Challenger Deep Capital Corp.
TSX VENTURE : CDE

Challenger Deep Capital Corp.

February 02, 2010 09:00 ET

Challenger Completes Geophysics & Geochemical Programs at Redrock and Battle Mountain Projects, Nevada

Ranjeet Sundher Appointed President & CEO

CALGARY, ALBERTA--(Marketwire - Feb. 2, 2010) - Challenger Deep Capital Corp. ("Challenger" or the "Company") (TSX VENTURE:CDE) announces that it has completed additional gravity and CSAMT geophysical work, detailed mapping, and additional soil and rock geochemical sampling on both its Redrock and North Battle Mountain gold exploration properties, Nevada.

The geophysics and sampling programs are designed to further refine existing drill targets on the properties prior to commencing drill programs later this year. Results of the programs will be announced in a subsequent Challenger Deep news release.

North Battle Mountain Project (NBM)

Following initial investigation by the US Geological Survey in the 1960s the NBM has been explored by Battle Mountain Gold, Placer Dome, Teck, Gold Fields, Touchstone, Cambior, Cameco and most recently by Gold Reef International. Previous work included rock chip, and soil geochemical sampling, detailed geologic mapping, gravity and magnetic surveys but the project has never been drill tested.

Elevated gold values range from 10 to 407 ppb; in addition, significant and overlapping anomalous values of arsenic, antimony, mercury, molybdenum, zinc, lead, and tungsten were detected. One mineralized and altered zone strikes E-W to N60ºE and is approximately 150 meters wide and over 600 meters long and is open to the east. A second zone oriented at N35ºW is over 150 meters wide and 300 meters long and open in all directions. Each zone exhibits hydrothermal alteration, brecciation, episodic stock-work quartz veining with visible molybdenite, galena and black jack sphalerite. Mineralization and veining intensifies to the east at the interpreted intersection of the two zones.

Recent wide-spaced, gravity data indicates that the NBM is underlain by a strong high which is interpreted as either due to a buried intrusive at depth or an upthrown fault block. The presence of anomalous zinc, arsenic, antimony and mercury, molbydenite and tungsten are encouraging as these elements often occur above or near Carlin-style gold systems.

The NBM project exhibits potential for relatively shallow fracture and replacement, and deep Carlin-style carbonate and skarn type mineralization. Initial drill testing planned for later this year will target potential higher level fracture and replacement mineralization at the east end intersection of the two mineralized zones. The recently completed surveys were designed to further refine the shallow drill targets at NBM.

Redrock Property

Exploration work by Cameco Gold in 1996 led to discovery of mineralized and altered upper plate sandstone (Silurian) indicated by rock chip sampling values of up to 13.2 g/t Au (0.384 opt Au). Cameco subsequently collared five shallow holes (RRC98-01 through -05 totaling 720.9 m) down dip and lateral to the discovery outcrop. One hole, RRC98-05, intersected 9.1 m grading 1.285 g Au/t (30 ft at 0.037 oz/ton) immediately beneath alluvium at a depth of 7.6 m (25 ft). The vertical and lateral extent of this gold mineralization has never been established. Challenger controls all ground immediately surrounding the Cameco discovery.

From 2005 through 2007, Centerra (U.S.) Inc. collected 1,573 soil samples, which covered approximately 70% of the Challenger property. The results defined a northwest trending, structurally controlled, nearly contiguous series of gold anomalies that are in excess of 3600 meters long and 900 meters wide, with coincident anomalous values of arsenic, antimony, mercury, and zinc. Anomalous gold-in-soil values range from 0.020 g/t Au to 1.195 g/t Au (0.035 oz/t Au). The anomalous trend is hosted within upper plate, Paleozoic rocks, along and parallel to the northwest-striking Caetano caldera break, an important regional control to gold mineralization. Over 219 rock samples with values of nil to 3.29 g/t Au are associated with the soils anomaly. Anomalous arsenic, mercury, zinc, and to a lesser degree, antimony and silver area also coincident to the soils anomaly trend. In 2007, Centerra drilled (reverse circulation collar/core) five deep (to 894 meters) drill holes testing lower plate targets for Carlin-type carbonate-hosted mineralization. Anomalous gold mineralization in lower plate rocks was intercepted in two drill holes at depths exceeding 400 meters.

The recently completed gravity survey, detailed mapping, and rock geochemical sampling, focused on shallow upper plate targets located at fault intersections to the Caetano break. The recently completed work has enhanced the data base allowing the refining of drill targets on the Redrock property.

The Qualified Person (as defined by NI 43-101) responsible for the review and approval of the technical material presented in this news release is Mr. Garry Clark (P. GEO), a Director of the Company.

Challenger is earning a 100% interest in both properties by fulfilling its obligations of spending a total of US$210,000 on the properties within two years from the effective date of the original assignment to Challenger. Ansell Capital Corp.'s retained back in right to participate to the extent of a 25% undivided interest in the further development of either or of the Redrock or North Battle Mountain Properties (Please see Challenger Deep, July 23, 2009 News - www.sedar.com).

Ranjeet Sundher, Singapore, Appointed President & CEO

Effective today, founding Challenger Deep Director, Ranjeet Sundher, will be assuming the position of President and Chief Executive Officer of the Company. Challenger Deep's former President and CEO, Paul McKenzie, will remain actively involved as a Director of the Company. Mr. Ranjeet Sundher co-founded and is the former President of Red Hill Energy. As President of Red Hill he was instrumental in the discovery of over 1 billion tons of thermal coal in Asia. He brings to Challenger 10 years experience in the brokerage business and 12 years of working with publicly traded companies. Based in Singapore, Mr. Sundher's specialties are project acquisition, financing and development.

Mr. Sundher stated today: "I'm looking forward to leading Challenger Deep on behalf of all shareholders; my mandate is to create a successful resource Company." He added, "The Challenger Deep Board of Directors is comprised of experienced professionals capable of accomplishing this objective."

READER ADVISORY

Statements in this press release may contain forward-looking information including, statements regarding expected exploration activities. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Challenger. Factors that could cause the actual results to differ materially from those in forward-looking statements include exploration successes, the continued availability of capital and financing, and general economic, market or business conditions. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. There can be no assurance that the proposed exploration programs in Nevada will be completed or, if completed, will be successful.

The forward-looking statements contained in this press release are made as of the date of this press release, and Challenger does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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