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CORAZON MINING LIMITED — Capital/Financing Update 2024
Jun 12, 2024
64747_rns_2024-06-12_993c388a-18de-4111-8974-35a8a4f32ef1.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT
13 June 2024
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Strategic Multi-Commodity Acquisition
New high-grade zinc-copper-gold deposits provide potential to transform Lynn Lake into a regional poly-metallic processing hub
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Key Highlights
ASX: CZN ABN: 87112 898 825
REGISTERED OFFICE
Level 3, 33 Ord St, West Perth, WA 6005
PO Box 8187 Subiaco East WA 6008
T : +61 8 6166 6361 E : [email protected] www.corazon.com.au
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- Low-cost, opportunistic acquisition of three zinc-copper-gold deposits located near the Company’s flag-ship Lynn Lake Nickel-Copper-Cobalt Project in Canada
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- Zinc-copper is seen as possible high-value feedstock for a future mineral processing operation at Lynn Lake and maintains the Company’s Canadian focus on critical minerals
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- The three deposits add to Corazon’s existing portfolio of seven zinc-copper-gold deposits within the 100% owned Lynn Lake tenure
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- The high-grade MacBride Deposit is the headline acquisition
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Significant historically published metal endowment, with continuity from surface to ~300m drilled depth – representative drill holes include:
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10.7m @ 9.98% Zn, 0.56% Cu from 32.9m
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4.9m @ 9.86% Zn, 0.20% Cu from 119.8m
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7.5m @ 7.76% Zn, 0.31% Cu from 238.2m
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- Drilled over a 400m strike and open in all direction – the deposit is part of a 1,800m long EM conductor defined by modern aerial geophysics
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- The Wellmet Prospect exhibits numerous surface copper shows and EM conductors
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Drilling of the main zinc horizon over a 240m strike defines mineralisation from surface to ~370m depth – representative drill holes include:
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4.2m @ 6.20% Zn, 0.91% Cu from 36.1m
6.9m @ 4.95% Zn, 0.13% Cu from 247.6m
6.0m @ 5.13% Zn, 0.25% Cu from 434.2m
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- At the Barrington Prospect sparse exploration drilling has targeted a small outcrop reportedly ~107 metres in strike, averaging 4.6m in width and 2.63% copper
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Additional surface copper shows on-strike remain untested
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Immediate work is focused on:
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- Collating historical exploration data and defining the resource potential of the zinc-copper deposits within the Lynn Lake region
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- Defining new targets and deposit extensions utilising Corazon’s extensive dataset of modern geophysics
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ASX Announcement | Strategic Acquisition– 13 June 2024
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Corazon Mining Limited (ASX: CZN) (Corazon or Company) is pleased to announce it has entered into an agreement for the acquisition of three drill-defined zinc-copper-gold deposits, nearby its 100% owned Lynn Lake Nickel-CopperCobalt Sulphide Project (Lynn Lake or Project) in the province of Manitoba, Canada.
The Lynn Lake region has a history of mining and exploration for magmatic nickel sulphide, volcanogenic zinc-coppergold massive sulphide (VMS) and orogenic gold, dating back to the late 1940’s. The main historical mining operations have included the Lynn Lake nickel sulphide mining centre, the Fox Lake copper-zinc mine, and the MacLellan-Gordon gold deposits (Figure 1).
Corazon has a dual exploration and development focus at Lynn Lake. A core component of the Company’s work is establishing a pathway for the redevelopment of the historical Lynn Lake Nickel Sulphide Mining Centre, with initial mining and metallurgical studies in the final stages of completion. The flotation processing techniques for nickelcopper mineralisation is similar to the flotation of zinc-copper VMS mineralisation. The opportunity to mine highgrade zinc-copper-gold deposits, as part of a future mining operation at Lynn Lake, may provide benefits to the projects’ economics.
Corazon Chairperson Mr Terry Streeter explains – “ Our strategy for the Lynn Lake mining studies is to deliver low operational costs. The knock-on effect of this is that with lower costs, there are lower cutoff grades, resulting in a much larger mining inventory for consideration, within the existing resource areas. We don’t need more tonnes. This VMS concept is about value. The grade we see in some of these zinc-copper deposits is very good, and we will seek to establish if this is value we can exploit up-front for a restart of mining at Lynn Lake. Alternatively, we will explore whether the VMS deposits are better suited to mining later in the Project’s mine plan ”.
The potential exploitation of the zinc-copper deposits maintains the Company’s focus of Critical Metals. Nickel, copper, cobalt and zinc are identified as critical minerals in Canada and the United States.
Project Acquisition Agreement Terms
Corazon, via wholly owned Canadian subsidiary 5918139 Manitoba Inc , will acquire 100% of the mineral tenure (listed in Table 1 and shown in Figures 1 and 4) for C$153,600.
The vendor, Mr PC Dunlop, will retain a 2% Net Smelter Royalty (NSR) over the ground, with the Company retaining a right to purchase up to 1% of the NSR for C$500k per 0.5%.
Corazon has a long association with Mr Dunlop, who from previous transactions, also retains a royalty over areas within the Lynn Lake Project. As such there are additional potential benefits for him, should mining recommence at Lynn Lake.
The completion of this transaction will occur on the Company’s payment of C$153,600 to Mr Dunlop , subject to the relevant government agencies recording the transfer of Mineral Claim title (ownership) to 5918139 Manitoba Inc .
Summary of Zinc-Copper Mineralisation within the Mineral Claims to be Acquired
Corazon has completed initial due diligence of the project areas to be acquired. Much of the historical data exists in paper format, held as scanned documents within the Manitoba Department of Economic Development, Investment, Trade and Natural Resources.
Corazon has commenced the digital capture of all available historical exploration data, including mapping, surface sampling, geophysics and drilling.
The following project summaries are based on publicly available information provided within the historical exploration reports.
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ASX Announcement | Strategic Acquisition– 13 June 2024
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Figure 1 – Lynn Lake District Mine and Prospect Location Map.
MacBride Zinc-Copper Deposit
The MacBride Zinc-Copper Deposit (MacBride) is located approximately 65km to the east of the Lynn Lake Project (Figure 1). Sulphide mineralisation was discovered at MacBride in the mid-1950’s, with drilling campaigns completed through to the early-1990’s. The mineral endowment defined by this drilling has been extensively published within historical reports and in recent Canadian company reports as an “historical estimate” under NI 43-101, and is not a current mineral resource under the Canadian code or Australia’s JORC.
Past drilling identifies consistent zinc and copper mineralisation over a strike of approximately 400 metres and to a depth of approximately 300 metres below surface (Figure 2). This drill defined mineralisation is open in all directions and contained within a conductive geophysical trend defined over approximately 1,800 metres, via a VTEM survey completed by Western Areas NL (ASX:WSA) in 2008. This survey has also identified other untested conductive bodies in the vicinity of MacBride.
The MacBride mineralisation has been categorised as a volcanogenic massive sulphide (VMS) deposit and consists of coarse pyrite in a matrix of pyrrhotite, sphalerite and blebby chalcopyrite.
A snapshot of drilling results are provided in Table 1.
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ASX Announcement | Strategic Acquisition– 13 June 2024
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Figure 2 – MacBride Deposit representative drill hole cross-section. Local grid coordinates have yet to be transformed to a real-world coordinate grid system. “DDH” denotes Diamond Drill Hole, followed by the hole ID.
TABLE 1 – Drill intersections defining the main zinc rich horizon at the MacBride Deposit. The drill hole information provided does not include all drilling within the deposit. Data collation from historical paper logs is currently underway. Drill hole survey information is provided in Table 3.
| Hole ID | From (m) | To (m) | Width (m) | % Cu | % Zn |
|---|---|---|---|---|---|
| CR12 | 10.7 | 21.3 | 10.7 | 0.16 | 5.51 |
| CR10 | 32.9 | 43.6 | 10.7 | 0.56 | 9.98 |
| CR13 | 49.8 | 53.3 | 3.5 | 0.51 | 10.33 |
| KB-1-76 | 62.8 | 68.6 | 5.8 | 0.16 | 7.33 |
| KB-2-71 | 72.9 | 79.5 | 6.6 | 0.24 | 8.80 |
| 91.0 | 100.4 | 9.3 | 0.30 | 5.96 | |
| 106.3 | 107.8 | 1.5 | 0.36 | 10.71 | |
| CR17 | 119.8 | 124.7 | 4.9 | 0.20 | 9.86 |
| 75-2 | 180.4 | 185.9 | 5.5 | 0.46 | 10.12 |
| 75-1 | 238.2 | 245.7 | 7.5 | 0.31 | 7.76 |
| 75-3 | 262.7 | 267.9 | 5.2 | 0.30 | 4.35 |
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ASX Announcement | Strategic Acquisition– 13 June 2024
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Wellmet Zinc-Copper Deposit
The Wellmet Deposit (Wellmet) is located approximately six kilometres to the northwest of MacBride, approximately 65 kilometres to the east of the Lynn Lake Project (Figure 1).
Historical information for exploration at Wellmet is not as extensive as that for MacBride. No published reports are available regarding the exploration of this prospect over the last 30 years.
Surface copper mineralisation was discovered at Wellmet in 1948. In 1958 ground geophysics identified a conductor, with drilling of this anomaly not completed until the early 1970’s. Historical reports suggest Wellmet underwent several phases of drilling up until 1987.
Exploration at Wellmet has defined multiple sulphide shows and geophysical anomalies. Drilling of the main prospect intersected a number of zones including a main zinc rich massive sulphide horizon and a copper-gold dominant stringer horizon (Table 2). The main zinc zones are described as massive pyrite-sphalerite, with the copper-gold “stringer zones” being chalcopyrite-pyrrhotite rich.
Drilling has tested the main Wellmet Deposit over a strike of approximately 240 metres and to a depth of about 370 metres below surface.
TABLE 2 – Drill intersections defining the main zinc rich horizon and the copper-gold horizon at the Wellmet Deposit. The drill hole information provided does not include all drilling within the deposit. Data collation from historical paper logs is currently underway. Drill hole survey information is provided in Table 3.
Main Zinc Zone
| Hole ID | From (m) | To (m) | Width (m) | Cu % | Zn % | Au g/t | Ag g/t |
|---|---|---|---|---|---|---|---|
| WL-86-1 | 44.6 | 54.4 | 9.8 | 0.32 | 3.79 | 0.00 | 5.63 |
| WL-87-6 | 247.6 | 254.5 | 6.9 | 0.13 | 4.95 | 0.00 | 3.13 |
| WL-87-7 | 434.3 | 440.3 | 6.0 | 0.25 | 5.13 | 0.00 | 9.78 |
| WL-87-8 | 36.1 | 40.3 | 4.2 | 0.91 | 6.20 | 0.44 | 18.78 |
| 42.5 | 52.6 | 10.1 | 0.56 | 3.33 | 0.25 | 13.00 |
Copper-Gold Zones
| Hole ID | From (m) | To (m) | Width (m) | Cu % | Zn % | Au g/t | Ag g/t |
|---|---|---|---|---|---|---|---|
| WL-86-1 | 37.2 | 39.2 | 2.0 | 1.02 | 0.67 | 1.38 | 23.44 |
| WL-86-2 | 74.2 | 76.0 | 1.9 | 5.25 | 1.98 | 0.03 | 102.81 |
| WL-87-3 | 81.4 | 81.7 | 0.4 | 2.33 | 0.44 | 1.25 | 50.31 |
| 83.1 | 83.7 | 0.6 | 1.73 | 1.19 | 2.01 | 37.75 | |
| 85.6 | 86.9 | 1.3 | 5.86 | 1.06 | 1.56 | 114.38 | |
| 86.9 | 88.3 | 1.4 | 0.97 | 0.35 | 0.39 | 22.66 | |
| WL-87-9 | 157.6 | 158.2 | 0.5 | 2.54 | 1.24 | 0.94 | 70.00 |
| 164.6 | 165.6 | 1.0 | 1.46 | 1.39 | 1.09 | 40.94 |
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www.corazon.com.au
ASX Announcement | Strategic Acquisition– 13 June 2024
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Barrington Copper Deposit
The Barrington Copper Deposit (Barrington) is located 43 kilometres east of the Lynn Lake Project (Figure 1). Exploration activities (including drilling in the early 1990’s) defined copper mineralisation in structures, along with numerous geophysical anomalies, which are yet to be followed up with drilling. The focus of past work is an outcropping sulphide zone of approximately 107 metres in strike and 4.6 metres in width, with an average grade of 2.63% copper. There is another copper showing, believed to be the same zone, outcropping approximately 900 metres to the west.
Other Company Activities
Lynn Lake – Manitoba Canada
Mining and metallurgical testwork programs are continuing for the historical Lynn Lake Mining Centre . Excellent results returned to date, from a number of processing technologies, has led to an extension of the metallurgical testwork program (ASX announcement 23 August 2023). The current phase of studies is anticipated to be completed in Q3 2024. Following this work, a fully optimised and scheduled mine plan will be generated for assessment.
The goal of the current mining and metallurgical studies is to define the value of a Lynn Lake nickel-copper-cobalt mining opportunity and set a pathway through to production.
Nickel, copper and cobalt are critical metals of growing interest in Canada and the United States of America. With the growing dominance of nickel products from Chinese backed Indonesian mining operations, north American battery and automobile manufacturers will struggle to secure nickel sources that qualify for benefits of Inflation Reduction Act tax credits.
Mt Gilmore - NSW
A new, high-priority porphyry copper-gold target has been defined at the Mt Gilmore Project’s May Queen prospect – a significant anomaly with a strike length of ~2 kilometres, possessing mineral chemistry analogous with known giant porphyry copper-gold deposits in NSW, Australia (ASX announcements 2 April and 5 April 2024).
Corazon is preparing for a maiden drill program at the May Queen prospect and is currently addressing access requirements and drilling permit approvals. Drilling is expected to commence early in Q3, 2024.
Miriam - WA
Corazon has divested an 85% interest in the lithium and industrial minerals rights for the Miriam Project in Western Australia, to Future Battery Minerals Limited (FBM) (ASX announcement 25 March 2024 and 24 May 2024).
The transaction delivered initial cash and FBM shares to Corazon, with performance rights allowing the Company to participate in any future upside from FBM’s exploration or development success at the combined Miriam and Kangaroo Hills lithium projects.
Corazon will retain 100% of the base and precious metal rights at Miriam and be free-carried on the lithium exploration costs (with 15% ownership) until completion of a positive definitive feasibility study.
Securing work program approvals for drilling at Miriam (from the WA Government) is expected to be completed Q3 2024.
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ASX Announcement | Strategic Acquisition– 13 June 2024
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Figure 3 – Lynn Lake Project Location Map
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Figure 4 – MacBride and Wellmet Claim Map. Datum UTM Zone 14 (NAD 83).
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ASX Announcement | Strategic Acquisition– 13 June 2024
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| MacBride Deposit | Core Size | BQ | BQ | BQ | BQ | BQ | BQ | BQ | BQ | BQ | BQ | BQ | BQ | BQ | BQ | AWX | Wellmet Deposit | Core Size | BQ | BQ | BQ | BQ | BQ | BQ | BQ | BQ | BQ |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Depth Metres |
61.57 | 53.34 | 45.11 | 66.75 | 44.65 | 42.67 | 77.42 | 153.92 | 128.32 | 114.36 | 85.80 | 270.36 | 203.30 | 413.61 | 78.94 | Total Depth Feet |
103.94 | 108.81 | 175.87 | 191.11 | 127.10 | 288.65 | 441.05 | 65.23 | 230.73 | ||
| Grid Azimuth* |
270 | 270 | 270 | 270 | 90 | 270 | 270 | 270 | 270 | 270 | 270 | 270 | 270 | 270 | 270 | Grid Azimuth* |
180 | 180 | 180 | 180 | 180 | 180 | 180 | 180 | 180 | ||
| Dip | -55 | -55 | -50 | -45 | -50 | -50 | -45 | -55 | -55 | -50 | -50 | -65 | -53 | -74 | -50 | Dip | -51 | -50 | -50 | -55 | -50 | -75 | -70 | -50 | -60 | ||
| East (Feet) |
64+90 | 65+20 | 64+90 | 65+30 | 64+60 | 93+90 | 64+60 | 66+75 | 66+35 | 6+60 | 6+20 | 8+50 | 8+48 | 8+50 | 5+75 | West (Feet) |
30+00 | 26+00 | 54+00 | 58+00 | 50+00 | 52+00 | 54+00 | 53+20 | 53+85 | ||
| North (Feet) |
14+00 | 15+00 | 13+00 | 16+00 | 17+00 | 17+00 | 12+00 | 14+00 | 16+00 | 67+50 | 69+50 | 67+20 | 67+25 | 64+60 | 67+90 | South (Feet) |
9+30 | 9+50 | 10+00 | 8+50 | 11+00 | 7+00 | 5+00 | 11+20 | 9+00 | ||
| Grid ID | SG Local Imperial Grid | SG Local Imperial Grid | SG Local Imperial Grid | SG Local Imperial Grid | SG Local Imperial Grid | SG Local Imperial Grid | SG Local Imperial Grid | SG Local Imperial Grid | SG Local Imperial Grid | KLM Local Imperial Grid | KLM Local Imperial Grid | KLM Local Imperial Grid | KLM Local Imperial Grid | KLM Local Imperial Grid | KLM Local Imperial Grid | Grid ID | SG Local Imperial Grid | SG Local Imperial Grid | SG Local Imperial Grid | SG Local Imperial Grid | SG Local Imperial Grid | SG Local Imperial Grid | SG Local Imperial Grid | SG Local Imperial Grid | SG Local Imperial Grid | ||
| Ref Report | DuPont 1975 | DuPont 1975 | DuPont 1975 | DuPont 1975 | DuPont 1975 | DuPont 1975 | DuPont 1975 | DuPont 1975 | DuPont 1975 | DuPont 1975 | DuPont 1975 | DuPont 1975 | DuPont 1975 | DuPont 1975 | Knobby Lake 1977 | Ref Report | SG-Wellmet Lake - 1987 | SG-Wellmet Lake - 1988 | SG-Wellmet Lake - 1989 | SG-Wellmet Lake - 1990 | SG-Wellmet Lake - 1991 | SG-Wellmet Lake - 1992 | SG-Wellmet Lake - 1993 | SG-Wellmet Lake - 1994 | SG-Wellmet Lake - 1995 | ||
| Company | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | Knobby Lake Mine Ltd | Knobby Lake Mine Ltd | DuPont of Canada Exploration | DuPont of Canada Exploration | DuPont of Canada Exploration | Knobby Lake Mine Ltd | Company | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | Sherritt Gordon Mines Limited | ||
| Date Drilled |
1958 | 1958 | 1958 | 1958 | 1958 | 1958 | 1958 | 1958 | 1958 | 1971 | 1971 | 1975 | 1975 | 1975 | 1976 | Date Drilled |
1986 | 1986 | 1987 | 1987 | 1987 | 1987 | 1987 | 1987 | 1987 | ||
| Hole ID |
CR-10 | CR-11 | CR-12 | CR-13 | CR-14 | CR-15 | CR-16 | CR-17 | CR-18 | KB-4-71 | KB-2-71 | 75-1 | 75-2 | 75-3 | KB-1-76 | Hole ID | WL-86-1 | WL-86-2 | WL-87-3 | WL-87-4 | WL-87-5 | WL-87-6 | WL-87-7 | WL-87-8 | WL-87-9 |
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www.corazon.com.au
ASX Announcement | Strategic Acquisition– 13 June 2024
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This announcement has been authorised on behalf of Corazon Mining Limited by Managing Director, Mr. Brett Smith.
For further information visit www.corazon.com.au or contact:
Brett Smith James Moses Managing Director Media & Investor Relations Corazon Mining Limited Mandate Corporate P: +61 (08) 6166 6361 M: +61 (0) 420 991 574 E: [email protected] E: [email protected]
Competent Persons Statement :
The information in this release that relates to Exploration Results and Targets for the Lynn Lake Project is based on information previously disclosed in the following Company ASX announcements.
The ASX Announcements are available on the Company’s website (www.corazon.com.au) and the ASX website (www.asx.com.au) under the Company’s ticker code ‘CZN’.
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 mineralisation and type of deposit under consideration and to the activity that 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.
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.
Forward-looking statements are statements that are not historical facts. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forwardlooking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company’s prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forwardlooking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.
The Company believes that it has a reasonable basis for making the forward-looking Statements in the announcement based on the information contained in this and previous ASX announcements.
The Company is not aware of any new information or data that materially affects the information included in this ASX release, and the Company confirms that, to the best of its knowledge, all material assumptions and technical parameters underpinning the exploration results in this release continue to apply and have not materially changed.
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www.corazon.com.au
Table 4: Checklist of Assessment and Reporting Criteria
13[th] June 2024
Historical Core Drilling – MacBride and Wellmet Deposits, Canada.
Section 1 Sampling Techniques and Data
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Sampling | Nature and quality of sampling (eg cut channels, random | Historic Drilling |
| techniques | chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. |
All assays reported are from historical diamond core drilling. Documentation for the historic drilling is provided within scanned historical reports held by the Manitoba province’s mining department, within the Department of Economic Development, Investment, Trade and Natural |
| Resources. | ||
| It is assumed, the sampling methodology for the drill core was of an | ||
| acceptable standard for the time of reporting. This methodology is well | ||
| documented and involves manually breaking the drill core in half, by | ||
| cleaving with a hammer and chisel. | ||
| All measures of length were in imperial feet. Sampled intervals are | ||
| variable. | ||
| Drill hole locations were positioned using a “local imperial grid”, specific for | ||
| each individual deposit area. | ||
| Geological logging of the core appears to be of a good standard. | ||
| The historical drill core has not been inspected, with no drill core known to | ||
| have survived to this day. | ||
| Assay techniques havenot consistently been reported. | ||
| Down-hole surveys were standard and utilised the acid etching technique. | ||
| Include reference to measures taken to ensure sample | Drill hole information for the holes reported includes detailed geological logs | |
| representivity and the appropriate calibration of any | with assay information. Drill hole assays can be matched to the sulphide zones | |
| measurement tools or systems used. | identified within the drill logs. | |
| Aspects of the determination of mineralisation that are | Visual descriptions of the mineralisation were documented by a geologist and | |
| Material to the Public Report. | supported by subsequent analytical results. | |
| In cases where ‘industry standard’ work has been done this | At a minimum, zinc, copper, gold and silver were assayed for. | |
| would be relatively simple (eg ‘reverse circulation drilling | ||
| was used to obtain 1 m samples from which 3 kg was | Results from multiple generations of drilling, collaborate to form very simple | |
| pulverised to produce a 30 g charge for fire assay’). In other | geological models for the sulphide deposits. | |
| cases more explanation may be required, such as where |
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Table 4: Checklist of Assessment and Reporting Criteria
13[th] June 2024
Historical Core Drilling – MacBride and Wellmet Deposits, Canada.
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| there is coarse gold that has inherent sampling problems. | For the most part, the grade and thickness of the mineralisation within the | |
| Unusual commodities or mineralisation types (eg submarine | deposits is fairly uniform and predictable in character. | |
| nodules) may warrant disclosure of detailed information | ||
| Drilling | Drill type (eg core, reverse circulation, open-hole hammer, | Drilling type for the holes reported includes – |
| techniques | rotary air blast, auger, Bangka, sonic, etc) and details (eg | |
| core diameter, triple or standard tube, depth of diamond | HolesCR-* : Sherritt Gordon Mines 1958. BQ core wireline completed by | |
| tails, face-sampling bit or other type, whether core is | Longyear Canada Limited. | |
| oriented and if so, by what method, etc). | ||
| HolesWL-* : Sherritt Gordon Mines 1986, 1987. BQ core wireline completed | ||
| by Longyear Canada Limited. | ||
| HolesKB-* : Knobby Lake Mines Ltd, 1971. BQ core wireline by Connors | ||
| Drilling Limited; and in 1976 AWX by Amisk Drilling Company, Flin Flon. | ||
| Holes75-*- DuPont of Canada Exploration 1975. BQ and AQ core wireline by | ||
| Midwest Drilling, Vancouver. | ||
| Drill sample | Method of recording and assessing core and chip sample | Sampling intervals and assays were reported in the hand-written geological |
| recovery | recoveries and results assessed. | logs. Recoveries were not reported. |
| Measures taken to maximise sample recovery and ensure | Not reported. Assays match well with the geological logs. | |
| representative nature of the samples. | ||
| Whether a relationship exists between sample recovery and | No sample bias has been reported or observed. | |
| 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 | Core is geologically logged with good detail and suggesting the geologists had |
| geotechnically logged to a level of detail to support | adequate expertise in the style of mineralisation tested for. | |
| appropriate Mineral Resource estimation, mining studies and metallurgical studies. |
Drill hole logs were completed and signed-off on by a qualified geologist. | |
| Geological logging is of a standard that would support Mineral Resource | ||
| estimations. | ||
| Whether logging is qualitative or quantitative in nature. Core | Core logging records both the qualitative and quantitative aspects of the | |
| _(or costean, channel, etc) photography. _ | geologyand mineralisation. Information recorded from loggingare both |
2
Table 4: Checklist of Assessment and Reporting Criteria
13[th] June 2024
Historical Core Drilling – MacBride and Wellmet Deposits, Canada.
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| measurable and descriptive. This includes (but is not restricted to) recording of | ||
| lithology, alteration, mineralogy, weathering characteristics, structural features, | ||
| textural and interpretive information. | ||
| The total length and percentage of the relevant intersections | All drill holes are logged in full. Not all core is sampled and assayed. |
|
| logged. | ||
| Sub- | If core, whether cut or sawn and whether quarter, half or all | It is assumed, the sampling methodology for the drill core was of an acceptable |
| sampling | core taken. | standard for the time of reporting. This typically would include manually |
| techniques | breaking the drill core in half, by cleaving with a hammer and chisel. | |
| and sample | ||
| preparation | ||
| If non-core, whether riffled, tube sampled, rotary split, etc | Not applicable, as only core drilling has been reported within. | |
| and whether sampled wet or dry. | ||
| For all sample types, the nature, quality and | Information not recorded within the historical reports. | |
| appropriateness of the sample preparation technique. | ||
| Quality control procedures adopted for all sub-sampling | Information not recorded within the historical reports. Assay results for | |
| stages to maximise representivity of samples. | mineralisation match well with the geological logging. | |
| Measures taken to ensure that the sampling is | Information not recorded within the historical reports. Assay results for | |
| representative of the in situ material collected, including for | mineralisation match well with the geological logging. | |
| instance results for field duplicate/second-half sampling. | ||
| Whether sample sizes are appropriate to the grain size of | Sample sizes from BQ core are considered small by todays standard. | |
| the material being sampled. | However, the sampling and results are considered appropriate for the rock type | |
| and style of mineralisation tested for. | ||
| Quality of | The nature, quality and appropriateness of the assaying and | Information not recorded within the historical reports. Laboratories used for the |
| assay data | laboratory procedures used and whether the technique is | drilling reported include – |
| and | considered partial or total. | HolesCR-* : Sherritt Gordon Mines 1958. Company laboratory at the Lynn |
| Lake miningcentre. |
3
Table 4: Checklist of Assessment and Reporting Criteria
13[th] June 2024
Historical Core Drilling – MacBride and Wellmet Deposits, Canada.
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| laboratory | ||
| tests | HolesWL-* : Sherritt Gordon Mines 1986, 1987. Assumed to be Sherritt’s lab | |
| at the Fort Saskatchewan, Alberta. | ||
| HolesKB-* : Knobby Lake Mines Ltd. 1971, Warnock Hersey International | ||
| Limited. 1976, Chemex Labs Ltd, Vancouver. | ||
| Holes75-*- DuPont of Canada Exploration 1975. Lab not reported. | ||
| For geophysical tools, spectrometers, handheld XRF | Information not recorded within the historical reports. | |
| instruments, etc, the parameters used in determining the | ||
| analysis including instrument make and model, reading | ||
| times, calibrations factors applied and their derivation, etc. | ||
| Nature of quality control procedures adopted (eg standards, | Information not recorded within the historical reports. | |
| blanks, duplicates, external laboratory checks) and whether | ||
| acceptable levels of accuracy (ie lack of bias) and precision | ||
| have been established. | ||
| Verification | The verification of significant intersections by either | Information not recorded within the historical reports. |
| of sampling | independent or alternative company personnel. | |
| and | There is a good correlation between mineralised intervals and the geology | |
| assaying | reported in hand-written geological logs. | |
| The use of twinned holes. | The reported drill holes have not been twinned. | |
| Documentation of primary data, data entry procedures, data | All data exists as scanned copies of historical paper logs. | |
| verification, data storage (physical and electronic) protocols. | Corazon is currently digitally capturing this information. |
|
| Discuss any adjustment to assay data. | Information not recorded within the historical reports. | |
| Reported assayintervals are weighted averages,calculated from reported |
4
Table 4: Checklist of Assessment and Reporting Criteria
13[th] June 2024
Historical Core Drilling – MacBride and Wellmet Deposits, Canada.
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| individual assay results. | ||
| Location of | Accuracy and quality of surveys used to locate drill holes | Reported drill holes have been located on local imperial grids, specific for each |
| data points | (collar and down-hole surveys), trenches, mine workings | deposit. These co-ordinates have been recorded on drill hole geology logs, |
| and other locations used in Mineral Resource estimation. | and validated by the plans and drill sections provided within the reports. | |
| The Company is looking to establish accurate transformation formula from | ||
| local grid coordinates into a real-world coordinate system. | ||
| Down-hole survey information has been recorded using the Acid Etching | ||
| technique. | ||
| Specification of the grid system used. | Reported drill holes have been located on local imperial grids, specific for each | |
| deposit. | ||
| Quality and adequacy of topographic control. | Topographic control is supported by fact mapping, presumable from base | |
| maps generated from aerial photography. Details within these maps compare | ||
| will with modern GIS topographic data and imagery. | ||
| The historical work is not considered accurate by today’s standards. | ||
| The Company will endeavour to improve topographic and survey control for the | ||
| projects. | ||
| Data spacing | Data spacing for reporting of Exploration Results. |
Drill line spacing at the MacBride and Wellmet deposits is approximately 60 |
| and | metres (200 feet). | |
| distribution | ||
| Whether the data spacing and distribution is sufficient to | Assessment of this criteria has yet to be completed. Assumptions based on | |
| establish the degree of geological and grade continuity | the historical reporting indicates drilling at MacBride has a spacing sufficient to | |
| appropriate for the Mineral Resource and Ore Reserve | define an Inferred JORC resource. | |
| estimation procedure(s) and classifications applied. | Drilling at the Wellmet deposit may be of adequate coverage and density to | |
| define an exploration target. | ||
| Whether sample compositing has been applied. | It appears no compositing was applied to the historical assay data. Weighted | |
| average intervals, combining individual samples may be provided within the | ||
| report, as a descriptor of geological features. |
5
Table 4: Checklist of Assessment and Reporting Criteria
13[th] June 2024
Historical Core Drilling – MacBride and Wellmet Deposits, Canada.
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Orientation | Whether the orientation of sampling achieves unbiased | The mineralisation within these VMS deposits is very strongly structurally |
| of data in | sampling of possible structures and the extent to which this | controlled. |
| relation to geological structure |
is known, considering the deposit type. | Where drilling density is adequate, the orientation of mineralised “shoots” is definable. |
| Outside of the historically defined “main zones”, drill holes are widely space | ||
| and targeted at individual areas of interest or geophysical anomalies. | ||
| Azimuths and dips are variable, dependent on the targets being tested. Drilling | ||
| attempts to intersect the targets normal to the assumed dominant trend (strike). | ||
| There is no data that supports a bias for the sampling has been established. | ||
| If the relationship between the drilling orientation and the | The orientation of the drilling of key mineralised structures is not considered to | |
| orientation of key mineralised structures is considered to | have introduced a sampling bias. | |
| have introduced a sampling bias, this should be assessed | ||
| and reported if material. | ||
| Sample | The measures taken to ensure sample security. | Information not recorded within the historical reports. |
| security | ||
| Audits or | The results of any audits or reviews of sampling techniques | Information not recorded within the historical reports. |
| reviews | and data. |
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineral | Type, reference name/number, location and ownership | The claims that make up the MacBride, Wellmet and Barrington prospects are |
| tenement and | including agreements or material issues with third parties | shown in Figure 4 and reported in the table below. |
| land tenure status |
such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. |
On completion of this transaction, the Claims will be 100% owned by Corazon Mining Limited. |
6
Table 4: Checklist of Assessment and Reporting Criteria
13[th] June 2024
Historical Core Drilling – MacBride and Wellmet Deposits, Canada.
| Criteria | JORC Code explanation | Commentary | Commentary | |||||
|---|---|---|---|---|---|---|---|---|
| Corazon Mining works with First Nation groups and several government | ||||||||
| organizations responsible for mining and the environment. Access agreements | ||||||||
| and Work Permits have yet to be obtained for these new project areas. | ||||||||
| Mining Claim |
Mining Claim Number |
Grant Date | Expiry Date | |||||
| RIDE 3 | MB736 | 11/09/1998 | 10/11/2026 | |||||
| BARR 1 | MB9634 | 1/06/2010 | 31/07/2025 | |||||
| RIDE 12151 | MB12151 | 29/09/2016 | 28/11/2028 | |||||
| RIDE 12153 | MB12153 | 29/09/2016 | 28/11/2028 | |||||
| RIDE14550 | MB14550 | New Staking | ||||||
| RIDE14551 | MB14551 | New Staking | ||||||
| RIDE14552 | MB14552 | New Staking | ||||||
| RIDE14553 | MB14553 | New Staking | ||||||
| RIDE14554 | MB14554 | New Staking | ||||||
| RIDE14555 | MB14555 | New Staking | ||||||
| RIDE14556 | MB14556 | New Staking | ||||||
| RIDE14557 | MB14557 | New Staking | ||||||
| WEL14558 | MB14558 | New Staking | ||||||
| Mineral Claim location 64B13NW. The MacBride and | ||||||||
| Wellmet claims | are shown in Figure 4. The location of the | |||||||
| Barrington claim (BARR1) is shown in Figure | 1. |
7
Table 4: Checklist of Assessment and Reporting Criteria
13[th] June 2024
Historical Core Drilling – MacBride and Wellmet Deposits, Canada.
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| The security of the tenure held at the time of reporting along | The tenure includes multiple Mineral Claims, as defined by the Provincial | |
| with any known impediments to obtaining a licence to | Government of Manitoba. All claims are currently in good standing. | |
| operate in the area. | Exploration access agreements and Work Permits have yet to be obtained for | |
| these new project areas. | ||
| Exploration | Acknowledgment and appraisal of exploration by other | Exploration within these areas stretches back to the mid-1940’s. Historical |
| done by other | parties. | reports that record the historical exploration exist from the late 1950’s. |
| parties | Detailed assessment of this historical work is currently underway. | |
| Historical Assessment Reports referencing the drilling results included in this | ||
| report are listed below. | ||
| HolesCR-* : Sherritt Gordon Mines 1958. Assessment Report # 91293 and | ||
| 94186. | ||
| HolesWL-* : Sherritt Gordon Mines 1986, 1987. Assessment Report # 71726 | ||
| and 94186. | ||
| HolesKB-* : Knobby Lake Mines Ltd. 1971, Assessment Report # 94198. | ||
| Holes75-*- DuPont of Canada Exploration 1975 Assessment Report # 94186. | ||
| Past exploration within the Barrington claim (BARR 1) is summarised by the | ||
| 2001 Assessment Report # 94916. | ||
| Geology | Deposit type, geological setting and style of mineralisation. | Volcanogenic massive sulphide (VMS) deposits are typically zinc dominant, |
| with lesser amounts of copper, silver and gold. The Wellmet Deposit hosts | ||
| both zinc dominant and copper-gold dominant horizons. | ||
| Drill hole | A summary of all information material to the understanding | Drill hole collar and survey data within the report is presented in local imperial |
| Information | of the exploration results including a tabulation of the | grid systems. Available down-hole survey information is not considered |
| following information for all Material drill holes: | material and has not been provided. | |
| o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea |
Drill hole collar survey data pertaining to this report is presented in Table 3 | |
| level in metres) of the drill hole collar |
8
Table 4: Checklist of Assessment and Reporting Criteria
13[th] June 2024
Historical Core Drilling – MacBride and Wellmet Deposits, Canada.
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| o dip and azimuth of the hole | ||
| o down hole length and interception depth | ||
| o hole length. | ||
| If the exclusion of this information is justified on the basis | The Company is currently collating all historical drill hole data. Findings from | |
| that the information is not Material and this exclusion does | this work will be the subject of future disclosure. | |
| not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. |
Current work is aimed at digitally capturing the historical drill data in a real- world coordinate system. |
|
| Data | In reporting Exploration Results, weighting averaging | Weighted average grades have been reported for the mineralised zones |
| aggregation | techniques, maximum and/or minimum grade truncations | defined by geological logging. No assay grade cuts, or cut-off grades, have |
| methods | (eg cutting of high grades) and cut-off grades are usually | been applied. |
| Material and should be stated. | ||
| Where aggregate intercepts incorporate short lengths of | Weighted average grades have been reported for the mineralised zones | |
| high grade results and longer lengths of low grade results, | defined by geological logging. No assay grade cuts, or cut-off grades, have | |
| the procedure used for such aggregation should be stated | been applied. | |
| and some typical examples of such aggregations should be | ||
| shown in detail. | ||
| The assumptions used for any reporting of metal equivalent | Metal equivalent values are not reported. | |
| values should be clearly stated. | ||
| Relationship | These relationships are particularly important in the | True widths have not been reported. Mineralised intervals documented are |
| between | reporting of Exploration Results. | down-hole lengths, as reported within the historical data. |
| mineralisation widths and intercept |
The mineralisation is generally sub-vertical. Drill hole dips have been provided in Table 3. |
|
| lengths | ||
| If the geometry of the mineralisation with respect to the drill | Drill hole azimuths are generally normal to the dominant strike of the | |
| hole angle is known, its nature should be reported. | mineralisation. | |
| Azimuths and dips of the drill holes are variable and provided within Table 3. |
9
Table 4: Checklist of Assessment and Reporting Criteria
13[th] June 2024
Historical Core Drilling – MacBride and Wellmet Deposits, Canada.
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| If it is not known and only the down hole lengths are | All results are reported as drill hole intercepts and are are down-hole lengths. | |
| reported, there should be a clear statement to this effect (eg | ||
| ‘down hole length, true width not known’). | ||
| Diagrams | Appropriate maps and sections (with scales) and tabulations | Appropriate diagrams have been included in the announcement. |
| 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. | ||
| Balanced | Where comprehensive reporting of all Exploration Results is | Comprehensive reporting of all historical exploration is not possible at this time. |
| reporting | not practicable, representative reporting of both low and | The Company is currently collating and digitally capturing all available historical |
| high grades and/or widths should be practiced to avoid | exploration data | |
| misleading reporting of Exploration Results. | The drill hole information presented in this report provides an accurate | |
| representation of the mineralisation defined within the deposits. | ||
| Other | Other exploration data, if meaningful and material, should be | Exploration reports for the project areas date back to the 1950’s. |
| substantive | reported including (but not limited to): geological | |
| exploration | observations; geophysical survey results; geochemical | The Company is currently collating and digitally capturing all available historical |
| data | survey results; bulk samples – size and method of | exploration data for future disclosure. |
| treatment; metallurgical test results; bulk density, | ||
| groundwater, geotechnical and rock characteristics; | ||
| potential deleterious or contaminating substances. | ||
| Further work | The nature and scale of planned further work (eg tests for | The Company is currently collating and digitally capturing all available historical |
| lateral extensions or depth extensions or large-scale step- | exploration data | |
| out drilling). | Once this work is completed, on-going exploration activities will be defined. | |
| Diagrams clearly highlighting the areas of possible | All rlevant diagrams have been presented in this report. | |
| extensions, including the main geological interpretations and | ||
| future drilling areas, provided this information is not | ||
| commercially sensitive. |
10