THE BOURSE WHISPERER: Corazon Mining (ASX: CZN) provided an update on recent activities at the company’s Lynn Lake nickel-copper-cobalt sulphide project in Canada.
Corazon Mining has utilised a new geophysical processing technique to deliver major benefits at Lynn Lake, resulting in modelling of magnetic data using newly developed methods, such as Magnetic Vector Inversion (MVI), which the company says has radically opened the prospectivity of the Lynn Lake Mining Centre.
The company said the techniques have proved more effective and accurate than the previously utilised conventional Magnetic Susceptibility Inversion method.
Corazon explained that the MVI process can identify known (previously mined) orebodies and resource areas down to at least 600 to 700 metres below surface – double that of conventional techniques.
The MVI processing of existing detailed ground magnetic data has also identified new areas of interest within Lynn Lake’s prolific historic mining centre.
“Our aim is to utilise this new modelling technique on a number of fronts at Lynn Lake,” Corazon Mining managing director Brett Smith said in the company’s announcement to the Australian Securities Exchange.
“The potential for new discoveries is obvious, however, there are also numerous historically drill defined targets in the mining area that have yet to be properly tested.
“Our focus will be on these near-mine targets with a view towards optimising the potential of the mine area ahead of more detailed mine-planning and feasibility drill-outs for the project.”
Corazon began using the MVI modelling following a review of results from the last phase of drilling it completed at the Fraser Lake Complex (FLC) at Lynn Lake that targeted compelling anomalies generated by conventional Magnetic Susceptibility Inversion modelling processes.
“Put simply the conventional inversion modelling methods didn’t deliver the results anticipated at the Fraser Lake Complex,” Smith added.
“We’re looking within a large, complex, multi-phase magmatic sulphide system with variable magnetic characteristics.
“Too complex for the conventional methods to accommodate.
“With MVI, the level of information and detail is substantial and allows us to interrogate the anomalies better.
“Targets that have previously been ignored because of their overall magnetic characteristics are now being reassessed more favourably.”
The MVI activity continues a run of good news from Lynn Lake, from where the company recently announced exceptional metallurgical results from testwork on the project’s mineralisation.
Despite Lynn Lake having a long mining history, modern reagents and processing techniques have enabled separate high-value nickel and copper concentrates to be produced for the very first time.
The initial work highlighted:
Nickel concentrate with a grade of 26 per cent nickel with recoveries of 71 per cent; and
Copper concentrate with a grade of 27 per cent copper with recoveries of 77 per cent.
These results were not optimised, and Corazon believes further refinement of the testwork could deliver even greater improvements, particularly in the recoveries.
A new round of testwork is currently in progress incorporating the same float circuit used in the previous testing, however, utilising methodologies more representative of a commercial operation.
This work is expected to optimise the methodology and deliver similar high-grade concentrates, but with increased recoveries.