Challenger Development Corp.
TSX VENTURE : CDQ

January 12, 2011 08:00 ET

Challenger Development Corp.: High Grade Gold in Historical Drilling on Tanzania Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 12, 2011) - Challenger Development Corp. (TSX VENTURE:CDQ) is pleased to provide a technical update on its property acquisition in Tanzania, announced on December 3, 2010. This new property (Target 1) is composed of approximately 212 square kilometers. A review of previous drilling on the property has revealed numerous high-grade gold assays, and the potential for further gold mineralization at depth.

The Target 1 property is located within the prospective Rwamagaza greenstone belt, part of the Sukuma Land greenstone belt, within the Lake Victoria goldfields. This greenstone belt hosts the Tulawaka gold mine (1.7 million ounces), the Bulyanhulu gold mine (18 million ounces) and the Buzwagi gold mine (4.5 million ounces) which are owned and operated by African Barrick Gold. The property forms part of the Buziba-Busolwa-Buckreef project area that received extensive investigation by East Africa Mines Ltd., Spinifex Gold, Anglo Gold Ashanti, Gallery Gold Ltd. prior to 2006 and IAMGOLD Tanzania Ltd. between 2006 and 2009. Gallery Gold and IAMGOLD Tanzania completed different exploration stages, including regional geochemical and geophysical surveys, as well as reverse circulation, aircore and diamond drilling on the property. Better drilling results from the property are included in the attached table.

HOLE ID TYPE FROM (m) TO (m) OVER (m) GRADE (g/t Au) INTERCEPT
BDD011 DD 43 44.5 1.5 19.08 1.5m @ 19.08 g/t
BDD02 DD 10 31 21 7.16 21m @ 7.16 g/t
BDD07 DD 50.5 53 2.5 114.4 2.5m @ 114.4 g/t
BPRC168 RC 16 18 2 36.6 2m @ 36.6 g/t
MWBR461 RC 92 93 1 60.5 1m @ 60.50 g/t
MWBR157* RC 1 9 8 50.87 8m @ 50.87 g/t
    19 38 19 52.15 19m @ 52.15 g/t
MWBR242 RC 98 99 1 40.5 1m @ 40.50 g/t
MWBR377 RC 67 81 14 34.35 14m @ 34.35 g/t
MWBD016 DD 90 93.5 3.5 34.13 3.5m @ 34.13 g/t
MWBR247 RC 116 117 1 28.25 1m @ 28.25 g/t
MWBR395 RC 60 62 2 27.73 2m @ 27.73 g/t
MWBR109 RC 17 19 2 19.03 2m @ 19.03 g/t
MWBR223* RC 22 25 3 18.21 3m @ 18.21 g/t
MWBR421 RC 47 55 8 14.45 8m @ 14.45 g/t
MWBD024 DD 109.5 111.5 2 12.3 2m @ 12.30 g/t
MWBR120* RC 90 97 7 11.19 7m @ 11.19 g/t
MWBR225 RC 22 27 5 11 5m @ 11.00 g/t
MWBR066 RC 56 62 6 10.33 6m @ 10.33 g/t
MWBR263 RC 51 58 7 10.08 7m @ 10.08 g/t
MWBR506 RC 41 85 44 1.54 44m @ 1.54 g/t
MWBR391 RC 22 58 36 2.26 36m @ 2.26 g/t
MWBR217 RC 27 62 35 5.92 35m @ 5.92 g/t
MWBR401 RC 20 52 32 3.24 32m @ 3.24 g/t
MWBR238 RC 96 127 31 2.18 31m @ 2.18 g/t
MWBR508 RC 84 112 28 2.51 28m @ 2.51 g/t
MWBR396 RC 59 87 28 2.2 28m @ 2.20 g/t
MWBR393 RC 79 104 25 2.85 25m @ 2.85 g/t
MWBR290 (90*dip) RC 6 38 32 2.56 32m @ 2.56 g/t
*Previously disclosed in press release dated December 3, 2010.

The intersections are for drill holes at a dip of 60 degrees unless otherwise indicated.

Most of this drilling on the property, carried out by both IAMGOLD Tanzania and Gallery Gold Ltd., did not investigate beyond 100 meter vertical depth, was ended prematurely in basaltic rock (host to much of the gold mineralization on the property) and most of the mineralization is still open at depth. Any new drilling would have to investigate the potential of further gold mineralization below 100 meter vertical depth.

Mike Magrum, P.Eng., a qualified person under National Instrument 43-101, has approved the technical content of this news release.

On behalf of the Board of Directors,

Challenger Development Corp.

Simon Tam, Director

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.

Neither 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 press release.

Contact Information

  • Challenger Development Corp.
    Simon Tam
    Director
    (604) 668-5972
    (604) 871-9926 (FAX)