Insights

Why the Challenger Exploration (ASX:CEL) share price is on the move

The Challenger Exploration (ASX:CEL) share price is edging higher after the company outlined plans for a new drilling program Argentina.
The post Why the Challenger Exploration (ASX:CEL) share price is on the move appeared first on The Motley Fool Australia. –

mining asx share price rise represented by female mining exec talking happily on phone

Challenger Exploration Ltd (ASX: CEL) shares are edging higher today after the company outlined plans for a new fully-funded drilling program in San Juan, Argentina. At the time of writing, the Challenger share price is trading 1.59% higher at 32 cents.

Challenger Exploration is engaged in the exploration of gold and copper with operations in Ecuador and Argentina. The company is developing two complementary gold/copper projects in South America, namely the Hualilan Gold Project in Argentina (the focus of today’s update) and the El Guayabo Gold/Copper Project in Ecuador.

New drilling program

The Challenger Exploration share price is responding positively after the miner advised its fully-funded, five-rig, 30,000-metre drilling program at the Hualilan Gold Project is expected to significantly increase the scale of its operations. 

Challenger’s new program builds on a recently completed 45,000-metre drill program, which it says has seen Hualilan emerge as a gold discovery “with significant scale that remains open in all directions”.

Drilling is expected to continue to increase the scale of the project because it includes new targets away from Hualilan, which are to be tested in the current 30,000 metres of drilling.

The program is being funded through Challenger Exploration’s available cash of approximately $14.5 million, bolstered by another $3.5 million in option financing.

The company’s latest market update was released at 1.21 pm AEST, pushing the Challenger Exploration share price into the green.

Management comments

Challenger Exploration managing director Kris Knauer commented that Hualilan is proving to be very lucrative. He said:

The extension of the current drill program was always going to be an easy decision given the results we have been receiving, not just recently, but since we started drilling at Hualilan. Already it looks like the new 30,000 metre program will emulate the old program.

The last hole in our 45,000 metre program, and western most test of the Magnata Fault, has intersected strong mineralisation while the first hole in our new 30,000 metre program…has been deepened as it is still drilling through mineralisation. Hualilan continues to surprise us on the upside and where [we] land in the next 12 months will be a long way ahead of the expectations we had when we started drilling our first hole.

Challenger Exploration share price snapshot

The Challenger Exploration share price has gained 52% in 2021 so far, and 190% over the past 12 months. Based on the current share price, the company commands a market capitalisation of around $174 million.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Challenger Exploration (ASX:CEL) share price is on the move appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!