CGN Resources (ASX:CGR) Restarts Drilling at Webb Project, Awaits Kandula Assays

June 11, 2025 01:36 PM AEST | By Sonal Goyal

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CGN Resources (ASX:CGR) Restarts Drilling at Webb Project, Awaits Kandula Assays — Image source: Company update

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Highlights

Drilling has resumed at the Shep target within CGN’s Webb Project following a temporary suspension due to unseasonal rainfall.

Staff and drilling contractors returned to the site on 8 June with operations officially restarting on 10 June.

Assay results from the recently drilled Kandula targets are pending, with the first batch of samples submitted to Intertek Laboratories.

Results for the Kandula targets are expected in approximately four weeks.

Perth-based CGN Resources Limited (ASX:CGR) has recommenced drilling at the Shep target within its flagship Webb Project, following a brief suspension caused by unseasonal heavy rainfall. The company confirmed that drilling crews and site staff returned to the project on 8 June, with drilling operations officially resuming on 10 June.

The current drilling campaign at Shep is designed to test a defined electromagnetic (EM) anomaly situated within a structurally favourable corridor. This target lies adjacent to zones of anomalous gold mineralisation intersected during the company’s 2024 exploration program.

About Webb Project Drilling Program

The drilling program at the Webb Project is targeting multiple mineralisation styles, including copper-gold Iron Oxide Copper-Gold (IOCG) systems, niobium-rich carbonatite and orogenic gold.

The current focus is on three high-priority targets — K4, K5, and E1 — all of which have demonstrated significant scale potential for mineralisation, according to the company.

In addition, the Shep target is being drilled for its orogenic gold potential and has been prioritised for exploration following targeting study results.

To execute the program, CGN has appointed drilling contractor DDH1 to perform a combination of reverse circulation (RC) and diamond drilling. This approach allows RC pre-collars to be drilled first, followed by diamond drilling (diamond tails) to test deeper mineralised zones. This method optimises drilling costs.

Should shallow mineralisation be encountered during initial drilling, the company is prepared to rapidly expand the program by deploying additional RC holes along broader grid patterns, which have already received heritage clearance.

Kandula Assay Results Awaited

Meanwhile, the first batch of samples from the Kandula targets has been submitted to Intertek Laboratories in Perth. Results are expected within approximately four weeks, subject to laboratory turnaround times.

CGR shares were trading at AUD 0.085 per share at the time of writing on 11 June 2025.

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