Corazon Mining Limited (ASX:CZN), the base metals explorer advancing on the Lynn Lake Nickel and the Mount Gilmore Cobalt project, released the quarterly results for the December quarter.
With the improved Nickel prices and expected surge in future demand mostly, attributed to the electric vehicles, Corazon decided to re-focus on the Lynn Lake Nickel Project. CZN intends to accelerate the exploration and development plans for the project.
World’s Largest Nickel Producer Imposes Ban -Timing Right for a Nickel project?
Indonesian government agencies declared the preponement of the export ban of the nickel ores from Indonesia, effective from 1 January 2020 by 2 years. Indonesia’s export ban has prompted fears of a market deficit. The nickel price averaged at US$16,000 a tonne in the December quarter and is expected to stay in the range during the upcoming years with the uncertainty over the make-up supply of Nickel ore due to Indonesian ore ban.
With the huge surge expected in the battery minerals in the upcoming years, the demand for the high-quality Nickel products is set to increase in future. The Lynn Lake project is located in the matured mining environment of Manitoba, Canada and enjoy the presence of already established infrastructure, therefore minimising the capital requirement for future operation.
Corazon: Pursuing the right commodities at the right time – Read Here
Lynn Lake Ni-Cu-Co project – December Quarter
Lynn lake mining project has already been considered among one of the best brownfield project in North America with the possibility of a large-scale low mining operation. The opportunity at Lynn Lake is substantial and requires new and modern exploration techniques to be implemented.
Unlike the previous mining studies, the recent exploration program focussed on the shallow mineralisation and the areas in proximity to the previously mined zones. As a result of the new strategy, Corazon announced the upgraded Mineral Resource Estimate for the Manitoba based Lynn Lake Project. The updated mineral resource is based on only 6 deposits, and multiple future promising targets have already been identified for potential additions to the mineral resource base. The 6 deposits are namely, EL, N, O, P, Disco and Golf deposits within the Mining Centre.
The updated JORC 2012 code-compliant mineral resources are supported by extensive drilling programs and the historical mining data.
Source: Corazon Mining
Independent resource consultants HGMC estimated the updated mineral resources during the quarter. Large resources beneath the historically mined G orebody (Golf Deposit) which was mined in the 1970s. The resource grades fall in line with the grades from the historical operations, thus giving added confidence to the resources and economic evaluation of the project.
Outstanding High-Grade Nickel Drilling Results
During the quarter, Corazon conducted 1,122 metres drilling program which ended in December with focus on the near-surface mineralisation in the previously mined A & El plugs.
Source: Company’s Report
The diamond drilling coring samples sent to the Perth lab facilities for assay and the assay results for the priority targets have already been released.
- 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
- 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
Additional potential targets (including the Fraser lake area) with the potential for near-surface mineralisation surrounding historic underground mining operations have been identified and are expected to be explored in the next drilling plans.
Preliminary Drilling Results on Sulphides Intersections at Lynn Lake: Read Here.
The presence of near-surface mineralisation in the historically mined areas justifies the vision of developing the Lynn Lake project as "easy start up" (due to low strip ratio & existing infrastructure) and a large tonnage operation.
Mining and Processing Study
The current mining study aims to reduce the development and mining cost to develop as a large tonnage underground operations involving modern mining practices. Earlier in 2019, Corazon had successfully produced separate high-value and high-purity nickel and copper concentrates.
- Nickel concentrate with concentrate grade of 26% nickel and recoveries of 71%
- copper concentrate with a grade of 27% copper with recoveries of 77%
Further work would focus on the scoping and testwork for pre-flotation “sorting” of low-grade disseminated mineralisation to feed grade, and onsite downstream processing options.
Two Ace Projects: Lynn Lake and Mt Gilmore: Read Here
The Mount Gilmore Cobalt project, located in NSW, IP geophysical survey in new areas and the initial results suggest the potential for a large concealed sulphide system. The newly identified targets are in vicinity to the previously known high-grade copper-rich structures. Lynn Lake is the priority project of Corazon at the moment and advancement of the project could be expected in the near future.
Corazon December Quarter Financials
The cash reserve of CZN stood at $692,000 at the end of December 2019 quarter. Corazon issued 49,953,193 fully paid ordinary shares on 20 December 2019, on the agreement during the AGM on 20 November 2019. The exploration and evaluation expenditure for the quarter stood at $302,000 with the estimated expense for the March quarter expected to stand at $150,000.
Strong demand for Nickel Sulphide product is expected in the upcoming years mostly due to the EV boom, and Corazon intends to focus on the Lynn Lake project to develop right commodities at the right time in right mining neighbourhoods.
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