Corazon Finalises Chalice Acquisition, Targets Rapid Gold Growth

Chalice Acquisition Marks Corazon’s Transition to Developer

Corazon Mining Limited (ASX:CZN) has sealed its transformative acquisition of the Chalice Gold Project from Westgold Resources (ASX:WGX), stepping decisively from explorer to emerging gold developer in Western Australia. The purchase brings a 191,000-ounce JORC 2012 Mineral Resource at 2.7 grams per tonne gold under Corazon’s control, with significant upside potential as the resource remains open along strike and at depth.

This transaction, Corazon’s third WA gold project acquisition in under a year after Two Pools and Feather Cap, consolidates its focused strategy on the state’s prolific gold belts. Managing Director Simon Coyle emphasised the company’s readiness to accelerate growth, noting the resource’s current estimate was based on a US$1,700/oz gold price; well below today’s levels; highlighting immediate opportunities for cut-off grade and resource expansion optimisation.

Strategic Partnership with Westgold Enhances Development Prospects

Westgold Resources now holds nearly 20% of Corazon’s expanded capital following the deal, reflecting a strong endorsement from one of WA’s leading gold producers. This strategic alignment could prove pivotal as Corazon evaluates processing options, with Chalice located just 22 kilometres from Westgold’s 1.6 million tonnes per annum Higginsville CIL plant. Westgold’s recent announcement to expand this facility to a nominal 2.6Mtpa adds a layer of optionality for Corazon’s future development plans.

The total acquisition consideration is approximately A$25.7 million, comprising A$8 million upfront cash, roughly 47.6 million Corazon shares issued to Westgold, and up to A$11 million in deferred cash payments tied to resource milestones. Corazon has completed a A$16.5 million placement to fund the upfront cash component and ramp up exploration activities across Chalice and its other WA projects.

Aggressive Drilling Campaign Targets Resource Growth

Corazon is gearing up for a 10,000-metre drilling program slated to commence in the third quarter of 2026, initially focusing on near-surface targets up dip from the Kronos zone. The project’s history of producing 645,000 ounces at an average grade of 5.4 g/t gold; significantly higher than the current resource grade; underscores the potential for high-grade material within and beyond the existing resource envelope.

Priority targets include a 700-metre untested extension north of the Olympus zone and a lightly tested parallel structural corridor about 2 kilometres east. These areas represent compelling opportunities to expand the resource and add ounces quickly, especially given the elevated gold price environment.

Resource Re-optimisation Reflects Elevated Gold Prices

The existing Chalice Mineral Resource, reported at a 1.3 g/t Au cut-off grade and estimated at a US$1,700/oz gold price, is due for a technical review to reflect current market conditions. Corazon plans to undertake cut-off grade and pit shell re-optimisation studies to assess potential expansions and improved economics. While preliminary, these studies could materially enhance the resource’s value and development prospects.

Chalice’s granted Mining Lease and proximity to multiple operating mills within 130 kilometres provide a de-risked pathway to production. Corazon’s collaboration with Westgold, which holds a significant equity stake, may facilitate future processing arrangements, streamlining the project’s advancement.