CGN Resources Ltd (ASX:CGR) has made progress since listing on the ASX earlier this month with deep drilling at the Tantor IOCG target well underway at its Webb Project in the Eastern Kimberly region of Western Australia
The company has also completed an extensive heritage clearance for 2024/2025, positioning CGN to unlock the potential of the Webb Project.
Perth-based CGN started trading on ASX on 18 October 2023 after raising $10 million dollars from an oversubscribed initial public offer (IPO) at $0.20 per share.
The Webb Project cover 948 square kilometres of the highly prospective West Arunta Orogen, a package of Proterozoic to Archean aged rocks considered highly prospective for large magmatic base metal, precious metal and kimberlitic diamond deposits.
During exploration for diamonds, multiple holes returned highly anomalous base metal intersections for copper, nickel and rare earth elements.
Based on these results CGN has changed focus from diamond exploration to base and specialty metal exploration which will be the focus of work over the coming years.
CGN’s first hole at the Tantor target started on 12 October and is currently at a depth of about 175 metres.
Diamond rig setting up on Tantor.
The first hole is testing a high-quality gravity anomaly which has the potential to be a large IOCG (iron oxide copper-gold) magmatic system.
Geophysical modelling indicates the target extends over 2km x 1km at Tantor with model target depths of 250m to 600m+.
The hole will test the central part of the anomaly to a vertical depth of 520m.
The Tantor hole will provide valuable information on the geology, geochemistry, and alteration on this high priority target and enable CGN to refine its drilling strategy for a major campaign in 2024.
The core samples will be sent to Perth for analysis and the company expects to be able to report assay results from the submitted samples in early Q1 2024.
The Surus hole is planned to start at the completion of the Tantor hole.
Location of CGN’s Webb Project in the West Arunta, Western Australia.
CGN managing director Stan Wholley said: “It is great to see the rig turning and getting some high-quality core from our first diamond drill hole into our Tantor target.
“As of yesterday, the hole was at 175m and we are making good progress with the top of the target zone looming large at 250m-600m+.
“With this kind of true exploration drilling each core run is something new and the tension mounts for discovery with each new run.
“Our focus is on uncovering evidence of a large magmatic system indicative of an iron oxide copper gold (IOCG) system, supporting our ongoing exploration of this significant target.”
Heritage clearance program
As part of CGN’s ongoing commitment to work closely with its stakeholder communities, it has recently renegotiated its land access agreement with the Native Title Holders.
This milestone enables the company to bring all its tenure and recent applications under the same long-term agreement.
The heritage clearance team conducted a comprehensive Heritage Survey to establish access routes and clear the sites for ground-based geophysics programs and drilling in 2024.
The Native Title Holders were provided valuable insights into their traditional lands during the survey. All proposed drill sites and access routes were successfully visited.
CGN anticipates receiving the final clearance survey report within the next month.
“Substantial exploration programs in 2024”
Wholley added: “I spent a week on site working with Native Title Holders and Tjamu Tjamu (Aboriginal Corporation) RNTBC to complete a heritage clearance program for our substantial exploration programs in 2024.
“I can’t thank them enough for their hard work over the course of the week. We all put in a week of hot dusty work to get all of our proposed programs cleared.
“Everyone remained in high spirits and we were able to clear all our new access tracks, drill sites for 2024/25 drill programs, and areas for ground geophysical survey.”
Exploration plans
The first two targets to be tested in this first-pass program will be Tantor and Surus.
Both targets have the potential to be large magmatic systems given the scale of the gravity anomalies at each location.
These first holes will provide invaluable data on the nature and scale of the anomaly and how best to explore these targets in more detail over the next year.
CGN is actively engaged in target refinement and comprehensive planning for its 2024 exploration campaign, positioning the company for continued success in unlocking the full potential of the Webb Project.
Programs that will proceed during 2024 include EM surveys, IP surveys, ground gravity surveys and a series of drilling programs to test CGN’s other targets at Snorky, Horton, Shep and Hathi.
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