Let me know how it goes as I'd be interested in doing that mod too.
I've just quickly tried it (albeit using a 3.5mm jack not an extension cable) and it seems to work, however, I'm not sure I recommend it.
The main downside is that this is only going through the pre-amp of the CXA1034 (line level?) and on my TV (a cheap Tesco one, only used for projects) it's at 100% before it's close to comfortable.
Perhaps if using a separate sound system it may be better.
Due to the above, I haven't tested the actual audio quality.
I also haven't tested it with the Mega CD since the MD is still in pieces and the MCD is setup with a different MD in the 'tower of power'. So I don't know if the sound will still be distorted like it was before.
One thought I've had is to maybe 'convert' the front headphone jack to rear (desoldering the connector and soldering in the cables for the rear) or just tapping into the headphone jacks pins, but I don't know how 'safe' that might be for the console.
For now I think I'm just going to finish up and leave things as they are (i.e. working), maybe revisiting it another day.