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CORAZON MINING LIMITED — AGM Information 2012
Nov 27, 2012
64747_rns_2012-11-27_fce00efb-b387-4e2e-b425-f213a72f5b7b.pdf
AGM Information
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Slide 1
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NICKEL-COPPER SULPHIDE GOLD COPPER-GOLD
Lynn Lake, Canada Beaucage Lake, Canada Top Up Rise, Australia
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Base and Precious Metals Explorer – Australia & Canada Annual General Meeting Presentation, 28 November 2012
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ASX: CZN
Slide 2
Forward Looking Statements
This presentation has been prepared by Corazon Mining Limited (“Corazon”). It contains forecasts and forward looking statements which are no guarantee of future performance and which involve certain risks. Actual results and future outcomes will in all likelihood differ from those outlined herein. The presentation should not be construed as an offer or invitation to subscribe for or purchase securities in Corazon. Nor is it an inducement to make offer or an invitation with respect to said securities.
Forward-looking statements are statements that are not historical facts. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company’s prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.
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ASX: CZN
Slide 3
Diversified Junior Explorer
Multiple High Impact Opportunities
Nickel-Copper Canada
Lynn Lake Project: option to acquire 100%
- Development opportunity – old mining centre Position project to take advantage of improving nickel metal prices
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Nickel/Copper
Gold
Zinc/Lead/Silver
Copper/Gold
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Gold Canada
Beaucage Lake Project: option to acquire 100%
- Extensive surface mineralisation – high grade tenor
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- Use modern exploration techniques to define drill targets
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Copper Gold Australia
Top Up Rise Project : option to earn 75%
- Large untested gravity anomaly – similar size to Olympic Dam anomaly
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- Low entry costs – minimal exploration to define potential
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ASX: CZN
Slide 4
Corporate Snapshot
Capital structure
Ordinary shares[1] 139.14M Options[1, 2] 66.54M Market Cap (@ $0.03/share) $4.14M Cash (Q3 2012) $544,000 Investments $651,000 Receivables (GST rebate) $220,000
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Key shareholders
| Top 20 Macquarie Bank Ltd. The Board UBS Wealth Management |
30.44% 5.89% 5.19% 3.10% |
|---|---|
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Pre-acquisition of Top Up Rise Project
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Volume weighted exercise price of $0.186
Board & Management
Clive Jones Brett Smith Jonathan Downes Adrian Byass Rob Orr
Chairman Managing Director Non-Exec. Director Non-Exec. Director Company Secretary
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0.18 9.0
Daily Volume Traded On-Market Daily Close Price
0.16 8.0
0.14 7.0
0.12 6.0
0.10 5.0
0.08 4.0
0.06 3.0
0.04 2.0
0.02 1.0
- 0.0
Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12
Closing Price (A$) Million Shares
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Corazon Share Price & Volume
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ASX: CZN
Slide 5
Canadian Projects – Lynn Lake
Lynn Lake Mining District
- Brown-fields exploration play
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- Excellent infrastructure
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- Potential fast-track to development
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ASX: CZN
Slide 6
Canadian Projects – Lynn Lake
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Barrington Lake
MacLellan Gold Mine Farley Gold Mine Copper Deposit
(historical production
(2M oz resource)
213 koz)
Lynn Lake Township
Lynn Lake
Ni-Cu Project
(historical production
22.2Mt @ 1%Ni,
Fox Cu-Zn Mine
0.5%Cu)
(historical production
14.8Mt @ 1.81%Cu, 1.5%Zn)
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Lynn Lake Nickel-Copper Sulphide Project
Beaucage Lake
Option to acquire 100% of project – October 2015
Gold Project
Ni-Cu resources and drill defined potential
Development opportunity Leaf Rapids Ruttan Cu-Zn
Mine (historical
Township
production 55Mt @
1.23%Cu, 1.41%Zn)
Beaucage Lake Gold Project
Option to purchase 100% of project – September 2016
Extensive high-grade gold mineralisation defined
Past exploration focussed on outcrops; project
extensively under cover
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ASX: CZN
Slide 7
Lynn Lake: Historical Mining Hub
Canada’s 3[rd] largest historical Ni producing area
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Historical Production
- Sheritt Gordon 23 yr operation: 1953-1976 Production: 22.2 Mt @ 1% Ni & 0.5% Cu
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- Maximum mining depth to 1,100m below surface
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- Plus 85% recovery for all metals
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CZN’s Mineral Claim Outline
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Ni-Cu deposits
Zn-Cu deposits
A Plug
EL Plug
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Current Resources
CZN – EL Plug (Interim Inferred @ 0.6%NiEq cut-off)
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1.8Mt @ 0.8% Ni, 0.4% Cu & 0.02% Co
Prophecy Platinum – A Plug (all categories @ 0.4%NiEq cutoff)
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31Mt @ 0.55% Ni & 0.30% Cu
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Regional Geology Interpretation
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ASX: CZN
Slide 8
Lynn Lake Mining Centre – Ni/Cu
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North
EL Mine
Mine Area Plan View
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150 Plug EL Mine A Plug Deposits
Near surface –
possible start-up
tonnages for
project
2000 foot level
New
High-Grade
Discovery
Exploration upside
N & O Deposits
2007 Pre-feasibility Study
Resource 11.7Mt @ 0.76 %Ni, 0.37 %Cu
Reserves 10.7Mt @ 0.65 %Ni, 0.36 %Cu
(reference Independent Nickel Corp – 2007 Wardrop Report) 1.0 Km
Mine Area Cross-Section View (west)
Corazon Tenements Prophecy Tenements
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Slide 9
The EL Deposit: Exploration Target*
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UPPER ZONE Tonnage Range Drill Defined
0 - 200m below surface From To Mineralisation Historical
(not included in Workings
Low cost opencut mining option 2,200,000 2,600,000 resource)
Grade Range Contained Metal Range
Metal
From To From To
Conceptual
Nickel 0.7 0.7 15,000 17,000 Pit shell
Copper 0.3 0.3 6,000 7,000
Cobalt 0.01 0.01 200 300
MID ZONE Tonnage Range
200 - 800m below surface From To Inferred Resource
(+0.6% Ni)
Inferred Resource area 2,100,000 2,100,000
Conceptual Mine
Metal Grade Range Contained Metal Range Development
From To From To
Nickel 0.8 0.8 16,000 16,000
Copper 0.4 0.4 8,000 8,000
Cobalt 0.02 0.02 500 500
LOWER ZONE Tonnage Range
800m - 1200m below surface From To
New sulphide breccia discovery 900,000 2,800,000 Development Concepts
X-Section Looking East
Grade Range Contained Metal Range
Metal
From To From To
Nickel 2.4 3.8 21,000 106,000
Copper 0.9 1.4 8,000 40,000
Cobalt 0.06 0.11 500 3,200
Lower Zone Target
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* This Exploration Target is conceptual in nature, there has been insufficient exploration (namely drilling) to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.
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Slide 10
The EL Deposit: Depth Potential
-700 mbs Discovery Hole XND001W1 23.75 m @ 3.34% Ni & 1.54% Cu Deepest Result CRZ012 44.75m @ 1.55%Ni & 0.65%Cu -800 mbs Including:- 3.85m @ 2.83%Ni & 0.24%Cu 11.03m @ 2.31%Ni & 1.01%Cu 11.51m @ 2.37%Ni & 0.78%Cu Drill hole Cross-Section Looking West – 25m grid pattern
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Slide 11
Beaucage Lake Gold Project
Value
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Option to purchase 100% of project
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High grade gold mineralisation in outcrop over 7-8 km strike Close to existing Company operations
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No comprehensive recent exploration – mostly mid-late 1980’s work
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Minimal project holding costs or expenditure requirements
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Post-1990 Rockchip Channel & Grab Sampling Results (most recent work)
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Prospects, Historical Geophysical Targets & Drilling
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Slide 12
Australian Project - Top Up Rise
Cu-Au Exploration Project
Value
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Option to earn up to 75% in project
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Large un-tested gravity anomaly – similar in size to the Olympic Dam anomaly Indicators of Cu/Au and IOCG mineralisation - target deposits typically very large Low cost entry to a project with potential for big rewards
Strategy
Drill as soon as possible (possibly April/May 2013) Access & Heritage clearances being sorted now Drill rig already secured for work
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Top Up Rise Project
Alice Springs
Perth
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ASX: CZN
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Slide 13
Top Up Rise: Frontier Exploration
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Recent geophysics identifies gravity anomaly in Gibson Desert
Remote & under cover 1994-2002 AGSO identified large Proterozoic intrusive alteration system at Mt Webb - characteristics associated with Cu-Au systems Top Up Rise Toro Energy - 2011 Anomaly IOCG Discovery 1995-1999 BHP looking for another Olympic Dam in region MackayLake 2006 GSWA conducts new gravity survey (published 2008) – identifies anomaly BHP Billiton – 1997-1999 IOCG Exploration 2010 Border Exploration applied for Exploration Licences 2011 Toro Energy announce the possible Pollock Hills CommunityKiwirrkurra discovery of a Bayan Obo type IOCG Mount Webb deposit. Surface sampling – 53% Fe, 4% TRE, 275 ppmU, 639 ppmCu.
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Outcrop Geology & Topographic Map (GSWA 1:250k)
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Slide 14
Top Up Rise: Cu-Au Exploration
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No previous ground exploration Large multiple point anomaly
Toro Energy
2011 IOCG
Discovery
BHP 1995
Targets
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Dense but not mafic?
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Bouguer gravity image over
aeromagnetic shadow
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High density gravity image over
aeromagnetic shadow
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Aeromagnetic image
(TMI rtp 60 [0] west sun)
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Slide 15
Top Up Rise: Gold-Copper Target
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Large amplitude residual gravity anomaly
Target model type – Olympic Dam IOCG + REE + U
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Anomaly has similar footprint to Olympic Dam Cu-Au-U gravity anomaly Closest regional outcrop anomalous in IOCG pathfinders: Haematite, REE, Cu & U
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Adjacent to a major Proterozoic granite alteration system & structures
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Tar et De osit Exam les g p p
| Deposit | Mt | %Cu | g/t Au | g/t Ag | ppm U3O8 |
% Fe |
|---|---|---|---|---|---|---|
| Olympic Dam | 8,330 | 0.80 | 0.76 | 3.95 | 280 | |
| Prominent Hill | 200.3 | 1.23 | 0.5 | 3.0 | ||
| 85.2 | 1.5 | 1.0 | ||||
| Carapateena | 203 | 1.31 | 0.56 | 6 | 270 | |
| Hillside | 170 | 0.70 | 0.20 | |||
| Wilcherry Hill | +60 | minor | minor | 31 | ||
| Cairn Hill | 14 | 0.20 | 0.10 | 50 |
References:-
http://www.ozminerals.com/Media/docs/201104_Carrapateena_Resource_Statement_Explanatory-Notes184cc8c7-f72a-48d8-ae2b-022520f9aeb9-0.pdf; http://www.ozminerals.com/Media/docs/20101109_PH-RRStatements-Explanatory-Notes-cea975ce-f4a4-4396-a1b8-c709dd4eef22-0.pdf; http://en.wikipedia.org/wiki/Iron_oxide_copper_gold_ore_deposits.
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ASX: CZN
Slide 16
Top Up Rise: Acquisition
Low cost early stage entry - huge potential
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- Conditions Precedent:- due diligence, Ministerial Access Permit & shareholder approval (Brett Smith is a Director and Shareholder of the Vendor) .
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Stage 1 – Corazon to earn 10% in Border Exploration Pty Ltd for:-
15 million CZN shares + 15 million CZN options (3 years @ 134% of the 5 day VWAP at issue) Reimbursement of costs up to $250,000
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Minimum work program to be completed within 2 years
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Stage 2 –Corazon to earn a further 41% (total of 51%) within 4 years by:-
- Paying the vendors $200,000 in cash, and either
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- Defining a JORC compliant Mineral Resource and completing a Scoping Study; or spending a minimum of $4 million on exploration; and then
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Issuing Vendors with Corazon shares or cash equal to 10% of the issued capital of Corazon.
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Stage 3 – Corazon to earn a further 24% (total of 75%) in Border by:-
Completing a definitive feasibility study on the TUR Project
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Cash or share consideration calculated with reference to a sliding scale, based on Corazon’s market capitalisation at the time.
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The vendors of Border will be free carried until a decision to mine is made; and
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Upon Corazon making a decision to mine the TUR Project, the vendors and Corazon will form a formal production joint venture. A pre-emptive right will exist between the parties to the joint venture.
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Slide 17
Summary – Multiple Opportunities
Nickel-Copper Canada – Option to acquire 100%
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- Development opportunity: CZN with a secure a long term benefit at Lynn Lake
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- Potential for near-surface start-up tonnages for any new mining operation
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- Exploration up-side – high-grade mineralisation below the EL Deposit
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- Project leveraged to improving nickel metal prices
Gold Canada – Option to acquire 100%
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- Extensive surface mineralisation – high grade gold
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- 1Moz – 2Moz gold deposits previously defined in Lynn Lake region
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- Modern exploration techniques to be used for drill target definition
Copper Gold Australia – Option to earn 75%
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- Unique opportunity – potentially huge reward
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- Target deposit size at +200Mt – multiple commodity - Cu, Au, Ag, U and REE
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- Low entry costs at an early stage – minimal exploration to define prospectivity
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ASX: CZN
Slide 18
Disclaimers & Important Information
Exploration Target
This Exploration Target is conceptual in nature, there has been insufficient exploration (namely drilling of verifiable quality) to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.
The Exploration Target has been estimated to a depth of 1,200 metres below surface. It follows the discovery of a high-grade nickel sulphide breccia at depth below the historic EL Mine, as well as the recognition in historical drilling of a substantial amount of near surface low-grade mineralisation.
The basis for this target for the EL Deposit includes:-
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Historical mining at the deposit to a depth of 210 metres below surface
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Historical mine development to at least 270 metres below surface
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Underground exploration drilling, sampling and mapping to a depth of approximately 600 metres below surface
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The regional mining and development depth for the Lynn Lake camp is approximately 1,200 metres
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There has been approximately 72,300 metres of historical surface and underground drilling complete
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At the date of definition of the Exploration Target, Corazon Mining Limited had completed in excess of 10,700 metres of surface drilling
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Good continuity and predictability of geology down-plunge
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Geological evidence for a deep-seated, explosive mineralising event.
Past exploration and mining records for the EL Mine are extensive and reflects high standards of work.
The zones defined in the Exploration Target include the Upper, Mid and Lower Zones. The Upper Zone includes lower grade material that has the potential to be exploited from lower cost mining methods such as open pit mining. This zone extends to 200 metres below surface. The Mid Zone is the area between 200 and 800 metres below surface, and covers an area defined predominantly by the current Inferred Resource (reported at a 0.6% Ni equivalent[2] bottom cut-off grade). The Lower Zone extends from 800 metres to 1,200 metres below surface, the latter being the maximum depth at which historical underground development was conducted.
Competent Person
The information in this report that relates to mineral Resources or Reserves is based on information compiled by Mr Andrew John Thompson, B.Sc Hons (Geol), Member AusIMM and a consultant to Corazon Mining Limited. Mr Thompson has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Thompson consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.
The information in this report that relates to Exploration Results is based on information compiled by Mr Brett Smith, B.Sc Hons (Geol), Member AusIMM, Member AIG and an employee of Corazon Mining Limited. Mr Smith has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Smith consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.
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Core: Lynn Lake
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Slide 19
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Contacts
Brett Smith Managing Director Ph +61 (8) 6364 0518
James Moses Media and Investor Relations Ph +61 420991574 E: [email protected]
Corazon Mining Limited Level 1, 350 Hay Street, Subiaco WA 6008 PO Box 8187, Subiaco East WA 6008 www.corazon.com.au
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