CGN Resources (ASX:CGR) has completed its acquisition of the 142km² Desdemona Gold Project and commenced its maiden reverse circulation drilling program at the Christmas Well Project in Western Australia.
The acquisition expands CGN’s consolidated Leonora landholding to about 386km² within the Gwalia-Ulysses Gold Corridor, between Genesis Minerals’ (ASX:GMD) Gwalia and Ulysses gold mines.
CGN completed heritage clearances, land access, and drill planning during the June quarter ahead of testing the Ox Tongue, RMO1, RMO2, and Sweetbread targets at Christmas Well.
The project sits along the contact between the Raeside Batholith and Eastern Goldfields Superterrane, a geological boundary associated with deposits including Gwalia and King of the Hills. Much of the area is concealed beneath transported cover and has undergone limited modern exploration.
CGN says integrating high-resolution aeromagnetic data with historical drilling and regional geological datasets has increased confidence in its exploration model.
The work generated drill-ready targets around known gold mineralisation, alongside greenfield targets identified through geophysical and structural analysis.
The Desdemona acquisition also provides CGN with historical exploration data for its expanded Panhandle Project.
Historical intersections include 9m @ 20.2 grams per tonne gold (Au) at Panhandle’s Pelican target, 3m @ 17.28g/t Au at Annapurna, and 12m @ 2.04g/t Au at Paradise North.
CGN says it has prioritised the Pelican, Annapurna, Paradise North, and Gwalia South targets. Pelican has received heritage clearance, with drilling awaiting the grant of tenure.
At the Webb Project in Western Australia’s West Arunta region, geochronological work indicates the northern area contains older basement rocks with ages comparable to the Lander Rock Formation in the Northern Territory. Similar Proterozoic rocks host WA1 Resources’ (ASX:WA1) Luni and Encounter Resources’ (ASX:ENR) Green discoveries in the West Arunta province, the company notes.
CGN also expanded its Broadhurst Project in the Paterson province to about 715km² through additional pegging. The project covers the Broadhurst Formation, which hosts sediment-hosted copper deposits including Nifty, Maroochydore, and Yeneena BM1.
The company held $2.1 million in cash at the end of the quarter after recording $392,000 in operating expenditure. It estimates its funding covers 5.3 quarters at its current spending rate.
Assay results from the maiden Leonora drilling are expected during the September quarter, alongside planning for the next drilling program at Webb.
CGN Resources is an exploration company focused on copper, gold, nickel, and critical metals in Western Australia.
Write to France Pinzon at Mining.com.au
Images: CGN Resources
