CGN Resources (ASX:CGR) has intersected gold mineralisation across three of four target areas tested during maiden reverse circulation (RC) drilling at the Christmas Well Project near Leonora in Western Australia.
The company completed 15 RC holes for 2,093m across the Ox Tongue, Lambs Fry, Sweetbread, and Rocky Mountain Oyster prospects.
Rocky Mountain Oyster returned the strongest intercept, with hole XRC010 returning 5m @ 2.67 grams per tonne gold (Au) from 151m, including 1m @ 10.94g/t Au. CGN says the hit extends the system roughly 100m deeper down dip and 80m along strike to the north from historical mineralisation.
Hole XRC009, drilled 160m southwest on the same section, returned 7m @ 0.25g/t Au from 57m. Meanwhile, drilling 2km north yielded 4m @ 0.19g/t Au from 83m in hole XRC007.
At Lambs Fry, a drill hole intersected 8m @ 0.27g/t Au from 19m and 1m @ 1.17g/t Au from 15m. Sweetbread returned multiple gold intercepts above 200 parts per billion, while Ox Tongue yielded no significant mineralisation.
Managing Director Stan Wholley remarks that the results at Christmas Well are “an excellent outcome”, validating the company’s exploration strategy.
“We set out to test a geological concept. Our team compiled the historical information, acquired new datasets, and developed a targeting strategy focused on structures extending from the greenstones into the surrounding granites of the Raeside Batholith,” Wholley says.
“This first drilling program has now intersected gold at three of the four principal target areas tested.
“That is an important result. This was a proof-of-concept program, and it has demonstrated that the structures we are targeting are fertile and capable of hosting meaningful gold mineralisation.
“We now have the geological evidence and confidence to follow these structures, expand the mineralised footprints, and progressively work towards defining larger zones of gold mineralisation.”
CGN confirms that all Christmas Well tenure is now granted, gaining full access for exploration across the broader project area. It has also secured new Panhandle tenure with heritage approvals, which now opens up the area for first-pass drilling at the Pelican prospect.
As such, CGN is now shifting its exploration focus to Panhandle, with plans to undertake approximately 2,000m of RC drilling at Pelican. The company may also potentially conduct follow-up drilling at Rocky Mountain Oyster.
CGN Resources is a mineral explorer focused on discovering copper, gold, nickel, and critical minerals in WA.
Write to Paula Fabe at Mining.com.au
Images: CGN Resources
