How Will CGN Resources’ Webb Drilling and New Tenements Shape Its Future?
CGN Resources has completed a significant drilling campaign at its Webb Project, uncovering new geological insights, while also expanding its tenement holdings in Western Australia's Leonora gold district and the Paterson Province's Broadhurst Project.
- Completion of RC and diamond drilling at Webb Project with new mafic and ultramafic rock intersections
- Expansion of land position in Leonora district via new tenement applications at Panhandle and Christmas Well
- New tenure applications lodged for Broadhurst Project targeting base metals in Paterson Province
- Strong cash position of $4.1 million maintained for ongoing exploration
- Operating expenses of $1.118 million include payments to related parties
Drilling Advances at Webb Project
CGN Resources Ltd (ASX, CGR) has wrapped up a comprehensive reverse circulation (RC) and diamond drilling program at its Webb Project in Western Australia's West Arunta region. The drilling, conducted by contractor DDH1, targeted previously unexplored northern areas of the tenure, including the Kandula and Shep targets. Notably, the program intersected a new suite of mafic and ultramafic intrusive rocks, enriching the geological understanding of the area and opening fresh avenues for exploration.
Six holes were drilled, combining 782 metres of RC precollars with 727.5 metres of diamond tails. While no economic mineral intercepts were reported yet, the geological data suggest the gravity anomalies targeted are likely stratigraphic in origin rather than mineralised intrusions. Core samples are currently en route to Perth for detailed analysis, which will be pivotal in refining future drilling strategies.
Strategic Expansion in Leonora Gold District
Beyond Webb, CGN Resources has bolstered its presence in the highly prospective Leonora gold district. The company has applied for new tenements at the Panhandle Project, situated just south of the renowned Gwalia Mine, and at the Christmas Well Project, located along the Gwalia gold corridor. Both projects lie in geological settings with significant gold endowment potential but have seen limited systematic exploration due to alluvial cover.
Access agreements with key stakeholders are in place, and CGN aims to commence exploration activities at Christmas Well in the first quarter of the 2025-26 financial year. The Panhandle tenements are currently in ballot, with the company actively working through compliance and access processes.
New Tenure in Paterson Province’s Broadhurst Project
In a move to diversify its portfolio, CGN Resources has applied for two large exploration licences covering 543 square kilometres in the Paterson Province’s Broadhurst Project. This region is known for hosting significant sediment-hosted copper deposits such as Nifty and Maroochydore. Historical exploration by other companies has identified base metal mineralisation, and CGN’s technical team has pinpointed several promising targets through regional geophysical and geochemical data reviews.
The company is progressing through regulatory compliance to secure tenure and plans to undertake detailed targeting studies ahead of on-ground exploration.
Financial Position and Outlook
CGN Resources maintains a robust cash position of approximately $4.1 million, supporting its ongoing and planned exploration programs. Operating expenses for the quarter totaled around $1.118 million, covering drilling, logistics, data analysis, tenement costs, and corporate activities, including payments to related parties. The company’s financial discipline provides a solid foundation for advancing its projects through the next phases of exploration.
Looking ahead, CGN plans to transport Webb Project core samples to Perth for assay, complete site rehabilitation, finalize access agreements for Leonora projects, and continue stakeholder engagement, particularly with traditional owners. The company’s diversified project portfolio and methodical approach position it well to unlock value across multiple mineral provinces.
Bottom Line?
With core assays pending and tenure applications underway, CGN Resources is poised at a critical juncture to translate geological insights into tangible exploration success.
Questions in the middle?
- What will the assay results from the Webb Project core samples reveal about mineralisation potential?
- How quickly will CGN secure tenure grants for its new Leonora and Broadhurst projects?
- What are the company’s plans for advancing exploration beyond initial drilling and sampling phases?
