Corazon Reports High-Grade Nickel Drilling Results Enhancing Mineral Resources Potential; Stock Up 33%

Earlier Today, Corazon Mining Limited (ASX:CZN), a focussed explorer of two quality projects including the Mt Gilmore Project and the Lynn Lake Ni-Cu-Co Mining Centre, announced the additional assay results including the previously reported assay results for all priority diamond drilling samples from its drilling program that ended in December.

Post the announcement the CZN shares shot up by 33% on ASX today and closed the day at $0.004, with a market cap of $6.26 million.

A Glance Through Corazon’s Two Ace Projects: Lynn Lake and Mt Gilmore: Must Read

Result Highlights

A Orebody

• 8 metres @ 1.68%Ni, 0.67%Cu, 0.050%Co from 10 metres; including
• 6 metres @ 2.30%Ni, 0.82%Cu, 0.068%Co from 24.4 metres

E Orebody

• 5 metres @ 1.17%Ni, 0.22%Cu, 0.029%Co from 25 metres
• 1 metres @ 2.09%Ni, 0.57%Cu, 0.073%Co from 26.9 metres

Assay Results

Corazon completed the 1,122 metres diamond drilling program in December. A total of seven holes were completed under the diamond drilling program focussing on the historical deposits, the A Orebody and E Orebody for shallow mineralisation.

Assay Results Source: Company Source

Corazon Announces Outstanding Maiden Assay Results from Lynn Lake: Read Here

A Orebody – The area covered the historically mined A orebody and the processing plant from the previous operations. The orebody produced 4.8 Million tonnes ore at 1.07% Nickel and 0.55% Copper while in operation between 1953 and 1965. The A orebody includes Sulphide mineralisation within a subcircular, subvertical, mafic to ultramafic igneous intrusive pipes.

Hole LL2019-01- Good marginal grade material, 7-metre-wide with 0.62%Ni, 0.37%Cu, 0.02%Co. The drilling was suspended after reaching the crown pillar stope from the previous operations.

Hole LL2019-02- Broad zone of 37.8 metres @ 1.68%Ni, 0.67%Cu, 0.05%Co, just 10 metres down hole including high-grade interval of 22.6 metres @ 2.30%Ni, 0.82%Cu, 0.07%Co.

Hole LL2019-03- Good zones of marginal-grade including three zones with intervals of 4 to 9 metres downhole and grades of between 0.50% and 0.65% nickel. The mineralisation is expected to be disseminated with grades increasing closer to the stopped area.

E Orebody – Area covers the previously mined underground which operated between 1957 and 1963, with production estimates of about 930,000 tonnes at 1.06% nickel and 0.48% copper (cobalt not reported).

Hole LL2019-04- Targeted on the hanging wall mineralisation (from previous operations) and returned two good zones of 9 metres with 0.93%Ni, 0.25%Cu, 0.02%Co and 7m @ 0.93%Ni, 0.42%Cu, 0.03%Co.

Hole LL2019-05- Focussed on the footwall (from previous operations) mineralisation west of the stope, returning 4.1m @ 2.09%Ni, 0.57%Cu, 0.07%Co. Drilling was suspended on the intersection with the stope fill at 36 metres.

Source: Company ASX Announcements

All the assay results for the priority samples confirming near-surface mineralisation were released, and multiple zones of wide, shallow and high-grade mineralisation were intersected in previously mined areas. The previously completed exploration programs focussed on the deeper mineralisation (>400 metres) and a targeted drilling program was much awaited for the shallow mineralisation in the historically mined areas. The historic mine operated for a nonstop 24 years at an average grade of 1.02% Nickel and 0.54% Copper.

The orebodies, A & E have the potential to expand the mineral resources and have never been explored using modern drilling techniques. Other areas around the previously mined regions also possess the potential for significant resources and may be included in the future drilling programs.

Farley East

Holes LL2019-06 and LL2019-06A- Targeted a geophysical anomaly near the Farley Shaft

The drilling for LL2019-06 was abandoned due to poor drilling conditions. The Hole LL2019-06A was the re-drill of hole LL2019-06. The diamond drilling core samples have been sent to the Perth based lab for analysis.

Source: Kalkine Research

Future Steps Succeeding the Drilling Program

The recent drilling program focussed on the shallow mineralisation from the historically mined zones. The near-surface tonnages would enable the mining operation to start quickly with minimal stripping cost, CZN would focus on such assets to be defined during the feasibility studies.

Other Region with potential shallow mineralisation would be included in the future drilling programs, along with continued work on the A and E Orebody prospects. The drill targets for the Fraser Lake complex is expected to be identified during the ongoing exploration program.

Mining and Mineral Processing Studies

Corazon expects to develop as a large tonnage low-cost mining operation. Current studies focus on improving the processes to optimise costs for the potential underground operation using advanced mining techniques.

The metallurgical results gave out exceptional results with separate high-value Nickel/Cobalt, and Copper concentrates. The test results came out with excellent product specifications-

• Nickel concentrate – 26% Ni grade at 71% recovery
• Copper concentrate – 27% Cu grade at 77% recovery

Strong demand for Nickel Sulphide product can be anticipated in the upcoming years, and Corazon intends to prioritise the development of Lynn Lake to develop the right commodities at the right time in the first world developed mining neighbourhoods.

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