Challenger Exploration

Overview

Despite decades of being one of the world’s top gold mining jurisdictions, Latin America has not waned when it comes to its relevance in the global precious metals market. In fact, top gold miners in the area are planning an increase in exploration with Newmont (NYSE: NEM) targeting full ownership of the Yanacocha gold mine.

With a desire to make mining more friendly to foreign investors and a dream of reaching $10 billion in mining exports by 2030, Argentina is one of the most favorable places for successful gold, silver and copper mining operations. The country has recently reduced export taxes from 12 percent to 8 percent and has reported that it would further reduce taxes.

Ecuador may be far away from Argentina, but it is certainly not far less exciting when it comes to mining potential. Ecuador is one of four South American countries containing part of the Andean Copper Belt, a region containing numerous tier 1 mines as well as reportedly half of the entire world’s copper. Given its confirmed gold and copper resources and lack of mining operations compared to nearby Peru and Chile (two of the other countries containing part of the Andean Copper Belt), Ecuador presents investors and mining companies with a relatively untouched source of copper as well as gold and silver.

Challenger Exploration (ASX: CEL) is an Australian-based mining exploration company that makes the best of both worlds by operating out of Argentina and Ecuador, with a focus on gold and copper exploration. The combination of its heavily experienced management team, its operations in areas of Argentina and Ecuador known for successful exploration and lucrative mineral acquisition, and positive geological results give Challenger Exploration an opportunity to succeed in its goals of gold and copper acquisition.

Given a positive future outlook on mining operations and the potential for successful additional mining, many mining companies have already begun operating out of Ecuador and/or continuing their already present operations. Companies include but are not limited to Lundin Gold (TSX: LUG), which has been regularly exporting gold since its initial industrial export in December of 2019, and Solaris Resources (TSE: SLS), which has reported positive early results.

“Copper is a good thing to own,” said Barrick Gold CEO Mark Bristow. Due to copper’s role in green energy, JPMorgan estimated that demand will increase from 1.8 million tonnes in 2021 to 3 million tonnes by 2025.

There are several reasons why Challenger Exploration is a potentially attractive option for investors. Not only is the company in a prime position to capitalize off of Argentina’s and Ecuador's increasingly mining friendly laws confirmed gold mines as well as untapped sources of copper, but its management team has impressive experience in mining operations and lucrative big-business.

Company Highlights

• Challenger Exploration is an Australian-based mineral exploration company, with emphasis on gold and copper expansion in Argentina and Ecuador.
• The Hualian Gold Project is the first of Challenger Exploration’s projects and is located in the San Juan Province of Argentina, which is one of the most friendly mining areas of Argentina as well as one of the most lucrative for copper and gold mining.
• El Guayabo is the second of Challenger Exploration’s projects and is located in the part of the Andean Copper Belt running through southern Ecuador, which contains half of the world’s copper resources and has confirmed, yet untapped mineral resources.
• Copper has been of positive investor speculation in the recent past, making an untapped yet confirmed source of copper critical to the future.
• The company’s Argentinian project is flanked by both Newmont and Glencore, demonstrating high potential for multi-million ounce yields.