CORAZON MINING LIMITED — Capital/Financing Update 2016

Nov 23, 2016

Announcement

24 November 2016

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The Manager - Company’s Announcements Australian Securities Exchange

HIGH-GRADE COBALT INTERSECTIONS Initial Mt Gilmore Drilling Assays

• Initial assays received for RC drilling at Cobalt Ridge within the Mt Gilmore CobaltCopper-Gold Project

• Excellent high grade cobalt intersections in targeted lode position within broad shallow mineralisation

• Assays returned for two holes intersecting the main zone included:

• MGRC002 16m @ 0.65% cobalt from 135m, including

  • 6m @ 1.48% cobalt

• MGRC003 37m @ 0.14% cobalt from surface, including

• 2m @ 0.36% cobalt and 1.37% copper,

1m @ 1.20% cobalt and 1.02% copper

• Best individual assay of 1m @ 2.79% cobalt

• Broader cobalt zones also include copper, gold and silver mineralisation

• Results to date indicate high-grade mineralisation is open to the west, plunging below historical drilling

• Holes MGRC001 and MGRC004 to be extended with core drilling to intersect main cobalt lode

• Assays from remaining 14 RC holes expected in the coming weeks, with core drilling currently ongoing

Corazon Mining Limited (ASX: CZN) (“Corazon” or “the Company”) is pleased to announce high grade cobalt intersections in the Company’s first batch of assay results from its maiden drilling program at the Mt Gilmore Cobalt-Copper-Gold Project (“Project”) in north-eastern New South Wales.

Drilling focused on the high grade Cobalt Ridge prospect and assay results have validated the Company’s assessment of Cobalt Ridge as a unique, high grade cobalt-dominant deposit that has the potential to deliver valuable, discrete high-grade zones of cobalt, within broader moderate grade mineralisation.

Cobalt is a metal of growing strategic importance due to its requirement for use in lithium-ion batteries and the emerging re-chargeable battery sector. At current cobalt metal prices of around US$30,000 per tonne, the grades intersected in the drilling at Cobalt Ridge represent potentially significant inground value for both the broad zones and discreet high grade zones of cobalt mineralisation. Historic mining for cobalt, copper, gold and silver in the project area supports the opportunity for the metallurgical extraction of these metals.

CAPITAL STRUCTURE		BOARD OF DIRECTORS		CONTACT US
- Market cap. @ A$0.025 Ordinary shares Options	A$20.25M 810M 20M	Clive Jones Non-executive Chairman Brett Smith Managing Director Jonathan Downes Director		P: +61 (8) 6142 6366 M: PO Box 8187, Subiaco East WA 6008 E: info@corazon.com.au
ASX: CZN		Adrian Byass	Director	W: www.corazon.com.au

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Managing Director Mr Brett Smith stated “ We are pleasantly surprised by these initial assay results. In particular, the results for hole MGRC002 are better than any previous historical drilling and open up the western extensions of the system as prospective for high-grade cobalt, plunging below historic drilling. We’re looking forward to assays from what would be considered the core of the system. The main cobalt lode appears to be 10 to 20 metres down-hole with two or three zones of more intense mineralisation .”

Holes MGRC002 and MGRC003 have intersected the main cobalt lode. Core drilling is currently underway to extend holes MGRC001 and MGRC004 to intersect this zone. Significant assay results are presented in Table 1, with additional details pertaining to drilling and assaying presented in Table 2.

The best individual assay results for cobalt was 2.79% over one metre, with highlight results including;

o MGRC002 16m @ 0.65% cobalt from 135m, including

6m @ 1.48% cobalt

o MGRC003 37m @ 0.14% cobalt from surface, including

2m @ 0.36% cobalt and 1.37% copper,

1m @ 1.20% cobalt and 1.02% copper.

Background to Mr Gilmore drill program

Corazon’s maiden drill program at Mt Gilmore has been designed to confirm the continuity, position and extent of the cobalt-copper-gold mineralisation within the Cobalt Ridge prospect area, which has been identified by previous drilling. Corazon’s drilling has validated historical mining and exploration results and has confirmed the presence of multiple zones of sulphide mineralisation over a strike length of at least 300 metres. The mineralisation remains open along strike and at depth.

In total, 18 reverse circulation (RC) drill holes were completed for 2086 metres. Results received to date include 300 assays from a total of 1566 samples submitted to date. The assays are from drill holes MGRC001 to MGRC004. Holes MGRC002 and MGRC003 were completed. Holes MGRC001 and MGRC004 have partial assays returned and are currently being extended with core drilling to intersect the interpreted main cobalt lode.

Geological assessment of the mineralisation has been encouraging, with multiple phases of brecciation and sulphide mineralisation interpreted. To enhance the understanding of the Cobalt Ridge system, core drilling has commenced. This drilling is designed to provide additional information for interpretation and modelling of the mineralisation, as well as provide sample material for petrological and metallurgical test work.

Core drilling at Cobalt Ridge is expected to be completed over the next two weeks. As with previous drilling, it is anticipated that this drilling will intersect visible signs of mineralisation. The tenor of the cobalt-copper-gold mineralisation will be determined by laboratory analysis, which is expected to take an additional three to four weeks.

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Table 1: Significant Assay Intervals

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Down
Interval
Hole Co Co Au
Hole ID Cu % Comments
From To Width % lbs/t g/t
m m m
Assays to 56m. Core tail in progress
MGRC001 39 53 14 0.15 3.20 0.26 0.18 from 56m. Main Cobalt Lode targeted
at depth.
MGRC002 72 75 3 0.05 1.19 0.20 0.08
90 93 3 0.22 4.85 0.85 0.14
103 110 7 0.07 1.50 0.20 0.07
135 151 16 0.65 14.30 0.26 0.17 Interpreted Main Cobalt Lode
Incl. 135 141 6 1.48 32.63 0.14 0.32
Interpreted Cobalt Lode. Partially
MGRC003 0 37 37 0.14 2.98 0.23 0.08
oxidised to 28m down hole.
Incl. 20 22 2 0.36 7.91 1.37 0.38
Incl. 32 33 1 1.20 26.35 1.02 0.44
55 57 2 0.09 1.90 0.43 0.14
70 71 1 0.38 8.40 0.25 0.16
Assays to 59m. Core tail to commence
MGRC004 20 22 2 0.06 1.36 0.03 0.02 from 105m. Main Cobalt Lode targeted
at depth.
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Notes:

Intercept calculation parameters: > or equal to 1m down hole thickness, > or equal to 0.10% Co, > or equal to 0.05% Co cut-off & < or equal to 3m internal dilution

Gold values at lower detection limit <0.01ppm halved to 0.005ppm for Au intercept calculations

All drilling planned with dips of -60[0] , targeting interpreted subvertical mineralisation.

Mt Gilmore Project Overview

The Mt Gilmore Project (“Project”) is located 35 kilometres from the major centre of Grafton in northeastern New South Wales. Corazon has an exclusive right to earn up to an 80% interest in the Project through payment of cash and shares, plus the expenditure of $2.2 million in-ground (ASX announcements 16 June 2016 and 4 July 2016).

The Project is located in the New England Orogen, a significant mineral province in Eastern Australia with a gold endowment of more the 35M ounces and the potential to host large copper-gold systems.

This region hosts deposits such as the Mount Morgan Cu-Au Mine (+50Mt @ 5.9 g/t Au and 0.7% Cu) and Mt Rawdon Gold Mine (50Mt @ 0.71 g/t Au).

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Figure 1 – Cobalt Ridge Drill Hole Location Plan with Cobalt >0.05% (Datum GDA94 – Zone56)

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Figure 2 – Cobalt Ridge Drill Hole Cross Section 1 with Cobalt >0.05% (Location indicated on Figure 1)

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Within the Project, a prospective 18 kilometre trend (the Mt Gilmore Trend) has been identified, which includes:

• More than 25 historic copper, gold, cobalt and iron workings, including significant shafts, adits and drives with high-grade copper and gold mineralisation (rock chips up to grades of 26.8%Cu and 9.2 g/t Au); and

• Five large scale Cu-Au targets defined to date.

Although mapping indicates extensive hydrothermal alteration and copper-gold mineralisation at surface, very little modern exploration has been undertaken. Aside from small-scale historic coppergold and iron mines, previous exploration has predominantly been restricted to general prospecting/ mapping, rock-chip/ grab sampling, with drilling completed at only one of the targets (the Pulganbar – Cobalt Ridge area).

The Cobalt Ridge Prospect

The high-grade nature of this cobalt mineralisation is published in historical records from shallow mining (maximum shaft depth 36.5 metres), reporting a maximum of 14.7% cobalt (Co), 14.9% copper (Cu) and up to 1.7 oz/ ton gold (Au). The richer mineralisation seemingly occurs in small lenses or pods within a broader zone of lower-grade mineralisation.

Modern exploration within the Project commenced in the 1980’s; PanContinental completed ground IP and magnetic geophysical surveys, gridded soil geochemistry for Cu, Au and Co, 25 trenches (1518.5 metres) and 17 RC drill holes (for 1020.82 metres).

Between 2006 and 2008, Central West Gold N.L. drilled 25 holes for 2880 metres, including 21 holes for 2604 metres at Cobalt Ridge. This work defined multiple parallel sub-vertical Co-Cu-Au sulphide lodes over a strike of 300 metres and width of between 50 metres and 120 metres. Maximum individual one (1) metre drill results include 3.38% Co, 3.18% Co and 4.92 g/t Au.

The Cobalt Ridge Prospect represents an advanced cobalt play with shallowly drilled Co-Cu-Au lodes that remain open along strike and at depth.

Numerous undrilled regional cobalt prospects exist, including several defined by soil geochemistry and geophysics close to Cobalt Ridge. This style of mineralisation (Co-Cu-Au sulphides) is typically responsive to geophysics, with the Cobalt Ridge mineralisation being traced for at least an additional 100m to 200m under cover outside of existing drilling.

Company Overview – Corazon Mining Limited

Corazon Mining Limited (ASX:CZN) (“Corazon” or “the Company”) is a Perth-based Australian mineral exploration company with projects in Canada and Australia.

The Company’s flagship project is the Lynn Lake Nickel-Copper-Cobalt Project in the Canadian province of Manitoba. The recent acquisition of the Mt Gilmore Cobalt-Copper-Gold Project (ASX announcement, 16 June 2016) in New South Wales (Australia) has provided Corazon with an exciting duel focus and opportunity.

Lynn Lake is a significant historic nickel-copper-cobalt mining area that ceased operation in 1976, after 24 years of continuous production. Corazon has been active in the Lynn Lake area since 2010 and has, for the first time since mine closure in 1976, consolidated the Lynn Lake Mining Centre under the ownership of one company.

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The Lynn Lake Project is a development opportunity and boasts large remnant nickel-copper-cobalt resources within the historical mining centre, as well as significant drill defined resource potential from historical drilling and modern discoveries proximal to the mines. In addition to the near-mine opportunities, the exploration upside of this project is potentially enormous.

Recent work by Corazon has highlighted a very large and compelling exploration target at the nearby Fraser Lake Complex (refer to Corazon’s previous ASX announcements). The Fraser Lake Complex is predominantly under cover, twice as large as Lynn Lake, and has all the geophysical and geochemical characteristics of the Lynn Lake mineralisation.

The Australian Mt Gilmore Project provides the Company with an early-stage exploration play with indicators of large scale copper-gold systems such as porphyry and skarn intrusive related deposits. The most advanced exploration project within Mt Gilmore is the Cobalt Ridge prospect, a high-grade cobalt deposit with accompanying copper and gold mineralisation. The cobalt mineralisation within the Mt Gilmore Project provides an early focus for exploration activities for the Company.

END .

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 Targets 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 2012 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.

The Company has engaged senior geologists Mr Darren Glover and Mr Ben Harper to assist in the planning and completion of the current phase of exploration at Mt Gilmore. Both Mr Glover and Mr Harper are New South Wales based geologists and have extensive experience in Intrusive Related Copper Gold Mineralisation and in particular the Cadia and Cadia East systems that provide models for the mineralisation at Mt Gilmore.

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24 November, 2016

Table 2: Checklist of Assessment and Reporting Criteria

Mt Gilmore Project, New South Wales, Australia.

RC Drilling – October-November 2016

Section 1 Sampling Techniques and Data

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Criteria JORC Code explanation Commentary
Sampling  Nature and quality of sampling (eg cut channels, random chips, or Pulverised rock chip samples from drilling were collected in large PVC
techniques specific specialised industry standard measurement tools appropriate bag on a one metre basis.
to the minerals under investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc). These examples should Reverse Circulation drilling utilizing a face sampling hammer provided a
not be taken as limiting the broad meaning of sampling. clean, predominantly dry sample, from which subsamples were taken for
 Include reference to measures taken to ensure sample representivity laboratory analysis and geological logging.
and the appropriate calibration of any measurement tools or systems
used. Sub-sampling provided a nominal 2kg to 3kg sample for lab analysis.
 Aspects of the determination of mineralisation that are Material to the Sub-sampling was completed on a 1 metre basis, or composited on a 2
Public Report. metre or 4 metre basis according to geology.
 In cases where ‘industry standard’ work has been done this would be
Industry standard sample Blanks and Standards were submitted for
relatively simple (eg ‘reverse circulation drilling was used to obtain 1
analysis with drill samples on a 1 in 50 basis.
m samples from which 3 kg was pulverised to produce a 30 g charge
for fire assay’). In other cases more explanation may be required,
Field duplicate samples for analysis were taken every 50 samples.
such as where there is coarse gold that has inherent sampling
problems. Unusual commodities or mineralisation types (eg
All samples were submitted to an independent certified Australian
submarine nodules) may warrant disclosure of detailed information.
laboratory for analysis.
Drilling  Drill type (eg core, reverse circulation, open-hole hammer, rotary air Reverse circulation drilling has been undertaken by Drillit Consulting,
techniques blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple utilizing a rubber track mounted rig and rod holding support unit.
or standard tube, depth of diamond tails, face-sampling bit or other Equipment details include:
type, whether core is oriented and if so, by what method, etc).
 Multi-Drill 600 drill rig
 6m length rods, 122 mm diameter RC drill bit
 Auxiliary compressor (1150psi) and booster (900cfm)
 Above ground sumps and water collection units.
Drill sample  Method of recording and assessing core and chip sample recoveries Sample recovery is considered to be very good by industry standards and
recovery and results assessed. predominantly dry. Where drilling intersected ground water wet samples
and recovery was noted on 1m intervals in drill logs. When water inflow
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1

Table 2: Checklist of Assessment and Reporting Criteria

24 November, 2016

Mt Gilmore Project, New South Wales, Australia.

RC Drilling – October-November 2016

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Criteria JORC Code explanation Commentary
 Measures taken to maximise sample recovery and ensure compromised sample quality, drilling was discontinued.
representative nature of the samples.
 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.
Logging  Whether core and chip samples have been geologically and Qualitative and quantitative logged was completed by a qualified and
geotechnically logged to a level of detail to support appropriate experienced senior geologist. Drill holes were logged on a 1 metre
Mineral Resource estimation, mining studies and metallurgical basis.
studies.
 Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography.
 The total length and percentage of the relevant intersections logged.
Sub-sampling  If core, whether cut or sawn and whether quarter, half or all core Drill holes were bulked sampled on a 1 metre basis. Geological logging
techniques taken. determined sub-sampling, which was completed on either 1 metre basis,
and sample  If non-core, whether riffled, tube sampled, rotary split, etc and or composited individual 1 metre samples on a 2 metre or 4 metre basis.
preparation whether sampled wet or dry.
Subsampling of the bulk 1 metre samples was undertaken utilizing a
 For all sample types, the nature, quality and appropriateness of the
spear sampling tool.
sample preparation technique.
 Quality control procedures adopted for all sub-sampling stages to Subsampling size for laboratory submission is nominally between 2kg
maximise representivity of samples. and 3kg.
 Measures taken to ensure that the sampling is representative of the in
These sub-sampling techniques are industry standard and if correctly
situ material collected, including for instance results for field
applied provide quality, representative samples for laboratory analysis.
duplicate/second-half sampling.
 Whether sample sizes are appropriate to the grain size of the material Field duplicates of the sub-sampling were taken on a 1 in 50 basis, for
being sampled. laboratory analysis and subsequent statistical auditing of sampling
procedures.
Quality of  The nature, quality and appropriateness of the assaying and All samples for analysis have been submitted to ALS Minerals, Shand
assay data laboratory procedures used and whether the technique is considered Street, Brisbane, Queensland. ALS is a respected and certified
and partial or total. independent laboratory with extensive experience and with operations
laboratory  For geophysical tools, spectrometers, handheld XRF instruments, etc, throughout the world.
tests the parameters used in determining the analysis including instrument
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2

Table 2: Checklist of Assessment and Reporting Criteria

24 November, 2016

Mt Gilmore Project, New South Wales, Australia.

RC Drilling – October-November 2016

Criteria JORC Code explanation	Commentary
make and model, reading times, calibrations factors applied and their	Samples submitted included sub-samples and composited samples, field
derivation, etc.	duplicates and certified Standards and Blanks.
 Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	Lab Standards, Repeats and Blanks have also been reported within the ALS Certificates, along with the standard QC Reports.
	Sample preparation included crush (-6mm), pulverizing and sub-split for
	analysis.
	Analysis methods and detection limits for work are reported in the table
	below.
	Element	Method	Detection Limit
	Au	ALS Method – Au- AA26 Ore grade 50gm FA AAS finish	0.01ppm
	Ag, Al, As, Ba, Be, Bi, Ca,	ALS Methods –	Variable
	Cd, Ce, Co, Cr, Cs, Cu,	GEO-4A01 ME-
	Fe, Ga, Be, Hf, In, K, La,	MS61 +
	Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y Zn Zr.	48 element 4 acid digestion, with ICP-MS & ICPAES analysis
		Co-OG62 for >1%
		Co & Cu-OG62 for
		>1% Cu

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Table 2: Checklist of Assessment and Reporting Criteria

24 November, 2016

Mt Gilmore Project, New South Wales, Australia.

RC Drilling – October-November 2016

Criteria	JORC Code explanation	Commentary
Verification of sampling and assaying	 The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.  Discuss any adjustment to assay data.	Sampling and analytical methods are of a good standard and as such the results are considered representative of the mineralisation. Sample security has been controlled by the Company or ALS Minerals. Auditing of these results will be completed when all results have been returned from the RC drilling program. Core drilling is currently underway and will provide a better understanding of the nature of the mineralisation.
Location of data points	 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.  Specification of the grid system used.  Quality and adequacy of topographic control.	Drill hole locations were surveyed by hand-held GPS utilising the GDA94 (Zone 56) datum (approximately + 5m accuracy). Subsequent to the completion of the drilling, all current and historical holes will be surveyed using a more accurate DGPS. Down hole surveying of holes was undertaken nominally every 14 metres down-hole using a Reflex Electronic Multi-Shot Camera.
Data spacing and distribution	 Data spacing for reporting of Exploration Results.  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.  Whether sample compositing has been applied.	Data spacing is variable. No determination has yet been made regarding data spacing and whether sample distribution is sufficient for resource estimation.
Orientation of	 Whether the orientation of sampling achieves unbiased sampling of	Drill hole azimuths are believed to be perpendicular to the mineralised
data in	possible structures and the extent to which this is known, considering	trend as defined by past exploration. Mineralised zones are interpreted
relation to	the deposit type.	to be sub-vertical with drilling with planned dips of -600into these zones.
geological structure	 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.	Analysis of sample and data bias has yet to be undertaken. No information has been provided in the current or historical reporting to suggest any bias.

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Table 2: Checklist of Assessment and Reporting Criteria

24 November, 2016

Mt Gilmore Project, New South Wales, Australia.

RC Drilling – October-November 2016

Criteria	JORC Code explanation	Commentary
		Core drilling is currently underway and will assist in the geological understanding of mineralised trends.
Sample security	 The measures taken to ensure sample security.	Sample submission for the RC drill program was undertaken by a qualified geologist.
Audits or	 The results of any audits or reviews of sampling techniques and data.	No audit of results has yet been undertaken.
reviews

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	 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.  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.	The Mount Gilmore Project includes a single Exploration Licence (EL8379) located in New South Wales, Australia. The lease was granted on 23rdJune 2015 and includes 99 “Units”. EL8379 is owned 51% by Corazon Mining Limited subsidiary Mt Gilmore Resources Pty Ltd and 49% by Providence Gold and Minerals Pty Ltd. Corazon Mining Limited has the option to earn up to 80% equity in the Project (refer to announcement dated 16 June, 2016). The lease covers private farm (station) land and minor Crown Land.
Exploration	 Acknowledgment and appraisal of exploration by other parties.	Mineralisation was discovered in the Mt Gilmore Project region more than
done by other		130 years ago with small scale mining being completed in the late 1870’s
parties		at Glamorgan, Flintoffs and Federal copper and mercury mines.
		Historical records exist for the historical production and sampling. These
		reports are variable in quality and reliability.
		Modern exploration within the Project commend in the 1980’s when
		PanContinental completed ground IP and magnetic geophysical surveys,
		gridded soilgeochemistryfor Cu,As,Au and Co,25 trenches(1518.5m)

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Table 2: Checklist of Assessment and Reporting Criteria

24 November, 2016

Mt Gilmore Project, New South Wales, Australia.

RC Drilling – October-November 2016

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Criteria JORC Code explanation Commentary
and 17 RC drill holes (for 1,020.82m).
Between 2006 and 2008 Central West Gold NL completed 25 RC holes
and 2 core tails for 2,880m of RC and 163m of core. 21 of these holes
were targeting Cobalt Ridge and 4 were completed at Gold Hill.
The current Project holders have been focussed on developing data that
supports a regional scale Cu-Au system along the Mt Gilmore trend.
Geology  Deposit type, geological setting and style of mineralisation. The Project is located on the western edge of the Mesozoic Clarence-
Morton Basin, where it abuts the Siluro-Devonian Silverwood Group. The
Silverwood group is intruded by the Later Permian Towgon Grange
Granodiorite and, at the contact, tourmaline rich bodies occur that range
from veinlets to breccia-fill to dyke-like bodies up to 10m wide. The
tourmaline enrichment appears to correlate with copper, cobalt and gold
soil anomalies. Zoning of mineralisation has been identified, with cinnabar
concentrated within the granodiorite and copper and gold concentrated
within the hornfels.
The Project is considered prospective for tourmaline breccia hosted Co-
Cu-Au deposits, Cu-Au-Fe skarns and Quartz-sulphide vein systems,
including porphyry Cu-Au deposits.
Drill hole  A summary of all information material to the understanding of the Drill hole information for RC drilling completed by Corazon Mining
Information exploration results including a tabulation of the following information Limited at the Cobalt Ridge prospect is proved in the table below.
for all Material drill holes:
o easting and northing of the drill hole collar Dip Mag Az Total
o elevation or RL (Reduced Level – elevation above sea level in Hole ID North East RL (degrees) (degrees) Depth
metres) of the drill hole collar
o dip and azimuth of the hole MGRC001 6,740,207 468,492 65 -60 335.0 56
o down hole length and interception depth
MGRC002 6,740,204 468,466 69 -60 335.0 174
o hole length.
 If the exclusion of this information is justified on the basis that the MGRC003 6,740,282 468,448 72 -60 155.0 120
information is not Material and this exclusion does not detract from
MGRC004 6,740,316 468,439 72 -60 155.0 105
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Table 2: Checklist of Assessment and Reporting Criteria

24 November, 2016

Mt Gilmore Project, New South Wales, Australia.

RC Drilling – October-November 2016

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Criteria JORC Code explanation Commentary
the understanding of the report, the Competent Person should clearly MGRC005 6,740,315 468,438 72 -60 155.0 89
explain why this is the case.
MGRC006 6,740,305 468,471 73 -60 155.0 120
MGRC007 6,740,290 468,500 67 -60 155.0 100
MGRC008 6,740,315 468,494 67 -60 155.0 132
MGRC009 6,740,258 468,534 66 -60 335.0 126
MGRC010 6,740,229 468,541 65 -60 335.0 121
MGRC011 6,740,316 468,556 67 -60 170.0 114
MGRC012 6,740,310 468,570 67 -60 155.0 96
MGRC013 6,740,323 468,622 69 -60 155.0 105
MGRC014 6,740,400 468,664 67 -60 155.0 97
MGRC015 6,740,220 468,610 69 -60 335.0 149
MGRC016 6,740,259 468,689 73 -60 335.0 120
MGRC017 6,740,313 468,726 67 -60 335.0 126
MGRC018 6,740,258 468,739 67 -60 335.0 120
Cobalt Ridge RC Drilling - October-November 2016
All measurements in metres. Location datum GDA94 - Zone 56.
Data  In reporting Exploration Results, weighting averaging techniques, Intercepts > or equal to 1m down hole Co thickness, with > or equal to
aggregation maximum and/or minimum grade truncations (eg cutting of high 0.10% Co, > or equal to 0.05% Co cut-off & < or equal to 3m internal
methods grades) and cut-off grades are usually Material and should be stated. dilution parameters were used to calculate down hole Co-Cu-Au
 Where aggregate intercepts incorporate short lengths of high grade intercepts.
results and longer lengths of low grade results, the procedure used
for such aggregation should be stated and some typical examples of
such aggregations should be shown in detail.
 The assumptions used for any reporting of metal equivalent values
should be clearly stated.
Relationship  These relationships are particularly important in the reporting of All drill hole intervals provided are down hole widths.
between Exploration Results.
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Table 2: Checklist of Assessment and Reporting Criteria

24 November, 2016

Mt Gilmore Project, New South Wales, Australia.

RC Drilling – October-November 2016

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Criteria JORC Code explanation Commentary
mineralisation  If the geometry of the mineralisation with respect to the drill hole Drilling has been planned such that it is perpendicular to the main
widths and angle is known, its nature should be reported. mineralised trend as defined by historical work.
intercept  If it is not known and only the down hole lengths are reported, there
Mineralised zones are interpreted to be sub-vertical. Drilling has collar
lengths should be a clear statement to this effect (eg ‘down hole length, true dips of 60 [0] into these zones.
width not known’).
Diagrams  Appropriate maps and sections (with scales) and tabulations of All diagrams include scales for reference (if appropriate).
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.
Balanced  Where comprehensive reporting of all Exploration Results is not Noted and complied with.
reporting practicable, representative reporting of both low and high grades
and/or widths should be practiced to avoid misleading reporting of
Exploration Results.
Other  Other exploration data, if meaningful and material, should be reported Historical exploration results have been previously reported by Corazon
substantive including (but not limited to): geological observations; geophysical Mining Limited. This work included rock-chip sampling, soil
exploration survey results; geochemical survey results; bulk samples – size and geochemistry, geophysics and drilling. Reliance has been placed on
data method of treatment; metallurgical test results; bulk density, historical reports as an indicator of potential only.
groundwater, geotechnical and rock characteristics; potential
deleterious or contaminating substances.
Further work  The nature and scale of planned further work (eg tests for lateral Core drilling is currently underway at the Cobalt Ridge prospect. This
extensions or depth extensions or large-scale step-out drilling). drilling will provide a better understanding of the mineralised trends and
 Diagrams clearly highlighting the areas of possible extensions, mineralisation processes that will be used in future interpretation and
including the main geological interpretations and future drilling areas, modelling at Cobalt Ridge.
provided this information is not commercially sensitive.
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