Challenger Exploration reported that results have been received for the first of 3 drill holes submitted for assay to date from the Colorado V Gold Project in Ecuador. Drill hole ZK0-2 encountered over 250 metres of gold mineralization in three zones. Highlights include 151 metres at 0.9 g/t gold and 3.8 g/t silver from 225 metres containing a higher-grade core of 134 metres at 1.0 g/t gold + 4.1 g/t silver, including 63 metres at 1.6 g/t gold and 5.1 g/t silver. ZK-02 is located on the northern end of a 500-metre northwest-southeast trend defined by small scale underground mine workings. ZK-02 (and ZK-01) were the first historical holes to be available and thus were logged and sampled on that basis. Only trace to 1% sulphides were logged in drill hole ZK0-2. Drill hole ZK0-2, and the bulk of the historical drilling is not located on the main gold and copper soil anomalies which coincide with the main porphyry targets. However, CEL noted that ZK-02 was located to test directly down-dip of the open pit and underground workings that the current tenement owner is operating to extract narrow high-grade gold and silver in veins. The company’s priority targets, prior to receiving ZK0-2 assay data, were these main coincident gold, copper and molybdenum soil anomalies. Each gold/copper anomaly covers 1 km2 and the limited historical drilling only tested the margins of these anomalies. In drill hole SAK0-1A, which drilled the flank of Anomaly B, CEL has logged a zone of over 200 metres of porphyry style mineralization containing 1-2% sulphides (pyrite and chalcopyrite) in potassically altered diorites within a broader 500 metre zone of mineralization. The company has previously announced its geologists have logged significant widths of intrusive breccia-hosted, hydrothermal mineralization containing 1-3% sulphides in other holes awaiting assay. Based on the results of ZK0-2, CEL will now include a significant number of holes drilled on the trend of the underground workings in the assaying program in addition to those drill holes in which have logged potential porphyry and intrusive breccia mineralization. antimony and arsenic, and a lesser but recognisable correlation with bismuth tellurium, tin and tungsten. The core appears highly fractured and is consistent with being located in a major fault zone so it is likely that the mineralization has a structural control. This mineral assemblage identified in the ZK-02 core opens the possibility that it is an Intrusion Related Gold System (IRGS) which is a newly recognised mineralizing model, possibly explaining why such a broad zone of gold mineralization was bypassed.