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CORAZON MINING LIMITED — Interim / Quarterly Report 2014
Apr 29, 2014
64747_rns_2014-04-29_edb928ef-cfbf-4f9b-a09f-0a2d59857e8d.pdf
Interim / Quarterly Report
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ASX ANNOUNCEMENT
30 April 2014
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The Manager - Company’s Announcements Australian Securities Exchange
QUARTERLY ACTIVITIES REPORT – PERIOD ENDING 31 MARCH 2014
Corazon Mining Limited (ASX: CZN) (“Corazon” or “the Company”) is pleased to present its Quarterly Activities Report for the period ending 31 March 2014. Activities throughout the quarter centred on the analysis of results from the exploration conducted at the Company’s Top Up Rise (“TUR”) Project in the Gibson Desert region of Western Australia.
Post-quarter on 30 April 2014, the Company announced that it would not continue with the option to acquire private company Border Exploration Pty Ltd (“Border”) which owns the Top Up Rise (TUR) Project in Western Australia. The decision to withdraw from the agreement has been made in consideration of:
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To continue with the option to acquire the TUR Project required a cash payment of $200,000 and future work expenditure commitment of $4,000,000 over next 4 years.
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Results to date do not warrant the continuation of expenditure as defined by the agreement and no variation of the agreement was reached which was compatible to both parties.
As a result of the decision not to proceed with TUR, all non-essential expenditure has been halted to preserve the Company’s capital. Furthermore, the Board has agreed to a reduction of 50% in Directors’ remuneration for a minimum period of 2 months (to be reviewed at the end of June 2014).
Corazon is actively seeking new business opportunities, and a number of such opportunities are currently under review.
In light of the appreciation in the price of nickel, Corazon will continue to progress the Company’s main asset, the Lynn Lake Nickel-Copper Sulphide Project (“Lynn Lake”), located in Canada, which represents a significant development opportunity for the Company.
| CAPITAL STRUCTURE | BOARD OF DIRECTORS | BOARD OF DIRECTORS | CONTACT US | ||
|---|---|---|---|---|---|
| Market cap. @ 1.1cps |
$4.4M | Clive Jones |
Non-executive Chairman | P: +61 (8) 6142 6366 | |
| Ordinary shares | 401.5M | Brett Smith |
Managing Director | M: PO Box 8187, Subiaco East WA 6008 | |
| Options | 35M | Jonathan Downes | Director | E: [email protected] | |
| ASX: CZN | Adrian Byass | Director | W: www.corazon.com.au |
ASX ANNOUNCEMENT
30 April 2014
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EXPLORATION ACTIVITIES
TOP UP RISE PROJECT, AUSTRALIA
In an announcement dated 30 April 2014, the Company stated that it would not continue with the option to acquire private company Border Exploration Pty Ltd (“Border”) which owns the Top Up Rise (TUR) Project in Western Australia.
The TUR option was agreed in October 2012 (ASX announcement 30 October 2012) whereby Corazon could acquire up to 75% of Border. The Top Up Rise project included a large geophysical anomaly in a region identified by Government agencies as being prospective for Iron Oxide Copper Gold (IOCG) mineralisation similar to the world class Olympic Dam project.
Work completed by Corazon on Top Up Rise included both geophysical methods and direct drilling. Geophysical techniques completed over the project include magnetic, gravity, induced polarisation and versatile time domain electromagnetic (VTEM) surveys. On-ground exploration conducted by Corazon commenced in March 2013 (ASX announcement 21 March 2013) and drilling began in May 2013 (ASX announcement 27 May 2013). Cumulatively, 4,965 metres of drilling was completed (including 14 reverse circulation holes, 5 with core tails) in testing priority gravity targets.
An extension to the TUR Option Agreement date was granted to 30 April, 2014 (ASX announcement 31 March 2014).
To continue with the option to acquire the TUR Project required a cash payment of $200,000 and future work expenditure commitment of $4,000,000 over next 4 years. Results to date do not warrant the continuation of expenditure as defined by the agreement and no variation of the agreement was reached which was compatible to both parties. As such, the agreement is terminated.
LYNN LAKE NICKEL-COPPER SULPHIDE PROJECT, CANADA
The Lynn Lake Project continues to represent a significant development opportunity for Corazon. The key target within the project area is the EL Deposit, which was historically the highest grade deposit at Lynn Lake, producing 1.9Mt at 2.5% nickel and 1.15% copper.
In 2010, Corazon discovered a high-grade sulphide breccia at depth below the EL Mine, a discovery that confirmed the prospectivity of the Lynn Lake project area.
March quarter activities by the Company at Lynn Lake focused on continuing the definition of the EL Deposit’s benefits, with the view towards recommencing a mining operation in Lynn Lake. The EL Deposit has significant drill defined mineralisation from surface, surrounding the historical mine. This mineralisation is not included in the current interim Inferred Resource (JORC 2004), but is defined by the “Upper-Zone Exploration Target” and may be exploitable by open-pit mining methods (details of Exploration Target provided in ASX announcement dated 9[th] December 2011).
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ASX ANNOUNCEMENT
30 April 2014
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BEAUCAGE LAKE GOLD PROJECT, CANADA
Corazon’s March quarter activities at the Beaucage Lake project were limited to the continued collation and interpretation of historical exploration data to assist in target generation for future drilling. Information acquired to date indicates a number of significant untested high grade gold anomalous zones identified from sampling of limited outcrop that are coincident with favourable geophysical trends that are potential drill targets.
Corazon believes the high tenor of gold mineralisation, over a large area near Beaucage Lake, may be indicative of a large scale mineralised system and the acquisition of Beaucage Lake provides the Company with an additional exploration focus which complements Corazon’s Lynn Lake nickel-copper project and Barrington Lake copper deposit.
CORPORATE ACTIVITIES
Cash at 31 March 2014
Cash available to the Company at the end of the March 2014 quarter was approximately $1.7 million. In addition to these existing funds, Corazon has recently made application for approximately $900,000 in R&D benefits (based on the past and current year claims), which are currently under assessment.
Review of Operations
In recognition of the implications of Corazon no longer conducting exploration on the Top Up Rise project, and the current market dynamics of the nickel market (which affect the Company’s Lynn Lake Project), a corporate review is currently underway.
The Company maintains a healthy cash balance and no debt. To preserve the Company’s stable financial situation, the Board has agreed to a reduction of 50% in remuneration for a minimum period of 2 months (to be reviewed at the end of June 2014) as it undertakes a review of corporate strategy. In the interim, all nonessential expenditure has been ceased to preserve the Company’s capital.
Expiry of Options
During the quarter, the Company advised the expiry of 8,500,000 Options exercisable at $0.145 on or before 25 February 2014.
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: [email protected] E: [email protected]
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ASX ANNOUNCEMENT
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30 April 2014
Disclosure Statements and 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 of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Smith consents to the inclusion in this report of the matters based on information in the form and context in which it appears.
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ASX ANNOUNCEMENT
30 April 2014
Schedule of Tenements
CORAZON MINING LIMITED CONSOLIDATED BASIS SCHEDULE OF INTERESTS IN MINING TENEMENTS (as required by ASX Listing Rule 5.3.3)
| CORAZON MINING LIMITED CONSOLIDATED BASIS SCHEDULE OF INTERESTS IN MINING TENEMENTS **(as required by ASX Listing Rule 5.3.3) ** |
CORAZON MINING LIMITED CONSOLIDATED BASIS SCHEDULE OF INTERESTS IN MINING TENEMENTS **(as required by ASX Listing Rule 5.3.3) ** |
CORAZON MINING LIMITED CONSOLIDATED BASIS SCHEDULE OF INTERESTS IN MINING TENEMENTS **(as required by ASX Listing Rule 5.3.3) ** |
CORAZON MINING LIMITED CONSOLIDATED BASIS SCHEDULE OF INTERESTS IN MINING TENEMENTS **(as required by ASX Listing Rule 5.3.3) ** |
CORAZON MINING LIMITED CONSOLIDATED BASIS SCHEDULE OF INTERESTS IN MINING TENEMENTS **(as required by ASX Listing Rule 5.3.3) ** |
|---|---|---|---|---|
| Project | Mining tenements held | Location of tenements |
Beneficial % interest at the end of the quarter |
Change in the quarter |
| TOP UP RISE PROJECT | ||||
| TOP UP RISE | E80/4427 | Australia | 75%1 | |
| TOP UP RISE | E80/4583 | Australia | 75%1 | |
| TOP UP RISE | E80/4584 | Australia | 75%1 | |
| LYNN LAKE PROJECT | ||||
| LYNN LAKE | P7700E | Canada | 100%2 | |
| LYNN LAKE | P7698E | Canada | 100%2 | |
| LYNN LAKE | P8370E | Canada | 100%2 | |
| LYNN LAKE | P7699E | Canada | 100%2 | |
| LYNN LAKE | P7702E | Canada | 100%2 | |
| LYNN LAKE | P3163F | Canada | 100%2 | |
| LYNN LAKE | P3164F | Canada | 100%2 | |
| LYNN LAKE | P3165F | Canada | 100%2 | |
| LYNN LAKE | P2291F | Canada | 100%2 | |
| LYNN LAKE | P3534F | Canada | 100%2 | |
| LYNN LAKE | MB2482 | Canada | 100%2 | |
| LYNN LAKE | MB3566 | Canada | 100%2 | |
| LYNN LAKE | MB3567 | Canada | 100%2 | |
| LYNN LAKE | P1045F | Canada | 100%2 | |
| LYNN LAKE | MB3580 | Canada | 100%2 | |
| LYNN LAKE | MB3581 | Canada | 100%2 |
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ASX ANNOUNCEMENT
30 April 2014
| LYNN LAKE | MB7346 | Canada | 100%2 | |
|---|---|---|---|---|
| LYNN LAKE | MB7349 | Canada | 100%2 | |
| LYNN LAKE | MB7350 | Canada | 100%2 | |
| LYNN LAKE | MB7025 | Canada | 100%2 | |
| LYNN LAKE | MB7361 | Canada | 100%2 | |
| LYNN LAKE | MB7362 | Canada | 100%2 | |
| LYNN LAKE | MB6364 | Canada | 100%2 | |
| LYNN LAKE | MB5175 | Canada | 100%2 | |
| LYNN LAKE | MB5701 | Canada | 100%2 | |
| LYNN LAKE | MB8734 | Canada | 100%2 | |
| LYNN LAKE | MB8735 | Canada | 100%2 | |
| LYNN LAKE | MB9218 | Canada | 100%2 | |
| LYNN LAKE | MB5399 | Canada | 100%2 | |
| LYNN LAKE | MB6360 | Canada | 100%2 | |
| LYNN LAKE | MB6361 | Canada | 100%2 | |
| LYNN LAKE | MB6362 | Canada | 100%2 | |
| LYNN LAKE | MB6363 | Canada | 100%2 | |
| LYNN LAKE | MB9453 | Canada | 100%2 | |
| LYNN LAKE | MB5672 | Canada | 100%2 | |
| LYNN LAKE | MB5669 | Canada | 100%2 | |
| LYNN LAKE | MB10070 | Canada | 100%2 | |
| LYNN LAKE | MB10071 | Canada | 100%2 | |
| LYNN LAKE | MB10085 | Canada | 100%2 | |
| LYNN LAKE | MB10086 | Canada | 100%2 | |
| LYNN LAKE | MB10382 | Canada | 100%2 | |
| LYNN LAKE | MB10383 | Canada | 100%2 |
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ASX ANNOUNCEMENT
30 April 2014
| LYNN LAKE | MB10384 | Canada | 100%2 | |
|---|---|---|---|---|
| LYNN LAKE | MB10387 | Canada | 100%2 | |
| LYNN LAKE | MB10388 | Canada | 100%2 | |
| BEAUCAGE LAKE PROJECT | ||||
| BEAUCAGE LAKE | MB9646 | Canada | 100%2 | |
| BEAUCAGE LAKE | MB9647 | Canada | 100%2 | |
| BEAUCAGE LAKE | MB9648 | Canada | 100%2 | |
| BEAUCAGE LAKE | NV9649 | Canada | 100%2 | |
| BEAUCAGE LAKE | MB9650 | Canada | 100%2 | |
| BEAUCAGE LAKE | MB9651 | Canada | 100%2 | |
| BEAUCAGE LAKE | MB9652 | Canada | 100%2 | |
| BEAUCAGE LAKE | MB9653 | Canada | 100%2 | |
| BEAUCAGE LAKE | MB9655 | Canada | 100%2 | |
| BEAUCAGE LAKE | MB9640 | Canada | 100%2 | |
| BEAUCAGE LAKE | MB9642 | Canada | 100%2 | |
| BEAUCAGE LAKE | MB9643 | Canada | 100%2 | |
| BEAUCAGE LAKE | MB9644 | Canada | 100%2 | |
| BEAUCAGE LAKE | MB9645 | Canada | 100%2 | |
| BEAUCAGE LAKE | MB5785 | Canada | 100%2 | |
| BARRINGTON LAKE PROJECT | ||||
| BARRINGTON LAKE | MB9634 | Canada | 100%2 |
1 Option to acquire up to 75% of the Top Up Rise Projects refer to prior announcement for terms of the agreement. Post end of Quarter the Company announced it intended to withdraw from this project (announcement dated 30 April 2014).
2 Option to acquire up to 100% of Lynn Lake, Beaucage Lake, Barrington Lake refer to prior announcement for terms of the agreement.
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