Challenger Gold Limited · ASX:CEL
Challenger Gold — Investor Presentation (May 2021)
46 slides from Challenger Gold's investor presentation, May 11, 2021
Slide 1: Equity Capital Raising Presentation
ASX: CEL Equity Capital Raising Presentation Hualilan Gold Project : Cerro Sur looking north to Cerro Norte Challenger Exploration Limited Argentina and Ecuador Gold / Copper Projects Not for release to US wire services or distribution in the United States
Slide 2: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe s
Slide 3: Important Notices and Disclaimer
IMPORTANT NOTICES AND DISCLAIMER DISCLAIMER This presentation is for informational purposes only and does not constitute an offer to sell, or solicitation to purchase, any securities. Such Offer can be made only through proper subscription documentation and only to investors meeting strict suitabili
Slide 4: Overview
OVERVIEW Two complementary assets being aggressively advanced Challenger aspires to become a globally significant gold producer supported by the Company’s current assets HUALILAN GOLD PROJECT EL GUAYABO/COLORADO V PROJECT Argentina Earning 75% Ecuador Earning up to 100% Historical resource 627,000 o
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS World class projects + management with a proven track record • Hualilan Gold Project earning up to 75%, with a Historical resource 500,000 oz Au at [10 g/t1], with an underlying intrusion-hosted system - 116m @ 1.1 g/t Au EL GUAYABO/COLORADO V GOLD- • Five rig high impact 30,00
Slide 6: 4 Fold Increase in Footprint
4 FOLD INCREASE IN FOOTPRINT District scale tenement position of 80 square kilometres • Formal Grant of the 20.6 square kilometre "Ayen" Exploration Licence which surrounds the existing Mining Licences via the IPEEM#1 • Award of three additional Exploration Licences which cover 12.6 square kilometre
Slide 7: Capital Raising – Overview
CAPITAL RAISING – OVERVIEW • Placement to raise approximately A$42 million, using the Company’s available capacity under Offer Structure & Size ASX LR 7.1 & 7.1A • Offer price of A$0.28 per New Share represents a: • 22.2% discount to the last closing price of A$0.36 per share; Offer Pricing • 18.4%
Slide 8: Capital Raising – Uses of Funds and Timetable
CAPITAL RAISING – USES OF FUNDS AND TIMETABLE Uses of Funds A$m Hualilan Project – 100,000m drill program (resource) 20.0 Hualilan Project – 20,000m drill program (regional exploration) 4.0 Hualilan Project – Acqusition of final 25% 5.0 Hualilan Project – Scoping & Pre Feasibility Study 1.0 Hualilan
Slide 9: Company Growth Strategy
COMPANY GROWTH STRATEGY Our Aspiration is to become a globally significant gold producer Hualilan Project FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3 Drilling 20,000 metres 30,000 metres 30,000 metres 30,000 metres Scoping + PFS commences post Feasibility Study maiden resource JORC Resource At completion of Est
Slide 10: Hualilan Gold Project
HUALILAN GOLD PROJECT Overview • High grade gold project with historic skarn resource of 627,000 Oz at 13.7g/t gold [assume 10 g/t AuEq]#1 with underlying porphyry gold system • CEL drilling has extended mineralisation in multiple directions and confirmed high grades: - 6.1m at 34.6 g/t Au, 21.9 g/t
Slide 11: High-Grade Mineralisation Is Open in All Directions
HIGH-GRADE MINERALISATION IS OPEN IN ALL DIRECTIONS The higher temperature assemblage (center of the system) is at the extreme southern end Mineralisation outcrops at surface Mineralisation at Hualilan comprises 2 distinct orientations Historical drill holes were all drilled controlled by regional e
Slide 12: High Grade Mineralisation Open in All Directions
HIGH GRADE MINERALISATION OPEN IN ALL DIRECTIONS The limit of the intrusives is constrained by a lack of drill data at depth and along strike high-grade mineralisation 3D leapfrog View Showing the Distribution of the high-grade skarn mineralisation (green) and the intrusives (pink) - Note proximity
Slide 13: Intrusion-Hosted Discovery
INTRUSION-HOSTED DISCOVERY Large-scale intrusion-hosted gold system underlying the high-grade skarn Western Zone • Blind pattern drilling involving fences of 4-5 holes spaced at intervals of 50-100 metres along strike given the majority of the intrusion hosted mineralisation lies under cover: - 131m
Slide 14: Discovery of a Second Trend
DISCOVERY OF A SECOND TREND A Repeat zone 200 metres west of the existing mineralisation B New Western Zone • Bulk intersection of 213.5 metres at 0.9 g/t AuEq (inc 71 metres at 1.8 g/t AuEq) • Mineralisation is hosted in intrusives analogous to the Gap Zone and Magnata • Second westerly dipping zon
Slide 15: Gap Zone Infill Confirms Width and a Grade Surprise
GAP ZONE INFILL CONFIRMS WIDTH AND A GRADE SURPRISE Grade likely to be better than anticipated in the intrusion-hosted mineralisation in the Gap Zone Extension of the high-grade skarn • GNDD-182 extended the high grade skarn mineralisation 200 metres along strike and west of the the intrusives with
Slide 16: Significant Extension to the North
SIGNIFICANT EXTENSION TO THE NORTH A Zone extended across a fence of holes which appeared to close it to the north B New Western Zone • GNDD-196 (69.2m at 3.4 g/t AuEq) and GNDD-202 extended the near surface mineralisation at Magnata 200 metres north along strike and open a significant drill target
Slide 17: Magnata Fault Extension Drilling Off to an Excellent Start
MAGNATA FAULT EXTENSION DRILLING OFF TO AN EXCELLENT START Significant skarn/sulphide mineralisation in stepouts at both ends of the Magnata Fault and at depth GNDD-264: Limestone hosted skarn mineralisation including massive sulphides 105-126 metres downhole GNDD-266: Skarn mineralisation; 23 metre
Slide 18: Underground Mapping and Sampling Program
UNDERGROUND MAPPING AND SAMPLING PROGRAM Key work item to push the maximum number of high-grade historical ounces into JORC Underground channel sampling • Key requirement for JORC Resource • Program expanded and ongoing. • Results include: - 96.5 metres at 15.4 g/t AuEq - 71.0m at 10.8 g/t AuEq - 22
Slide 19: A Far Bigger Play Than Extending Within 2km Strike
A FAR BIGGER PLAY THAN EXTENDING WITHIN 2KM STRIKE Exploration has only focussed on one side of the intrusión responsable for Hualilan ✓ Two simple low capital/operating cost options 1. Simple Bulk Sulphide Float • Recoveries of 87-94% (gold) and 84-86% (silver) ATE supports the concept that Histor
Slide 20: Regional Mag Data (aTE Features)
REGIONAL MAG DATA (ATE FEATURES) At least 5 intrusive centres of the same age 3 metres at 1.5 g/t gold in historic drillhole Processing of surface magnetic data Angle between IGRF vector indicates there are at least 5 major and TMI vector (aTE) intrusive centres the same age as the Hualilan 3 1. maj
Slide 21: Company Strategy
COMPANY STRATEGY Our Aspiration is to become a globally significant gold producer Hualilan Gold Project El Guayabo Project Company Strategy Argentina Ecuador • Hualilan to provide a high-grade low • High-grade historical resource • Exciting traditional near surface capex operation in the near term P
Slide 22: Summary
SUMMARY A significant gold system underlies the historical high-grade skarn Hualilan Project, Argentina • Ongoing news flow that comes with five rigs • A number of new zones and higher success rates as we better understand the mineralisation – magnetics and IP are important • We are getting comforta
Slide 23: Appendix 1: Capital Raise – Terms of the Offer and Risk Disclosure
Appendix 1 Capital Raise Terms of the Offer and Risk Disclosure
Slide 24: Key Risks – Specific
KEY RISKS – SPECIFIC Economic conditions The future exploration activities of the Company may be affected by a range of factors including activities of parties with overlapping tenure, geological conditions, limitations on activities due to seasonal weather patterns or adverse weather conditions, un
Slide 25: Key Risks – Specific
KEY RISKS – SPECIFIC Future capital needs and additional funding The Company will need to raise further capital (equity or debt) in the future. No assurance can be given that future funding will be available to the Company on favourable terms or at all. If adequate funds are not available on accepta
Slide 26: Key Risks – Specific
KEY RISKS – SPECIFIC Environmental Risk Development of any of the Company's Projects will be dependent on the Company satisfying relevant environmental guidelines and, where required, being approved by government authorities. Failure to obtain such approvals will prevent the Company from undertaking
Slide 27: Key Risks – General
Key Risks – General Securities investments and share market conditions There are risks associated with any securities investment. The trading prices of securities trade fluctuate in response to a number of factors. Furthermore, the stock market, and in particular the market for resource exploration
Slide 28: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. New Shares may not be offered or sold in any country outside Australia except to the extent permitted below. Hong Kong W
Slide 29: International Offer Restrictions
International Offer Restrictions This document has been given to you on the basis that you are (i) an existing holder of the Company’s shares, (ii) an "institutional investor" (as defined in the SFA) or (iii) an "accredited investor" (as defined in the SFA). In the event that you are not an investor
Slide 30: Appendix 2: Hualilan Gold Project
Appendix 2 Hualilan Gold Project Additional Slides
Slide 31: Corporate Overview
CORPORATE OVERVIEW Corporate Key Executives ASX Ticker CEL Fletcher Quinn Kris Knauer Scott Funston Stuart Munroe Sergio Rotondo Share Price 36c Chairman CEO CFO Exploration Mgr COO Current Shares on Issue 658.2m Hualilan Acquisition Shrs 50m Over 35 years experience in Kris started his career as an
Slide 32: Current Historical Non-JORC Resource
CURRENT HISTORICAL NON-JORC RESOURCE Historical drilling failed to test the Sanchez fault due to the topography La Mancha Resources 2003 foreign resource estimate for the Hualilan Project ^ Tonnes AuEq Grade Gold Equivalents Category (kt) (g/t) (koz) Measured 218 14.2 100 Indicated 226 14.6 106 Meas
Slide 33: Hualilan Gold Project – New Zone Discovery
HUALILAN GOLD PROJECT – NEW ZONE DISCOVERY Significant mineralisation underneath the main manto at Sentazon Discovery below Sentazon Manto • GNDD-142 intersected high-grade mineralisation 50 metres below the Sentazon Manto returning 40.5 metres at 6.2 g/t AuEq • No drilling, with the exception of CE
Slide 34: Hualilan Gold Project – Updip Potential
HUALILAN GOLD PROJECT – UPDIP POTENTIAL Up to 300 metres of mineralisation up plunge from current drilling Historical workings Outcrop of high-grade manto up-dip 34
Slide 35: Hualilan Gold Project – Updip Potential
HUALILAN GOLD PROJECT – UPDIP POTENTIAL Up to 300 metres of mineralisation up plunge from current drilling remains undrilled Channel Sampling and undrilled up-dip potential Main manto – Cerro Norto Channel Sampling and undrilled up-dip potential Magnata/Muchilera – Cerro Sur 35
Slide 36: A Far Bigger Play Than Extending Within 2km Strike
A FAR BIGGER PLAY THAN EXTENDING WITHIN 2KM STRIKE Exploration has only focussed on one side of the intrusión responsable for Hualilan 1440m depth slice Historical drillhole 3.0m at 1.5 g/t Au in intrusives Mineralisation X Known Intrusive Centre Skarn Halo
Slide 37: Regional aTE Features
REGIONAL ATE FEATURES At least 5 intrusive centres of the same age Processing of surface magnetic data Raw Magentic Data ATE: angle between indicates there are at least 5 major aTE the IGRF vector intrusive centres the same age as the (Pole to Pole) (Earth’s Field) and Hualilan the TMI vector 3 1. m
Slide 38: Hole GNDD-009 – Typical Skarn Mineralisation
HOLE GNDD-009 – TYPICAL SKARN MINERALISATION 10.3m at 10.4 g/t gold, 28 g/t silver, 4.6% zinc from 109.1 metres Massive: • sphalerite • chalcopyrite • galena • pyrite Lower contact (119.4m) Massive: • magnetite • pyrite • arsenopyrite 38
Slide 39: GNDD-155 (typical mineralised dacite in Gap Zone)
GNDD-155 (typical mineralised dacite in Gap Zone) GNDD-155 : 209.0m at 1.0 g/t Au, 1.4 g/t Ag, 0.1% Zn from 59.0m 244-246 – 1.0 g/t Au 246-248 – 0.3 g/t Au 248-250 – 1.3 g/t Au GNDD-155 : typical mineralisation in dacites GNDD- 155 (81-83m – 13.6 g/t Au Note - quantitative estimates of mineral abund
Slide 40: Appendix 3: El Guayabo Project
Appendix 3 El Guayabo Project
Slide 41: El Guayabo Gold/Copper Project – Ecuador
EL GUAYABO GOLD/COPPER PROJECT – ECUADOR Project Overview including the adjoining Colorado V concession • 35km2 land package 5km along strike from the 16.7-million ounce Cangrejos1 deposit which is going through permitting • Substantial historical drilling results not followed up in over 25 years: -
Slide 42: El Guayabo Gold/Copper Project - Geology
EL GUAYABO GOLD/COPPER PROJECT - GEOLOGY Geological Model CANGREJOS (17 MOz Au) Porphyry Target Porphyry Porphyry Target Target 42
Slide 43: Ecuador Update – Multiple Large Gold Targets
ECUADOR UPDATE – MULTIPLE LARGE GOLD TARGETS Large zones of mineralisation defined before any significant expenditure • 60 historical drill holes for a total of 22,000 metres of drilling with the limited assaying focussed on identifying high-grade mill feed • 500-metre zone of mineralisation defined
Slide 44: Drilling Targets Analogous to Cangrejos 5km Away
DRILLING TARGETS ANALOGOUS TO CANGREJOS 5KM AWAY Recent assay results point to a major discovery • Number of high tenor gold and copper in soil anomalies > 1km2 in size not validly tested D • Majority of the drilling was on the flanks of the soil anomalies • Assays of the initial 8 drill holes have
Slide 45: North-South IP Line
NORTH-SOUTH IP LINE Large undrilled mineralised breccia bodies Historical drilling results – 112m @ 0.6 % Cu +0.7 g/t Au +14.7 g/t Ag ; – 116m @ 0.4% Cu + 0.6 g/t Au + 8.9 g/t Ag; – 215m @ 0.4% Cu + 0.2 g/t Au + 9.6 g/t Ag (inc 83m @ 0.5% Cu + 0.2 g/t Au + 14.9 g/t Ag) 24A 24C 24D Both chargeability
Slide 46: Kris Knauer CEO & Managing Director
CHALLENGER EXPLORATION LIMITED (ASX:CEL) ACN 123 591 382 Level 1, 1205 Hay Street, West Perth WA 6005 | P: +61 8 6380 9235 Kris Knauer Scott Funston Elvis Jurcevic Jane Morgan CEO & Managing Director CFO & Finance Director Investor Relations Media Relations +61 411 885 979 +61 413 867 600 +61 408 26