Corazon Mining Poised to Deliver in 2018

An active, targeted and focused approach sees Corazon Mining on the cusp of delivering on the potential of its two core projects.

Corazon Mining (ASX: CZN) has always had a strong direction and focus at both its projects – the Lynn Lake Nickel Sulphide Project in Manitoba Province, Canada, and the Mt Gilmore Cobalt Project in northern New South Wales.

Thanks to recent exploration efforts the company is now better placed than ever to reap the rewards for its efforts.

Corazon completed the acquisition of the entire Lynn Lake nickel-copper sulphide Field, historically one of Canada’s largest nickel producing regions, in 2015.

It was the first time the Lynn Lake Mining Centre had been consolidated under the ownership of one company.

Since that time, Corazon Mining has systematically explored the project area; a process that has seen the company define and continually refine its priority targets over three completed field seasons.

This work has included drilling, ground geophysics, downhole geophysics and geochemistry, and has resulted in detailed geophysical and geochemical models for the stand-out target, at the Fraser Lake Complex (FLC), located five kilometres south of the Lynn Lake Mining Centre in the southern region of the company’s project tenure.

With this work complete, at time of writing, the company had confirmed new high priority drill targets and was finalising preparations for its next phase of drilling at FLC – and, with the high amount of positive, supporting exploration data generated to date combined with a highly evolved technical interpretation of these results, there is a heightened level of anticipation about the potential of the upcoming drilling program to deliver a major new nickel sulphide discovery.

Now it becomes a case of ‘watch this space’.

Corazon’s focus at the Mt Gilmore project is the Cobalt Ridge prospect, which hosts one of the highest-grade cobalt deposits in Australia.

“What is important to note, is that it is a ‘pure-play’ cobalt sulphide prospect, not a re-badged nickel – make that cobalt – laterite target, which should equate to a simpler, easier and more cost effective processing flow sheet for any future mining operation,” Corazon Mining managing director Brett Smith told The Resources Roadhouse.

“The company acquired the Mt Gilmore project in mid-2016.

“It is located 35km from the major regional centre of Grafton in north eastern New South Wales.

“Corazon Mining owns a 51 per cent interest in the project and has the exclusive right to earn up to an 80 per cent interest in the project.”

Consistent with its approach to Lynn Lake, the company has systematically advanced exploration at Mt Gilmore with similar strong success.

It has completed two substantial drilling programs at Mt Gilmore – one in the second half of 2016 and a second phase program in late 2017.

Drilling, primarily targeted the high-grade Cobalt Ridge prospect, and assay results have continued to validate Cobalt Ridge as a unique, high-grade, cobalt-dominant deposit.

Two phases of metallurgical test work have also been completed on Cobalt Ridge mineralisation, and this work has delivered exceptional results, which has strengthened the company’s view on the development potential of the project.

Corazon believes Cobalt Ridge may have the potential to supply a quality cobalt product, suitable for use in the emerging lithium-ion battery and rechargeable battery sectors.

As with most success stories, timing plays a key role.

This point is not lost on Corazon as it eyes the development of its cobalt asset at the same time that global demand for ‘technology metals’ (like cobalt, lithium and graphite) is expected to surge as the commercial adoption of these new battery technologies begins to take hold.

Cobalt is a critical component of next generation batteries.

The price of cobalt has already experienced sharp growth – from around US$22,000 per tonne in February 2016, to around US$40,000 per tonne in February 2017 and now to a long term high of more than US$80,000 per tonne – and the outlook remains strong.

Add in the fact that current global supply is constrained and skewed toward African production, and it is easy to grasp the huge opportunity that Mt Gilmore project represents for Corazon.

“Our recent metallurgical test work at Cobalt Ridge yielded recoveries of 93.6 per cent cobalt and 98.4 per cent copper,” Smith said.

“The concentrate mass represented only five per cent of the initial mass feed, with the concentrate grading at 2.02 per cent cobalt and 5.18 per cent copper.

“Also, it is important to note that this metallurgical test work was from lower grade material than the Phase 1 test work, yet still delivered these exceptional results.

The test work is on-going and is focused on defining down-stream concentrate processing options and detailed process engineering studies, as part of the wider development plan for the project.”

All results from the most recent drilling program have been reported.

Drilling has highlighted multiple cobalt, copper and gold mineralised trends.

The Main Cobalt Lode has been the primary drill target and is up to 25 metres in true width and contains multiple narrow zones of higher-grade mineralisation.

Mineralisation at the Main Cobalt Lode is open in all directions, and there is considerable scope to define extensions, and to define additional parallel lodes.

Geochemical and geophysical surveys are currently underway, and this work will assist in defining new drill targets for the next phase of drilling.

In the immediate short term though, the focus returns to the FLC at Lynn Lake.

Corazon’s exploration at the FLC to date has resulted in the discovery of a large magmatic sulphide system with the potential to host substantial nickel-copper sulphide deposits, and all holes drilled in the previous round of drilling were mineralised over their entire lengths.

The FLC has the physical and chemical characteristics that suggest it is prospective for hosting large, Lynn Lake-style nickel-copper-cobalt deposits, and the company’s drilling has confirmed this potential, consistently intersecting Lynn Lake mine-grade nickel-copper-cobalt mineralisation.

The missing piece in the model remains the pursuit of a discovery hole at the FLC, which puts Corazon’s current activities at the project into sharp focus.

The management of two potentially company-making projects is no small feat for a listed junior resources company, but it is something Corazon has handled exceptionally well – due in part to the seasonal variances of each project; field work at Lynn Lake is best undertaken in the northern winter where the frozen surfaces make access and work easier, and the company has been able to focus on Mt Gilmore through the winter months in Australia.

Also, due to the quality of the projects and their obvious potential to deliver value, Corazon has always enjoyed dedicated support for its capital raising activities, which have allowed it to continue to advance both projects.

It is fully funded for its current planned activities at both projects.

The ongoing exploration success at both the Mt Gilmore and Lynn Lake projects continues to provide Corazon with dual, highly exciting opportunities with the potential to deliver much value for shareholders, and it remains focused on delivering this on both fronts.

 

Corazon Mining Limited (ASX: CZN)
…The Short Story

HEAD OFFICE
Level 1
329 Hay Street
Subiaco WA 6008

Ph: +61 8 6142 6366

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

DIRECTORS
Clive Jones, Brett Smith, Jonathon Downes, Adrian Byass