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Corazon Mining Limited has completed the acquisition of the Chalice Gold Project from Westgold Resources Ltd, marking its third gold project purchase in Western Australia within the past year. This acquisition is a crucial milestone in Corazon's strategy to evolve from an explorer into a growing gold developer. The Chalice Gold Project offers significant potential for resource growth, currently holding a JORC 2012 Mineral Resource of 191,000 ounces of gold.
Key Points
- Corazon Mining Limited (ASX:CZN)
- Completed acquisition of Chalice Gold Project from Westgold Resources Ltd
- Current JORC 2012 Mineral Resource: 191,000 ounces at 2.7 g/t gold
- Plans to launch an aggressive drilling program starting Q3 CY26
Corazon Mining Secures Chalice Gold Project in Strategic Expansion Move
Corazon Mining Limited has successfully secured the Chalice Gold Project, aligning with its focused strategy to expand its footprint in Western Australia's gold industry. This acquisition from Westgold Resources Ltd is Corazon's third gold project acquisition in the region within one year, following the Two Pools and Feather Cap projects. This strategic step is set to significantly strengthen Corazon's standing as an emerging gold developer.
Located in the Higginsville district of Western Australia, the Chalice Gold Project is known for its rich mineralization. It hosts a high-grade gold system with a JORC 2012 Mineral Resource of 191,000 ounces at a grade of 2.7 g/t gold. The resource remains open both along strike and at depth, offering Corazon substantial opportunities for rapid resource expansion and development.
Acquisition Details and Financing Structure
The total acquisition cost for the Chalice Gold Project is approximately A$25.7 million, comprising an upfront cash payment of A$8.0 million and the issuance of about 47.6 million fully paid ordinary Corazon shares to Westgold Resources Ltd. These shares represent roughly 19.9% of Corazon's expanded capital. Additionally, deferred cash payments are tied to milestones related to resource growth.
Funding for the acquisition was secured through a successful A$16.5 million placement, issuing approximately 117.9 million new shares at A$0.14 each. This placement not only covers the upfront cash consideration but also finances accelerated exploration at Chalice Gold Project and further development at Corazon's Two Pools and Feather Cap projects.
Resource Potential and Upcoming Exploration at Chalice Gold Project
The Chalice Gold Project sits on a granted mining lease close to several operating processing facilities. Historically, the project produced 645,000 ounces of gold at an average grade of 5.4 g/t, significantly exceeding the current resource grade of 2.74 g/t. This suggests strong potential for discovering higher-grade material within and beyond the existing resource boundaries.
Corazon plans to initiate an aggressive drilling campaign aimed at rapid resource growth, starting with a 10,000-meter program focused on priority near-surface targets. This drilling is scheduled to commence in the third quarter of calendar year 2026. The company seeks to unlock substantial upside potential through systematic exploration and drilling efforts.
Support from Westgold Resources and Future Objectives
Following the acquisition, Westgold Resources Ltd, a major Western Australian gold producer, now holds approximately 19.9% of Corazon's expanded capital. This endorsement highlights the Chalice Gold Project's potential and Corazon's strategic direction.
Looking forward, Corazon targets key milestones linked to resource expansion. Deferred cash payments depend on achieving JORC-compliant Mineral Resource Estimates of at least 300,000 ounces and 500,000 ounces of gold, with specified grade criteria. These milestones demonstrate Corazon's dedication to growing its resource base and enhancing shareholder value.
Impact on Corazon's Growth Trajectory and Market Positioning
The Chalice Gold Project acquisition represents a pivotal advancement in Corazon's growth strategy, shifting the company from an early-stage explorer to an emerging gold developer. The project's established high-grade gold system and expansion potential align with Corazon's goal to scale its presence in Western Australia's gold sector.
With gold prices currently well above the assumptions used in the existing resource estimate, Corazon has a clear opportunity to optimize its resource base and improve project economics. The company's commitment to systematic exploration and drilling is expected to drive resource growth and solidify its market position as a leading gold developer in the region.
