CGN Resources Expands Leonora Gold Portfolio with Desdemona Acquisition and Drilling Plans

Desdemona Acquisition Bolsters Leonora Presence

CGN Resources Ltd (ASX:CGR) has taken a major step in its Western Australian exploration push by securing a binding agreement to acquire the Desdemona Project from Patronus Resources Ltd. This 142 km² addition substantially enlarges CGN’s footprint in the prolific Leonora gold district, a region renowned for hosting Tier-1 deposits such as Gwalia and King of the Hills.

The acquisition, with conditions precedent nearing completion, delivers a highly prospective land package featuring multiple walk-up gold targets. Positioned strategically along the Gwalia–Ulysses mineralised corridor, the combined Christmas Well and Panhandle projects now offer extensive strike coverage across one of the Eastern Goldfields’ most productive gold trends.

Drilling Campaign Ready to Launch at Christmas Well and Panhandle

CGN’s technical team has advanced geophysical modelling at Christmas Well, identifying multiple high-quality gold targets such as Ox Tongue, Black Pudding, Sweetbread, and Rocky Mountain Oyster. These targets exhibit classic orogenic gold signatures, including structural complexity, hydrothermal alteration, and favourable granite–greenstone contacts.

With heritage surveys completed at Christmas Well and planning underway at Panhandle, the company has secured strengthened land access agreements, notably a Deed of Variation with the Darlot Traditional Owner group and ongoing negotiations with the Nyalpa group for eastern Panhandle tenure. This groundwork clears the path for a maiden reverse circulation (RC) drilling program set to commence in May 2026, with Impact Drilling Pty Ltd contracted for the job.

The Panhandle Project, expanded by the Desdemona acquisition, now covers underexplored stratigraphy directly adjacent to major gold operations like the Gwalia Mine and Ulysses hub. Historical drilling at Panhandle reveals impressive gold intercepts, including 9 m at 20.20 g/t Au and multiple intervals exceeding 2 g/t Au, highlighting the potential for new high-grade discoveries beneath transported cover.

This drilling campaign follows recent progress where CGN cleared a critical heritage survey, enabling the start of exploration at Christmas Well’s high-potential targets, including Ox Tongue and Sweetbread, as previously detailed in the company’s update heritage survey clears five key Christmas Well drill targets.

Webb and Broadhurst Projects Advance Technical Foundations

Beyond Leonora, CGN’s Webb Project in the Eastern Pilbara has seen geochronological analysis reveal a significantly older northern zone, enhancing its prospectivity for magmatic intrusive systems. Preparations for diamond drilling are underway, targeting priority prospects identified through integrated geological and geophysical data.

Meanwhile, the Broadhurst Project in the Paterson Province has expanded its tenure through strategic pegging, consolidating fragmented ground into a contiguous 712 km² package. Early-stage data consolidation and geophysical modelling have identified promising structural and geophysical features indicative of base-metal mineralisation. The company is progressing statutory approvals and stakeholder engagement to enable targeted copper exploration.

Financial Position Supports Exploration Momentum

CGN Resources ended the March quarter with a robust cash position of approximately A$2.5 million, underpinning fully funded exploration and drilling activities planned for 2026. Operating expenses for the quarter were around A$397,000, covering data analysis, fieldwork, stakeholder engagement, and corporate costs. Payments to related parties, including executive and director fees, totalled A$114,000.

Looking ahead, CGN plans to mobilise its drill rig in May to commence the Leonora RC drilling campaign, finalise the Desdemona acquisition, complete heritage surveys at Panhandle, and continue land access negotiations. The company also aims to advance Webb’s diamond drilling logistics and Broadhurst’s compliance processes to maintain exploration momentum across its portfolio.