CGN Resources (ASX:CGR) Advances Leonora Gold Projects with Drilling in Sight

Highlights

• CGN Resources entered a binding agreement to acquire the Desdemona Project, adding 142 sq km of prospective tenure in the Leonora gold district.
• High-priority drill targets were identified across the Christmas Well and Panhandle projects.
• Maiden reverse circulation drilling is scheduled to commence in May 2026.
• Land access and heritage processes progressed, enabling readiness for on-ground exploration activities.
• The company reported a cash position of approximately AUD 2.5 million to fund upcoming drilling and exploration programs.

CGN Resources Ltd (ASX:CGR) has reported significant progress across its Western Australian exploration portfolio during the March 2026 quarter, with developments spanning project acquisitions, target generation, and preparations for upcoming drilling campaigns. Activities focused on advancing gold prospects in the Leonora region while progressing early-stage work at the Webb and Broadhurst projects.

The company reported a cash position of ~A$2.5 million to fund exploration campaigns and near-term drilling activities.

Expansion Strengthens Leonora Portfolio

A major development during the quarter was the agreement to acquire the Desdemona Project, adding 142 square kilometres of prospective tenure in the Leonora region, one of the premier gold belts in Australia. The addition of this tenure increases exposure to prospective geological settings, adds scale to the Christmas Well and Panhandle projects and introduces multiple drill-ready targets. Conditions related to the transaction are progressing toward completion.

Image source: Company update

Target Generation Advances Across Leonora Projects

At the Christmas Well Project, advanced geophysical modelling identified several priority gold targets, while land access agreement and heritage activities (completed at Christmas Well) indicated the company’s capability to rapidly move towards on-ground exploration.

Targets such as Ox Tongue, Rocky Mountain Oyster, Sweetbread, and Black Pudding have been prioritised based on geological and structural indicators.

At the Panhandle Project, the expanded tenure following the Desdemona acquisition has increased exploration potential. The acquisition includes significant historical geological database, enabling identification of targets including Pelican, Annapurna, and Paradise. Notably, large areas of project remain underexplored.

Drilling and Access Preparations Underway

Preparations for drilling progressed during the quarter, with maiden reverse circulation drilling anticipated to commence in May 2026. Land access arrangements were also advanced, including a Deed of Variation with the Darlot Traditional Owner group to bring all CGR’s tenure into the land access agreement. Discussions with the Nyalpa group are ongoing to facilitate access to additional areas – Patronus tenure, within the expanded tenure.

Heritage survey planning at Panhandle is continuing to support near-term exploration activity.

Progress at Webb and Broadhurst Projects

At the Webb Project, geochronology results indicated that the northern zone contains older geological formations, improving understanding of the project’s structure and opening new exploration opportunities. Preparations for diamond drilling are underway, focusing on high-priority northern targets.

At the Broadhurst Project, landholding was strengthened by pegging a new 50-block exploration licence, bringing previously scattered tenements together into a unified and continuous package. The company also progressed statutory and compliance processes required for the granting of the new tenure. Alongside this, ongoing geophysical modelling and consolidation of historical datasets are supporting early-stage target identification across the project area.

The March 2026 quarter marked a period of expansion and preparation for CGN Resources, with the Desdemona acquisition, target development, and drilling plans positioning the company for increased exploration activity. With drilling set to commence and multiple targets identified, the upcoming period is expected to focus on testing key prospects across its assets.

CGR shares were trading at AUD 0.07 per share at the time of writing on 24 April 2026.Bottom of Form