CGN Resources completes maiden hole at Tantor target
Newly-listed explorer CGN Resources (ASX: CGR) has completed a maiden drill hole at the Tantor target within the Webb iron oxide copper gold project in the northern part of Western Australia.
The hole was drilled to a planned depth of 555 metres and was centred on a regional gravity anomaly with a modelled target depth of between 300 metres and 600 metres.
It is reported to have intersected multiple newly-discovered ultramafic sills, which can often host important nickel sulphide deposits.
Two of the thicker sills have elevated nickel, chromium, vanadium, and titanium values based on pXRF (portable x-ray fluorescence) results, as well as minor sulphides (logged as pyrite).
These will be confirmed with assays expected in January.
Shep nickel target
The ultramafic units are believed to have significant implications for the adjacent magnetic target at Tantor which remains untested, and wider implications for the nearby Shep nickel target.
A nickel anomaly previously identified at Shep is suspected to have a genetic link to ultramafic magmatism.
CGN has planned reverse circulation follow-up drilling at the target in the new year.
Managing director Stan Wholley said the maiden drill hole had been a milestone achievement for the company.
“It was satisfying to complete our first deep hole at our Tantor target, which revealed considerable new information on the geology and stratigraphy of the area. The most interesting and potentially economically significant aspect was the presence of multiple ultramafic sills, which are known host rocks to nickel sulphide deposits globally,” he said.
“The revelation of ultramafic rocks, which were previously unknown in the region, has significant positive ramifications for the adjacent Tantor magnetic target and further afield at our Shep nickel target.”
Drilling at Tantor was co-funded by a $180,000 grant under the WA government’s exploration incentive scheme (EIS).
CGN was granted preliminary heritage clearance for its 2024 Webb exploration programs in October.
The scope of work will include ground gravity and induced polarisation surveys at the Tantor, Surus, Snorky and Horton targets, as well as an electromagnetic survey at Shep.
Mr Wholley said the in-principle approval was a critical step that facilitates the onset of detailed planning and scheduling for next year’s exploration efforts.
Final clearance, along with the delivery of the conclusive survey report, is expected within the next month.
The Webb project sits within the West Arunta Orogen, which is currently one of Australia’s most active exploration districts.
CGN made its debut on the Australian Stock Exchange in October, following an initial public offering priced at $0.20 per share to raise a minimum of $8 million (through the issue of 40 million shares) and up to a maximum of $10 million (50 million shares).
Net proceeds combined with available cash are expected to provide the company with sufficient working capital for at least two years post-admission to complete disciplined and well-targeted exploration.