Challenger Exploration announced that it has recorded a significant intersection of high-grade mineralisation some 100 metres south along strike from previous high-grade results at Cerro Norte at the Company's Hualilan Gold Project, located in San Juan Province Argentina. Drill hole GNDD-035 intersected 5.75 metres at 9.5 g/t gold, 29 g/t silver, 3.5 % zinc (11.5 g/t AuEq) from 88.75 metres including a higher grade zone of 3.15 metres at 17.1 g/t gold, 29 g/t silver 5.6 % zinc (20.1 g/t AuEq). The mineralisation is typical of the historical high-grade skarn mineralisation and is believed to be the southerly extension of the high-grade Main Manto mineralisation at Cerro Norte. GNDD-035 is located 100 metres south of CEL drill hole GNDD-003, the previous southern-most intersection of high grade mineralisation at Cerro Norte, which returned 6.1m at 34.6 g/t gold, 21.9 g/t silver, 2.9% zinc. Significantly it was located 70 metres south of a fence of historical drill holes that had marked the southern limit of the historical resource at Cerro Norte. These historical holes (05- HD-36, DDH-44, HUA-16 with results in Table 1) had failed to encounter high grade zones of mineralisation which resulted in the historical interpretation that the Main Manto mineralisation weakened to the south. GNDD-035 may be one of the Company's more significant holes at Hualilan. It increases the strike extent of Cerro Norte, which accounts for approximately half of the foreign historical resource1, by 100 metres to 400 metres. It also extended the high grade-mineralisation south beyond a fence of holes which had failed to intersect significant high-grade mineralisation. This demonstrating that the high-grade Main Manto mineralisation at Cerro Norte remains strong and open to the south into the largely unexplored 1.2 kilometre Gap Zone between Cerro Sur and Cerro Norte.