CGN gears up for discovery

CGN Resources is embarking on an aggressive exploration program as it hunts for a discovery at the Webb project in the West Arunta region of WA.

Gravity, induced polarisation (IP) and electromagnetic (EM) surveys are taking place at the Webb project, with an IP survey at the Snorky prospect already completed.

Surus is the next IP target, with CGN’s exploration team to then move onto the Horton and Tantor targets. An EM survey will be conducted at the Shep target soon thereafter.

CGN said surveying is likely to take three-to-four weeks, with results available in real-time.

This will pave the way for diamond drilling to take place at the Surus prospect in late March.

“The Surus target is a large regionally significant gravity anomaly adjacent to major a crustal feature that splays off the Central Australian Suture,” CGN said.

“It is one of the company’s IOCG (iron oxide copper-gold) targets. However, given its location in relation to recent niobium-rich carbonatite discoveries by WA1 Resources and Encounter Resources, there is the potential for this large gravity feature to also be a carbonatite.”

CGN managing director Stan Wholley said it was an exciting time for the company.

“It is great to be taking our first steps on the voyage towards discovery at the Webb project,” he said.

“Having raised $10 million back in October we are now strongly positioned to push hard on the exploration front and try and emulate the success of some of our neighbours in the West Arunta.

“These initial ground geophysics programs will set the scene for the technical team to position the upcoming diamond and RC (reverse circulation) drilling programs targeting the optimal locations.”

Once CGN completes diamond drilling at Surus, it will then mobilise an RC drill rig to site at the end of April, which will initially focus on nickel mineralisation (grading up to 1.18 per cent nickel) intersected in previous drilling.