The Challenger Exploration Ltd (ASX: CEL) share price is surging 27% higher in afternoon trade.

Shares in the exploration company are storming higher after reporting drilling results earlier today.

At the time of writing, the Challenger share price is trading around 27% higher at 27.5 cents after hitting an intraday high of 28.5 cents.

Lets take a look at Challenger's drilling results and why investors are flocking to buy shares.

Challenger share price jumps on drilling results

Earlier today, Challenger released results from its ongoing rock saw channel sampling program from the company's Hualilan Gold Project.

According to the announcement, Challenger reported its highest ever grades from the site. The company noted significant high-grade mineralisation in the 200 metres up-dip from current drilling.

The results cover approximately 300 metres of strike at Cerro Norte and are the first continuous channel samples taken above ground level.  

Challenger's results from the Sanchez Fault approximately 100 metres up-dip from ground included;

• 15.6m at 71.7 g/t AuEq2 – 70.9 g/t gold, 59.1 g/t silver, 0.2% zinc including;
• 4.0m at 203.8 g/t AuEq2 – 201.6 g/t gold, 172.0 g/t silver, 0.1% zinc.

Sampling up-dip of previous channel sampling from the company's main Cerro Norte Manto site returned;

• 64.8m at 28.3 g/t AuEq2 – 23.4 g/t gold, 104.1 g/t silver, 8.3% zinc including;
• 8.8m at 49.3 g/t AuEq2 – 45.2 g/t gold, 88.7 g/t silver, 6.8% zinc and;
• 26.5 m at 34.4 g/t AuEq2 – 29.3 g/t gold, 114.4 g/t silver, 8.2% zinc

Commenting on the results, CEL Managing Director, Mr Kris Knauer, said

"These are the best results we have seen at our Flagship Hualilan Gold Project – 4m at 201.6 g/t gold is outstanding. The results confirm our view that the strongest mineralisation is likely to be in the Hualilan Hills which are yet to be drilled.".

Snapshot of the Challenger share price

Challenger is engaged in the exploration of gold and copper with operations in Ecuador and Argentina. The company's flagship gold projects include the Hualilan Gold project in Argentina and El Guayabo/Colorado V Project in Ecuador. 

Earlier this year Challenger outlined plans for a fully-funded drilling program for its Hualilan Gold project. The company believes there is a historical resource of 627,000 ounces of gold.

The Challenger share price has been volatile in 2021. Shares in the company hit a high of 39.5 cents in mid-February. Since then the Challenger share price has rallied and dipped. Including today's price action, the Challenger share price is up more than 34% for the year.

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Challenger Exploration Ltd (ASX: CEL) shares are edging higher today after the company outlined plans for a new fully-funded drilling program in San Juan, Argentina. At the time of writing, the Challenger share price is trading 1.59% higher at 32 cents.

Challenger Exploration is engaged in the exploration of gold and copper with operations in Ecuador and Argentina. The company is developing two complementary gold/copper projects in South America, namely the Hualilan Gold Project in Argentina (the focus of today's update) and the El Guayabo Gold/Copper Project in Ecuador.

New drilling program

The Challenger Exploration share price is responding positively after the miner advised its fully-funded, five-rig, 30,000-metre drilling program at the Hualilan Gold Project is expected to significantly increase the scale of its operations. 

Challenger's new program builds on a recently completed 45,000-metre drill program, which it says has seen Hualilan emerge as a gold discovery "with significant scale that remains open in all directions".

Drilling is expected to continue to increase the scale of the project because it includes new targets away from Hualilan, which are to be tested in the current 30,000 metres of drilling.

The program is being funded through Challenger Exploration's available cash of approximately $14.5 million, bolstered by another $3.5 million in option financing.

The company's latest market update was released at 1.21 pm AEST, pushing the Challenger Exploration share price into the green.

Management comments

Challenger Exploration managing director Kris Knauer commented that Hualilan is proving to be very lucrative. He said:

The extension of the current drill program was always going to be an easy decision given the results we have been receiving, not just recently, but since we started drilling at Hualilan. Already it looks like the new 30,000 metre program will emulate the old program.

The last hole in our 45,000 metre program, and western most test of the Magnata Fault, has intersected strong mineralisation while the first hole in our new 30,000 metre program…has been deepened as it is still drilling through mineralisation. Hualilan continues to surprise us on the upside and where [we] land in the next 12 months will be a long way ahead of the expectations we had when we started drilling our first hole.

Challenger Exploration share price snapshot

The Challenger Exploration share price has gained 52% in 2021 so far, and 190% over the past 12 months. Based on the current share price, the company commands a market capitalisation of around $174 million.

The post Why the Challenger Exploration (ASX:CEL) share price is on the move appeared first on The Motley Fool Australia.

Challenger Exploration Ltd (ASX: CEL) has announced that it has hit outstanding sampling results at its flagship Hualilan Gold Project in Argentina. A positive stream of high-grade mineralisation news has pushed the Challenger Exploration share price up almost 50% this year. Although the company is in its early exploration days, the positive news continues to add to its overall growth strategy. With this in mind, Challenger aims to become a globally significant gold producer.

Challenger Exploration share price up 5% on sampling results 

Challenger Exploration revealed its first results from its Main Manto rock saw channel within the Hualilan project. The results include the following: 

• 71.0m at 10.8 g/t AuEq2 – 9.2 g/t Au, 22.5 g/t Ag, 3.0% Zn in combined Zone 1 and Zone 2

Commenting on the results, Challenger Explorer Managing Director, Mr Kris Knauer said: 

These near surface results are exceptional and continue to reinforce our belief we have a significant gold system at our flagship Hualilan Gold Project in Argentina. We can see that mineralisation is wider than expected near surface and has A strong correlation with high-grade drill hole results down dip and Historical sampling based on the presence of visual sulphides missed broader near surface zones. This is a further important step in delivering on our strategy to become a globally significant gold producer initially targeting high grade shallow mineralisation.

Company overview 

Challenger Exploration possesses two gold projects, the Hualilan Gold project in Argentina and El Guayabo/Colorado V Project in Ecuador. 

The Hualilan project was previously locked up in a dispute 15 years prior to Challenger's ownership. The company believes there is a historical resource of 627,000 ounces of gold at 13.7 g/t. Albeit a non-JORC compliance resource. Continued sampling and drilling are expected to extend the project's existing mineralisation. Additionally, it will support multiple resource upgrades in the near term. 

Challenger Exploration has undertaken extensive exploration over the past 12 months. The intention behind the exploration is to generate targets for drilling and land acquisition at El Guayabo. The project is a step behind the Hualilan project with ongoing channel sampling and assaying. The company is looking to finalise its targets for the upcoming drilling program. 

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