CGN Resources (ASX:CGR) has completed the acquisition of the Desdemona Project in Leonora, Western Australia, from Patronus Resources (ASX:PTN).
Patronus holds around 4.3% of CGN Resources’ fully diluted entity through the issuance of five million shares, valued at around $500,000 based on current pricing. Shares will be held in escrow for 12 months.
CGN Resources will make two milestone payments following the acquisition, including $250,000 in cash upon the declaration of a resource estimate exceeding 100,000 ounces of gold and $500,000 in cash upon a decision to mine.
The acquisition comprises 255km2 of land in the Leonora region, located along strike from the 8-million-ounce Gwalia Gold Mine and the 2-million-ounce Ulysses Gold Mine.
Desdemona covers the same geological corridor that hosts Gwalia and Ulysses, along with the Admiral and Orient Well deposits.
Historical drilling at Desdemona has returned intersections including 9m @ 20.20 grams per tonne gold from 61m at the Pelican prospect, 3m @ 17.28g/t gold from 170m at Annapurna, as well as 3m @ 13.27g/t gold from 42m and 12m @ 2.04g/t gold from 48m at Paradise North.
CGN Resources Managing Director Stan Wholley says the completion of the acquisition reflects a “genuine step-change in CGN’s Leonora growth strategy”.
“The scale, prospectivity, and strategic location of the project make this an exciting time for the company as we transition into active exploration,” Wholley says.
“With a substantial pipeline of high-quality exploration opportunities now secured, CGN is well positioned to undertake disciplined, modern exploration across this highly prospective and world-class gold terrain.
“The company aims to be on the ground and complete initial ground truthing and prospecting as part of the field programs commencing at the end of the month.”
As reported by Mining.com.au, CGN Resources entered a binding agreement with Patronus for the acquisition of the project in January 2026.
CGN will begin a detailed review and targeting studies at Desdemona, followed by heritage surveys and initial field reconnaissance before conducting drilling operations.
CGN Resources is focused on unlocking Western Australia’s mineral potential through its portfolio of assets across the state.
Write to Maddison Elliott at Mining.com.au
Images: CGN Resources
