NEXT PHASE OF WORK UNDERWAY FOR LYNN LAKE MINING CENTRE
ASX Announcement 18 September 2018
- Metallurgical testwork underway for the Lynn Lake Nickel-Copper-Cobalt Sulphide Project in Canada
- Detailed metallurgy has not been completed on the Lynn Lake deposits since mine closure in 1976 - modern processing techniques have the potential to deliver meaningful operational improvements
- This work will be undertaken over the next three to four months - milestone results to be released to the market as they become available
- Metallurgy is being conducted in parallel with an upgrade of the Lynn Lake Resources - anticipated to be finalised within the next few weeks
- The upgraded resources and redefined processing parameters will be used in future mining and development studies for the Lynn Lake Project
- Metallurgical testwork is being undertaken in Perth and managed by internationally recognised metallurgical consultants METS Engineering
Corazon Mining Limited (ASX: CZN) (Corazon or Company) is pleased to announce it has commenced detailed metallurgical testwork for the Lynn Lake Nickel-Copper-Cobalt Sulphide Project (Lynn Lake) in Canada.
The testwork will focus on ore characterisation, flotation and product definition for down-stream processing, and is designed to provide key data for future mining and development studies for the possible re-commencement of mining at Lynn Lake.
The commencement of testwork represents an important step in Corazon’s development pathway for Lynn Lake.
Lynn Lake is historically one of Canada’s most prolific nickel producing mining centres and was active for more than 24 years before closing in 1976. The processing technology used at Lynn Lake for the extraction of nickel, copper and cobalt metals was developed in the 1950’s and 1960’s, and detailed testwork has not been completed on Lynn Lake mineralisation since mine closure.
It is expected modern advances in processing technologies, will provide substantial benefits with respect to metal recoveries and product quality, which may in turn deliver significant reductions in both operating and capital costs associated with any future development of Lynn Lake.
Corazon has delivered a bulk sample of approximately 500 kilograms of mineralised material to ALS Metallurgy in Perth, for detailed processing testwork. The metallurgical testwork will be managed by internationally recognised metallurgical consultants, METS Engineering, and is expected to be completed over approximately three to four months. Milestone results will be released to the market as they become available.
The Company also advises that new Resource Estimations for the Lynn Lake Project remain ongoing and are proposed to be completed by the end of the September quarter. This work, along with the results of the metallurgical testwork, will be used in future mining and development studies for Lynn Lake.
DRILLING INTERSECTS HIGH GRADE COBALT MINERALISATION AT MT GILMORE PROJECT
ASX Announcement 27 August 2018
- Results have been received for the first five holes drilled at Cobalt Ridge - located within the Mt Gilmore Cobalt-Copper-Gold Project in New South Wales
- Three holes have intersected significant cobalt mineralisation, including multiple highergrade zones within broader packages of cobalt-copper-gold mineralisation
- Western and eastern extensions to the main mineralised trend have been identified
- Highlight result of 5m at 2.14% cobalt within a broader intersection of 27m at 0.47% cobalt in hole MGRC042 - identifies the faulted-off western extension to the Main Lode
- Current proposed program includes 14 holes for over 2000 metres RC and core drilling at Cobalt Ridge – program may be extended subject to results
- 12 holes have been completed for 1,363 metres of RC and 398.8 metres of core drilling
- Drilling program expected to be completed in the current quarter, with results to be released as they become available
Corazon Mining Limited (ASX: CZN) (Corazon or Company) is pleased to announce the first batch of assay results from its ongoing drilling program at the Mt Gilmore Cobalt-Copper-Gold Project (Project) in New South Wales.
The Company has received assay results from five holes (MGRC041 – MGRC043 and MGRC045) at the priority Cobalt Ridge prospect. Assay results from three holes are highly encouraging, identifying multiple cobalt-rich lodes within a broader package of mineralisation that identifies the Main Lode at Cobalt Ridge.
A highlight to date is the high-grade result of 5m @ 2.14% Cobalt (Co) within a broader intersection of 27m @ 0.47% Co from a down-hole depth of 49m, in drill hole MGRC042 (Table 1 and Figure 1). This hole appears to have identified the faulted-off western extension of the Main Lode and is highly representative of the main target at Cobalt ridge. Significant intersections are provided in Table 1 with drill hole locations provided in Figure 2.
Commenting on the results Corazon Managing Director Brett Smith said; “We are very pleased with these results. Cobalt Ridge is an intensely altered, structurally complex system and every drill hole helps us gain a greater understanding of this deposit. It’s a hole by hole process, however the results continue to validate and strengthen the Company’s belief that Cobalt Ridge has the potential to host a significant sulphide-dominant cobalt deposit, the understanding of which can then be applied to the greater Mt Gilmore Project area.”
Drilling Program Overview
The current drilling program is presently focused on priority targets within and around the Cobalt Ridge prospect. Drilling will also test features generated by the Company’s recently completed 3D Induced Polarisation (IP) geophysical survey.
Approximately 14 holes for 2000 metres of reverse circulation (RC) and core drilling are proposed. Approvals are also in place for the extension of the current program, subject to results.
To date, 12 holes have been completed for 1,363 metres of RC and 398.8 metres of core. Drilling is on-going and is expected to be completed in this quarter. The Company will provide further details on the progress of drilling and results as they become available.
The results of three holes that returned significant intercepts are presented in Table 1 below. Additional information regarding the drilling is provided in Table 2 attached.
Cobalt intercept calculation parameters: Greater than or equal to 0.3m down hole thickness, greater than or equal to 0.05% Co, greater than or equal to 0.05% Co cut-off and less than or equal to 3m internal dilution. Assay values at “lower than” detection limits are attributed a value of 50% of that detection limit for interval calculations.
Copper equivalents: The composited value of the cobalt-copper-gold mineralisation is presented as percentage copper equivalents (CuEq%). These metals have been historically extracted from small scale mining at Mt Gilmore and it is the Company’s belief that the cobalt, copper and gold is recoverable. Metallurgical test work currently underway is expected to underpin these assumptions. CuEq% = Cu% + (Co% * 10.63) + (ppm Au * 0.64). Metal prices used are Cu US$6,018/t, Co US$64,000/t and Au US$1,203/oz.
NEW PHASE OF DRILLING UNDERWAY AT MT GILMORE PROJECT
- Drilling commences at Mt Gilmore Cobalt-Copper-Gold Project – initial 14 hole-2000m RC and core drilling program at priority Cobalt Ridge deposit
- Program will also target priority features generated by Corazon’s recently completed IP geophysical survey; and
- Progressively test new priority targets within the wider Mt Gilmore Project area identified by Corazon’s ongoing project-wide soil sampling program
- Strong discovery potential for multiple Cobalt Ridge ‘lookalike’ deposits within the wider Mt Gilmore Project area
- Drilling expected to be completed in the current quarter, with results to be released as they become available
Corazon Mining Limited (ASX: CZN) (Corazon or Company) is pleased to announce that the next phase of drilling has commenced at the Mt Gilmore Cobalt-Copper-Gold Project (Project) in New South Wales.
The drill rig is onsite and drilling is underway. Drilling will initially focus on priority targets within and around the Cobalt Ridge deposit (Cobalt Ridge) within Project, and will also target priority features generated by the Company’s recently completed 3D Induced Polarisation (IP) geophysical survey.
Corazon also proposes to progressively drill-test new, priority target areas within the wider Project area generated by the Company’s ongoing regional soil sampling program.
Corazon is currently undertaking a geochemical soil sampling program (on a 200 metre by 200 metre pattern) of approximately 3,000 samples over a strike of more than 18 kilometres, along the trend hosting Cobalt Ridge (Figure 1). It is designed to systematically test favourable basement lithologies for cobalt, copper and gold mineralisation along strike from Cobalt Ridge.
The soil sampling program has been highly successful, and to date has resulted in the discovery of six high-tenor cobalt-copper-gold anomalies, within a contiguous 10 kilometre strike around Cobalt Ridge, plus three high tenor anomalies at the Lantana Downs prospect, located a further 2 kilometres to the north.
These anomalies provide the discovery potential for multiple Cobalt Ridge ‘lookalike’ deposits, which would significantly expand Mt Gilmore’s cobalt-copper-gold sulphide endowment; they will be further defined via infill sampling on a 50 metre by 50 metre pattern, before being ranked and prioritised for drilling in the current phase of drilling.
Drilling is expected to be completed in this current quarter. The Company will provide details on the progress of drilling in due course, and results will be released as they become available.
INCREASED COBALT POTENTIAL AT MT GILMORE DRILLING COMMENCING EARLY JULY
- Drilling at Mt Gilmore expected to commence early July – initial 2000 metre program to focus on Cobalt Ridge Deposit – planning for drilling of new targets underway
- Four new, large cobalt-copper-gold soil anomalies discovered immediately on strike and north of Cobalt Ridge
- Extensive cobalt-copper-gold mineralisation defined over 12 kilometres - demonstrates the significant regional potential for Cobalt Ridge ‘lookalike’ deposits at Mt Gilmore
- Current phase of work focused on identifying new drill targets which will be ranked and progressively drilled
Corazon Mining Limited (ASX: CZN) (Corazon or Company) is pleased to announce an update on its current exploration at the Mt Gilmore Project (Project) in New South Wales. Corazon’s current phase of exploration is focused on identifying new cobalt-copper-gold sulphide targets within the wider Mt Gilmore Project area, as well as defining extensions to the priority Cobalt Ridge deposit.
Corazon has recently discovered four substantial cobalt-copper-gold anomalies, resulting in a total of six areas requiring further testing, within a contiguous 10 kilometre strike around the Cobalt Ridge Deposit (Figure 1). This is in addition to the three high tenor Lantana Downs anomalies (ASX announcement 26 April 2018), located a further 2 kilometres to the north (Figure 2).
These new anomalies are highly significant and are on par in tenor to the soil geochemical anomaly for the outcropping Cobalt Ridge Deposit. The new anomalies were defined from an ongoing project-wide 200 metre by 200 metre soil sampling program. The Company will now conduct infill soil sampling, to a 50 metre by 50 metre pattern, in order to further define and refine potential drill targets.
Next Phase of Drilling to Commence
Corazon advises that the next phase of drilling at Mt Gilmore is expected to commence in early July. Drilling will initially focus on infill and extension testing at Cobalt Ridge, and also provide a firstpass test of priority features generated by the recently completed 3D Induced Polarisation (IP) geophysical survey.
The Company plans to complete approximately 14 holes for about 2000 metres of reverse circulation (RC) and core drilling at Cobalt Ridge. The drilling contractor has been engaged and is expected to mobilise to site during the first week of July. The Company will advise the market on the commencement of drilling and provide additional exploration results as they become available.
The proposed drilling will also progressively test new target areas within the wider Mt Gilmore Project area generated by the Company’s ongoing regional soil sampling program.
Figure 1 –Cobalt and Copper in soils images with interpreted geology and prospect locations. Exploration is targeting a window of basement rock sandwiched between granite and younger cover. (Prospects - P1 = Nettle Ck, P2 = Glamorgan, P3 = Cobalt Ridge, P4 = Morgan’s Rd, P5 = Kerry Glen, P6 = Hassan’s Ck, P7 = Gordonbrook Hill). Prospect locations also presented in Figure 2.
