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Gold/Mining/Energy : challenger minerals CGJ.v -- Ignore unavailable to you. Want to Upgrade?

To: NAUGHTY NOTES who wrote (41)	3/31/1998 9:44:00 AM
From: Ed Pakstas	Read Replies (1) \| Respond to of 71

Tafogo permit progress report Challenger Minerals Ltd CGJ Shares issued 8,792,645 Mar 30 close $0.24 Tue 31 Mar 98 News Release Mr Gary Oakley reports The company has been approached by a major South African gold producer with an expression of interest in possibly entering into a joint venture on Challenger's 100% owned Tafogo permit in Burkina Faso, West Africa. Challenger has provided complete technical information and if the review by the South African major gold producer is favourable, Challenger anticipates negotiating a joint venture agreement which will be mutually beneficial to both parties. Challenger has completed a phase 1 exploration program on the 469 sq km Tafogo permit in NE Burkina Faso, West Africa. The Tafogo permit is bounded in the north by the Bouroum permit (Channel Resources) and on the east by the Taparko permit (High River Gold Mines). Both companies have developed significant gold reserves on their properties. High River has recently raised US$5 million to do additional infill drilling and to commence a pre-feasibility report on its adjoining Taparko permit. High River has estimated that the adjoining Taparko permit contains between 1-3 million oz of gold. To date Challenger's exploration program has consisted of 4,180 soil samples resulting in the sampling of the entire Tafogo permit at a density of about one sample every 400 square metres. This coarse density was adopted to allow complete coverage of the 469 sq km concession and to define areas in which further followup sampling is warranted. The analyses were undertaken by Activation Laboratories of Ancaster, Ontario by a neutron activation method. Results indicate that a zone of anomalous gold extending in a northwesterly direction for about 10km corresponds to a northwestern contact between a Birimian greenstone belt and gneissic rocks of Lower Proterozoic age mapped in the northwestern part of the concession. The average anomalous gold value in this zone is about five times the background gold value. The values are accompanied by anomalous arsenic and zinc in soils. Both iron and manganese values are relatively low within this zone. Challenger believes that this suggests gold enrichment by absorption onto iron and manganese oxide has probably not occurred. The gold enrichment may be related to gold mineralization in underlying bedrock. Because of these encouraging results, Challenger plans a followup exploration program consisting of detailed soil sampling, ground magnetic surveying, geological mapping and prospecting. This will more closely define the zone of gold enrichment and prioritize drill targets to be tested on the completion of this followup exploration program. This drilling program, estimated to cost about $350,000, will include targets defined during the regional sampling program. During this program a total of eight orpailleurs workings were located with visible gold found in two of the workings. At Zone A-B the geochemical anomaly is 800m by 400m and is in line with the gold zone at Bouroum 15km to the NNW. Several quartz vein grab samples 200-300m north of Zone B assayed 3.70, 20.84, 4.60 and 5.97 g/t gold. In addition to zones A-B, and H, where a grab sample of 5.72 g/t gold was obtained, other targets have been located in the Narbingou area. Two samples near Kyentsom ran 4.68 and 1.54 g/t gold. One reconnaissance soil anomaly 6km NE of Tafogo will also be evaluated in more depth. The company plans to commence phase 2 directly or through a joint venture with a major company. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com

To: NAUGHTY NOTES who wrote (41)	3/31/1998 8:40:00 PM
From: AuldDruid	Respond to of 71

Well, well, I bought in just because the expiring options could put a little money in the kitty, then the company could look around with a jingle in their jeans for a project. I heard they might have a few samples coming back from Africa soon, but nothing huge. Suddenly it looks like they have something really interesting, and a major player looking into it - I must have stumbled over a pile of horseshoes this month for sure. Problem is, I don't understand the report well enough. Does anyone know why they now wouldn't just do an aerial magnetic survey, combine it with some cheap satellite photos, to see if their ground sampling is confirmed quickly. It seems they are entering into a pretty expensive and time/$ consuming process of drilling, which is a bit antiquated compared with modern techniques. Or could it be that they are so sure there's at least something there, they want to skip any interim step and go straight to drilling? Anyone have some more knowledgeable advice? What does drilling in Africa mean anyway - about the same thing as here - several months wait for news? I just have no way to evaluate this - I think I'm off to the library. It sounds and smells pretty good, but I would like to get some reasons too.