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CORAZON MINING LIMITED — Interim / Quarterly Report 2015
Jul 27, 2015
64747_rns_2015-07-27_25f4c8a2-22c6-4826-be54-b5fb752f4b5c.pdf
Interim / Quarterly Report
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ASX ANNOUNCEMENT
28 July 2015
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The Manager - Company’s Announcements Australian Securities Exchange
QUARTERLY ACTIVITIES REPORT
PERIOD ENDING 30 JUNE 2015
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Transaction completed to acquire the Victory Nickel-Copper Project at Lynn Lake in Canada from Victory Nickel Inc (TSX: NI).
-
Corazon now controls the entire historic Lynn Lake nickel-copper mineral field, one of Canada’s most prolific nickel producing regions.
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Maiden JORC Resource Estimate for consolidated Lynn Lake Nickel-Copper Project:
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Total Indicated and Inferred Resource of 9.4Mt @ 0.88% nickel and 0.40% copper, for 83,000t contained nickel and 37,800t contained copper.
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Resource contains near-surface mineralisation suitable for open-cut mining method.
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Further upside potential identified with multiple highly prospective targets and drill defined mineralisation yet to be included within the resource.
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Combined project creates a significant nickel-copper asset - benefits in scale and mine-life for potential future mining operation.
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Mining and processing studies underway, preparing the project for potential recommencement of mining subject to improved metal prices.
Corazon Mining Limited (ASX: CZN) (“Corazon” or “the Company”) is pleased to present its Quarterly Activities Report for the period ending 30 June 2015. Corazon’s sole focus during this quarter was on expanding and developing its Lynn Lake Nickel-Copper Sulphide Project (“Project”) in the Manitoba region of Canada. The Company completed its acquisition of the Victory Nickel Project, consolidating the Lynn Lake Nickel Field for the first time since the Lynn Lake Mine closed in 1976, following 24 years of operation as a large tonnage-low cost mine.
Following the Victory acquisition, Corazon completed a JORC 2012 compliant Resource Estimate (“Resource”) for the entire Lynn Lake Project area. This estimation combines and upgrades resources previously reported in both JORC 2004 and NI43-101 (Canadian) reporting standards, as well as incorporating some new areas of mineralisation defined by the previous mining operation.
Lynn Lake has an enormous metal endowment localised in a very confined area. The project has excellent prospectivity and it is expected modern geophysical techniques will be of great benefit in exploring the Lynn Lake area.
Corazon believes that bringing the Lynn Lake and Victory nickel projects together creates a significant nickel-copper asset, improves the economics of any potential mining operation and provides benefits in
| CAPITAL STRUCTURE | BOARD OF DIRECTORS | BOARD OF DIRECTORS | CONTACT US | ||
|---|---|---|---|---|---|
| Market cap. @ A$0.007 | $3.09M | Clive Jones |
Non-executive Chairman | P: +61 (8) 6142 6366 | |
| Ordinary shares | 441.6M | Brett Smith |
Managing Director | M: PO Box 8187, Subiaco East WA 6008 | |
| Unlisted Options | 30M | Jonathan Downes | Director | E: [email protected] | |
| ASX: CZN | Adrian Byass | Director | W: www.corazon.com.au |
ASX ANNOUNCEMENT
28 July 2015
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scale and possible mine life. Lynn Lake provides an excellent development opportunity leveraged to improvements in the nickel metal price.
ACQUISITION OF VICTORY NICKEL PROJECT, CANADA
Early in the quarter, Corazon completed the transaction with Victory Nickel Inc. (“Victory”) to acquire the Victory Nickel-Copper Project (“Victory Project” or “the Project”) – located immediately adjacent to Corazon’s Lynn Lake Nickel-Copper Project, in the central Canadian province of Manitoba (ASX announcement dated 01/04/15). The acquisition consolidates the Lynn Lake Nickel-Copper Field for the first time since mine closure in 1976.
In accordance with the agreement, Corazon issued Victory 40 million Corazon shares to complete the transaction (ASX announcement dated 01/04/15). The transfers of mining titles to Corazon have been lodged with the Manitoba Government.
Other conditions to the agreement include:
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Victory to retain a 1.5% net smelter royalty on production from the Victory project area. Corazon has the right to purchase 1% of the 1.5% royalty for AUD$1M.
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Corazon is required to spend AUD$3.5 million on exploration and resource development within five years from execution of the agreement. Should Corazon fail to meet this expenditure requirement:
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The difference between the expenditure requirement and actual expenditure must be paid to Victory in cash or shares; or
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The project is returned to Victory.
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Within 30 days of the re-commencement of commercial ore processing at Lynn Lake, Corazon is required to make a payment of AUD$1 million (cash and/ or shares at Corazon’s discretion) to Victory.
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Figure 1 – Lynn Lake Claim Outline and Prospect Location
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ASX ANNOUNCEMENT
28 July 2015
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RESOURCE UPGRADE AT LYNN LAKE
During the quarter, Corazon completed a JORC 2012 compliant Resource Estimate (“Resource”) for the Lynn Lake Project, in Canada. This estimation combines and upgrades resources previously reported in both JORC 2004 and NI43-101 (Canadian) reporting standards, as well as incorporating some new areas of mineralisation defined by the previous mining operation.
Perth based independent mining consultants Ravensgate have defined an Indicated and Inferred Resource of 9.4Mt @ 0.88% nickel and 0.40% copper, for 83,000 tonnes of contained nickel and 37,800 tonnes of contained copper (refer to Table 1 for a break-down of the Resource; ASX announcement 16/04/15).
The Resource incorporates the EL, N, O and G nickel-copper sulphide deposits (Figure 2, Table 1) and is the first time a combined resource for the Lynn Lake project area has been defined in-line with Australian reporting standards.
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Figure 2: Lynn Lake Mining Centre long section
The Resource grade is consistent with the historical grades from the Lynn Lake Mine which operated for 24 years as a large tonnage-low cost mine, before its closure in 1976.
In defining this Resource, Corazon has utilised higher cut-off nickel grades for reporting the Project’s Resource than those previously published by past Canadian operators. This is in-line with the Company’s focus on determining exploitable resources rather than seeking to identify the total metal content within the project area.
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ASX ANNOUNCEMENT
28 July 2015
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Table 1: Mineral Resource for the EL, N, O and G deposits at Lynn Lake
| Lower Cut-off Grade |
Lower Cut-off Grade |
Grade | Grade | ||||
|---|---|---|---|---|---|---|---|
| Contained Metal | |||||||
| Deposit | Tonnes | ||||||
| NIEQ % | Ni % | Ni % | Cu % | Ni Tonnes | Cu Tonnes | ||
| Indicated Resource Category | |||||||
| EL Upper | 0.4 | 1,120,000 | 0.77 | 0.34 | 8,600 | 3,800 | |
| EL Lower | 0.6 | 676,000 | 0.83 | 0.40 | 5,600 | 2,700 | |
| N | 0.8 | 2,990,000 | 0.86 | 0.41 | 25,700 | 12,300 | |
| O | 0.8 | 2,630,000 | 0.82 | 0.37 | 21,600 | 9,700 | |
| Indicated Sub-Total | 7,420,000 | 0.83 | 0.38 | 61,500 | 28,500 | ||
| Inferred Resource Category | |||||||
| EL Upper | 0.4 | 645,000 | 1.55 | 0.61 | 10,000 | 3,900 | |
| EL Lower | 0.6 | 292,000 | 1.01 | 0.44 | 3,000 | 1,300 | |
| N | 0.8 | 710,000 | 0.79 | 0.39 | 5,600 | 2,800 | |
| O | 0.8 | 100,000 | 0.75 | 0.36 | 750 | 360 | |
| G | 0.8 | 240,000 | 0.94 | 0.39 | 2,300 | 940 | |
| Inferred Sub-Total | 1,990,000 | 1.09 | 0.47 | 21,600 | 9,300 | ||
| Total | 9,400,000 | 0.88 | 0.40 | 83,000 | 37,800 |
Table 1 Notes:
Nickel equivalent grades (NIEQ%) are provided as an indicator of value in a multi-metallic deposit. Lynn Lake has a long history as a nickel, copper and cobalt mining camp. It is the Company’s opinion that all elements included in the metal equivalent calculation have a reasonable potential to be recovered. Past mining of these deposits on average produced a nickel concentrate, consisting of 14% nickel, 1.5% copper and 0.35% cobalt and a copper concentrate having 30% copper and 0.60% nickel. In this circuit, 85% of the nickel, 93% of the copper and 80% of the cobalt were recovered on average. .
NIEQ% = (((Cu%222.04622)+(Ni%7.2222.04622))/7.22)/22.04622 based on metal prices of Ni = US$7.22 /lb Cu = US$2.00 /lb.
CURRENT ACTIVITIES
Corazon’s upgrade of the JORC 2004 resource for the EL Deposit, the NI 43-101 resource for the Victory Project to JORC 2012 resource status will form the basis of future mining and processing work.
Corazon has inherited a large amount of legacy data with the recent acquisition. Collating and standardising this data for interrogation using modern exploration techniques are expected to identify additional area for exploration and resource definition.
Exploration: Canadian geologist Dr Larry Hulbert has been engaged by Corazon to assist in the collation of past exploration information and the definition of new targets at Lynn Lake. Dr Hulbert has extensive knowledge of the Lynn Lake district and over 40 years' experience in Ni-Cu-PGM exploration and research and is one of North America's foremost experts on magmatic sulphide deposit exploration and discovery.
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ASX ANNOUNCEMENT
28 July 2015
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Dr. Hulbert has been actively running exploration programs in Canada for over 20 years and has been working as a Cu-Ni-PGM specialist consulting to companies engaged in exploration in Canada, USA and Mexico. Dr. Hulbert has authored numerous professional papers, was the recipient of the Barlow Medal from CIM in 1993, a Robinson Distinguished Lecturer for the Geological and Mineralogical Association of Canada for 2001-2002, and in 2003 received the Earth Sciences Sector Merit Award from Natural Resources Canada.
Mining Studies : Canadian based Australian senior mining engineer Mr George Smith has been engaged by the Company as an independent consultant to manage the development of a Scoping Study for the Lynn Lake Nickel-Copper Project. Mr Smith has more than 20 years of underground and opencut mining experience in Australia and Canada and was most recently the Manager of Evaluations for Barrick Gold Corporation (based in Toronto). His extensive experience in the management and mining of a large variety of mineral deposit types will be of enormous benefit to developing mining strategies at Lynn Lake.
Mineral Processing Analysis : Australian project services company Midas Mets Engineering has been contracted to provide mineral processing technical due diligence and concentrate treatment options. Processing methods have changed considerably since previous mining was undertaken at Lynn Lake in the 1970's, with modern options providing a much broader range of choices regarding the extraction and treatment of nickel and copper concentrate.
ISSUE OF SHARES
During the quarter, in accordance with the agreement to acquire the Victory Nickel Project (ASX announcement 05/11/14), Corazon issued Victory Nickel Inc. 40 million Corazon shares to complete the transaction.
CASH POSITION
Corazon is in a solid financial position, closing the June 30 2015 quarter with approximately $1.8 million in cash. The Company’s current activities are predominantly desk-top studies and are relatively low cost.
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] |
Important Information
Competent Persons Statement : The information in this report that relates to Exploration Results and Mineral Resources for the A Plug deposits at the Lynn Lake project is based on information compiled by Mr Neal Leggo who is a Member of the Australian Institute of Geoscientists. Mr Leggo is a full time employee of Ravensgate and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the
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ASX ANNOUNCEMENT
28 July 2015
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“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Leggo consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.
The information in this report that relates to Exploration Results and Mineral Resources for the EL Plug deposits at the Lynn Lake project is based on information compiled by Mr Stephen Hyland who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Hyland is a full time employee of Ravensgate and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Hyland consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.
Forward Looking Statements: This announcement contains certain statements that may constitute “forward looking statement”. Such statements are only predictions and are subject to inherent risks and uncertainties, which could cause actual values, results, performance achievements to differ materially from those expressed, implied or projected in any forward looking statements.
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ASX ANNOUNCEMENT
28 July 2015
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 |
| LYNN LAKE | P7700E | Canada | 100%1 | |
| LYNN LAKE | P7698E | Canada | 100%1 | |
| LYNN LAKE | P8370E | Canada | 100%1 | |
| LYNN LAKE | P7699E | Canada | 100%1 | |
| LYNN LAKE | P7702E | Canada | 100%1 | |
| LYNN LAKE | P3163F | Canada | 100%1 | |
| LYNN LAKE | P3164F | Canada | 100%1 | |
| LYNN LAKE | P3165F | Canada | 100%1 | |
| LYNN LAKE | P2291F | Canada | 100%1 | |
| LYNN LAKE | P3534F | Canada | 100%1 | |
| LYNN LAKE | MB2482 | Canada | 100%1 | |
| LYNN LAKE | MB3566 | Canada | 100%1 | |
| LYNN LAKE | MB3567 | Canada | 100%1 | |
| LYNN LAKE | P1045F | Canada | 100%1 | |
| LYNN LAKE | MB3580 | Canada | 100%1 | |
| LYNN LAKE | MB3581 | Canada | 100%1 | |
| LYNN LAKE | MB7346 | Canada | 100%1 | |
| LYNN LAKE | MB7349 | Canada | 100%1 | |
| LYNN LAKE | MB7350 | Canada | 100%1 | |
| LYNN LAKE | MB7025 | Canada | 100%1 | |
| LYNN LAKE | MB7361 | Canada | 100%1 |
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ASX ANNOUNCEMENT
28 July 2015
| LYNN LAKE | MB7362 | Canada | 100%1 | |
|---|---|---|---|---|
| LYNN LAKE | MB6364 | Canada | ||
| 100%1 | ||||
| LYNN LAKE | MB5175 | Canada | 100%1 | |
| LYNN LAKE | MB5701 | Canada | 100%1 | |
| LYNN LAKE | MB8734 | Canada | 100%1 | |
| LYNN LAKE | MB8735 | Canada | 100%1 | |
| LYNN LAKE | MB9218 | Canada | 100%1 | |
| LYNN LAKE | MB5399 | Canada | 100%1 | |
| LYNN LAKE | MB6360 | Canada | 100%1 | |
| LYNN LAKE | MB6361 | Canada | 100%1 | |
| LYNN LAKE | MB6362 | Canada | 100%1 | |
| LYNN LAKE | MB6363 | Canada | 100%1 | |
| LYNN LAKE | MB9453 | Canada | 100%1 | |
| LYNN LAKE | MB5672 | Canada | 100%1 | |
| LYNN LAKE | MB5669 | Canada | 100%1 | |
| LYNN LAKE | MB10070 | Canada | 100%1 | |
| LYNN LAKE | MB10071 | Canada | 100%1 | |
| LYNN LAKE | MB10085 | Canada | 100%1 | |
| LYNN LAKE | MB10086 | Canada | 100%1 | |
| LYNN LAKE | MB10382 | Canada | 100%1 | |
| LYNN LAKE | MB10383 | Canada | 100%1 | |
| LYNN LAKE | MB10384 | Canada | 100%1 | |
| LYNN LAKE | MB10387 | Canada | 100%1 | |
| LYNN LAKE | MB10388 | Canada | 100%1 | |
| VICTORY PROJECT | MB11328 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | MB11388 | Canada | 100%2 | 100%2 |
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ASX ANNOUNCEMENT
28 July 2015
| VICTORY PROJECT | MB11389 | Canada | 100%2 | 100%2 |
|---|---|---|---|---|
| VICTORY PROJECT | MB11390 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | M2228 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | M2229 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | M2230 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | M2232 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | M2233 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | M2234 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | M2248 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | M2249 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | M2251 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | M2252 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | M2253 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | M2254 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | M2255 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | M2256 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | ML77 | Canada | 100%2 | 100%2 |
| VICTORY PROJECT | ML90 | Canada | 100%2 | 100%2 |
| BARRINGTON LAKE | MB9634 | Canada | 100%1 |
NOTES:
1. Option to acquire up to 100% of Lynn Lake and Barrington Lake Projects; for terms of the
- agreement, refer to prior announcement dated 09/08/12.
2. Acquired up to 100% of the Victory Project; for terms of the agreement, refer to prior announcement dated 01/04/15.
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