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Challenger Development Provides Technical Update on Tanzania Property

Challenger Development Corp. (TSX VENTURE:CDQ) has provided 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.

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.

Source:

Challenger Development Corp.

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