineral resources department refused the Cranemere application over deficiencies in the environmental plan, just weeks after the Bundu purchase. Sunset plans to appeal within 30 days and lodge a new application of about 950,000 acres. No competing application exists.

regulatory community update

The Bundu acquisition is completed and Dr Paul Bilston becomes Managing Director immediately. He has 18 years in oil and gas, including managing the Gloucester Gas Project that was sold to AGL for $370 million in December 2008.

director officer appointment

Conditions for the Bundu acquisition are satisfied, with settlement planned for 8 April 2010. Sunset will issue 48,474,038 shares to Bundu holders, under 12-month voluntary escrow. This roughly doubles the share count. Paul Bilston is to be appointed Managing Director.

farm in farm out completion

Sunset finalises a placement of 10 million shares at $0.12 to raise $1.2 million, approved by shareholders on 10 February. It meets a condition of the Bundu acquisition, with settlement expected by 16 March. Funds go to Bundu's South African assets and working capital.

capital raising announcement

Sunset agrees to buy all of Bundu, which holds about 2,276 sq km of South African permits (Thelma oil, Cranmere shale gas). Paul Bilston is to become Managing Director, and a $1.2m placement is planned. The deal is conditional on approvals. It is a move beyond California.

asset acquisition disposition

Solimar says Maricopa #6 makes about 30 barrels a day and #7 remains shut in, with a water disposal line being pursued. It sent Silverthread operator Mirada a legal notice over minimal cooperation, delaying Nesbitt #5 testing. Lost Hills news concerns Solimar only.

joint venture update

Sunset agrees to place up to 5,750,000 shares at $0.05 to raise $287,500 for working capital and California exploration. This is the same price as the March rights issue, which raised $670,337 in total.

capital raising announcement

The rights issue shortfall is placed, with applications for 9,321,500 shares raising $466,075. Total raised is $670,336.80 from 13,407,336 shares, taking shares on issue to 42,157,337. This nearly fills the $718,750 target.

capital raising announcement

Sunset announces a rights issue of one new share for every two held at $0.05, raising up to $718,750 for working capital and California exploration. That is well below the $0.20 placement price earlier in 2008.

capital raising announcement

The Aliso Canyon redrill reached 10,222 ft with no commercial hydrocarbons and will be plugged and abandoned. This is a dry hole for Sunset's 8% interest, acquired less than a month earlier. Focus returns to Maricopa and Silverthread.

drilling result

The Sesnon Fee #7 Redrill No.1 well has spudded at Aliso Canyon, where Sunset holds 8%. It is expected to take up to 10 days, drilling to about 9,901 ft. This follows the 26 September acquisition.

drilling spud

Maricopa #7 is completed and producing 17-22 barrels of oil per day plus 152 barrels of water. Combined with #6, output is expected at 50-55 barrels a day, sold above US$100 a barrel; Sunset's share is 50%. This confirms the earlier appraisal result.

production update

Sunset acquires an 8% interest in the Aliso Canyon prospect near Los Angeles, alongside Solimar (12%). Estimated P50 potential is about 3 million barrels on 1,200 acres; the well is estimated at US$1.0m dry or US$1.5m successful, with drilling due within ten days.

asset acquisition disposition

Maricopa #7 reached 3,588 ft with about 80 ft of net oil pay in the Contact Sand, similar to #6, and is being completed as a producer. Sunset also agrees to place up to 4m shares at $0.20 (up to $800,000), subject to shareholder approval.

drilling result

Wellington Maricopa #7 spudded 30 August 2008, about 200 ft north of #6, targeting the Contact Sands at 3,600 ft within two weeks. The company says wells pay out in roughly 9 months. This is earlier than the Q4 timing in the quarterly report.

drilling spud

Nesbitt #5 reached 7,134 ft and found about 800 ft of potentially oil-bearing Saugus section (280 ft net). The deeper Monterey target was not hydrocarbon bearing, so the original objective failed. Sunset adds 18.5% of 200 acres; commercial size is unproven.

drilling result

Sunset agrees to place 3,750,000 shares at $0.20 to raise $750,000 before costs, for working capital and Maricopa and Silverthread work. Same price as the IPO; adds about 15% to the 25m shares on issue.

capital raising announcement

First oil sales from Wellington Maricopa #6: about 507 barrels of 20.6 API oil sold at over US$110 a barrel, Sunset's share roughly 50%. The well is producing 35 barrels a day; Maricopa #7 still awaits a rig. Follows the April test.

production update

The first Silverthread well, Nesbitt #5, spudded 5 May 2008 and is targeting 7,900 feet in the Monterey Formation, taking up to 25 days. Sunset holds 20%; Mirada is operator. Dry hole cost is estimated at US$1.5m.

drilling spud

Sunset acquires a 20% working interest in the Silverthread project, Ventura Basin, by paying 25% of the first well's costs alongside Solimar. Gross P50 potential is 7 million barrels of oil and 15 billion cubic feet of gas; dry hole cost US$1.5m.

farm in farm out agreement

Wellington Maricopa #6 production-tested at an average 35 barrels of oil and 120,000 cubic feet of gas a day from a 130 ft Contact Sand interval, confirming the potential pay. Maricopa #7 is targeted for the third quarter of 2008 once a rig is found.

well test result

Wellington Maricopa #6 reached 3,550 feet; electric logs indicate a potential 130 feet of oil pay in the Contact Sand, above operator expectations. It is still 'potential' until a production test within about a month; success would lead to Maricopa #7.

drilling result

Sunset's first well, Wellington Maricopa #6, has spudded at Maricopa, targeting 3,600 feet in the Contact Sands. Sunset is earning 50% and pays the first US$750,000 of costs for the two Maricopa wells; a second well follows if this one succeeds.

drilling spud

Sunset Energy (then the company name) issued a prospectus to raise $3,000,000 via 15,000,000 shares at $0.20 each, ahead of ASX listing. Funds go to earning 50% of the Maricopa and Deer Creek prospects in California's San Joaquin Basin by funding one well on each, via a deal with Solimar Energy.

capital raising announcement