23
Operations Report
CHALLENGER EXPLORATION
Exploration expenditure totalled $8.8 million 
during the year comprising $1.8 million of 
resource development and exploration costs 
delineating targets outside of the reserve and 
$7.0 million on underground mining of lodes 
outside of the reserve. The majority of the 
mining exploration costs occurred in the first 
quarter and included portions of 240 and 205 
Aminus 2 and 670 Challenger West before they 
were upgraded to the reserve. 
South East Zone (SEZ)
The SEZ structure was evaluated from the  
1100 level with three flat fans targeting 1080–
1120 mRL, as well as the 940, 280, 240 and 175 
levels. A number of significant intersections 
were returned but overall the strike length of 
continuous high grade zones appeared limited.
Resource Development
Underground diamond drilling was employed as 
the main medium for Resource Development of 
the various Challenger lodes. The Challenger 
West lode was a focus, as well as the ongoing 
evaluation of the M1 and M2 shoot  systems 
beneath the 215 Shear. 
M2 Shoot System below the 215 Shear
With the new mining fronts established below 
the 215 Shear, development drilling of the 
M1–M2 lodes on a level by level basis was facili-
tated. This revealed a number of significant 
intersections in both lodes as well as continuity 
of overall shoot geometry. 
Challenger West
The Challenger West Shoot continued to be a 
focus of development and resource develop-
ment drilling, and was targeted with programs 
from the 800 level (targeting 770 mRL), 670 
level (targeting 690–540 mRL), 640 level 
(targeting 500–450 mRL), and 215 level 
(targeting 170–50 mRL). In addition, the 
deepest intersection to date of 0.5 metres @ 
59.7 g/t was returned from 119 mRL. Overall, 
delineation of the lode and extension has been 
successful to date, but targeting and representa-
tive challenges remain due to its narrow and 
poddy nature.
Aminus Corridor
An intersection of 1.4 metres @ 15.0 g/t with 
associated visible gold was returned in the 
Aminus corridor as part of Challenger West 
resource drilling. This lies to the south of 
Challenger West OD1 and therefore a large 
distance along strike of Aminus 2. Whilst 
isolated, it demonstrates the potential along 
multiple positions within the Challenger struc-
tural domains.
continued
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Operations Report