Corazon surfs the EV tide with Lynn Lake & Mt Gilmore project

Summary

• Strong decline in auto sales and oil demand may assist EV & Battery segments
• Corazon’s Lynn Lake an advanced stage Nickel project in the Tier 1 mining jurisdiction
• Mt Gilmore presents a strong opportunity for Copper and Cobalt

The current pandemic has portended the conventional fossil fuels as the villains, so much as to the extent that the pre-COVID demand levels may not be achieved in the near future on the back of rising call for the transition towards a greener and carbon neutral society.

The pandemic also had major effects on the automotive sectors with conventional car manufacturers experiencing a major sales decline across the globe.

Toyota sales in May stood at 365,909 units declining ~54.4 per cent y-o-y, the sharpest plunge in the company’s publicly available history.

An unexpected aftereffect of the pandemic has been the call for a shift towards cleaner power and mobility solutions. The Electric vehicle industry has also witnessed a blow in sales figure though speculated to be transient in nature, mostly due to extensive lockdown measures and the travel ban.

Government Reforms and EV Push

The anticipation of a resurgence of electric vehicle and battery demand can be substantiated by the government reforms and incentive push to switch to electric vehicles.

• China extends the state subsidies and tax breaks on the purchase of new Electric vehicles within 2 years till the end of 2022.
• Europe vows to push EV: Germany announced a €130 billion stimulus package is enhancing the electric car subsidies for new cars with prices under €40,000, by another €3,000 to €9,000 in total. France also introduced another major EV incentive program and similar efforts can be expected from the UK government.

Electric Vehicles are supposedly the future of mobility, the only question is “when” and any incentive or a government backed push from the United States, or any other major automotive market may further enhance the speed of adoption.

Read Here: Corazon committed to turning “Nickel” into Dollars, Corazon’s Lynn Lake Ni Project

Corazon’s Strong Battery Portfolio

Corazon Mining Ltd (ASX:CZN) is a battery metals player with special impetus on Nickel and Cobalt projects. Corazon is advancing on the flagship Lynn Lake Nickel Copper Cobalt project in Manitoba, Canada and Mount Gilmore Cobalt Copper Gold project in New South Wales.

Lynn Lake Ni-Cu-Co project – Corazon holds a 2-pronged strategy to develop the nickel project through extension and upgradation of mineral resources from the shallow mineralisation and secondly, through the exploration activities at the new prospective targets.

An extensive drilling program at the widely prospective zone Fraser Lake complex (FLC), a large region around 5 kilometres from the historical mining centres, is already underway. Corazon has been using advanced exploration techniques such as MVI to identify targets at depth.

The drilling activity at the FLC would Resume once the water level recedes at the current target and then would test other prospects within FLC.

The Lynn Lake mining centre which hosts the historical mining centres would undergo a

Drilling program aimed to target the near-surface mineralisation to further upgrade the mineral resources.

Must Read: Corazon Follows a Two-Pronged Strategy at Lynn Lake, Resources Expansion and New Targets Primary Focus

Mount Gilmore Co-Cu-Au project – The early stage project is a prospective district scale copper play with substantial cobalt signatures. The historical exploration programs at the Mt Gilmore targeted the exceptionally high-grade Cobalt Ridge prospect. A recently induced polarisation (IP) survey has revealed further prospective Cu-Co anomalies indicating potential for a large-scale sulphide mineralisation.

The recently identified anomalies are located in the surrounding of the previous discoveries. The Gordonbrook Hill prospect showcased the strongest IP anomaly over an area of diameter of a kilometre. Corazon identifies the potential of the Mt Gilmore project and remains committed to pursuing the opportunities.

Corazon closed at $ 0.0020 a share on 16 July 2020, with a market capitalisation of $5.54 million.

All financial information in Australian dollars, unless stated otherwise.