CORAZON MINING LIMITED — Capital/Financing Update 2015

Apr 15, 2015

ASX ANNOUNCEMENT 16[th] April 2015

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The Manager - Company’s Announcements Australian Securities Exchange

NEW NICKEL-COPPER RESOURCE AT LYNN LAKE

Key points:

• Maiden JORC Resource Estimate for the consolidated Lynn Lake Nickel-Copper Project in Canada

• Total Indicated and Inferred Resource of 9.4Mt @ 0.88% nickel and 0.40% copper, for 83,000t contained nickel and 37,800t contained copper

• Mining and processing studies underway, preparing the project for potential recommencement of mining subject to improved metal prices

• Resource contains near-surface mineralisation suitable for open-cut mining methods

• Further upside potential identified with multiple highly prospective targets yet to be included within the resource.

Corazon Mining Limited (ASX: CZN) (“Corazon” or “the Company”) is pleased to announce a JORC 2012 compliant Resource Estimate (“Resource”) for the Lynn Lake Nickel-Copper Project (“Project”), in Canada. This estimation combines and upgrades resources previously reported in both JORC 2004 and NI43-101 (Canadian) reporting standards, as well as incorporating some new areas of mineralisation defined by the previous mining operation.

Perth based independent mining consultants Ravensgate have defined an Indicated and Inferred Resource of 9.4Mt @ 0.88% nickel and 0.40% copper, for 83,000 tonnes of contained nickel and 37,800 tonnes of contained copper (refer to Table 1 for a break-down of the Resource).

The Resource incorporates the EL, N, O and G nickel-copper sulphide deposits (Figure 1, Table 1) and is the first time a combined resource for the Lynn Lake project area has been defined inline with Australian reporting standards.

The Resource grade is consistent with the historical grades from the Lynn Lake Mine which operated for 24 years as a large tonnage-low cost mine, before its closure in 1976.

Corazon is confident the Lynn Lake Project is an excellent development opportunity that is leveraged to an improvement in the nickel metal price. The Company is implementing a program of work to prepare the Project for the recommencement of mining in an improved market. This Resource is an integral component of this development pathway.

CAPITAL STRUCTURE		BOARD OF DIRECTORS	BOARD OF DIRECTORS		CONTACT US
Market cap. @ A$0.006	A$2.6M	Clive Jones	Non-executive Chairman		P: +61 (8) 6142 6366
Ordinary shares	441.6M	Brett Smith		Managing Director	M: PO Box 8187, Subiaco East WA 6008
Options	30M	Jonathan Downes		Director	E: info@corazon.com.au
ASX: CZN		Adrian Byass		Director	W: www.corazon.com.au

ASX ANNOUNCEMENT 16[th] April 2015

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In defining this Resource, Corazon has utilised higher cut-off nickel grades for reporting the Project’s Resource than those previously published by past Canadian operators. This is in-line with the Company’s focus on determining exploitable resources rather than seeking to identify the total metal content within the project area.

The Lynn Lake township was established in the 1950s to support the Lynn Lake mining operation and boasts excellent infrastructure and the capacity to support the recommencement of mining. The provincial government of Manitoba proactively supports exploration and new mining ventures with tax benefits and financial incentives.

Table 1: Mineral Resource for the EL, N, O and G deposits at Lynn Lake

	Lower Cut-off Grade	Lower Cut-off Grade		Grade	Grade	Contained Metal	Contained Metal
Deposit			Tonnes
	NIEQ %	Ni %		Ni %	Cu %	Ni Tonnes	Cu Tonnes
Indicated Resource Category
ELUpper		0.4	1,120,000	0.77	0.34	8,600	3,800
EL Lower		0.6	676,000	0.83	0.40	5,600	2,700
N	0.8		2,990,000	0.86	0.41	25,700	12,300
O	0.8		2,630,000	0.82	0.37	21,600	9,700
Indicated Sub-Total			7,420,000	0.83	0.38	61,500	28,500
Inferred Resource Category
ELUpper		0.4	645,000	1.55	0.61	10,000	3,900
EL Lower		0.6	292,000	1.01	0.44	3,000	1,300
N	0.8		710,000	0.79	0.39	5,600	2,800
O	0.8		100,000	0.75	0.36	750	360
G	0.8		240,000	0.94	0.39	2,300	940
Inferred Sub-Total			1,990,000	1.09	0.47	21,600	9,300
Total			9,400,000	0.88	0.40	83,000	37,800

Table 1 Notes:

Nickel equivalent grades (NIEQ%) are provided as an indicator of value in a multi-metallic deposit. Lynn Lake has a long history as a nickel, copper and cobalt mining camp. It is the Company’s opinion that all elements included in the metal equivalent calculation have a reasonable potential to be recovered. Past mining of these deposits on average produced a nickel concentrate, consisting of 14% nickel, 1.5% copper and 0.35% cobalt and a copper concentrate having 30% copper and 0.60% nickel. In this circuit, 85% of the nickel, 93% of the copper and 80% of the cobalt were recovered on average. .

NIEQ% = (((Cu%222.04622)+(Ni%7.2222.04622))/7.22)/22.04622 based on metal prices of Ni = US$7.22 /lb Cu = US$2.00 /lb.

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ASX ANNOUNCEMENT

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16[th] April 2015

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Figure 1: Lynn Lake Mining Centre long section

The Resource for the EL Deposit has been separated into two zones, the EL Upper and the EL Lower. The distinction between the two zones is set at about 200 metres below surface and approximates to material that may be exploited by open-cut or underground mining methods.

The N and the O deposits are the closest deposits to the EL Plug and the last to be mined within the A Plug before the mine closure in 1976. Underground development in this area of the A Plug is down to about 1,100 metres below surface.

In summary, recently completed resource work has:

• For the first time since mining stopped in 1976 reported a resource for the whole Lynn Lake nickel-copper camp and not just on a prospect scale.

• Identified more tonnes at the EL Plug. In particular, some near surface mineralisation defined by past drilling and mining activities has been upgraded to resource status.

• Changed the resource category classifications quoted in the Canadian NI43-101 Resource of Measured, Indicated and Inferred for the A Plug (N, O and G deposits) to JORC 2012 Indicated and Inferred Resource classification reflecting a reassessment of the historic nature of the data as resource reporting “modifying factor”.

• Identified significantly less tonnages than that reported in the NI43-101 “foreign estimate of mineralisation” for the A Plugs N, O and G deposits. This is due to a much higher lower cut-off grade being used for the current resource statement. However, the Company is confident the larger global mineral inventories previously reported are accurate in their representation of the mineralisation at lower cut-off grades.

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ASX ANNOUNCEMENT 16[th] April 2015

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Comparison with Previous Resource Models

The most recent historical resources for the EL Plug and A Plug (includes the N, O and G deposits) areas (Figure 1) have been reported by different companies. Corazon’s recent consolidation of the entire Lynn Lake nickel-copper field, via its acquisition of the Victory Project from Victory Nickel Inc. (TSX: NI) (ASX announcement 1 April 2015), has allowed these resources to be reported as one resource estimate for the first time since mine closure.

The current Resource migrates previously reported resources to Australian standards and the JORC 2012 requirements. A comparison of the current Resource (Table 1) with the most recent past resources is presented in Table 2.

Table 2: Comparison of past and current mineral resources for the EL, N, O and G deposits at Lynn Lake

	Lower Cut-Off Grade	Lower Cut-Off Grade		Grade	Grade	Contained Metal	Contained Metal
Zone	5		Tonnes			Ni Tonnes	Cu Tonnes
	NIEQ %	Ni %		Ni %	Cu %
EL Plug
EL CZN_20101		0.6	1,800,000	0.80	0.40	14,400	7,200
EL CZN_20152		0.4 & 0.6	2,730,000	0.99	0.43	27,100	11,700
A Plug
N,O,G NI43-1013	0.4		16,980,000	0.66	0.33	112,000	56,000
N, O, G CZN_20154	0.8		6,670,000	0.84	0.39	55,900	26,000

Table 2 Notes:

1. Corazon’s Inferred Resource reported in ASX Announcement 13 October, 2010. This resource is a JORC 2004 compliant resource that has been updated by this current ASX announcement.

2. Corazon’s Indicated and Inferred JORC 2012 compliant Resource reported within this ASX announcement.

3. A Measured, Indicated and Inferred “Foreign Estimate of Mineralisation” not reported in accordance with JORC (ASX announcement 5 November 2014). This current announcement and the “CZN_2015” resource reports these deposits in-line with JORC reporting standards.

4. Corazon’s Indicated and Inferred JORC 2012 compliant Resource reported within this ASX announcement.

5. Nickel equivalent grades (NIEQ%) are provided as an indicator of value in a multi-metallic deposit. Lynn Lake has a long history as a nickel, copper and cobalt mining camp. It is the Company’s opinion that all elements included in the metal equivalent calculation have a reasonable potential to be recovered. Past mining of these deposits on average produced a nickel concentrate, consisting of 14% nickel, 1.5% copper and 0.35% cobalt and a copper concentrate having 30% copper and 0.60% nickel. In this circuit, 85% of the nickel, 93% of the copper and 80% of the cobalt were recovered on average. .

NIEQ% = (((Cu%222.04622)+(Ni%7.2222.04622))/7.22)/22.04622 based on metal prices of Ni = US$7.22 /lb Cu = US$2.00 /lb.

The differences in metal content reported by the current resource compared with the NI43-101 foreign estimate of mineralisation are substantial (Table 2). The resource block model developed by Ravensgate has identified significant tonnages of mineralisation between 0.3% nickel and 0.6% nickel. However, doubling the lower cut-off grade from 0.4% NIEQ to 0.8% NIEQ accounts for the exclusion of much of this material from the Resource.

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ASX ANNOUNCEMENT

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The Lynn Lake Mine was a long-lived, low grade, underground mining operation. Based on similar scale and grade operations around the world, the Company considers there is justification in stating a resource at the average grade of approximately 0.8% nickel. Further detailed studies are required (particularly at current metal prices) to be able to migrate material less than 0.6% nickel lower cut-off to a resource category. Corazon is currently completing work that will support the accurate definition of operating costs for a mining operation at Lynn Lake. This may allow for the definition and qualification of lower cut-off grades.

Exploration Upside

The Lynn Lake district has a long history of exploration and mining; an enormous amount of data has been generated and numerous exploration targets have been defined. This data has never been put together in a comprehensive review of the Lynn Lake nickel-copper field as a single consolidated area. Many of the targets remain un-tested or only partially tested by previous explorers.

Corazon’s current exploration activity has several focuses, including:

1. Defining potential new nickel-copper deposits within the mine areas of the EL Plug and A Plug that will add to the resource base. Recent discoveries that support the prospectivity of these areas include:

2. Corazon’s discovery of a high-grade sulphide breccia at depth below the EL Mine (2011 ASX announcements);

3. Western Areas NL (ASX: WSA) discovery of the Disco (Maxwell) Deposit within the A Plug in 2008 (ASX announcement 23 April 2008); and

4. Prophecy Resources Corp (TSXV: PCY) discovery of the Tango Deposit, also within the A Plug (ASX announcement 8 December 2010).

These discoveries have not been mined or included in resource estimates. Modern geophysical techniques have contributed greatly to these discoveries and it is expected that employing similar methods over the entire project area may deliver favorable results.

1. The exploration of other mafic/ultramafic intrusions that have the potential to host magmatic nickel-copper sulphide mineralisation similar to Lynn Lake. Corazon’s project area contains several mafic bodies that have been identified in geophysics or mapping. Nickel sulphides have been identified in some of these intrusions.

Much of the Project’s terrain is covered by lakes and swamp and as such exploration is typically restricted to the winter months. The mine operators prior to the closure in 1976 were focused on the near-mine environs and resource extensions. Subsequent to that, exploration has been piecemeal in nature.

Lynn Lake has an enormous metal endowment localised in a very confined area. The project has excellent prospectivity and it is expected modern geophysical techniques will be of great benefit in exploring the Lynn Lake area.

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ASX ANNOUNCEMENT

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16[th] April 2015

Ends

For further information visit www.corazon.com.au or contact:

Brett Smith James Moses Managing Director Media and Investor Relations Corazon Mining Limited Mandate Corporate P: +61 (8) 6142 6366 M: +61 (0) 420 991 574 E: info@corazon.com.au E: james@mandatecorporate.com.au

Important Information

Competent Persons Statement : The information in this report that relates to Exploration Results and Mineral Resources for the A Plug deposits at the Lynn Lake project is based on information compiled by Mr Neal Leggo who is a Member of the Australian Institute of Geoscientists. Mr Leggo is a full time employee of Ravensgate and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Leggo 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 and Mineral Resources for the EL Plug deposits at the Lynn Lake project is based on information compiled by Mr Stephen Hyland who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Hyland is a full time employee of Ravensgate and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Hyland consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Forward Looking Statements: This announcement contains certain statements that may constitute “forward looking statement”. Such statements are only predictions and are subject to inherent risks and uncertainties, which could cause actual values, results, performance achievements to differ materially from those expressed, implied or projected in any forward looking statements.

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Table 3 JORC Code, 2012 Edition – Checklist for Assessment and Reporting Criteria.

		Section 1 - Sampling Techniques and Data
Criteria	Explanation	Comment
		The mineral resources reported have been defined entirely from diamond drilling. Recent surface exploration drilling by Corazon into the EL Plug deposit has confirmed historic diamond drilling. The A Plug deposits have been defined entirely from historic diamond drilling mainly undertaken from underground during mining operations which extended from 1946 to 1976 when the mine shutdown. Some exploration drilling has taken place but this has not impacted the area of the resources. Significant knowledge of the deposits has been gained through studying mine geology records and maps.
	Nature and quality of sampling.
		Details of the sample preparation, analyses and security of the historic (pre-1976) data were not discovered by independent consultants Wardrop during their investigations (2005 – 2010) and are not known. Either the procedures were never documented, or the relevant documentation has been lost in the interim. During the period of mine operation it is understood that the drill samples preparation and analysis was completed on site at the Sherritt mill complex.
Sampling techniques	Measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
		The historic nature of the majority of the data used to estimate the mineral resources is the most important aspect of the determination that is material to the public report. The various specific issues stemming from the historic nature of the data are described specifically in the appropriate sections of this Table 1 Commentary and more expansively in Ravensgate’s technical report on the mineral resource estimate.
	Aspects of the determination of mineralisation that are Material to the Public Report.
		The majority of the data used has been historic underground diamond drill data from the mining and exploration undertaken by Sherritt between 1945 and 1976. The majority of the data has been manually input from the original paper copies. A total of 3,709 drill holes had their collar positions, surveys, assays, lithologies and other pertinent information captured with approximately 3900 historic drill holes remaining, but these are from deposits which are not included in this mineral resource estimate. Corazon has undertaken a series of diamond drill programs into the EL Plug since acquiring the project in 2009. The diamond drilling was undertaken from surface using B20 skid mounted diesel/hydraulic diamond rigs contracted from Bodnar and Prospector drilling NQ2 sized wireline core.
Drilling techniques
	Drill type and details.
	Method of recording and assessing core and chip sample recoveries and results assessed.	Details of the recording and assessing core and chip sample recoveries of the historic data are not available.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	Details of the measures taken to maximise sample recovery and ensure representative nature of historic samples are not available.
Drill sample recovery
	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Details of thesample recoveryof the historic drilling are not available.
	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	Core logging records for the historic data are generally available as hand written records subsequently scanned. These have since been input into a digital database and used to guide the geological interpretation. Geotechnical logs are not available but are not required to support the mineral resource estimate in this situation, because a long history of historic mining has provided sufficient justification.
Logging

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		Section 1 - Sampling Techniques and Data
Criteria	Explanation	Comment
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) _photography. _	Core logging records for the historic data are generally quantitative in nature. Limited core photography is available.
	The total length and percentage of the relevant intersections logged.	Details of the total length and percentage of logging of the historic data are not available. Recent drilling by Corazon Mining Limited does include this information.
		Inspection of the remaining historic ore indicates that it was all cut in half to provide assay samples, with the method used being manual cleaving with a hammer and chisel, as was the standard practice at the time. The method appears to have worked quite adequately because the sulfidic igneous rocks comprising the mineralisation are generally solid and tough but not brittle providing a relatively clean break under sharp impact. Modern core has been cut and sampled using an electric core saw.
	If core, whether cut or sawn and whether quarter, half or all core taken.
	If non-core, whether riffled, tube sampled, rotary _split, etc and whether sampled wet or dry. _	Not applicable as only diamond core sampling has been used in the resource.
Sub-sampling techniques and sample preparation	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	Details of the sample preparation technique of the historic diamond drill samples are not available. Modern drill sample preparation details are variable and have been provided by the Companies and commercial laboratories.
	Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples.	Details of the quality control procedures of the historic data are not available. It is likely that no quality control procedures were adopted. Corazon Mining Limited have used modern standards and blanks to monitor sample quality.
	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field _duplicate/second-half sampling. _	Details of the quality control procedures of the historic data are not available. Sampling has been predominantly whole core or partial core and is considered representative of the material drilled.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	The sample size is considered appropriate for the mineralisation type and style.
	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	Details of the nature and quality of the assaying and laboratory procedures used for the historic data are not available. During the period of mine operation it is understood that the drill samples preparation and analysis was completed on site at the Sherritt mill complex. Recent work by Corazon Mining Limited complies with current industry best practice standards.
Quality of assay data and laboratory tests
	For geophysical tools, the parameters used in determining the analysis.	Geophysical surveys have been undertaken during exploration on the Lynn Lake project, but the results are not relevant to the mineral resource estimates.
	Nature of quality control procedures adopted and whether acceptable levels of accuracy and precision have been established.	Details of the quality control procedures of the historic data are not available, therefore determination of the acceptable level of accuracy and precision is subject to the judgement of the Competent Person.
		Excellent verification of significant intersections has been obtained through the successful mining of most of the Lynn Lake deposits, leaving no doubt that diamond drill intersections are genuine. Significant geological reports and scientific papers have been written by company, academic and government geologists about the deposits. A number of different companies and geological consultants have recently reviewed the data and several have drilled additional holes into the deposits which confirmed the existing geological interpretations.
Verification of sampling and assaying
	The verification of significant intersections by independent or alternative company personnel
	.

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		Section 1 - Sampling Techniques and Data
Criteria	Explanation	Comment
		No use of twinned holes has been made in the resource estimation.
	The use of twinned holes.
		For the historic data, documentation of primary data and data entry procedures are not available. Previous data verification exercises have been undertaken by previous Qualified Persons and documented in detailed NI-43-101 standard technical reports. This work included: an internal validation from the original drill hole logs and the drill hole database on 186 (5%) of the 3,709 drill holes in the total database on collar co-ordinates, end of hole depth, down-the-hole survey measurements, ‘from’ and ‘to’ depth measurements of geology and assay sampling intervals, lithological unit and nickel and copper percentages that were compiled from hand written drill logs. A core review was undertaken on 23 historic drill holes to confirm the historical logging and identify any discrepancies from the logging to a visual review. A ten sample check assay program was completed on historical half split core during the site visit. The sampling was from two mineralised drill holes from the N orebody and was sent to ALS Chemex laboratory in Toronto. Overall results from this sampling showed a decrease of 13% nickel and 22% copper, comparing assay results over the same intervals from historical drill hole data. Ravensgate consider that the sample set is not large enough to draw any useful conclusions. The core was oxidised which is known to have some impact on the grade of similar mineralisation similarly tested at other deposits.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
		No adjustment to assay data has been made in the resource estimation.
	Discuss any adjustment to assay data.
		Details of the original collar and downhole survey methods for the historic data are not available, but it can be assumed they were made by qualified mine surveyors. The recent Corazon surface diamond holes were routinely surveyed upon completion by a Reflex Maxibore II tool from collar to end of hole.
	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
Location of data points		All the historic holes were surveyed in the local mine grid. For the EL Plug, historic hole surveys were converted from the local grid to modern DGPS NAD83 co-ordinates by Corazon. Checks on the local grid transformation were made by picking up the main shaft collar (surveyed originally in the SGML imperial local grid) and comparing with Mines Department engineering plans of the EL Mine infrastructure. Differences between modern DGPS NAD83 co-ordinates and available historic imperial SGML co-ordinates of infrastructure were found to be +/-0.50m, which serve to increase confidence in the historic survey data. Details of the grid transformations for the A Plug drill holes were made by Wardrop and the method used was not recorded.
	Specification of the grid system used.

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		Section 1 - Sampling Techniques and Data
Criteria	Explanation	Comment
	Quality and adequacy of topographic control.	The topography at the Lynn Lake area is relatively flat and featureless, with the exception of the collapsed stopes and open pits remnant from historic mining. The topography DTM surface utilised incorporated surface drill collar elevation data and was combined with pit survey DTM surfaced data was sourced from historic survey information. It is considered to have a high quality and accuracy.
		The Lynd Lake nickel-copper deposits were drilled systematically from the main underground levels of 800, 950 (12th level of A mine), 14th Diesel Haulage, 2000 and 3000 feet levels with horizontal drill holes spaced laterally every 121.9m (400 feet) out to or near the contact between the intrusive plug and the metavolcanics or metasediments. Unless large amounts of consistent mineralisation were intersected in these horizontal drill holes no additional drilling was conducted by Sherritt. When considerable lengths of mineralisation and grade were intersected, generally drilling was conducted systematically on 15.2m (50 feet) and then 7.6m (25 feet) intervals and designated an alpha orebody or zone identification. Historic information indicates that the majority of drilling was carried out from underground using either EX or BM diametre core drilling equipment. Corazon diamond drilling into the EL Plug was undertaken from surface and fanned out from available drill sites around the current open pit (which is now a lake) to target the resource area on a nominal 50 x 25m grid. Drilling was undertaken from four different orientations to best define the intrusive pipes limits.
	Data spacing for reporting of Exploration Results.
Data spacing and distribution
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	The Competent Persons have determined that the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied for both the A Plug and the EL Plug deposits. Classification has been based on drill spacing.
		A Plug: Assays were composited into 3.04m (10 feet) down-hole composites while honouring the interpreted geological boundaries. EL Plug: Assays were composited into 1.0 m downhole composites based on a test between the relative effects of 1.0 and 2.0 m compositing.
	Whether sample compositing has been applied.
		Because underground access was available for drilling, drill holes fans were able to be designed to adequately test the deposits without bias from drill hole orientation. It is noted that deeper zone is below the deepest underground workings had higher angle drill intersections into the vertically orientated mineralised pipes. However it is considered that the estimation methods utilised have prevented any bias in the estimates.
	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
Orientation of
data in relation to geological structure		A Plug: The relationship between the drilling orientation and the orientation of key mineralised structures is not considered to have introduced a sampling bias. EL Plug: Drilling was undertaken from four different orientations to best define the intrusive pipes limits. Drill core was not orientated as historic development and stoping had already confirmed the attitude of the pipe and the main contacts are universally sub-vertical. The intersections are at a fairly low angle but the range of orientations has reduced the potential bias of this effect.
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

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		Section 1 - Sampling Techniques and Data
Criteria	Explanation	Comment
		Details of the sample security measures of the historic data are not available, however being a company owned mining operation this is unlikely to have been an issue. Sample security measures undertaken by Corazon Mining Limited in their work, are acceptable.
Sample security	The measures taken to ensure sample security.
		For the historic data, no record of any historic audits or reviews of sampling techniques and data is available. Subsequent workers have attempted to validate this data as described elsewhere in this document.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.

		Section 2 - Reporting of Exploration Results
Criteria	Explanation	Comment
	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	Corazon tenure over the A Plug area comprises 30 mineral leases covering an area of 590 hectares. The leases have a long history being part of the original Sherritt Gordon tenement package, which was surveyed during the 1940’s. The Lynn Lake EL Plug area tenure comprises 33 Mining Claims which are contiguous, with the exception of 2 Claims. All these Mining Claims are held in the name of Mr Peter C Dunlop and are documented on Manitoba Claim Maps 64C-14SE. The area covered by the Claims is 3,997 hectares.
Mineral tenement and
land tenure status		The project tenements are understood by Ravensgate to be in good standing and with no impediment to obtaining a licence to operate in the area. Mining and processing has previously been undertaken. A number of agreements have been signed between Corazon and previous/current owners of the property which require certain payments and royalties to be paid to other companies, which would need to be satisfied to undertake mining operations.
	The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

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		Section 2 - Reporting of Exploration Results
Criteria	Explanation	Comment
		1941 Austin McVeigh located the discovery outcrop. 1945-1946 Sherritt Gordon (Sherritt) staked 353 claims and conducted exploration 1948-1950 Sherritt began sinking the A shaft. This, along with geophysical exploration and drilling increased the resource to 14 million tons averaging 1.22% nickel and 0.62% copper (1) 1953-1976 Sherritt operated the Lynn Lake Nickel Mine from 1953-1976. During this time they discovered/developed additional zones and commissioned the Farley Shaft in 1961. The mine produced over 22 million tons of ore at a grade of 1.023% Ni and 0.535% copper (1) 1988-1989 LynnGold Resources Inc., owned by Hayes Resources Inc., conducted an assessment of Sherritt’s stated a historic reserve of 19.3 million tons grading 0.61% nickel and 0.32% copper (1). 1993-2005 Black Hawk Mining Inc. used the Property mill from 1993-2000 to process ore from the Farley Lake open pit gold mine, approximately 36 km east of Lynn Lake. The gold tailings were pumped into the B pit and then into open stopes of the abandoned underground workings. 2005-2008 Independent Nickel conducted the following exploration activities on the A Plug area: re- established the historic mine grid at 1000 foot intervals, line-cutting of 41.75 total line kilometres, an electromagnetic ground survey, a ground magnetometer survey, borehole EM surveys, an induced polarisation survey, drilled 87 boreholes totalling >28,000m. 2007 Independent Nickel filed a Preliminary Economic Assessment and filed a Pre-Feasibility Study on the A Plug area. Both studies are available on SEDAR. 2009-2014 Prophecy Resources Inc. entered into an agreement with Victory Nickel Inc. to acquire the A Plug area. Prophecy subsequently withdrew from this agreement. 2009-2015 Corazon Mining Limited acquired an option over the EL Plug area from Dunlop. 2014-2015 Corazon Mining Limited acquired the A Plug area from Victory Nickel Inc.
Exploration done by other parties
	Acknowledgment and appraisal of exploration by other parties.

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		Section 2 - Reporting of Exploration Results
Criteria	Explanation	Comment
		The nickel and copper deposits of Lynn Lake are concentrations of sulphides occurring within intrusive plugs mafic to ultramafic igneous rocks. These host rocks are derived from a large intermediate to ultramafic igneous pluton that has been intruded into Wasekwan Group metavolcanic strata. Classification of the magmatic origin is of the tholeiitic affinity. The mineralisation in both plugs typically occurs within structurally controlled vertical to subvertical pipe intrusions of remobilised peridotite and amphibolite, displaying four types of mineralisation: massive sulphide, disseminated sulphides, cemented breccia sulphides and stockworks of sulphide stringers. The nickel and copper mineralisation of the Lynn Lake plugs consists primarily of pyrrhotite, pentlandite and chalcopyrite with minor amounts of pyrite and trace of sphalerite, magnetite and ilmenite. Cobalt distribution appears coincident to nickel. Disseminated sulphides consist of interstitial and fine-grained sulphides that are distributed in a homogenous structureless nature. Plutonic breccia material occurs at the contact of the mineralised intrusive pipe and the barren gabbro country rock displaying subrounded xenoliths of either diorite or gabbro. There has been a significant amount of structural deformation to the deposits. Although the strongest spatial association of mineralisation is occurring in ultramafic to mafic intrusive rocks, there is also a strong spatial association of mineralisation with areas of faulting or intense fracturing. Higher grade mineralisation occurs in areas of intensely fractured or brecciated mafic intrusive rock and ore minerals are found in all types of material within the fracture zone, including late acid dykes. Faulting within the basic plugs is believed to be related to the regional north-south faults, which resulted from a thrust from the west.
Geology	Deposit type, geological setting and style of mineralisation.
Drill hole Information		Not applicable for reports on Mineral Resources.
Data aggregation methods		Not applicable for reports on Mineral Resources.
Widths and lengths		Not applicable for reports on Mineral Resources.
	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Diagrams used in this report were either supplied by Corazon or have been reproduced from diagrams used in previous reports on the deposits.
Diagrams
Balanced reporting		Not applicable for reports on Mineral Resources.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported.	Not applicable for reports on Mineral Resources. Refer to commentary in Section 3 of this table.
Further Work	The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or _large-scale step-out drilling). _	Not applicable for reports on Mineral Resources.

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		Section 2 - Reporting of Exploration Results
Criteria	Explanation	Comment
	Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Not applicable for reports on Mineral Resources.

	Section 3 - Estimation and Reporting of Mineral Resources	Section 3 - Estimation and Reporting of Mineral Resources
Criteria	Explanation	Comment
		The majority of the data used has been historic underground diamond drill data from the mining and exploration undertaken by Sherritt between 1945 and 1976. The majority of the database consists of this historic data which has been manually input from the original paper copies of drill logs, survey sheets and assay sheets and digitised from hand drafted cross sections and mine plans by the independent consultancy Wardrop in 2005 and by Corazon. A total of 3,709 drill holes had their collar positions, surveys, assays, lithologies and other pertinent information manually entered into an Access database. Approximately 3900 historic drill holes remain yet to be digitised and outside the database, but these are from deposits which are not included in this mineral resource estimate. In addition, a total of 395 drawings of sections and plans were scanned from historic data and subsequently digitized. More recent drilling (2005-2009) has been added to the Access database by previous owners (Independent Nickel and Victory) although the details of this have been poorly described in their reports. Corazon have added of 16 diamond drill holes to the database, all into the EL Plug deposit. These holes were used to help validate previous historically derived data. Corazon also retrieved 19 historic AX/BN diamond holes were also added to the drilling database for inclusion in resource modelling and estimation.
	Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.
Database integrity
		A Plug:data Wardrop employed the following data validation procedures: A validation check was run on the original drill hole logs and the drill hole database checking 186 of the 3,709 drill holes in the total database (5%). Data verification was completed on collar co-ordinates, end of hole depth, down-the-hole survey measurements, ‘from’ and ‘to’ depth measurements of geology and assay sampling intervals, lithological unit and nickel and copper percentages that were compiled from hand written drill logs into a Microsoft Access database. Most errors detected were considered to be insignificant and related to mistakes in transcription. The digitising of drawings and maps were validated on an on-going basis with information being visually checked while importing the digitized areas to Datamine geological software. The data verification had less than 1% of errors. A validation studyon the historical loggingwhich comprised re-loggingthe remaininghalf core from 23 historic diamond
	Data validation procedures used.

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	Section 3 - Estimation and Reporting of Mineral Resources	Section 3 - Estimation and Reporting of Mineral Resources
Criteria	Explanation	Comment
		drill holes was conducted during a site visit by Cater (2005). The review found that the geology of the inspected core was consistent with the original geological logging except in hole U5622 drilled on the P orebody, where within the gabbro, amphibolite and quartz-hornblende-diorite units were inconsistent with the drill log. Sampling intervals matched the assay sampling intervals from the drill log in all cases. A very limited sample check assay program was completed on historical half split core. The sampling was from two mineralised drill holes from the N orebody and was sent to ALS Chemex laboratory in Toronto. Overall results from this sampling showed a decrease of 13% nickel and 22% copper, comparing assay results over the same intervals from historical drill hole data.
		EL Plug:resource estimate Ravensgate employed the following data validation procedures: Validation of the historic drill holes: The 16 holes drilled by Corazon were used to help validate previous historically derived data. Corazon also retrieved 19 historic AX/BN diamond holes were also added to the drilling database for inclusion in resource modelling and estimation.
		The Independent Qualified Person, Mr Stephen Hyland of Ravensgate, visited the Lynn Lake township and project in March 5th2015. The visit included:  Visit to historic Mine Site Areas including A-Plug and EL Plug areas.  Visits to the exploration drill sites and the old EL Plug Pit and associated outcrop exposures.  Visit to the rehabilitated old A-Plug Tails Dam areas.  Inspection of available drill-core. Review of geological setting of the deposit and some surrounding area; From the site visit, no significant concerns relating to previous historic reporting against current status of the project were identified.
	Comment on any site visits undertaken by the Competent Person and the outcome of those visits. If no site visits have been undertaken indicate why this is the case.
Site visits
	Cid i l h i h	The geological interpretation utilised for this resource estimate is based on a well-established geological model of ore genesis, geological history and structural deformation which has been thoroughly described in a detailed report by government geologist Pinsent (1980) plus various academic papers. This geological model was developed and improved during exploration and mining through the 1960s and 1970s and the model assisted in the successful mining of the deposits over a +30 year period. Subsequent research has upheld the model. The nickel-copper-cobalt deposits of Lynn Lake are concentrations of sulphides occurring within two intrusive plugs of mafic to ultramafic igneous rocks, derived from a large intermediate to ultramafic igneous pluton that has been intruded into metavolcanic strata. Classification of the magmatic origin is of the tholeiitic affinity. The mineralisation in both plugs typically occurs within structurally controlled vertical to subvertical pipe intrusions of remobilised peridotite and amphibolite, displaying four types of mineralisation: massive sulphide, disseminated sulphides, cemented breccia sulphides and stockworks of sulphide stringers. The bulk of the mineralisation occurs in discrete pipe shaped lodes, characteristically containing disseminated sulphide-bearing anhydrous norite and/or plutonic breccia ore found at the pipe interface with host rockgabbro. Manyorepipes occur within the larger A Plugcomplex and several economicallysignificantpipes in the EL
Geological interpretation
	onfence n (or conversey, te uncertanty of) te geological interpretation of the mineral deposit.

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	Section 3 - Estimation and Reporting of Mineral Resources	Section 3 - Estimation and Reporting of Mineral Resources
Criteria	Explanation	Comment
		Plug. The pipes are extensive, although the mineralisation may be localised. The sulphides, locally segregated into a discrete silicate-contaminated ore fluid, either within the source magma chamber, or in transit to the plug, forming “high-grade” sulphide pipes and lenses within ore pipes or within host rock. A history of the geological events of the Lynn Lake deposits is outlined by Pinsent (1980).
		The majority of the data used has been historic underground diamond drill data from the mining and exploration undertaken by Sherritt between 1945 and 1976. Many assumptions have been made about the veracity of this data because little record of the methods of drilling, logging, sampling, assaying and QAQC were written down or were preserved. However, Independent consultancy Wardrop compiled and reviewed this data and determined it suitable for resource estimation purposes. Ravensgate concurs with this opinion, although Ravensgate have made the determination to reduce classification confidence of some resources down from CIM Measured to JORC Indicated due to uncertainties attached to the accuracy of historic data which is considered between 10% and 20% uncertainty in grade and location.
	Nature of the data used and of any assumptions made.
		This is a very low risk, as alternative estimation interpretations are unlikely to be valid. The mineralisation in both plugs typically occurs within structurally controlled vertical to subvertical pipe intrusions of remobilised peridotite and amphibolite, displaying four types of mineralisation: massive sulphide, disseminated sulphides, cemented breccia sulphides and stockworks of sulphide stringers. Successful mining operations which ran for approximately 30 years were based on understanding and interpretation of geology which differ little from those which were used for the current resource estimates. The continuity in geometry and grade of the mineralisation between drill holes has been absolutely confirmed through successful underground drifting and stoping of the majority of the deposits discovered in the Lynn Lake field.
	The effect, if any, of alternative estimation interpretations on Mineral Resource estimation
		There are significant geological controls on the geometry and grade continuity of the mineralisation and geological interpretation involves taking these controls into account. Sulphide mineralisation only occurs in certain well-established rock types in patterns predictable through ore genesis models and geological logging and mapping. Structural offset of deposits by late faulting has been clearly established and documented through underground mapping and diamond drilling interpretation.
	The use of geology in guiding and controlling Mineral Resource estimation.
		The main mineralised zones occur in the western half of the A Plug associated with more mafic to ultramafic rock types of gabbro, amphibolite and peridotite in three main centres within the pluton as follows:  A, C, Upper D, Lower D, E and J zones at the north end of A Plug situated around the A shaft area;  B, F, K and B-K zones that lie west of the Farley shaft in the middle of the A Plug;  O, N and P zones at the south end of the A Plug;  The EL deposit lies in the center of EL Plug. Significant structural controls on the geology of the mineralisation have been defined: All the ore zones appear to be affected somewhat by faulting, causing successively higher sections of the A, C, E and J zones to be thrusted to the east. In general, the few in number easterly dipping reverse faults exhibit appreciable movement, while the westerly dipping imbricate reverse faults are more abundant with little disruption and deformation of the zones. The Lynn Lake fault or Griffith shear defines the southern contact of the A Plugand the O fault disrupts and offsets the O and N zones.
	The factors affecting continuity both of grade and geology.

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	Section 3 - Estimation and Reporting of Mineral Resources	Section 3 - Estimation and Reporting of Mineral Resources
Criteria	Explanation	Comment
		These two major reverse faults strike northwest and dip moderately to the northeast. The reverse movement on the O fault has caused sections of the O and N zones to be thrusted southwest over the Wasekwan Group country rock below the 3,500 foot level. The Lynn Lake fault with a similar sense of movement has moved the weakly mineralised portions of the O and N to the southwest over the Wasekwan. The mineralised portions of the N and O zone lie between the two faults from the 1,600 and 3,500 foot levels. If the known weakly mineralised M zone, which lies at surface, is the thrusted hangingwall equivalent of the N zone the offset of the faulting is on the order of 500 to 600 metres. The O zone pipe thrusted hanging wall extension has not been located or the footwall truncated portion of the Lower O zone.
		Historic exploration defined 12 mineral deposits (termed zones) within the Lynn Lake field which were named with alpha codes, but only those for which mineral resources are reported are described here (G, N, O and EL). The original historic names for the various levels within the mine are from the then operating imperial measurement system (e.g. foot) and these have been retained in the following description. G Zone: The G zone is located to the south of E zone with weak mineralisation extending from the 12th level to below the 3,000 foot level. Improved nickel and copper grades lie in close proximity to the 3,000 foot level. Mineralisation is hosted in sulphide breccia gabbro and weakly mineralised amphibolite units. The G zone has been exploration drilled to a depth of 4,500 foot with mineralised intersections. The mineralised zone has been block faulted by shallow faults striking 330° azimuth and a dip of 30° to the northeast. N Zone: The N zone is interpreted to be the faulted disrupted counterpart of the M zone once being a single mineralised pipe. This pipe extends from the O fault at 4,500 feet below surface to the subsurface outcrop of the M zone. The mineralisation therefore lies above and below the Lynn Lake fault (300°/50°NE). The N zone mineralisation is located adjacent to the A Plug contact and the country rock Wasekwan volcanics at about 1,100 metres south of the Farley Shaft. Mineralisation extends from the Lynn Lake Fault on the 1,600 foot level to the O fault at approximately 4,500 feet from surface. The majority of the mineralisation is disseminated sulphides. It consists of several lenses within a pipe of mineralised amphibolite to gabbro that has been cut by a large peridotite body and numerous thrust faults (030°/30°NW). The faulting has displaced these blocks successively higher to the southeast. The Lynn Lake fault overlies, and the O fault underlies, the N zone mineralisation. The upper and lower 1,730 shear separate the upper and lower N zones. The mineralised pipe is crudely sub- circular on the order of 250 to 300 metres in diameter. O Zone: The O zone is located 750 metres from the Farley Shaft, hosted in mineralised amphibolite that intruded the A Plug gabbro. The O zone extends from the O fault on the 3,550 foot level to the Lynn Lake fault on the 1,600 foot level. Extensive faulting on the Dyke shear has displaced the O zone into upper and lower portions. The complex Dyke shear that trends north-south and dips 40° to the west has separated the Upper and Lower by approximately 90 to 100 metres. The upper O zone pipe has been structurally juxtaposed by a number of reverse faults from 1,900 to 2,400 foot level. These reverse faults are probably curved splays from the underlying Dyke shear that trends north-south and dips off to the west. The mineralised lenses of the upper O zone consists of disseminated, sulphide breccia and veins of massive sulphides in a sub-circular nature. The lower O zone that lies below the complicated Dyke shear consists mainly of disseminated sulphide material hosted in amphibolite. The lower O zone is sub-circular in nature and plunges steeply to the southeast. The pipe is cut out by the O fault on the 3,550 foot level.
	The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.
Dimensions

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	Section 3 - Estimation and Reporting of Mineral Resources	Section 3 - Estimation and Reporting of Mineral Resources
Criteria	Explanation	Comment
		Independent consultants Wardrop undertook a comprehensive block modelling and mineral resource estimation study of the N, O and G Zones of the Lynn Lake Nickel project in 2005, which was well documented in an NI 43-101 report on the project (Carter 2005). This mineral resource formed the basis of the 2009 estimate by Waldrop (McCracken 2010) which re- reported the majority of the Carter report. No additional drilling was added for this estimate which probably used exactly the same modelling methodology, software and input data. Assays were composited into 3.04m (10 feet) down-hole composites while honouring the interpreted geological solids. Summary tables of the composite statistics for each of the six areas were investigated. Zero grades were included in the composite if the intervals within the solids were not sampled. Assays below the detection limit, identified as NIL in the drill hole log were recorded as zero grades in the database. Assays recorded as trace were assigned a grade of 0.01% for Ni and Cu. Boxplots provided a comparison of assay grades within the various interpreted solids for each A Plug orebody. Histograms and probability plots were created to provide a comparison of composite grades within the various interpreted solids for each zone. Several inflections are evident in many probability plots indicating data probably contains a number of grade populations, probably indicating a proportion of low-grade material within the wireframes. All of these histogram and probability plots were viewed by Ravensgate and found to support the geological interpretation. The lack of extreme outliers meant that grade cutting or trimming was not necessary. Spatial analysis of the grade distribution of nickel and copper and use the results to determine parameters for geostatistical grade interpolation into the block model. Variography was undertaken using Sage2001 software and was completed for Ni and Cu grades in N and O zones, for which there were sufficient data available. Downhole variograms were used to determine nugget effect and then correlograms were modelled to determine spatial continuity in the N and O zones. The G Zone did not contain sufficient number of composites to conduct variography. Block models were established using Datamine software. Grade interpolation was completed using the ordinary kriging estimation method and additionally the nearest neighbour and inverse distance squared estimation methods to as check estimates. Ordinary kriging was selected. It has been geostatistically proven to provide superior grade estimation in many base metal deposits. The estimations were designed for three passes. In the first pass the search distance for inclusion of data was 25.3m to 59.4m for Ni and 16.8m to 35.1m for Cu and was designed to estimate blocks if a minimum of two composites were found in the search. The search distance in the second pass was 150% the size of the first pass and the third pass was 200% of the first pass.
	The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.
Estimation and modelling techniques:- A Plug deposits G zone N zone O zone
		From 1953 to 1976 a significant mining and mineral processing operation was undertaken by Sherritt. Over this 24 year period, approximately 22.2 million tons (20.1Mt) of sulphide ores were mined and processed at an average grade of 1.023% Ni and 0.535% Cu. The production was primarily from underground operations in the A Plug area with subsidiary but high- grade production from the EL Plug area. The mines closed in 1976 with a substantial nickel-copper resource remaining in- situ and partially developed. However, production records are not sufficiently detailed that the resources for individual zones of mineralisation can be reconciled against production.
	The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.

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	Section 3 - Estimation and Reporting of Mineral Resources	Section 3 - Estimation and Reporting of Mineral Resources
Criteria	Explanation	Comment
		It is assumed that copper will be recovered along with the nickel. Cobalt occurs in the ore in an approximate 30 to 1 ratio to nickel grade. Cobalt was recovered into the nickel concentrate during historic mining and processing. However, cobalt was not estimated into the model due to limited assay data.
	The assumptions made regarding recovery of by- products.
		The majority of the samples have only been assayed for nickel and copper, with a small number of samples from more recent drilling analysed for a full suite of elements. However, all the Lynn Lake deposits have been successfully processed through a mill which operated some 50 years ago, so there can be no doubt that a modern mill would successfully handle all deleterious elements in the mineralisation. The mineralisation is very sulphide rich, so acid drainage issues will need to be dealt with in any mine environmental plan.
	Estimation of deleterious elements or other non- grade variables of economic significance (eg sulphur for acid mine drainage characterisation).
		As is typical with underground drilling patterns, drill hole spacing is quite variable across the deposits especially in the vertical direction. The majority of the drilling is tightly spaced at 7.62m or 15.24m lateral intervals, only the Lower N area below elevation 3,000 feet wider spaced at 30.48m intervals. The assay data was composited into 3.05m down-hole composites. Wardrop chose a block size of 3.05 x 3.05 x 3.05m in order to accommodate the more closely spaced drilling. This block size is small and a somewhat larger block size would have reduced the pronounced volume variance effect produced by a block size equal to the composite interval. However it is useful for more detailed mine planning and appropriate in the most tightly drilled areas.
	In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.
	Any assumptions behind modelling of selective mining units.	No assumptions have been made with regard to modelling of selective mining units.
		There is a good correlation between nickel grades and copper grades at a global level and even at an individual assay interval level the correlation is reasonably close. The use of the metal equivalence formula combining nickel and copper analytical results into a single number makes an assumption about this correlation which is not always correct at an individual sample or block model cell level. This results in samples low in one element being included in the estimation for that element only because of the high result in the other element. Ravensgate do not consider this to have reduced the quality of the mineral resource estimate.
	Any assumptions about correlation between variables.

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	Section 3 - Estimation and Reporting of Mineral Resources	Section 3 - Estimation and Reporting of Mineral Resources
Criteria	Explanation	Comment
		Three-dimensional wireframe models of mineralisation were developed for the N, O and G zones based on a NIEQ cut-off of greater than 0.3%. The zones of mineralisation interpreted for each area were generally continguous, except where affected by reverse block faulting. No minimum thickness criterion for sulphide mineralisation was used in the development of the solids. Sectional interpretations were digitised in Datamine software, and these interpretations were linked with tag strings and triangulated to build three-dimensional solid wireframes. The wireframe solids were validated in Datamine and then used to constrain the limits of block model cells. Historic mining has been undertaken in both the N zone and the O zone. The G zone had no historic mining in the interpreted mineralisation. For the N and O zones the volumes of rock material mined out through historic stoping and and drift development were determined by Wardrop by creating 3-D wireframe solids in Datamine. The Wardrop reports did not describe where the data came from which was used to determine the mined out areas, but Ravensgate would assume that this was derived from the scanned historic mine plans and cross sections. Given the long life and professional nature of the historic mining operation at Lynn Lake, a fair degree of confidence can be attached to the accuracy of the drafting of these plans and the survey work which determined the locations of the workings. However, no verification of the accuracy of the historic mine plans has been attempted.
	Description of how the geological interpretation was used to control the resource estimates.
		Some non-assayed intervals are present in the database. These have been interpreted as non-mineralised intervals and assigned zero grade for the purposes of block grade estimation. In situations where non-mineralised intervals are included within broader mineralised intervals these non-mineralised intervals were incorporated into the interpreted solids.
	Discussion of basis for using or not using grade cutting or capping.
		Grade models were validated by three methods: Visual comparison of colour-coded block model grades with composite grades on section and plan. Comparison of the global mean block grades for ordinary kriging, inverse distance squared, nearest neighbour and composites. Comparison of historic tons and grades reported of the N, O and G zones of the mineral resource. In subsequent resource estimations, the wireframe volumes for each zone were compared to the 2005 wireframe volume. Grade interpolations that were completed using three estimation methods: nearest neighbour, inverse distance squared and ordinary kriging. The global block model statistics for the ordinary kriging model were compared to the global inverse distance squared and nearest neighbour model values. Globally, there is close agreement between the ordinary kriging model and inverse distance squared model and nearest neighbour model. Comparisons were made using all blocks. The visual comparisons of block model grades with composite grades for each of the three zones and orebodies show a reasonable correlation between the values. No significant discrepancies were apparent from the sections and plans reviewed. In some outlying portions of the model larger discrepancies are reflected as a result of lower drill density. There is a degree of smoothing apparent from the ordinary kriging, which reflects the data density to a great extent. Representative plans and sections from each of the zones and orebodies were developed to illustrate this comparison. However these illustrations did not meet minimum standards required for reporting by the JORC Code and have not therefore been reproduced in this report. Ravensgate have inspected these illustrations but generally found them to be of insufficient quality to enable independent validation.
	The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

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	Section 3 - Estimation and Reporting of Mineral Resources	Section 3 - Estimation and Reporting of Mineral Resources
Criteria	Explanation	Comment
		The well established interpretation of the Lynn Lake deposits is that they are concentrations of sulphides occurring within two intrusive plugs of mafic to ultramafic igneous rocks (refer “Geological Interpretation” commentary above).The interpreted nickel-copper mineralisation distribution is based on a nominal minimum of 0.2% Ni cut-off which has been used to interpret and construct wireframes of mineralisation within the Main EL-Plug Area. These have been allocated ZONE code numbers for modelling use and have been designated as ZON1=1-3 for the Low Grade zones and a small subset of ZON1-1 designated as ZON2=1 for a localised High Grade zone. Grade estimation using ordinary kriging was completed for one main reportable element item; NIKR1 for Ni% and CUKR1 for Cu% These item were combined to generate a Nickel Equivalent item NIEQ1. The influence of extreme grade values were examined utilising top cutting analyst tools (grade histograms; log probably plots and coefficients of variation) on a detailed ZONE designation basis. The grade / cut-off distance restriction regime utilised during interpolation to limit the influence of very high grade outliers for EL-Plug was set at varying cut-off thresholds depending on ZONE designation. The distance of outlier restriction for the various EL-Plug zones was also variable. Grade continuity for each ZONE was measured using geostatistical techniques. Directional variograms were modelled using traditional and co-variance transformation variograms. Nugget values for all elements were observed to range from moderate through to high depending on zone designation. Estimation search ellipsoids were also defined according to the local geometry orientation as defined by an additional AREA domain code. The main EL-Plug (ZON1=1=3) mineralisation domains was interpreted treated from a modelling perspective as a ‘one continuous mineralisation event’.
	The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.
Estimation and modelling techniques:- EL Plug EL deposit
		Previous economic mining activity has taken place within the EL-Plug Area. No detailed review or direct comparison of any previous resource estimates has been carried out data acquisition difficulties given the time elapsed and due to differences in reporting detail available including difficulties related to differing reporting lower cut-offs grades making it difficult to compare previous historic estimates. A previous early stage mineral resource estimate for the EL-Plug Area was carried out by Corazon in September 2010 utilising a Nickel Equivalent lower cut-off reporting grade,making relatively recent direct comparisons difficult. Corazon reported an Inferred Mineral Resource under the JORC 2004 Code using a 0.6% Nickel Equivalent (NiEq) lower cut-off of 1.80Mt at a cut-off of 0.8%Ni and 0.4%Cu.
	The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.
	The assumptions made regarding recovery of by- products.	Mining and mineral processing of mineralised material from the EL-Plug deposit is expected to primarily produce Nickel concentrate (Ni) with associated ancillary elements Copper (Cu) and Cobalt (Co) that may be recoverable excess or saleable by-products.
	Estimation of deleterious elements or other non- grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation).	No significant deleterious toxic metal elements have been identified or reported to date. Historically some problems have been observed with high sulphur materials resulting in unwanted acid mine drainage. Corazon is aware of these particular concerns.
	In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.	EL Plug:Drilling of the deeper zones of the EL Plug from surface has resulted in high angle intersections of the deposit and broader drill spacing.

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ASX ANNOUNCEMENT

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	Section 3 - Estimation and Reporting of Mineral Resources	Section 3 - Estimation and Reporting of Mineral Resources
Criteria	Explanation	Comment
		EL Plug:The block size used by Ravensgate for block model construction 5mx5mx5m (X,Y,Z) is a reasonable Selective Mining Unit (SMU) given the scale of the EL-Plug Deposit allowing for good modelling resolution. The relatively high drilling density present in much of the shallower and near surface mineralization (10mx10M) also allows for a smaller higher resolution block size to be considered.
	Any assumptions behind modelling of selective mining units.
		EL Plug:The primary element Nickel is strongly correlated with ancillary elements Copper and Cobalt. Mining production will be aimed at maximizing Nickel recovery and therefore recovering most of the Coper and Cobalt mineralization. There are a few minor locations identified where relatively high Copper and Cobalt grades occur in conjunction with very low inherent Nickel grades.
	Any assumptions about correlation between variables.
		EL Plug:The major lithology types interpreted and modelled to date have been used to guide the mineralization wire-frames used to code the block model. In addition at least one known interpreted fault zone has been shown to cut or off-set mineralization and this has been incorporated in the block model
	Description of how the geological interpretation was used to control the resource estimates.
		EL Plug:Statistical analysis showed the populations in the main ZON1=1-3 and ZON2=1 domains to generally have low, ranging to moderate, coefficients of variation. Therefore, a moderated grade / cut off and associated distance restriction regime was applied during kriging interpolation individually on a zone by zone basis. The distance restriction threshold was applied at approximately the 98thor 99thpercentile levels. It should be noted that composite grades were not cut prior to use in kriging interpolation, but their area of influence was significantly restricted.
	Discussion of basis for using or not using grade cutting or capping.
		Model validation was carried out graphically and statistically to ensure that the block model grades accurately represent the input drill hole data. A number of methods were employed to validate the block model including:  Global mean comparison;  Visual comparison, and  Bench trend plot comparison. The global mean comparison between drill composite grades and model grades within each of the mineralised zone wireframes for the Ni item shows that globally, the estimates compare favourably within all the well drilled parts of the main mineralised domains. Some localised bench variations are observed with the bench trend plots. These areas of variation are due to the inherent bench variability and non-stationarily of the Ni composite data locally. Cross sections were viewed on-screen and showed a good comparison between the drill hole data and the block model grades. A volume comparison between the volume of the block model cells within each mineralised zone and the volume of the corresponding wireframe was carried out to ensure coding methods were within acceptable limits.
	The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.
Moisture	Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	The tonnages are estimated on a dry basis.

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ASX ANNOUNCEMENT

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	Section 3 - Estimation and Reporting of Mineral Resources	Section 3 - Estimation and Reporting of Mineral Resources
Criteria	Explanation	Comment
		A Plug:Ravensgate used the following nickel-equivalent formula to express the component of copper in terms of a nickel grade: • NIEQ % = (((2.00 x Cu% x 22.04622) + (7.22 x Ni% x 22.04622))/7.22)/22.04622 Three-dimensional wireframe models of mineralisation were developed for the N, O and G zones based on a NIEQ cut-off of greater than 0.3%. Ravensgate used a 1.0% NIEQ lower cut-off for reporting Mineral Resources.
Cut-off parameters	The basis of the adopted cut-off grade(s) or quality
	parameters applied.
		EL Plug:The cut-off grades used for the EL Plug were variable depending on depth. For material above the 1,300m RL a cut of plus 0.4% Ni was used. That material represents that which may be exploited by open cut mining methods. For mineralisation below 1,300m RL, a cut-off of 0.6% Ni was used.
	Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution.	Future Mining or mineral extraction at the EL-Plug deposit area deposit is anticipated to be initially open pit mining and the n followed mining. Underground mining methods will probably be very similar to the methods employed during the previous historic mining phases. No other assumptions on mining methodology have been made.
Mining factors or assumptions
		EL Plug:Historic mining, milling and processing of ore from the EL-Plug area has been well recorded and it is not expected that any major metallurgical recover concerns will be encountered at such a mature project. Ravensgate understands Corazon is planning more detailed test work in the future with the aim of identifying and optimising the best processing route for the production of nickel concentrate as well as recover ancillary elements such as copper and cobalt.
Metallurgical factors or assumptions
	The basis for assumptions or predictions regarding metallurgical amenability.
Environmental factors or assumptions		EL Plug:Ravensgate has not made any assessment regarding waste rock or tailings disposal. It is expected the uses of standardised rock waste dumps and tailing dams of modern design could be utilised without any significant impact on the local environment.
	Assumptions made regarding possible waste and process residue disposal options.
		A Plug:The available database for the A Plug deposits does not include any density core measurement data, nor does it contain any tonnage factor statistics from historic production. Neither historic mine is nor recent explorers have acquired Archimedes data despite the very significant amount of drill core available. Tonnage factors were derived from Ni and Cu grades using trendline formulas, graphing iron (Fe) and insolubles (Insol) against Ni grades on assayed intervals for each zone and orebody. Strong relationships were identified between assayed Ni values and percentages of Fe and Insol. These correlations were then used to estimate tonnage factors for each individual zone based on trendline formulas, sample assay data and chemical formulas of chalcopyrite, pentlandite and pyrrhotite. Certain assumptions were used in order to determine the tonnage factor:  Amount of total Fe is derived from pyrrhotite, pentlandite and chalcoyprite.  Cu is derived entirely from chalcopyrite  Ni is derived entirely from pentlandite  Insolubles specific gravity assumed as 2.85
	Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. h blk d blk l h
Bulk density	Te u ensity for u materia must ave
	been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

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	Section 3 - Estimation and Reporting of Mineral Resources	Section 3 - Estimation and Reporting of Mineral Resources
Criteria	Explanation	Comment
		EL Plug:The bulk density information utilised by Ravensgate was derived from data contained within the Corazon drilling database. Approximately 240 bulk density measurements were carried out using the Archimedes Method on 120 linear metres of diamond core acquired as part of the Corazon drilling program. Ravensgate’s opinion is that this is a reasonable number of physically measured bulk density measurements, in conjunction with associated assay analytical data for nickel and sulphur, to reliably describe mineralisation bulk density. Ravensgate elected to use the nickel versus bulk density regression as the correlation coefficient derived was slightly better (0.907)than that for sulphur.
		A Plug: Because Ravensgate has utilised the resource model developed by Waldrop in 2009 as the basis for this resource estimation on the A Plug deposits, it was important to initially review the CIM classification scheme employed for this work. Ravensgate have applied the following JORC Code classification assignments. The Inferred classification is assigned for model blocks where the distance to the nearest composite was greater than 11.43m. The Indicated classification was assigned for model blocks where the distance to the nearest composite was less than 11.43m. The Measured classification was not assigned to any model blocks. Ravensgate consider that the uncertainties in the accuracy of the historic diamond drill data are too great to allow the assignment of the highest level of confidence to any resource based on the historic data. Ravensgate is particularly concerned with the accuracy and precision of the nickel and copper analytical results for which there is no QAQC or description of the sampling or analytical methods employed. Ravensgate is also concerned with the accuracy and precision of the survey data leading to uncertainty in sample location. Ravensgate have therefore made the determination to reduce classification confidence of some resources down from CIM Measured to JORC Indicated due to uncertainties attached to the accuracy of historic data which is considered between 10% and 20% uncertainty in grade and location.
	The basis for the classification of the Mineral Resources into varying confidence categories. Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data). Whether the result appropriately reflects the Competent Person’s view of the deposit.
Classification
		EL Plug: Estimation parameters including kriging variance, number of composites informing the interpolated block and distance of block centroid from nearest drill hole were considered during the classification process. These parameters were condensed into a quality of estimate (QLTY) item which was used as a starting basis for decisions relating to resource classification and further re-condensing of the QLTY parameter into a RCAT (Resource Category) summary
		A Plug: Ravensgate have undertaken a review of the previous mineral resource estimates for the Lynn Lake deposits. However this review has not been to the depth of a full audit of the previous estimates nor of the database which supports the estimates. Ravensgate notes that the capture of the historic data and the previous resource estimates of the A Plug deposits were made by consultant geologists employed by a fully independent geological consultancy. Ravensgate utilised this previous block modelling and resource estimation work in determining the reported Mineral Resource estimates for A Plug deposits. Ravensgate considers that changes in geological wireframes, nickel equivalent formulae and cut-off parameters have resulted in the different reported mineral resource estimates for the A Plug deposits.
Audits or reviews	The results of any audits or reviews of Mineral Resource estimates.

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	Section 3 - Estimation and Reporting of Mineral Resources	Section 3 - Estimation and Reporting of Mineral Resources
Criteria	Explanation	Comment
		EL Plug: Ravensgate has re-estimated the mineral resources for the EL deposit using MineSight®software. Ravensgate’s resource estimates for the Lynn Lake deposits have not been externally audited or reviewed.
		Ravensgate considers the most important factors on relative accuracy and confidence level in the Mineral Resource estimates to be: • Adequate levels of drilling and sample density; • Precise drilling and sampling technique; • Regular checking of assay data quality; • Adequate survey control for drill holes and sample points; • Reliable estimation and allowance for variability of specific gravity; • Consistent and accurate logging of drill hole data; • Precise definition and modelling of mineralisation zones with reference to geology; • Thorough reviews of deposit statistics; • Realistic application of grade cut-offs and area of influence restrictions; • Correct application of interpolation techniques; • Thorough analysis of all modelling parameters and the results derived; and • The minimisation of all assumptions where possible.
	Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.
Discussion of relative accuracy/ confidence