Highlights

• CGN Resources said maiden reverse circulation drilling at Christmas Well hit gold at three of four targets, while.

• CGN Resources Limited has reported gold intersections from its first reverse circulation (RC) drilling at the Christmas Well.

• The standout result came from the Rocky Mountain Oyster target, where hole XRC0010 returned 5 metres at 2.

• At Sweetbread, the company said it intersected further gold mineralisation within the structural corridor; historical drilling there had.

CGN Resources (ASX:CGR) — said maiden reverse circulation drilling at Christmas Well hit gold at three of four targets, while its cash fell over the September 2026 quarter.

CGN Resources Limited has reported gold intersections from its first reverse circulation (RC) drilling at the Christmas Well area of its Leonora gold projects in Western Australia. In its quarterly report for the three months to 30 September 2026, the company said it drilled about 2,093 metres across four targets and intersected gold at three of them.

Christmas Well drilling results

The standout result came from the Rocky Mountain Oyster target, where hole XRC0010 returned 5 metres at 2.5 grams per tonne gold from 151 metres, including a peak assay of 10.49 grams per tonne. CGN said the mineralisation remains open down dip and along strike.

At Sweetbread, the company said it intersected further gold mineralisation within the structural corridor; historical drilling there had returned 2 metres at 6.52 grams per tonne. At Lambs Fry, in a poorly explored area, drilling returned encouraging gold anomalism and mineralisation, and CGN has raised its priority. The fourth target, Ox Tongue, returned no significant gold, although the company said it identified greenstone geology beneath cover. CGN noted that Sweetbread and Lambs Fry need further geological work before follow-up is defined.

Panhandle and tenure progress

The company's Leonora holdings cover about 386 square kilometres. At the Panhandle project, about 25 kilometres south of Leonora, the first drill target is Pelican, where historical results include 9 metres at 20.20 grams per tonne gold from 61 metres. CGN said drilling there was targeted to begin in October 2026. It cautioned that much of the historical drilling is shallow and under transported cover, and that the controls on mineralisation at Pelican are poorly understood.

CGN also said it executed the Nyalpa Pirniku access agreement, meaning all of its Leonora tenure now has active heritage access arrangements. A 142 square kilometre project acquisition at Desdemona was completed in the June quarter.

Other projects

At the Webb project in the West Arunta region, covering about 961 square kilometres and targeting iron oxide copper gold, carbonatite and critical minerals, CGN lodged an application for a $220,000 exploration incentive scheme grant. If successful, it would help fund two diamond holes, at targets named Elmar and Horton, planned for 2027. At Broadhurst in the Paterson Province, the company reported compilation of historical data and work on tenure and Traditional Owner engagement, with no field exploration.

Cash position and funding

The company reported a net operating cash outflow of $827,000 for the quarter, including $647,000 on exploration, $131,000 on staff costs and $58,000 on administration. Lease payments added a $7,000 financing outflow, and no equity was raised. Cash at quarter end was $1,274,000, down from $2,105,000 at the start of the period. Payments to related parties were $92,000.

On the figures in the Appendix 5B, the company estimated its funding runway at about 1.54 quarters at the current rate of spending. CGN said it expects to fund operations through future equity raises, but that this is not assured. Readers should note that the opening balance less the outflows works out to $1,271,000, which is $3,000 below the closing figure the company reported.

Risks and next steps

The company described its results as early stage and flagged exploration uncertainty, the short cash runway and the fact that many tenements are still listed as pending. Documents also vary on Pelican timing: one section says drilling was targeted for October, while the planned activities section places it in the December quarter.

For the December 2026 quarter, CGN said it plans to start RC drilling at Pelican and test extensions of the historical high-grade zone, complete geological interpretation of the Christmas Well Phase 1 drilling, and refine follow-up targets at Rocky Mountain Oyster and Lambs Fry. It will also continue target prioritisation at Webb and tenure and stakeholder work at Broadhurst.