Corazon Mining Ltd (ASX:CZN) enjoyed a strong September quarter with the discovery of new, large sulphide systems at its Lynn Lake Nickel-Copper-Cobalt Project in Manitoba, Canada and the Mt Gilmore Cobalt Copper Gold Sulphide Project in northern New South Wales.
The company is confident that both projects are high quality with the potential to supply strategic metals to what is forecast to be a major growth sector – the rechargeable battery industry.
Lake Lynn Project
The company recently exercised its option to acquire 100% of the Lynn Lake Project area and is the first company to have control of the entire Lynn Lake nickel camp since mine closure in 1976.
Two holes for 1,087 metres were completed at the Fraser Lake Complex (FLC) within the Lynn Lake Project during the quarter, highlighting the prospectivity of a new trend (the Western Contact Zone – WCZ), generating a much larger target area favourable for nickel-copper sulphide deposits.
Drilling equipment remains at Lynn Lake to enable the rapid start of the next phase of drilling
Nickel-copper sulphide targets
Corazon recently completed a 430 line-kilometre MobileMT airborne geophysical survey over the Lynn Lake Project, including the FLC and WCZ extensions.
The preliminary results have identified multiple new priority nickel-copper sulphide targets.
Due to the number of new prospective areas and the size of the geophysical dataset, interrogation of the data is ongoing and the details of new priority drill targets and plans for the next phase of drilling are expected in the near term.
Lynn Lake project area outline, MobileMT survey flight lines, and drill holes reported.
Redevelopment potential
Corazon’s drilling programs have established the potential for the areas surrounding previously mined deposits to deliver near-surface tonnage as it moves towards feasibility work.
Current mining studies at Lynn Lake are looking to reduce mining and capital development costs for a potential underground operation via the implication of modern mining practices and new technology.
Lynn Lake has been described as one of the best ‘brownfield’ exploration plays in North America and Corazon believes that the historical mining centre, with large JORC-compliant resources and infrastructure, has significant redevelopment potential.
Porphyry potential
Corazon owns an 80% interest in the Mt Gilmore Cobalt-Copper-Gold Project in northern NSW and is managing and sole funding exploration until any future decision to mine is made.
Post-quarter-end, Corazon announced the results of its latest phase of exploration at Mt Gilmore confirm the project’s porphyry potential with the identification of a copper-bearing diorite porphyry intrusion at the Gordonbrook Hill Prospect.
The porphyry intrusion sits within an anomalous copper, gold, silver, cobalt and molybdenum trend in excess of 20 kilometres in length and has yet to be drill tested.
Detailed planning for drilling is underway, along with requisite NSW Government permitting and approvals for drilling.
Mt Gilmore Project location map.
Placement and entitlement offer
Corazon closed the quarter with around $1.013 million in cash, successfully completing a capital raising of $1.69 million, consisting of a placement to sophisticated shareholders and an entitlement offer to eligible shareholders.
The funds will be used for ongoing exploration at Lynn Lake and for working capital purposes.
