Challenger Gold Limited (ASX: CEL) (“Challenger” or “the Company”) has significantly increased its Mineral Resource Estimate (MRE) in Ecuador. The Company has doubled its resources from 4.5 million ounces (Moz) to 9.1 Moz gold equivalent (AuEq). This milestone positions Challenger Gold as a key player in the South American gold sector.
Managing Director Kris Knauer commented, “I would like to congratulate our exploration team in Ecuador for their outstanding work in doubling project resources from 4.5 Moz to 9.1 Moz AuEq, including a high-grade core of 2.1 Moz at 1.0 g/t AuEq.”
Growth and Upside Potential
The Company now holds an attributable resource of 6.9 Moz AuEq across its Ecuador projects. This includes:
- El Guayabo (100% owned)
- Colorado V (50% owned)
The MRE is based on drilling only five of fifteen major anomalies. All thirteen anomalies drilled so far have returned mineralisation. This suggests the potential for further resource expansion.
Mr Knauer stated, “This is only the beginning for the asset – the current resource is based on drilling just five of fifteen major anomalies identified across our Ecuador projects, with all thirteen anomalies drilled so far returning significant mineralisation.”
Figure 1: Soil geochemical analysis and regional exploratory drilling at the El Guayabo Gold-Copper Project.
Commercial Advantages
1. Large-Scale Gold Project
The Ecuador projects are now among the largest undeveloped gold resources in South America. The MRE stands at 567 Mt @ 0.50 g/t AuEq for 9.1 Moz AuEq.
2. High-Grade Core for Strong Economics
A high-grade core of 2.1 Moz @ 1.0 g/t AuEq, including 1.2 Moz @ 1.2 g/t AuEq, offers early production potential and strong cash flow.
3. Prime Location with District-Scale Potential
The projects are near Lumina Gold’s 20.5Moz Cangrejos Project. Lumina recently secured a $300 million financing deal with Wheaton Precious Metals, confirming the district’s world-class potential.
4. Infrastructure Ready for Development
The projects are located 35km from a deepwater port and have power, water, and road access. These factors significantly reduce development costs.
Value Realisation Strategy
Challenger Gold plans to unlock value in Ecuador through three potential pathways:
- TSX Listing: Spin off the Ecuador projects into a separately listed entity on the Toronto Stock Exchange (TSX), where gold projects trade at higher valuations.
- Strategic Sale: Sell the assets outright to generate immediate capital for the flagship Hualilan Gold Project in Argentina.
- Farm-In Partnership: Partner with a major mining company to fund development while retaining exposure through royalties or equity.
Mr Knauer noted, “This resource update represents a transformational milestone for Challenger Gold shareholders, enabling us to move forward with unlocking significant value from our Ecuador assets while focusing entirely on bringing our flagship Hualilan project into production.”
Focus on Hualilan Gold Project
With the Ecuador exploration phase completed, Challenger Gold will now focus on its Hualilan Gold Project in Argentina.
Key highlights of Hualilan include:
- Total resource of 2.8 Moz AuEq
- High-grade core of 1.5 Moz @ 5.6 g/t AuEq
- Mineralisation remains open in all directions
- Toll milling agreement to generate early cash flow at a time of record gold prices
- Positioning as a premier near-term production asset in South America
The Company plans to use cash flow from the toll milling agreement to fund the construction of the standalone Hualilan Gold Project.
Ecuador Resource Breakdown
The 9.1 Moz MRE includes:
- 4.7 Moz AuEq at El Guayabo (100% owned)
- 4.4 Moz AuEq at Colorado V (50% owned)
Attributable to Challenger Gold (CEL) across both projects is 6.9 Moz AuEq.
The higher-grade core includes:
- 2.1 Moz at 1.0 g/t AuEq
- 1.2 Moz at 1.2 g/t AuEq
- 0.8 Moz at 1.4 g/t AuEq
Figure 2: Table showing Mineral Resource Estimates of the Ecuador projects on a 100% basis
Project Location and Geology
The projects are located in El Oro Province, Ecuador, near the port city of Machala. They benefit from year-round exploration conditions and easy access to logistics and infrastructure.
Geologically, the projects contain low-sulphide porphyry gold-copper systems with significant mineralisation potential.
Looking Ahead
Challenger Gold has now completed exploration in Ecuador and is moving into the value realisation phase. The Company will explore listing, sale, or partnership opportunities while focusing on bringing Hualilan into production.
This resource growth cements Challenger Gold’s position as a leading gold developer in South America.
Inverter’s Outlook
Challenger Gold Limited (ASX: CEL) has demonstrated strong growth potential, reflected in both its expanding gold resources and its stock performance. Following the recent doubling of its Ecuador resource to 9.1Moz AuEq, the Company is well-positioned to unlock further value for shareholders.
Stock Performance & Market Standing
- Last Price: $0.057 (+3.636%)
- Market Capitalisation: $92.82 million
- 52-Week Range: $0.037 – $0.095
- Shares on Issue: 1,687,739,681
CEL has shown positive momentum in 2025, with a 21.28% year-to-date gain and a 5.56% increase over the past month. This suggests growing investor confidence as the Company advances its strategic objectives.
Catalysts for Growth
- Resource Expansion: The Ecuador projects now hold 6.9 Moz AuEq attributable to CEL, adding substantial value.
- Strategic Unlocking of Ecuador Assets: Options include a TSX spin-off, strategic sale, or farm-in partnership—all potential stock price drivers.
- Hualilan Gold Project Focus: The transition towards production at Hualilan (2.8 Moz AuEq) provides a near-term pathway to cash flow.
- Strong Gold Market Conditions: With gold prices remaining robust, CEL’s assets are increasingly attractive to investors and major mining partners.
Investor Takeaway
CEL is emerging as a significant gold developer in South America, with dual growth drivers: a large-scale Ecuador asset and a high-grade, near-production Argentine project. Given the Company’s expanding resource base, strong YTD performance, and upcoming catalysts, CEL remains a stock to watch in the junior gold sector.
