CGN Resources (ASX: CGR) Advances Exploration and Expands Tenure in Recent Quarter

Highlights

• Completed 1,509.5m of drilling at the Webb project, revealing new mafic and ultramafic intrusions that enhance geological prospectivity.
• Applied for new tenure at the Panhandle project, targeting gold and nickel-rich Eastern Goldfields lithologies.
• Submitted applications for two exploration licenses in the Paterson Province, focused on base metal opportunities.
• Defined multiple drill-ready gold targets at the Christmas Well project within the Gwalia gold corridor.
• Executed access agreements for the Christmas Well project, advancing exploration plans in Leonora.
• Maintained a cash position of AUD 4.1 million to support upcoming exploration activities.

CGN Resources Ltd (ASX:CGR) continued to advance its exploration and project diversification strategy during the final quarter of FY2025. The company achieved significant progress across its portfolio of gold and base metal projects, with a particular focus on the Webb project in Western Australia.

Key Highlights for the Quarter

• Webb Project Exploration: The Webb Project is located in the Eastern Pilbara region of Western Australia, about 20km east of the Kiwirrkurra aboriginal community. CGN Resources continued to advance exploration at its Webb Project, with drilling carried out by its in-house exploration team in collaboration with DDH1 drilling contractor. Reverse Circulation (RC) and diamond holes were completed at the Kandula and Shep target areas, providing key geological insights that enhance the project’s prospectivity. The discovery of new intrusive mafic and ultramafic rocks in the northern section has improved the geological understanding and opened new exploration avenues for the project.

        Key outcomes from the Webb drilling program include:

• A total of six drill holes were completed, including three water bores and three mineral exploration holes.
• Drilling was completed at the K4, K5, and Shep targets.
• A total of 782m of RC drilling was completed in three pre-collars and three water bores.
• Diamond tails were completed at K4, K5, and Shep for a total of 727.5m.

• Panhandle Tenure Application Progress: The company has applied for new tenure at the Panhandle Project, located next to its existing land holdings in the region. This new area encompasses lithologies from the Eastern Goldfield Superterrane, a geological formation renowned for its substantial potential for gold and nickel deposits. The company is currently analysing publicly available data and addressing the necessary compliance requirements to secure the tenure.  
• New Tenure in Paterson Province: The company has also submitted applications for two large-scale exploration licenses within the highly promising Paterson Orogen. These tenements cover significant portions of the Broadhurst Formation, a geologically rich area of sandstone, siltstone, and shale that hosts several base metal projects, including Nifty, Maroochydore, Yeneena BM1, and multiple other pre-resource copper prospects.

Activities for the Upcoming Quarter

Looking ahead, CGN Reources has outlined a program for the next quarter, focused on advancing its exploration initiatives:

• Webb Project: Transporting core samples from Webb to Perth for further analysis and cutting.
• Site Rehabilitation: Completing rehabilitation works on-site from previous drilling programs.
• Exploration Licensing: Finalising access agreements for both the Christmas Well and Panhandle projects.
• Stakeholder Engagement: Continued engagement with traditional owners to ensure smooth project development.
• Broadhurst Project: Preliminary review and target generation for future base metal exploration.

Christmas Well Project – Leonora District Expansion

The company continues to build its land position in the Leonora district. During the March quarter, the company pegged tenure at the Christmas Well Project, targeting the highly prospective Gwalia gold corridor. The company has also executed access agreements with key stakeholders and anticipates that the tenure will be granted in the near term. The aim is to commence exploration in this area in late Q1 FY25-26.

Financial Position and Outlook

In addition, CGN Resources has maintained a cash position of AUD 4.1 million for the next round of exploration.

CGR's June quarter report highlights the company’s ongoing commitment to its exploration and diversification strategy. With notable progress at the Webb Project, new tenure applications in the Panhandle and Paterson regions, the company looks forward to continued growth in the next quarter and value creation through its strategic exploration activities.

CGR shares were trading at AUD 0.073 at the time of writing on 16 July 2025.