Challenger Exploration Limited announced further results from drilling at the Company's Hualilan Gold Project, located in San Juan Province, Argentina. The results are from the remainder of the second 7,500 metre drilling program and initial holes targeting the high-grade skarn from the current 5 rig 45,000 metre drilling program. All holes were designed to explore for extensions to the historical resource estimate with the exception of two twin holes for JORC reporting. The results continue to extend the near surface skarn mineralisation along strike and down dip in multiple locations and have defined two new zones of high-grade skarn mineralisation, one above and one below, the historical limestone hosted skarn mineralisation. Drilling has confirmed that there is a previously unrecognised broad continuous zone of bulk gold mineralisation overlying the high-grade skarn which is likely to enhance the economics in an open pit development scenario. This round of results has demonstrated that much of the historical drilling is under sampled and is likely to have left zones of high-grade mineralisation unassayed and thus not included in the historical resource. The Company has completed approximately 16,000 metres of the high impact current 45,000 metre drill program with 5 rigs continuing on site. Results have been reported up to drill hole GNDD-092 with holes GNDD-157 to 161 currently drilling ahead. For the next phase of drilling the Company will utilise three rigs to extend the high-grade skarn mineralisation predominantly on the Sanchez and Magnata Fault zones with two rigs continuing to target the intrusion hosted mineralisation. The mineralisation at the Hualilan Gold Project extends over 2 kilometres including a 1km zone of limited exploration, the Gap Zone. Most of the high-grade skarn mineralisation is believed to be controlled by the east-west Sanchez and Magnata faults which provided the main conduit for mineralising fluids. Where these faults intersect permeable limestone beds, the limestones have been replaced with north-south striking, bedding parallel massive sulphide "Manto" bodies. The Company is better understanding the controls of the mineralisation and believes that the east-west Magnata and Sanchez Faults, which appear to contain more continuous mineralisation than typical skarn orebodies, have the potential to add significantly to the historical high-grade mineralisation. Both the fault controlled and Manto mineralisation remain open in all directions. The current drilling is the first to target possible extensions of the high-grade skarn mineralisation in the covered and largely undrilled Gap Zone between Cerro Sur and Cerro Norte. It has confirmed that the skarn mineralisation intersected in GNDD-035 (5.8 metres at 9.5 g/t gold, 29 g/t silver, 3.5% zinc) which extended the Main Manto 100 metres south into the Gap Zone has significant strike extent and replicate zones. GNRC-076 was collared between the Main Manto mineralisation and the Sanchez Fault. The hole was collared as a downdip test of GNDD-034 which encountered a narrow high-grade zone of skarn mineralisation of 0.3 metres at 11.6 g/t AuEq). Most of the skarn mineralisation at Magnata is controlled by the east-west sub-vertical Magnata fault zone which splits into the M1 and M2 Magnata Faults. There is a north-south striking "manto component" which dips west. In drilling completed to date, the mineralisation in the Magnata fault appears to be relatively continuous over the 300 metres of strike and 120 metres vertical extent and remains open at depth and in both directions along strike. As previously reported, the dacite near the contact with the Magnata faults also contains broad zones of gold mineralisation which is not included in the historic resource estimate. The Sanchez Fault has been mapped in outcrop over 500 metres of strike across the main Cerro Norte. The steep terrain in this location has made drill pad location difficult and as such the Sanchez Fault has historically only been drilled to 50 metres sub-surface over less than 50 metres of strike. The Company's first hole GNRC-068 into the Sanchez Zone returned 69.0 metres at 4.8 g/t AuEq including a broad high grade zone of 27.0 metres at 11.4 g/t AuEq containing a bonanza grade zone of 4.0 metres at 48 g/t AuEq. Drill holes GNDD-085, GNDD-037 and GNDD-100 were drilled as further tests of the Muchilera Manto which is located between the Magnata Manto in the north and the Sentazon Manto to the south. The Muchilera Manto is historically mapped as a 2 to 3 metre thick, bedding-parallel mineralised zone. Previous drill holes by the Company intersected minor skarn alteration and results such as 3.0 metres at 1.0 g/t gold, 53.0 g/t silver, 0.1% zinc - 1.6 g/t AuEq in GNDD-030.