THE BOURSE WHISPERER: Corazon Mining (ASX: CZN) has finalised terms for the acquisition of the Victory nickel project in the Lynn Lake Nickel-Copper Field, in the central Canadian province of Manitoba.
Corazon is to acquire the Victory project from TSX-listed Victory Nickel.
The Victory project is located immediately adjacent to Corazon’s Lynn Lake nickel project.
Lynn Lake claim outline and prospect location. Source: Company announcement
Corazon said the acquisition will consolidate the Lynn Lake Nickel-Copper Field for the first time since its closure in 1976.
The Lynn Lake mining centre operated from 1953 until 1976, producing 22.2 million tonnes at one per cent nickel and 0.5 per cent copper at a rate of approximately one million tons per annum.
Lynn Lake is Canada’s third largest nickel mining region and, following completion of the Victory project acquisition, will be controlled entirely by Corazon.
“Corazon’s consolidation of the Lynn Lake field will provide a significant nickel-copper asset,” the company said in its ASX announcement.
“The company believes bringing the two nickel projects together will improve the economics of any potential mining operation and provide benefits in scale and possible mine life, enhancing the opportunity to take advantage of an appreciating nickel metal price.”
The Victory project has a Canadian (NI 43-101) Measured, Indicated and Inferred Resource totalling 17 million tonnes at 0.66 per cent nickel and 0.33 per cent copper, for the deposits closest to Corazon’s EL Deposit.
Corazon and Victory have executed a Binding Term Sheet and will seek any necessary approvals and finalise the formal agreement.
On completion of the acquisition, Corazon said it intends to generate a JORC 2012-compliant Resource at both the A Plug and EL Plug while mining Studies will also be progressed.
This work will predominantly involve desktop resource modelling and Corazon believes it can be completed within the next 12 months using the company’s existing funds.
Corazon’s key target within its Lynn Lake project area has always been the EL deposit, which was the highest grade mine at Lynn Lake, producing 1.9 million tonnes at 2.5 per cent nickel and 1.15 per cent copper.
In 2011, Corazon discovered a new high-grade sulphide breccia at depth below the EL Mine, which the company said had confirmed the prospectivity of the Lynn Lake field, despite its extensive past mine life.