The explorer has completed 29,100m of a 45,000m, five-rig drill campaign, with recent results undercover in areas previously undrilled said to have "significantly exceeded expectations".
Results are also said to "confirm a large scale intrusion-hosted gold system extending over 2km of strike", with the historical resource at Hualilan being 627,000 ounces at 13.7 grams per tonne.
Challenger's intrusion-hosted gold discovery at the prospect has featured intercepts of around 200m grading 1gpt.
Mineralisation has been found in a zone of 50-100m true width.
Challenger started the current quarter with A$15 million cash, while it also has $3.5 million worth of options ‘in the money'.
Shares in Challenger were up 1.5% to 36.5c in afternoon trade, capitalising the company at $238 million.
The stock was at 18c 12 months ago.
