Corazon Completes Chalice Gold Acquisition with $16.5m Raise
Corazon Mining has secured the Chalice Gold Project from Westgold, marking its shift to a gold developer with a 191,000oz resource and a $16.5 million capital raise to fund an aggressive drilling campaign.
- Acquisition of Chalice Gold Project from Westgold for A$25.7 million
- JORC 2012 Mineral Resource of 191,000oz at 2.7 g/t gold
- Westgold takes 19.9% stake in Corazon via equity consideration
- $16.5 million placement completed to fund drilling and exploration
- Phase 1 drilling of 10,000m targeted to start in Q3 2026
Corazon Transitions to Gold Developer with Chalice Acquisition
Corazon Mining (ASX:CZN) has completed its transformative acquisition of the Chalice Gold Project from Westgold Resources (ASX|TSX: WGX), cementing its evolution from an early-stage explorer to an emerging gold developer in Western Australia. The deal, valued at approximately A$25.7 million, includes upfront cash, equity issued to Westgold, and deferred milestone payments linked to resource growth.
Chalice, located in the prolific Higginsville district, hosts a JORC 2012 Mineral Resource of 191,000 ounces at 2.7 g/t gold, providing a substantial foundation for Corazon’s aggressive growth plans. The resource remains open along strike and at depth across multiple zones, offering clear upside potential.
Strategic Backing and Capital Raise Strengthen Position
As part of the acquisition, Westgold received approximately 47.6 million Corazon shares, representing a near 20% stake in the expanded company. This strategic investment aligns one of Western Australia’s leading gold producers with Corazon’s growth ambitions. The company also completed a $16.5 million placement at $0.14 per share to fund the upfront cash consideration, accelerated drilling at Chalice, and ongoing exploration at its Two Pools and Feather Cap projects.
Managing Director Simon Coyle highlighted the mandate from shareholders to fast-track Chalice, noting the resource estimate was based on a gold price assumption of US$1,700/oz; well below current market prices; indicating potential for immediate resource and cut-off grade optimisation.
Drilling Campaign to Target Rapid Resource Expansion
Corazon is planning an initial 10,000-metre drilling campaign at Chalice, aiming to commence in Q3 2026. The program will prioritise near-surface targets, particularly up dip from the Kronos zone, with additional focus on untested extensions and parallel structural corridors. The project’s history of 645,000 ounces produced at an average grade of 5.4 g/t gold suggests significant higher-grade material could lie within reach of the current resource envelope.
This drilling push is expected to unlock further ounces and support resource growth milestones tied to deferred payments to Westgold, including JORC-compliant resource expansions to 300,000oz and 500,000oz thresholds.
Processing Optionality and Regional Infrastructure
Chalice benefits from a granted mining lease and proximity to multiple operating processing plants within 130 kilometres, including Westgold’s 1.6Mtpa Higginsville CIL facility just 22km away. Westgold’s announced plans to expand this plant to 2.6Mtpa could provide additional processing capacity options as Corazon advances the project.
The close relationship with Westgold, now a major shareholder, positions Corazon well to explore potential ore processing arrangements that could de-risk the pathway to production.
Broader Portfolio and Ongoing Exploration
Alongside Chalice, Corazon maintains exploration programs at the Two Pools and Feather Cap gold projects in Western Australia, with drilling continuing in parallel. These assets complement the company’s strategic focus on building scale in highly prospective gold districts.
Corazon’s next steps include finalising drilling plans, completing technical studies to optimise cut-off grades under current gold prices, and delivering updates as the Phase 1 program unfolds.
Bottom Line?
Corazon’s acquisition and capital raise set the stage for a pivotal drilling campaign that could rapidly expand Chalice’s resource, but the success of milestone payments and processing deals remain key variables to watch.
Questions in the middle?
- How will Corazon’s drilling results impact the timing and scale of resource upgrades at Chalice?
- What commercial arrangements will Corazon secure with Westgold for processing ore at Higginsville?
- Can Corazon replicate Chalice’s success across its Two Pools and Feather Cap projects in the near term?
