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On 12 March 2020, base metals explorer Corazon Mining Limited (ASX:CZN) announced half-year results for the period ended 31 December 2019. The Company is advancing the Lynn Lake mining district (nickel-copper-cobalt) in Manitoba, Canada and the Mt Gilmore Cobalt Project (copper-gold sulphide) in New South Wales, Australia.
The two projects aim to pitch in with a supply of strategic metals, expected to observe a huge demand surge in the upcoming years majorly from the burgeoning rechargeable battery segment. The Company is progressing actively with the projects, as it intends to tap the opportunity at the right time in the right place.
Corazon: Pursuing the right commodities at the right time – Read Here
Lynn Lake Ni-Cu-Co Project - Advancing on the Path of Development
The application of modern and advanced exploration techniques and understanding of the Nickel-Copper-Cobalt Sulphide geological system have already started paying off, reflected by the multiple discoveries of prospective high-grade mineralisation at Lynn Lake, which is already considered as one of the best “brown-field” exploration plays in North America.
A matured mining environment and excellent infrastructure coupled with improved nickel prices make a strong case for the Lynn Lake project. Also, the Company has managed to consolidate and control the entire historical Lynn Lake nickel ground, which was split and controlled by different parties since the mine closure in 1976. An extensive historical dataset exists, covering mining information of 24 years and exploration activities of over 75 years.
Better Value Generation Opportunities Leading to Lynn Lake Nickel Precinct Re-Focus
With the strength in nickel prices, Corazon is accelerating plans concerning exploration and development of the project to generate opportunities of value generation for shareholders.
The historically mined project includes significant resources and requires further drilling to discover more mineralisation from the underexplored regions in the Lynn Lake mining project. The au courant audience must know that the discoveries from the recent work on the Lynn Lake project by several mining companies such as Independent Nickel Inc., Western Areas NL (ASX: WSA) and Corazon Mining indicate the potential of the mining ground.
The recent work by CZN targets the shallow mineralisation adjacent to the historic mining sites, thereby generating potential for additional mineral resources.
The priority targets for the upcoming exploration programs focus on near-surface mineralisation and historically mined regions.
Upgraded Mineral Resource Turning Vision of Large-Scale, Low-Cost Mining into Reality
The Company announced upgraded mineral resource estimates for the Lynn Lake property during the September 2019 quarter. The current resource estimates include 6 deposits, including the Golf deposit, a mineralisation beneath the historically mined regions of the G Orebody.
The resource estimated on the guidelines of the JORC (2012 code) strengthens the Lynn Lake project potential as a mining operation using large tonnage, low-cost methods.
Increased Opportunities for Additional Mineral Resources
Corazon Mining started a new phase of drilling in the December 2019 quarter, testing near-surface zones of the historically mined areas, such as the A & the EL plugs, which operated for 24 years, with an average grade of 1.02% nickel and 0.54% copper.
The drilling program targeted two deposits, namely, the A Orebody and E Orebody, completed 7 holes for ~1,122 metres diamond drilling program. Both the deposits hold mineralisation that has earlier not been drilled and assayed.
Way Forward for Lynn Lake
Lynn Lake mining project holds a substantial resource with additional potential for shallow mineralisation, important for easy commencement and low-cost operations.
The Company would advance on estimating the Mineral Resources from the additional prospects as the project approaches the feasibility study. Other regions that potentially hold additional near-surface mineralisation would continue to be explored.
With the advancement of recent exploration works, the targets are being scheduled in accordance with the processing and the geophysical dataset interpretation.
Priority target area, Fraser Lake Complex (FLC) upon drilling has revealed a large sulphide mineralisation of volcanic origin, similar to the Lynn Lake deposits. The best results from Fraser Lake are as follows-
- 6 metres with 0.70% Ni & 0.35% Cu from 258m (hole #14)
- 27 metres with 0.37% Ni & 0.16% Cu from 30m (hole #16)
Further drilling at FLC is proposed in early 2020.
The metallurgical testworks have already delivered exceptional results with separate nickel and copper products and the Company’s focus is on further testworks on the pre-flotation “sorting” of low-grade disseminated mineralisation to ensure high-grade feed for the processing plant.
Mt Gilmore Co-Cu-Au Project: Another Feather in the Cap
The Mt Gilmore Cobalt-Copper-Gold Project is located in the mining friendly locality in New South Wales province of Australia. Corazon had agreed upon an earn-in agreement in 2016, to acquire up to 80% stake in the project, which the Company completed during the September quarter on spending $2 million on the exploration of the project.
Most of the historic exploration focused on the Cobalt Ridge mineralisation, and the metallurgical testwork of the region by CZN delivered high-grade metal concentrates and cobalt/copper sulphates, suitable for application in the battery industry.
Corazon conduced IP geophysical survey on the identified copper-cobalt-silver anomalies in 2019. The survey revealed a new large, concealed sulphide system adjacent to the high-grade copper areas. The best IP anomaly was the Gordonbrook Hill (GBH) target.
Moreover, mapped leakage structures extending from the GBH target resulted in the rock chip assay sample results of grades up to 16.3% copper, 1,250 ppm cobalt and 1.29 g/t gold.
CZN last traded at $0.002 per share on 13 March 2020, with a market capitalisation of $4.82 million.
