Challenger Exploration announce the discovery of a new style of Intrusion-hosted gold mineralisation contiguous to the Company's Hualilan Gold Project, located in San Juan Province Argentina. Drill hole GNDD-025 intersected 50m at 1.4 g/t gold, 3.4 g/t silver, 0.15 % lead and 0.17 % zinc from 53 metres, under cover in dacite porphyry containing weak iron oxide, silica, and pyrite alteration. The intercept remains open at depth, with the hole intersecting 93 metres of, and ending in, altered porphyry dacite. Assays are pending for the lower 38 metres from 103 metres to 141 metres, and end of hole. The hole is located in the Gap Zone between Cerro Norte and Cerro Sur, 300 metres along strike from any prior CEL drilling. It was drilled as a wildcat test of this largely unexplored 1 kilometre of strike, between the historical mineralisation in Cerro Sur and Cerro Norte, and to follow up on a vertical drill hole, completed in 1984, which was only partially sampled but returned 18.7m at 0.72 g/t gold and 1.5 g/t silver in dacite (0.2 g/t Au cut-off). The high-grade skarn target remains a priority in this 1 kilometre zone, having been mapped in outcrop in the southern 500 metres of this zone at Pizzaro and Puntilla, and is believed to have been shifted some 200 metres to the east by the Magnata and Sanchez faults. The top of the intercept includes a higher grade zone of 37 metres at 1.8 g/t gold, 4.2 g/t silver down to the base of oxidation which occurs at 90 metres downhole, which is potentially related to supergene enrichment. In the context of extensive near-surface high-grade skarn mineralisation at Cerro Norte, with higher grades at the top of the intercept, over a potential kilometer of strike, it may significantly increase the quantum of mineralisation. Particularly given this intercept is near surface and covered by recent unconsolidated alluvial gravel. The Company awaits the assays for the remainder of the hole and notes that individual 1-2 metre splits in the 13 metres of fresh porphyry dacite returned assays over 1 g/t gold with two one metre splits in the bottom four metres of the zone assayed returning 0.7 g/t gold and 0.9 g/t gold. Conceptual Target: Following the receipt of the assays for the top half of GNDD-025, a review of the project data has defined a conceptual target covering 1 kilometre of strike, and up to 100 metres wide. This is defined by the limited historical drilling, mapping of the surface exposure of the altered dacite porphyries, and recent CEL drill holes. The southern end of the target is defined by CEL drill holes GNDD-031 and GNDD-032 (assays pending) and CEL drill hole GNDD-010 (previously announced). GNDD-032 intersected 156 metres of porphyritic dacite with disseminated pyrite and iron-oxide ± sericite alteration from 10 metres until the end of the hole at 166 metres while GNDD-031 intersected 25 metres of porphyritic dacite from 125 metres to the end of the hole. CEL drill hole GNDD-010 intersected 27 metres at 0.28 g/t gold, 8.4 g/t silver in weakly sericite altered dacite well above the main high-grade skarn intersection of 3 metres at 17.7 g/t gold, 143 g/t silver, 2.5% zinc from 139 metres downhole. Drill hole GNDD-051 (assays spending) was recently completed to test this conceptual target 100 metres south of GNDD-021 . The hole successfully intersected 51 metres of altered and brecciated dacite from the base of cover at 69m to the end of the hole, exhibiting very similar geology and alteration (pyrite-sericite) to that intersected in GNDD-025. Comparable to GNDD-025, the porphyry dacite was covered by unconsolidated gravel. Logging, sampling and assaying, for this hole will be fast tracked. Drilling is also proposed to follow up GNDD-025 and GNDD-051.