THE BOURSE WHISPERER: Corazon Mining has upgraded the Exploration Target for the EL Deposit at the company’s Lynn Lake nickel sulphide project in Canada.
“The delineation of this target represents a significant step forward for Corazon,” Corazon Mining managing director Brett Smith said in the company’s announcement to the Australian Securities Exchange.
“It will allow us to complete high level mining studies and focus exploration on what is important.
“What we are about now is determining, with accuracy, the size and extents of the mineralisation.
“Mostly, in the short to medium term, we are looking forward to the process of proving up the size potential of our new discovery through ongoing drilling.”
Corazon’s new exploration target is supported by 72,300 metres of historical surface and underground drilling, as well as approximately 10,700 metres of surface core drilling undertaken by the company.
Exploration Target ranges for the EL Deposit, Lynn Lake nickel-copper
sulphide project. The numbers within the table have been rounded. Some
rounding errors may occur. Source: Company announcement
The exploration target now has a tonnage range of 5.2 million tonnes to 7.4 million tonnes, with contained metal of 52,000 tonnes to 139,000 tonnes of nickel, 23,000 tonnes to 55,000 tonnes of copper and 1,200 tonnes to 3,200 tonnes of cobalt.
The increase on the company’s previously released exploration target is mainly due to the discovery of a high-grade nickel sulphide breccia at depth below the historic EL Mine, called the Lower Zone, as well as the recognition in historical drilling of a substantial amount of near surface low-grade mineralisation, known as the Upper Zone.
Corazon said it considers the Lower Zone to be a significant and attractive exploration play.
The Lynn Lake mines were large-tonnage/low-cost operations that produced for 23 years at an average grade of 1 per cent nickel and 0.5 per cent copper.
Drilling is ongoing at Lynn Lake and Corazon will continue this program in 2012.
The company’s strategy is to now determine the size and extents of the newly discovered high-grade nickel-copper sulphide breccia.
This drilling will be used in the estimation of a new resource for the EL Deposit.
Corazon said it anticipates a Resource upgrade at the EL Deposit around mid-2012.
The project’s current resource of 1.8 Mt at 0.8 per cent nickel, 0.4 per cent copper and 0.02 per cent cobalt is an interim Inferred Resource to approximately 600 metres below surface.
It does not include the Lower Zone or much of the targeted mineralisation defined in the Upper Zone.