Corazon Secures 191,000oz Chalice Resource, Raises A$16.5 Million for Expansion

Corazon Transitions to Gold Developer with Chalice Acquisition

Corazon Mining Limited (ASX:CZN) has taken a decisive leap from explorer to developer by agreeing to acquire 100% of the Chalice Gold Project from Westgold Resources Limited (ASX:WGX) for approximately A$25.7 million. The deal, announced on 19 May 2026, includes a combination of cash, shares, and deferred payments tied to resource milestones, and notably brings Westgold in as a near 20% shareholder in Corazon. This strategic alignment signals a long-term partnership in advancing the high-grade gold asset.

Chalice is no greenfield venture. Situated in Western Australia’s prolific Higginsville district, the project boasts a JORC 2012 Mineral Resource of 191,000 ounces at 2.7 grams per tonne gold, hosted on a granted mining lease. Historically, Chalice has produced around 645,000 ounces at an average grade exceeding 5g/t Au, underscoring the quality of the system. The resource remains open in multiple directions, with significant untested high-grade zones identified by historical drill intercepts.

Corazon plans to immediately initiate a 15,000-metre drilling campaign aimed at extending known mineralisation and testing new targets within the 780-metre strike length of the deposit. The project’s proximity to seven operational processing plants, including Westgold’s 1.6Mtpa Higginsville CIL facility just 22 kilometres away, offers multiple pathways to low-capital production options. However, access to these facilities is subject to commercial agreements, which remain to be negotiated.

Capital Raising and Strategic Stake Cement Partnership

To fund the acquisition and exploration ramp-up, Corazon has secured firm commitments for a A$16.5 million placement at A$0.14 per share, representing a discount to recent trading prices. This capital injection will cover the upfront cash payment to Westgold, drilling costs, and ongoing exploration at Corazon’s other WA gold projects, Two Pools and Feather Cap. Post-transaction, Corazon expects to hold around A$12 million in cash, providing a solid financial base for the next phase of development.

Westgold’s 19.9% stake in Corazon is a strong endorsement from one of Western Australia’s established gold producers. Westgold Managing Director Wayne Bramwell described Chalice as a non-core asset for Westgold, with the equity interest allowing continued exposure to future upside while enabling Corazon to apply a focused exploration strategy. Corazon Managing Director Simon Coyle highlighted the acquisition as transformational, emphasizing the granted tenure, resource potential, and Westgold’s commitment as a foundation for capital-efficient development.

Significant Exploration Upside at Chalice and Two Pools

The Chalice resource is split into four main zones; Kronos, Atlas, Grampians, and Olympus; each with unique structural controls and open extensions both along strike and at depth. Notably, the Olympus zone includes a deep intercept of 22 metres at 3.0 g/t Au from 524 metres downhole that remains untested by modern drilling, presenting a compelling discovery target. Corazon also identifies multiple near-mine and regional targets within the granted lease, including parallel structural corridors and high-grade intercepts outside the current resource envelope.

Corazon’s exploration momentum extends beyond Chalice. The company’s maiden diamond drilling at the Two Pools Gold Project, located in the Plutonic-Marymia Greenstone Belt, has confirmed gold mineralisation in all four holes, with assays up to 4.6 g/t Au. Structural logging revised the vein orientation to east-west, sharpening the focus for follow-up drilling. With the recent grant of Exploration Licence E52/4521 adjacent to Two Pools, Corazon is poised to accelerate exploration activity in this underexplored greenstone belt. These developments build on the company’s broader strategy of establishing a diversified gold portfolio in Western Australia, as detailed in its ongoing exploration updates and maiden drilling at Two Pools.

Market Response and Disclosure Compliance

Corazon’s recent surge in share price and volume trading prompted an ASX price query, to which the company responded transparently, confirming the confidential status of acquisition talks and assay results prior to their public release. The company’s swift capital raise and acquisition announcement, coupled with the Two Pools assay results, led to the lifting of the trading suspension on 19 May 2026. This sequence of events reflects Corazon’s adherence to continuous disclosure obligations and effective market communication, as outlined in its response to ASX price query.

Looking ahead, Corazon’s immediate focus will be on shareholder approval for the acquisition and placement at a general meeting scheduled for late June 2026, alongside executing the planned drilling programs at Chalice and Two Pools. The company’s ability to convert exploration upside into resource growth and establish processing arrangements will be critical milestones to watch.