Christmas Well & Panhandle Projects

The Company is  rapidly developing the Christmas Well and Panhandle Projects to the North and South of the township of Leonora in Western Australia respectively. The project areas are targeting the highly endowed region where the Norsman-Wiluna greenstone belt is in contact with the Raeside Batholith.  This contact hosts the 8 Moz Gwalia Mine, the 2 Moz Tower Hill Mine, the 4 Moz King of the Hills Mine and many smaller gold mines and deposits.  The CGN Resources  tenure covers this very favourable contact in several locations which will be the focus of exploration when the tenure is granted.

Within the project areas the Company has identified the sheared contact between the Raeside Batholith and the Norseman Wiluna greenstone belt as a highly prospective gold setting that remains relatively underexplored under a variable depth of cover, up to 80m depth. Furthermore Christmas Well overlies a strong gravity gradient with multiple gold hits recorded in drilling within the DEMIRS WAMEX database that require follow-up.

Due to the widespread alluvial cover the Project has seen limited systematic exploration. Historical work comprises of sporadic surface geochemistry and first pass vertical air core drilling programs of 400m -1.2km spaced lines and 100m – 200m spaced holes (see figure below) with minor follow up RC programs adjacent to significant gold results.

The historical data provides compelling evidence for anomalous gold being present in the region and within the Christmas Well project. There are several multi-metre plus 1 gram per tonne Au hits within the tenure and in directly adjacent tenure (see figure below) as well as broad areas where anomalous gold is present aligned with favourable geology and structure. Although some follow-up infill drilling has occurred many of these anomalous results have not been systematically followed up. These and other interpreted structural targets provided clear areas to focus drilling programs when the tenure is granted.