Highlights

• CGN has launched a major drilling program at the Webb Project targeting copper-gold IOCG, niobium-rich carbonatite, and orogenic gold.
• The drilling program will focus on the K4, K5, E1 targets as well as orogenic gold at the Shep target.
• An Exploration Incentive Scheme (EIS) grant of AU$213,000 will fund a deep diamond drill hole at the E1 target.
• The campaign will use RC and diamond rigs to explore deeper targets and rapidly expand shallow discoveries.

CGN Resources Limited (ASX:CGR) has commenced a major drilling program at its flagship Webb Project in Western Australia. The campaign will focus on copper-gold IOCG and/or niobium-rich carbonatite mineralisation at the K4, K5, and E1 targets, as well as orogenic gold at the Shep target.

The company has engaged DDH1 to conduct the drilling program, which will use a combination of diamond and RC rigs, allowing RC precollars to be completed with diamond tails. This approach enhances cost-efficiency while testing deeper targets. In the event of encountering shallow mineralisation, the company can quickly mobilise additional RC drill holes across broader grid patterns, already cleared by heritage surveys.

Furthermore, CGR announced that the E1 IOCG target has received an AU$213,000 EIS grant, which will assist in funding a 700-metre-deep diamond hole designed to test this promising target.

CGN Targets High-Impact Drill Sites for 2025 Campaign 

The company considers geoscientific excellence as a critical driver for major mineral discoveries. An integrated targeted study combining geophysics, geochemistry, and geology, alongside regional data, has identified several high-quality drill targets at the Kandula and Elmar prospects and elevated the status of the Shep target area. 

Following a detailed technical review, four priority targets have been selected for this season. These sites, including K4, K5, and E1 have demonstrated significant scale potential for mineralisation, regionally prominent gravity anomalies and associated magnetic responses, and favourable structural settings. These characteristics are key indicators for large copper-gold IOCG and niobium-rich carbonatite discoveries. 

Additionally, the Shep target has been prioritised based on positive structural data, geochemical results, FLEM and IP surveys, and results of RC drilling in 2025. 

CGN Set to Drill Four Targets 

K4 Target 
K4 is a geophysical anomaly at the Kandula target featuring a ~5 mgal gravity anomaly that relates to magnetic anomaly discovered through airborne surveys, suggesting deep-rooted extensions and near-surface protrusion indicating an intrusive body. Soil surveys have demonstrated gold and copper enrichment over the anomaly. Initially, the company plans to drill a 700m deep hole. 

K5 Target 
K5 hosts a ~4 mgal gravity anomaly aligned with a significant aeromagnetic response, appears to occur at a major fold flexure near a major NE-SW fault zone. The target is closer to the surface and will be tested with a 450–500m hole. 

E1 Target 
E1 exhibits a large (~3 mgal) coincident gravity and magnetic anomaly, occurring at or near the structural intersection of a regional-scale primary basement fault and a secondary basin fault. The attributes of the E1 target align well with the global IOCG deposit signatures. A 700m-deep drill hole is planned. 

Shep Target 
The Shep target follows up on previous RC drilling that found elevated gold and nickel on the edge of an EM plate. Soil and IP surveys confirm additional anomalies. A 450m drill hole will test the centre of the plate, with a follow-up hole targeting a nearby resistivity anomaly with a hole of the same depth. 

Additionally, the company is advancing the Panhandle and Christmas Well Projects.  

CGR shares were trading at AU$0.092 per share, up 2.22%, at the time of writing on 28 April 2025.