Corazon Updates on Activities from the June Quarter, Drilling program at Lynn Lake to Resume Shortly

Summary

• Lynn Lake seeks to resume drilling program at the FLC, Plans Resource Estimation and New Mineralisation targets at Lynn Lake
• Mt Gilmore hosts potential district level exploration play, identifies massive concealed sulphide system
• Share Entitlement offers to raise $964,000, Closing date extended to Thursday 6 August 2020

Corazon Mining Limited (ASX: CZN), a focussed battery metals explorer, released the activities report for the June quarter. Corazon continued its aggressive exploration activities on the flagship Lynn Lake Ni-Cu-Co project in Manitoba, Canada and Mount Gilmore Cu-Co-Au project in New South Wales, Australia.

Drilling program at the Lynn Lake Nickel Project

The Lynn Lake Nickel-Copper-Cobalt Sulphide Project is considered among the best “brown-fields” exploration plays in all of North America.

Lynn Lake Project and Prospective Areas Source: Corazon

Corazon recently exercised the option to acquire 100% of the Lynn Lake project area, bringing the entire project area under one sole ownership since the closure of the historical mining operations in 1976. Corazon has been committed to discovering new prospective areas of mineralisation at Lynn Lake.

The recent exploration program at Lynn Lake was focussed on identifying and evaluating additional prospective areas of mineralisation enhancing the mineral resource potential. The recent drilling program at the Lynn Lake included priority targets with -

• Shallow mineralisation
• Areas on trend with the historical mine workings
• Adjacent to the existing mineral resources

Assay Results from the A Orebody, confirms high-grade Ni-Cu-Co Mineralisation

A high-grade assay results were announced in May, showcasing the geochemical results from the recent drilling program. The drilling program focussed on the historic mining centres at the “A Orebody” conducting a 243.4 metre 3 hole (holes LL2020_07 to LL2020_09) drill program.

The assay results confirmed the presence of exceptionally high-grade nickel, copper and cobalt intersections within the historical mining centres.

The results from the recent and the previous drilling program from December 2019 together representing assays from 9 drill holes within A Orebody defines new areas with potential of near-surface high-grade mineralisation with the possibility to enhance the mineral resources significantly.

Recent Assay Results from A Orebody Source: Corazon Mining

New Drill Targets Defined at the Fraser Lake Complex

Corazon is currently conducting a drilling program at the exciting exploration targets in the Fraser Lake Complex (FLC), 5 kilometres from the Lynn Lake Mining Centre where a large nickel-sulphide mineralisation has been identified.

The drilling program targets 350 metres by 200 metres with the peak of the magnetic anomaly at 450 metres below the surface. The drilling activity was suspended due to high water levels and had already reached the top of the targeted anomaly at a downhole depth of 523.4 meters. Recently, Corazon completed a field inspection program and is scheduled to commence the drilling activity at the drill hole FLC2020-22 by the end of July as per the latest update on 22 July 2020.

Option Exercised to Acquire 100% of Lynn Lake Project

Corazon announced exercising of the option to acquire the Dunlop Project and the historical EL Mine. The acquisition brings the entire Lynn Lake Mining Centre and the prospective exploration grounds under Corazon’s umbrella.

Future Exploration Efforts at Lynn Lake

Resource Estimation – The recent drilling results from the high-grade near-surface mineralisation holds the substantial potential to quantify beneficial “easy start-up” resources. Corazon plans to prioritise the resource estimation as Lynn Lake project advances towards a feasibility study.

Several prospective targets with potential for shallow mineralisation may be tested in the upcoming drilling programs during the summer months in Canada.

Regional Exploration – Corazon now relies on a well-defined protocol to target after processing and interpreting geophysical datasets.

A high priority target is the Fraser Lake Complex where Corazon identified a large magmatic sulphide system similar to the Lynn Lake deposits. Several assay results from the FLC are as follows-

• Intercept of 22.6 metres with 0.70% Ni & 0.35% Cu from 258m (hole #14)
• Intercept of 27 metres with 0.37% Ni & 0.16% Cu from 30m (hole #16)

Mining and Mineral Processing Studies – The recent metallurgical testwork at Lynn Lake reflected in high quality products. Corazon plans to prioritise mining and metallurgical processing studies to scope and test the pre-flotation “sorting” of the low-grade mineralisation to the ore feed grade and to further evaluate the beneficiation routes.

Another Ace from Corazon - Mt Gilmore Cobalt-Copper-Gold Project

The Mount Gilmore project is a district-scale Cobalt-Copper-Gold exploration play located almost 35 kilometres from Grafton in the New South Wales. The exploration in the past has been concentrated on the high-grade Cobalt Ridge Sulphide deposit. The recent exploration activities on the “Mt Gilmore trend” uncovered a large-scale copper-cobalt-silver-gold geochemical trend and the company plans to continue the exploration activities on these priority targets.

Corazon has identified several large geochemical anomalies which during the Induced Polarisation survey indicated a potential to host a massive concealed sulphide system. These targets are actually adjacent to the previously identified high-grade copper-rich structures and are interpreted to represent a mineralised altered halo.

Corazon focuses on identifying the drilling targets within the anomalous regions in the large Mt Gilmore project region.

Geochemical Image and Rock Chip Results at the Mt Gilmore Project Source: Corazon

Corazon Strengthens Position with the Latest Placement and Entitlement Offers

Corazon held cash of $528,000 as on 30 June 2020. A total of $70,000 was paid during the quarter towards the payment of the fees, salaries and consulting costs. Additionally, $365,000 was spent on exploration relating to geological interrogation, geophysical processing, target generation, drilling and assaying for the Lynn Lake project.

During a general meeting, Corazon’s shareholder ratified the prior share issuance and also approved to issue the attaching options to participants of the February 2020 placement program.

During the quarter, Corazon floated a share placement and entitlement offer to fund the future exploration programs at the Lynn Lake project. Under both the share placement and entitlement offers, an additional option of a share would be offered to the successful participants, subject to shareholders approval.

Placement: Corazon secured firm commitments totalling to almost $714,000 in value through the issuance of 356,984,000 fully paid ordinary shares at an issue price of $0.002 a share.

Entitlement Offer: Corazon is currently seeking to raise up to $964,000 through a non-renounceable entitlement offer by issuing almost 481.9 million ordinary shares at an issue price of $0.002 a share, on the basis of 1 Share for every 5 shares held.

Corazon recently announced the extension of the closing date of the non-renounceable entitlement offer to Thursday 6 August 2020.

Corazon closed at $0.0020 a share on 30 July 2020 with a market capitalisation of $5.54 million.

All financial information pertains to Australian dollar unless stated otherwise.