en.Wedoany.com Reported - CGN Resources (ASX:CGR) has completed the acquisition of the 142-square-kilometer Desdemona gold project in Western Australia and commenced its first reverse circulation drilling program at the Christmas Well project.

The acquisition expands CGN's combined landholding in the Leonora region to approximately 386 square kilometers, located within the Gwalia-Ulysses gold corridor, sandwiched between Genesis Minerals' (ASX:GMD) Gwalia and Ulysses gold mines.

The company completed heritage clearance, land access, and drilling planning during the June quarter, preparing for subsequent testing of the Ox Tongue, RMO1, RMO2, and Sweetbread targets at Christmas Well.

The project sits on the contact zone between the Raeside Batholith and the Eastern Goldfields Superterrane, a geological boundary associated with deposits such as Gwalia and King of the Hills. Much of this area is covered by transported overburden and has seen limited modern exploration activity.

CGN stated that integrating high-resolution aeromagnetic data, historical drilling, and regional geological datasets has effectively enhanced confidence in its exploration model. This work generated drill-ready targets around known gold mineralization and identified new regional targets through geophysical and structural analysis.

The acquisition of the Desdemona project also provided CGN with historical exploration data from its expanded Panhandle project. Historical intercepts include: 9 meters @ 20.2 g/t gold (Au) at the Pelican target in Panhandle, 3 meters @ 17.28 g/t gold at the Annapurna target, and 12 meters @ 2.04 g/t gold at the Paradise North target.

CGN said it has prioritized the Pelican, Annapurna, Paradise North, and Gwalia South targets. Heritage clearance has been obtained for the Pelican target, with drilling pending land grant.

At the Webb project in the West Arunta region of Western Australia, geochronological studies indicate the northern area contains older basement rocks with ages comparable to the Lander Rock Formation in the Northern Territory. The company noted that similar Proterozoic rocks host the Luni discovery by WA1 Resources (ASX:WA1) and the Green discovery by Encounter Resources (ASX:ENR) in the West Arunta province.

CGN has also expanded the Broadhurst project in the Paterson province to approximately 715 square kilometers through additional pegging. The project covers the Broadhurst Formation, which hosts sediment-hosted copper deposits, including Nifty, Maroochydore, and Yeneena BM1.

The company held A$2.1 million in cash at the end of the quarter, with operating expenditure of A$392,000. Based on current spending rates, its funds cover approximately 5.3 quarters.

Assay results from the initial drilling in the Leonora region are expected in the September quarter, alongside planning for the next drilling program at the Webb project.

CGN Resources is an exploration company focused on exploring for copper, gold, nickel, and critical metals in Western Australia.