THE INSIDE STORY: Some big joint venture partners are backing Peel Mining’s low cost Cobar Basin copper-led polymetallic expansion, with gold thrown in as a valuable hedge. By Mark Mentiplay

Peel Mining (ASX: PEX) is confident it has stamped its foot on the best parts of Australia’s rich and prolific polymetallic Cobar Basin in New South Wales with two well-backed Joint Ventures.

The company is also hedging its bets with a significant 500,000 ounce gold resource in Western Australia.

Peel Mining caught the attention of the market in January with the release of excellent drilling results from the company’s highly promising Joint Venture with Japan Oil, Gas and Metals National Corp (JOGMEC) on the copper-based Superbasin project.

Drilling completed at the beginning of 2016 at the Wirlong prospect intersected multiple significant mineralised intervals, confirming a new and potentially important high-grade copper discovery.

The discovery ignited a good deal of market activity for the company, and provided it with a heightened degree of confidence for further exploration in the region.

“We’ve put our foot on what we consider to be the best parts of the Cobar Basin polymetallic province,” Peel Mining managing director Rob Tyson told The Resources Roadhouse.

“It’s a good historical mining environment and an easy place to explore.

“We consider the prize we are looking for is something like a CSA Mine.”

Tyson’s reference is to Glencore’s 50 million tonnes grading 3 per cent copper CSA mine, which lines up with CBH Resources’ Endeavour zinc-lead-silver operation, with pre-mined ore resources of about 45 million tonnes grading 14 per cent lead-zinc, and the Peak mine of Newgold, which boasts pre-mined ore resources of about 10 million tonnes at 7 grams per tonne gold.

Housing such luminescent neighbours speaks volumes for the Cobar region’s history of turning up high-grade mineral deposits and long-life mines.

“We completed more than 30 kilometres of drilling in the Cobar Basin between our 2014 and 2015 annual general meetings, and believe that while the drill bit is spinning, the dice are rolling on the table and you give yourself every chance of success,” Tyson said.

Although the Wirlong discovery did return Peel to investment community radar screens, it is still the company’s Mallee Bull copper-polymetallic project the remains its flagship.

“Mallee Bull ticks all the boxes – it’s a real copper system,” Tyson enthused.

Discovered in 2011, the 50/50 Mallee Bull JV with CBH has a resource of about 4 million tonnes grading just under 3 per cent copper equivalent (2.3% copper, 32g/t silver and 0.3g/t gold) for 90,000 tonnes of copper, 4 million ounces of silver and 43,000 ounces of gold using a 1 per cent copper equivalent cut-off, and open along strike and at depth.

Drilling has shown Mallee Bull, centred on 80 square kilometres within EL 7461, “is a major discovery for the area,” Tyson said.
 
About 7,000 metres of drilling on multiple extension targets is planned to commence from July this year, in an effort to continue to grow Mallee Bull following on from last year’s successful.

In addition to Mallee Bull, investigations have been continuing at the 2,700 square kilometre Peel-operated Cobar Superbasin project, in which JOGMEC is earning up to 50 per cent by funding up to $7 million of exploration, where the focus has been on the encouraging Wirlong discovery.

Wirlong displays all the characteristics of a Cobar-style discovery – geology, mineralisation and alteration, with very little previous exploration.

Recent drilling results have yielded up to 9 metres at 8 per cent copper including around 3m at 20 per cent-plus copper.

The better results from this hole included:

9m at 8 per cent copper, 17g/t silver, 0.21g/t gold from 616m, including 2.82m at 21.85 per cent copper, 46g/t silver and 0.62g/t gold from 619.68m;

38m at 1.18 per cent copper and 4g/t silver from 450m;

6m at 1.23 per cent copper and 5g/t silver from 430m; and

4m at 1.14 per cent copper and 3g/t silver from 643m.

Another hole returned multiple mineralised intercepts including:

4.9m at 4.3 per cent copper and 13g/t silver from 402.1m, including 0.9m at 19.5 per cent copper and 58g/t silver from 402.1m;

22m at 1 per cent copper and 4g/t silver from 332m;

3m at 2.1 per cent copper and 6g/t silver from 451m; and

2m at 1.8 per cent copper, 13g/t silver and 1.63 per cent zinc from 524m.

Peel has just completed a follow-up reverse circulation and diamond drilling program of approximately 4,000 metres at Wirlong with results eagerly awaited.

“Wirlong has produced the most significant copper drill results out of the Cobar Basin proper since we discovered Mallee Bull in 2011, so we think it bodes pretty well,” Tyson continued.

 “The Cobar-style targets are generally quite deep and pipe-like.

“The prize here is the high-grade, high-quality copper mineralisation.”

Mineralisation from the two high-grade discovery holes occurs as sulphide disseminations, veins and veinlets, breccia, and massive sulphides.

The true width of mineralisation remains unknown at this stage, however, it is thought to be sub-vertical in geometry.

Peel’s focus is on what it considers to be an obvious alteration zone outcropping as a topographic high, a ridge line that the joint venture is drilling along.

The ridge line, with old copper workings along it, is sheared and bleeding anomalous copper and lead geochemistry out of it.

At the end of the current follow-up drilling, JOGMEC will likely have completed its stage-one earn-in – $4 million for 40 per cent of the Cobar Superbasin project.

On completion of the initial stage earn-in, expected at the end of June this year, JOGMEC then has the right to go to 50 per cent by spending another $3 million.

Tyson says the two Cobar projects take up about 90 per cent of the company’s time and effort, but it is actively pursuing its 505,000 ounce Apollo Hill gold project, 50km south east of Leonora.

Peel recently completed 1,800m of RC drilling at the project to determine whether there is a reasonable chance of upgrading the outcropping gold system that has a current inferred resource of 17 million tonnes at 0.9g/t gold.

High-grade results of 8m at 6.39g/t gold from 71m, and 10m at 4.23g/t gold from 94m have been returned indicating drilling appears to have extended the Apollo Hill strike by up to 250m to the south east, boding well for a potential resource upgrade.

“Even though Apollo Hill is quite low grade, it does occur at surface and is a fairly large system as it is,” Tyson explained.

“We hope we can push that resource from 505,000 ounces towards one million ounces.”

“There are processing mills nearby, including one at Gwalia but, depending on how the gold price goes, Apollo Hill’s grade may not be robust enough to justify the 70 to 80 kilometre truck haul required.

“We’re really looking at it as a stand-alone venture and getting it to a critical mass, based on a low strip ratio and low operating cost development.”

Peel Mining Ltd. (ASX: PEX)
… The Short Story

HEAD OFFICE
Unit 1
34 Kings Park Road
West Perth WA 6005

Ph: (08) 9382 3955

Email: info@peelmining.com.au
Web: www.peelmining.com.au

DIRECTORS
Rob Tyson, Simon Hadfield, Graham Hardie

MAJOR SHAREHOLDERS
Hampton Hill Mining NL and associates: 17.15% (Josh Pitt and Neil Tompkinson)
Point Nominees Pty Ltd: 11.64%
William Hodgson and Associated Companies: 10.5%
Rob Tyson: 5.3%

THE INSIDE STORY: The old saying that the proof of any exploration play lays at the end of a drill bit is being demonstrated by St George Mining (ASX: SGQ) at the company’s Mt Alexander project in Western Australia.

Mt Alexander is located 120 kilometres south‐southwest of the Agnew‐Wiluna belt, home to numerous world class nickel deposits.

The project comprises three granted exploration licences – E29/638, E29/548 and E29/962.

The E29/638 exploration licence is held in Joint Venture by WA’s biggest locally owned nickel producer, Western Areas Limited (25%) and St George (75%) and hosts the Cathedrals and Stricklands nickel‐copper discoveries as well as the Investigators prospect which will be drilled for the first time this month.

Western Areas is also a shareholder in St George, as is that company’s former chairman Terry Streeter – who is regarded around the traps as an astute nickel investor.

Streeter has made it well-known that he considers Mt Alexander to be a new Western Areas style project.

The fun began at Mt Alexander earlier this year when St George announced multiple intersections of massive nickel-copper sulphides with its maiden drilling program at the project.

A major new discovery was made at the Stricklands prospect, located within the Cathedrals belt and approximately one kilometre west-southwest of the Cathedrals prospect where the initial discovery of nickel-copper sulphides was made by BHP Billiton in 2008.

“We commenced our drilling program at Mt Alexander earlier this year and were pleased to subsequently announce the discovery of high-grade nickel-copper sulphides with very high cobalt and platinum group elements (PGEs),” St George Mining executive chairman John Prineas told The Resources Roadhouse.

“From what we have seen so far it looks like being very valuable mineralisation.”

It only took three holes to confirm Stricklands as a significant discovery with impressive intersections of mineralisation at shallow depths 50m from surface. Assay results have confirmed:

MAD20
Returned 9.3m of disseminated mineralisation from 44.2m grading into matrix and massive sulphides with 0.93m at 2.5 per cent nickel, 0.68 per cent copper, 0.16 per cent cobalt and 1.1g/t total PGEs from 53.52m;

MAD22
Returned 7.95m of disseminated‐blebby sulphide mineralisation from 41.9m grading into stringer and massive sulphides with 2.78m at 1.62 per cent nickel, 2.51 per cent copper, 0.07 per cent cobalt and 1.88g/t PGEs from 49.85m, including 0.23m at 13.1 per cent copper, 43 grams per tonne silver from 52.4m; and

MAD23
3.75m of disseminated sulphides from 53.7m grading into matrix sulphides with 1.5m at 1.29 per cent nickel, 0.57 per cent copper, 0.06 per cent cobalt and 1.11g/t total PGEs from 55.55m and massive sulphides with 0.25m at 4.18 per cent nickel, 3.4 per cent copper, 0.18 per cent cobalt and 4.29g/t PGEs from 57.45m.

“Discovering massive nickel-copper sulphides with our first ever drill program at Stricklands showed the tremendous prospectivity for additional high grade mineralisation at Mt Alexander,” Prineas said.

“It also demonstrated the effectiveness of the EM techniques we are employing, with all conductors drilled so far proving to be nickel-copper sulphide mineralisation. This increases the probability that a number of untested EM targets in the Cathedrals belt will also deliver further nickel-copper discoveries.”

“What is also very attractive is that this is shallow mineralisation, which means this deposit is cheap to drill out – and more importantly – is likely to be a very low cost mine when that time arrives. Even with the present depressed nickel price, the economics of our project are shaping up very nicely.” 

The Stricklands results came hot on the heels of drilling success at the Cathedrals prospect with laboratory assays confirming that drill holes at four previously untested electromagnetic (EM) conductors at Cathedrals had all intersected high-grade nickel‐copper sulphide mineralisation – also with high values of cobalt and PGEs.

Drill hole MAD15, in particular, intersected 9.5m of sulphide mineralisation that included an exceptional interval of massive nickel‐copper sulphides of:

1.17m at 8.75 per cent nickel, 3.37 per cent copper, 0.24 per cent cobalt and 6.16g/t total PGEs from 30.17m.

“We were very pleased with our maiden drilling program at Cathedrals as it added significant new areas of mineralisation that build on the initial BHP Billiton discovery,” Prineas said.

“The high-grade nickel and copper at Cathedrals are outstandingwith the exceptionally high PGEs and cobalt significantly enhancingd the attractiveness of the project.”

“Cobalt is creating more interest as a strategic metal in regards to it being a vital component in the fast growth area of lithium batteries.

“All of a sudden cobalt looks like it is going to be in short supply and big demand and we have got very high levels of cobalt in our nickel sulphides.”

St George considers the discovery of high-grade nickel‐copper sulphides at Stricklands confirms that the mineralised ultramafics in the Cathedrals Belt extend intermittently for over two kilometres and recognises that the high-grade mineral system in the Cathedrals Belt is much more extensive than previous drilling had indicated.

At this stage the Investigators prospect remains unexplored, however it is anticipated the upcoming drilling there will further extend the mineralised ultramafics in the Cathedrals Belt to over 3km.

St George completed a surface EM survey at Investigators earlier this year and identified several EM conductors – three of which are planned for drilling this month. The Company says that one of these conductors is three times more powerful than any other conductor detected within the Cathedrals Belt to date.

This month’s drill program will test the three EM conductors at Investigators and will also include follow-up drilling at Cathedrals and Stricklands where several downhole EM targets were identified from the drilling there earlier this year.

“We are highly confident that we will encounter more high-grade nickel sulphides at Mt Alexander in this month’s drill program,” Prineas said.

“Our targets are really tantalising and we expect there to be a lot more exciting news emanating from the project in the near future.”

The news to come should be well worth the wait, especially given St George’s excellent success rate with recent drilling at the previously untested Stricklands prospect.

All EM conductors drilled by St George at Stricklands were confirmed as high-grade nickel‐copper sulphide mineralisation, which is a result any company would welcome for the first drill program in a new target area.

“The Stricklands discovery proves that there is great potential for further high-grade massive nickel‐copper sulphide mineralisation at this under‐explored project,” Prineas said.

“We are seeing high grades of nickel and copper as well as cobalt and PGEs over a very broad area, which is exactly what you want to see in a potential new nickel camp.

“Our confidence is growing that our upcoming drill program will deliver further exploration success.” 

St George Mining Ltd. (ASX: SGQ)
… The Short Story

HEAD OFFICE
Level 1
115 Cambridge Street
West Leederville WA 6901

Ph: + 61 8 9322 6600

Email: info@stgm.com.au
Web: stgm.com.au

DIRECTORS
John Prineas, Tim Hronsky, Sarah Shipway

MAJOR SHAREHOLDERS
Impulzive Pty Ltd: 7.03%
John Prineas: 6.38%
Oceanic Capital: 4.73%

THE INSIDE STORY: Emerging lithium player Neometals (ASX: NMT) would be the envy of many mid-cap mining companies. By Mark Mentiplay

Neometals has a healthy cash balance of $80 million and the Mt Marion lithium project, just south of Kalgoorlie, on track for first production by the end of the year.

Mt Marion is underpinned by a life-of-mine (LOM) lithium offtake agreement with China’s leading producer, which is also a project partner and another partner which is Australia’s largest contract minerals processor. The gradual sell-down to the two core partners has left Neometals with a smaller 13.8% stake in Mt Marion but the clever strategy de-risked the development for shareholders and delivered cash to pursue an exciting lithium technology proposition.

The focus for Neometals now switches to development of its patented ELi Process downstream lithium hydroxide (LiOH) plant to produce high-purity battery grade lithium hydroxide and lithium carbonate for the rapidly growing energy storage market and fed by Mt Marion lithium ore. This will be an exciting development and the first time such downstream processing of lithium has taken place in WA.

A Definitive Feasibility Study for that project, which is a joint venture with Mt Marion operator Minerals Resources (30%) is due in the current quarter, and is expected to see the lowest quartile costs for LiOH that are comparable with lithium brine operations.

The front-end engineering and design, and an investment decision is expected in 2017, followed, hopefully, by construction in 2018/2019.

The PFS on a 20-year plant life, targeted production of 10,000 tonnes per annum LiOH and 8,810 tonnes per annum lithium carbonate (Li2CO3) at an average cost of $US3,878 per tonne LiOH and $US4,538 per tonne Li2CO3, giving the project a pre-tax NPV12% of $US321 million.

At Mt Marion mining commenced at the first of six pits this year with plant commissioning now underway for first supply of six per cent lithium spodumene concentrate to 43.1 per cent Chinese project partner Ganfeng Lithium before the end of CY2016.

“Mt Marion will place Neometals high among the first of the lithium newcomers into production and to reap the rewards from current high lithium-rich spodumene prices and secure market share into the future,” Neometals chief operating officer Michael Tamlin told The Resources Roadhouse.

“In this exciting lithium market, you need to be in production or on the verge of production to take advantage of current prices.

“We will be in that market later this year delivering lithium spodumene concentrate to our partner Ganfeng.”

Total global lithium demand is expected to more than double in the next few years to feed a booming battery market, particularly in the automobile sector, major new electricity storage facilities and other uses that are springing up on a regular basis.

Recent industry estimates show Lithium demand rising from 200,000 tonnes per annum in 2014, 38 per cent of which was used in the battery market and 25 per cent for glass/ceramics, to 500,000 tonnes by 2025, 63 per cent accounting for the battery market and 15 per cent for glass/ceramics.

One thing not enough people are aware of is that Australia is the world’s largest lithium carbonate equivalent producer at 68,000 tonnes in 2014, just ahead of Chile with 67,500 tonnes, China 26,000 tonnes and Argentina 15,000 tonnes.

The Australian supply comes from a single source – Western Australian-based Talison Lithium’s 25-year-old Greenbushes mine, 250 kilometres south of Perth, which exports over 350,000 tonnes per annum of various lithium products.

Neometals took the equity route to raise funding from its existing, hands-on partners to fast-track Mt Marion into production based on current contained indicated/inferred hard rock resources of 23.24 million tonnes at 1.39 per cent lithium oxide (Li2O) and 1.43 per cent iron oxide (Fe2O3), open along strike and down dip.

In June, Neometals banked $US19.95 million after operator Mineral Resources exercised a call option to acquire an additional 13.1 per cent of Mt Marion project owner Reed Industrial Minerals P/L (RIM) from Neometals, taking its shareholding in RIM to 43.1 per cent.

This resulted in the Mt Marion J/V standings now being Ganfeng 43.1 per cent, Mineral Resources 43.1 per cent and Neometals 13.8 per cent.

Minerals Resources’ direct involvement as operator of the mine-to-port project has also meant no upfront capital costs for Neometals.

In May, Ganfeng expanded its LOM, take-or-pay agreement for 100 per cent of Mt Marion’s production from 80,000 tonnes per annum to 200,000 tonnes per annum of spodumene concentrate of between four per cent and six per cent Li2O, conditional on a decision to add a flotation plant for the lower-grade production, on which a detailed metallurgical test program is under way.

The original agreement was for 100 per cent of the six per cent Li2O grade spodumene concentrate and expanded by follow-up metallurgical testing that identified an additional lower grade spodumene product.

THE INSIDE STORY: Lithium Australia (ASX: LIT) was one of the first ASX-listed companies to realise lithium’s potential.

The company came to market spruiking the development of radical disruptive processing technology that it subsequently applied to lithium silicates.

Lithium Australia’s trademarked Sileach process is a hydrometallurgical method of recovering lithium from spodumene, currently the primary source of hard-rock lithium production.

The Sileach process aims to reduce the cost of producing lithium chemicals by recovering lithium without the need for roasting, an energy-intensive and expensive step required with conventional methodology.

The cost of roasting is so high with current processes that in most cases it renders low-grade lithium deposits uneconomic.

Sileach emerged triumphant from independent laboratory tests, with its feats of strength including lithium extractions of up to 98 per cent in four hours from alpha spodumene.

Further testing proved the process can be adapted to the recovery of lithium from all lithium silicates.

With commercialisation of the Sileach process now well underway, Lithium Australia is confident it can change the profile of the lithium production cost curve, establishing parity between hard-rock and brine producers.

The success of the Sileach process led to Lithium Australia being awarded an Innovations Connections Grant under the Australian Government’s Entrepreneurs’ Programme, which is overseen by the Department of Industry and Science.

Under the terms of that grant, the company has partnered with ANSTO Minerals, a division of the Australian Nuclear Science and Technology Organisation.

The partnership allows Lithium Australia to utilise ANSTO Milerals’ testing facilities at Lucas Heights in New South Wales and also affords the company 100 per cent of the intellectual property rights in the Sileach process, with equipment and services for pilot testing and technical services provided on an ongoing basis.

Lithium Australia’s development plan is to establish alternative processing options for companies with hard-rock lithium assets.

With Sileach offering a lower-cost alternative to the conventional roast/leach processes, the company believes it can render stranded assets viable by facilitating the processing of lower-grade spodumene deposits previously considered uncommercial.

“I think it’s important that people take a close look at our corporate philosophy – we want to establish processing hubs on a global basis wherever lithium mining and production is expanding,” Lithium Australia managing director Adrian Griffin told The Resources Roadhouse.

That philosophy involves the launch of a new wave of lithium production, based on factors that include: a paradigm shift in the costs of processing lithium minerals; the development of central processing hubs; the establishment of partnerships that match resources with the most efficient processing technology, and development of the company’s own resources as insurance for feed supply into the processing hubs.

“Our main strategy in establishing such a comprehensive portfolio of lithium projects is the processing,” Griffin explained.

“Technology is the first string to our bow, and the second is developing resources that back it up.

“That way, it doesn’t matter what happens to another company’s operations – we’ll always have an alternative source of material to put through our plant.”

As an early mover in the lithium sector, the company has identified a number of emerging lithium provinces around the world, and is working to acquire and develop a strategic footprint in those locations.

Included in Lithium Australia’s expanding inventory are deposits in the Yilgarn Craton of Western Australia, covering such iconic mining jurisdictions as Kalgoorlie (Goldfields Lithium Alliance) and Ravensthorpe.

At Ravensthorpe, the company is focusing its exploration on lithium-bearing pegmatite swarms extending to the southwest of a neighbouring development currently the subject of a $700 million merger between Galaxy Resources (ASX: GXY) and General Mining Corporation (ASX: GMM).

“Ravensthorpe is a good example of what we’re trying to achieve, given we have a $700 million merger operating right next door,” Griffin said.

“Those pegmatites at Mt Cattlin are in the same geological sequence as our substantial swarm of pegmatites along strike and in the same geological environment.

“The area has the potential to add significant quantities of lithium mica to our inventory, and to become an integral part of our plan to establish a processing facility for lithium micas in WA.

“They contain a lot of lithium; there’s no doubt about that.”

Lithium Australia’s portfolio also takes in deposits at Lake Johnson and at Greenbushes, the latter adjacent to the world’s largest existing lithium mine.

The company’s portfolio is further augmented by the potential for both spodumene and lithium mica mineralisation styles identified in WA’s emerging Pilgangoora lithium district, south of Port Hedland.

The region is quickly becoming a desirable location for explorers aiming to establish a toehold with lithium resources based around previously identified spodumene-bearing pegmatite mineralisation.

“The reason we’re so focused on Pilgangoora is that it’s endowed with enormous amounts of spodumene, and we believe we have the right technology to get the operating costs of producing lithium chemicals from spodumene down to rock bottom,” Griffin said.

“Potentially, we can provide an avenue for companies to become the cheapest lithium chemical producers with respect to the material that comes out of spodumene.

“We can do that by getting their operating costs down, which means they can process a much lower grade of material than their competitors.

“If you look at conventional processing, the commercial grade of spodumene is nothing less than six to seven per cent, which often results in a great deal of lower-grade, sub-economic material being thrown away.

“What we’re helping achieve is the ability to build a sustainable business that processes low-grade material all the time.”

Around the middle of 2016, a pilot plant in NSW will begin trials of the Sileach process.

The pilot testing will provide data for the study of a full-scale Sileach demonstration plant in WA.

Port Hedland is the company’s favoured destination for that plant, which is expected to cost around $20 million.

A commercial decision on its construction could be taken as early as December.

Lithium Australia makes no apologies for focusing on WA as the location of its first regional production hub, believing it would be enormously beneficial for the state.

“If you set up the processing hubs we’re proposing, Western Australia could lead the game and be home to some of the cheapest lithium production in the world,” Griffin maintains.

As things stand, 40 per cent of the world’s lithium is exported from WA as spodumene concentrate, which is then processed into lithium chemicals in China.

Lithium Australia believes that establishing a local facility to produce and export lithium chemicals would allow the state to instead capture some of the premium generated from a value-added product.

There is a big difference between current lithium carbonate spot prices in excess of $20,000 per tonne, and the spodumene concentrate which sells for about $3,500 per tonne of lithium carbonate equivalent.

“The lithium industry is expanding so rapidly at the moment, but we’re still exporting concentrates rather than the value-added product,” Griffin said.

“Imagine the royalty stream Western Australia is missing out on because miners export the concentrate rather than the value-added product.

 “We’ve got the technology to take spodumene – run it into an integrated circuit – and send the lithium straight to factories in Japan or Korea, bypassing the Chinese converters that are a bottleneck in the supply chain.”

With spot lithium carbonate prices currently around $23,000 per tonne, the annual revenue differential generated by exporting the value-added product could be around $800 million dollars.

Lithium Australia NL (ASX: LIT)
… the short story

HEAD OFFICE
Suite 3,
23 Belgravia Street,
Belmont WA 6104

Ph: +61 8 6145 0288

Email: info@lithium-au.com
Web: www.lithium-au.com 

DIRECTORS
Adrian Griffin, Bryan Dixon, George Bauk

MAJOR SHAREHOLDERS
Lanstead Capital LP 13.7%

THE DRILL SERGEANT: Corazon Mining (ASX: CZN) has encountered high-grade copper mineralisation during a recently completed surface rock-chip sampling program at the company’s newest undertaking, the Mount Gilmore cobalt-copper-gold project in New South Wales.

“A total of 76 rock-chip samples were taken within the project and submitted for analysis in May 2016,” Corazon Miing said in its ASX announcement.

“This sampling tested five areas identified as significant copper-gold targets.

Sampled areas include the May Queen, Iron Mountain, Gordonbrook Hill, Hassans and Puganbar targets.

“Results are consistent with historical production and surface sampling, supporting the high-grade tenor of copper mineralisation in the Mt Gilmore area.”

The results indicated mineralisation over a 12 kilometre strike within the project area, including best results of:

16.3 per cent copper from Gordonbrook Hill;

13.55 per cent copper from Pulganbar; and

5.04 per cent copper from Iron Mountain.

Corazon has secured the right to earn up to 80 per cent of the Mt Gilmore cobalt-copper-gold project from private company Providence Gold and Minerals Pty Ltd and is currently completing due diligence.

Email: info@corazon.com.au

Website: www.corazon.com.au