CGN Resources (ASX:CGR) Managing Director Stan Wholley says the recently acquired Leonora tenure offers the company with “exposure to a district-scale opportunity immediately south of one of Australia’s most significant gold deposits“.
“Historical work confirms the presence of significant gold mineralisation, yet the project remains poorly explored at depth and under cover,” Wholley says.
The new Leonora area along with the company’s existing tenure in Western Australia forms the greater Panhandle Project, which hosts an underexplored gold corridor.
The corridor is located immediately south of the Gwalia Mine, which hosts 8 million ounces of gold.
CGN has identified four gold prospects across the Panhandle tenure for returning intersections exceeding 2 grams per tonne gold. These prospects include Gwalia South, Annapurna, Paradise North, and Pelican.
Historical drill intersections from these prospects include 3m @ 17.28g/t gold from 170m, 3m @ 13.27g/t gold from 42m, and 12m @ 2.04g/t gold from 48m.
“With modern exploration tools and a significantly stronger gold price environment than that which prevailed during the majority of historical drilling, we believe the Project presents a compelling opportunity for meaningful discovery,” Wholley adds.
“Our focus is now on delivering new high-quality targets and following up historical gold intercepts to systematically evaluate this potential.”
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
