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Highlights
- CGN has completed the acquisition of the 142km² Desdemona Project, expanding its consolidated Leonora landholding to 385km².
- The project is located within the same prospective gold corridor that hosts the Gwalia, Ulysses, Admiral and Orient Well deposits.
- Historical drilling returned high-grade gold intercepts, including 9m at 20.20g/t Au at Pelican and 3m at 17.28g/t Au at Annapurna.
- Multiple walk-up targets, untested mineralised trends and underexplored prospective geology provide a pipeline of exploration opportunities.
- Exploration planning is underway targeting drill-ready prospects.
CGN Resources Limited (ASX:CGR) has completed the acquisition of the 142km2 Desdemona Project from Patronus Resources Limited, significantly expanding its gold exploration footprint in Western Australia's Leonora gold region. Combined with CGN’s existing Christmas Well and Panhandle projects, the acquisition increases the company's consolidated landholding to 385km², establishing a district-scale presence within one of Australia's most productive gold regions.
Project Positioned Within Proven Gold-Bearing Corridor
The Desdemona Project is situated along strike from the Gwalia Mine (8Moz) to the north and lies within the same highly prospective stratigraphic corridor that hosts the Ulysses, Admiral, and Orient Well gold deposits.
Previous exploration programs across the project area identified multiple high-grade gold intersections across several targets. Notable historical results include:
- 9m at 20.20g/t gold from 61m at the Pelican Prospect
- 3m at 17.28g/t gold from 170m at Annapurna
- 3m at 13.27g/t gold from 42m and 12m at 2.04g/t gold from 48m at Paradise North
These high-grade historical drill intersections have identified several walk-up exploration targets.
Expanded Landholding Creates New Exploration Opportunities
The acquisition provides a portfolio of advanced-stage and emerging gold targets across a highly prospective district-scale land package. Several known mineralised trends remain largely untested at depth and along strike, presenting opportunities for further exploration success.
The project also includes extensive prospective stratigraphy concealed beneath shallow cover that have witnessed ineffective historical exploration. These areas offer potential for the discovery of new greenfield gold systems.
Supported by high-grade historical drilling results, favourable geological settings and an expanded presence within one of Australia's leading gold-producing regions, the company is progressing exploration plans aimed at evaluating multiple drill-ready gold targets.
Transaction Structure Preserves Exploration Capital
The acquisition has been structured to minimise upfront cash expenditure while maintaining funding capacity for exploration and discovery activities.
Under the agreement, CGN has issued 5 million shares to Patronus Resources, representing approximately 4.3% of the fully diluted company, with the shares escrowed for 12 months.
The transaction also includes two milestone-based payments:
- $250,000 cash payment upon the declaration of a JORC 2012-compliant Mineral Resource exceeding 100,000 ounces of gold
- $500,000 cash payment upon a formal decision to mine
Following the satisfaction of all conditions precedent, CGN has issued the shares and welcomed Patronus Resources as a shareholder.
With the Desdemona acquisition now complete, CGN has established a larger presence within the Leonora gold district through a consolidated 385km² exploration position. The expanded tenure combines historical high-grade drill results, multiple exploration targets and underexplored prospective geology, with exploration programs set to focus on advancing drill-ready prospects.
CGR shares were trading at AUD 0.068 per share at the time of writing on 3 June 2026.
