CGN Resources Secures 386 km² in Leonora, Boosting Gold Exploration Potential
CGN Resources has expanded its footprint in Western Australia's prolific Leonora Gold Province by acquiring the Desdemona Project from Patronus Resources, creating one of the largest consolidated landholdings in the region.
- Acquisition of 142 km² Desdemona Project adjacent to existing Leonora tenure
- Consolidated landholding now totals 386 km² across Christmas Well, Panhandle, and Desdemona
- Deal includes 5 million CGN shares and milestone-based cash payments
- Landholding borders major gold mines including Gwalia, King of the Hills, and Ulysses
- Plans underway for heritage surveys, exploration targeting, and drilling programs
Strategic Expansion in a World-Class Gold District
CGN Resources Limited (ASX – CGR) has taken a significant step forward in its Leonora growth strategy by executing a binding agreement to acquire 100% of the Desdemona Project from Patronus Resources. This acquisition adds a substantial 142 square kilometres of highly prospective gold tenure directly adjoining CGN's existing projects in the Leonora Gold Province of Western Australia.
With this deal, CGN consolidates a dominant 386 km² landholding that now rivals those of major regional players such as Genesis Minerals and Vault Minerals. The expanded footprint stretches across the Christmas Well, Panhandle, and newly acquired Desdemona projects, positioning CGN among the largest landholders in one of Australia's most prolific gold terranes.
A Land Package Rich in Gold Endowment and Exploration Potential
The newly acquired Desdemona tenure lies along strike from several Tier-1 gold mines, including the 8 million ounce Gwalia mine, the 4 million ounce King of the Hills, and the 2 million ounce Ulysses mine. Despite its strategic location, much of the Desdemona area has seen limited systematic exploration since the early 2000s, with historical drilling revealing numerous strong gold intercepts.
CGN's Managing Director, Stan Wholley, highlighted that the acquisition captures some of the most sought-after geological settings known to host significant gold deposits. The package offers excellent access, multiple nearby processing options, and a proven history of gold endowment, all of which provide a solid foundation for CGN’s disciplined and systematic exploration approach.
Deal Structure Preserves Cash and Aligns Interests
The acquisition deal is structured to preserve CGN’s cash reserves for high-priority exploration activities. It includes the issuance of 5 million CGN ordinary shares to Patronus Resources, representing approximately 4.3% of the fully diluted entity, escrowed for 12 months. Additionally, milestone cash payments of $250,000 upon declaration of a JORC-compliant mineral resource exceeding 100,000 ounces of gold, and $500,000 upon a decision to mine, align incentives for both parties.
Patronus Resources will also remain a technically aligned shareholder, bringing valuable local knowledge and expertise to support CGN’s exploration efforts. The transfer of tenure is subject to customary third-party consents and the establishment of a new heritage agreement with the Darlot group, reflecting CGN’s commitment to responsible land stewardship.
Broader Portfolio and Future Exploration Plans
Beyond Leonora, CGN continues to advance its Webb Project in the West Arunta Orogen, targeting copper, nickel, and critical metals, with promising discoveries including Australia’s largest kimberlite field. The company has also applied for tenure in the Paterson Province’s Broadhurst Project, focusing on copper-rich mineral systems.
In the near term, CGN plans to finalise tenure transfers, conduct heritage surveys, undertake detailed targeting studies, and commence drilling programs across its Leonora projects. These systematic exploration activities aim to unlock new discoveries within a world-class gold terrain, leveraging CGN’s growing land position and technical expertise.
Bottom Line?
CGN’s expanded Leonora footprint sets the stage for a new wave of exploration that could redefine its standing in one of Australia’s richest gold provinces.
Questions in the middle?
- How quickly will CGN complete tenure transfers and secure all necessary consents?
- What initial exploration results can be expected from the newly acquired Desdemona Project?
- How will CGN balance exploration spending across its diverse portfolio including Leonora, Webb, and Broadhurst?
