Challenger drops Deatys Creek property option

After receiving the results from the second phase of drilling on its Deatys Creek property, 90 miles west of Thunder Bay, Ont., Challenger Minerals (VSE) has decided to drop its option. The best intersection of the program was 0.033 oz. per ton gold over 3.3 ft. The project was a joint venture with Hemlo Gold Mines (TSE).

Challenger will concentrate its exploration efforts on the Marshall Lake copper-zinc property 160 miles northeast of Thunder Bay. Previous work has outlined preliminary reserves of 2.2 million tons grading 4.2% zinc, 1.2% copper, 2.45 oz. silver and 0.012 oz. per ton gold in the main zone. Challenger can earn 100% interest in the property from Giant Gripp Mines by completing 40,000 ft. of drilling over a 4-year period. Under the option agreement, Giant Gripp will retain a 5% net smelter return royalty. Aur Resources (TSE) will provide consulting services to Challenger. Aur also has the right to become operator of the Marshall Lake project and earn a 50% stake in Challenger’s interest by financing the capital expenditures required to bring the deposit into production.

Ian Campbell, a Challenger director, has joined the company as manager of exploration, based in the new Thunder Bay field office.

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