CORAZON MINING LIMITED — Regulatory Filings 2019

Jun 4, 2019

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ASX ANNOUNCEMENT 5 JUNE 2019
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MULTIPLE NEW TARGETS IDENTIFIED AT LYNN LAKE, CANADA - FOCUS ON NEAR MINE ENVIRONMENT -

• New innovative geophysical processing technique applied to existing data proves extremely beneficial at the Lynn Lake

• Effective mapping of known mineralisation and deposits, and identification of new areas of interest

• High priority Ni-Cu-Co targets defined adjacent to Lynn Lake’s historic mines

• Methodology also to be applied to numerous regional nickel sulphide targets

• Metallurgical studies underway to enhance recent excellent results, seeking improved recoveries for high-grade nickel and copper concentrates

Corazon Mining Limited (ASX: CZN) ( Corazon or Company ) is pleased to provide an update on its exploration activities at the Lynn Lake Nickel-Copper-Cobalt Sulphide Project ( Lynn Lake or Project ) in Canada.

Corazon is focused on advancing the Lynn Lake Project in parallel with its ongoing priority work programs at the Mt Gilmore Copper-Cobalt Project in New South Wales, and is pleased to report that initial results from its current phase of work at Lynn Lake are significant and will deliver critical progress on a number of fronts.

New geophysical processing technique to deliver major benefits at Lynn Lake

Modelling of magnetic data utilising newly developed methods (Magnetic Vector Inversion - MVI ) have radically opened up the prospectivity of the Lynn Lake Mining Centre. Proving more effective and accurate than the previously utilised conventional Magnetic Susceptibility Inversion method, the MVI process can identify known (previously mined) orebodies and resource areas down to at least 600 to 700 metres below surface - double that of conventional techniques.

The MVI processing of existing detailed ground magnetic data has also identified new areas of interest within Lynn Lake’s prolific historic mining centre.

Corazon’s Managing Director Brett Smith stated, “ Our aim is to utilise this new modelling technique on a number of fronts at Lynn Lake. The potential for new discoveries is obvious, however, there are also numerous historically drill defined targets in the mining area that have yet to be properly tested. Our focus will be on these near-mine targets with a view towards optimising the potential of the mine area ahead of more detailed mine-planning and feasibility drill-outs for the Project ”.

Corazon has proven the Mining Centre’s discovery-potential, identifying the EL Deeps in 2011 (discovery hole 23.75m @ 3.34% Ni, 1.54% Cu & 0.08% Co - ASX announcement 8 June 2011) and in 2008, prior to Corazon gaining access to the ground, Western Areas NL (ASX:WSA) discovered the Disco (Melville) deposit (discovery hole 18m @ 1.5% Ni, 0.70% Cu & 0.040% Co - ASX announcement 23 April 2008). Both discoveries are open and yet to be drilled out, with Disco (at the time of discovery) continuing off WSA tenure, into ground now held by Corazon.

Level 2, 38 Richardson St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN

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ASX ANNOUNCEMENT 5 JUNE 2019
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The discovery of the Disco Deposit by WSA highlighted the prospectivity of the under-explored eastern corridor of the A Plug - a three (3) kilometre trend (Figure 1) adjacent the main mine area.

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Figure 1 - Plan map of Causative Bodies (targets) interpreted from induced polarisation geophysical surveys, with resource areas, historical stopes and definition of the “Eastern Corridor”. After Kallfa and Kapllani - Matrix GeoTechnologies Ltd (2010), IP Survey Interpretation Report.

Corazon’s adoption of the MVI modeling follows a review of results from the last phase of drilling at the Fraser Lake Complex ( FLC ) exploration play at Lynn Lake. This drilling targeted compelling anomalies generated by conventional Magnetic Susceptibility Inversion modelling processes.

“ Put simply the conventional inversion modelling methods didn’t deliver the results anticipated at the Fraser Lake Complex. We’re looking within a large, complex, multi-phase magmatic sulphide system with variable magnetic characteristics. Too complex for the conventional methods to accommodate. With MVI, the level of information and detail is substantial and allows us to interrogate the anomalies better. Targets that have previously been ignored because of their overall magnetic characteristics are now being reassessed more favourably, ” said Smith.

Level 2, 38 Richardson St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN

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ASX ANNOUNCEMENT 5 JUNE 2019
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Metallurgical testwork nearing completion

Corazon recently announced exceptional metallurgical results from its testwork on Lynn Lake mineralisation (ASX announcements 11[th] and 12[th] February 2019). Despite Lynn Lake having a long mining history, modern reagents and processing techniques have enabled separate high-value nickel and copper concentrates to be produced for the very first time. The initial work highlighted

• Nickel concentrate with a grade of 26% nickel with recoveries of 71%

• Copper concentrate with a grade of 27% copper with recoveries of 77%

These results were not optimised, and it is believed that further refinement of the testwork could deliver even greater improvements, particularly in the recoveries. A new round of testwork is currently in progress incorporating the same float circuit used in the previous testing, however, utilising methodologies more representative of a commercial operation. This work is expected to optimise the methodology and deliver similar high-grade concentrates, but with increased recoveries.

The metallurgical testwork is being managed by internationally recognised metallurgical consultants, METS Engineering, and is expected to be completed in the next few weeks.

Lynn Lake Project overview

Corazon’s Lynn Lake Nickel-Copper-Cobalt Sulphide Project in Manitoba, Canada, is a historical mining centre with large JORC compliant resources and infrastructure that, with an improved nickel price, will have significant re-development potential.

Lynn Lake was mined continuously for 24 years prior to closure in 1976. In 2015, Corazon consolidated the Lynn Lake Mining Centre under the control of one company for the first time since mine closure and in doing so created a significant nickel-copper-cobalt asset.

As part of Corazon’s process of defining Lynn Lake’s development potential, new quality resource estimations have been completed and modern metallurgy has delivered a major technical breakthrough, producing separate high-value and high-purity nickel and copper concentrates. This work will enable the determination of value for the large historical mining centre, at a time when there is an expectation of future increased demand for metals.

Lynn Lake has been described as one of the best “brown-fields” exploration plays in North America. Modern exploration techniques and a better understanding of these nickel-copper-cobalt sulphide systems has resulted in the discovery of several new areas of mineralisation at Lynn Lake in recent years.

Ends.

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 (8) 6142 6366	M: +61 (0) 420 991 574
E: info@corazon.com.au	E: james@mandatecorporate.com.au

Level 2, 38 Richardson St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN

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ASX ANNOUNCEMENT 5 JUNE 2019
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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 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. Smith consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Canadian geologist Dr Larry Hulbert has been engaged by Corazon to manage 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. Dr Hulbert is one of North America's foremost experts on magmatic sulphide deposits and would 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”.

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.

This announcement broadly discusses results of Magnetic Vector Inversion (MVI) processing of detailed ground magnetic data captured by the Corazon Mining Limited in 2016 and 2017. This processing has been completed by the Company’s consultant geophysicist and ‘expert’, Martin St. Pierre (P. Geophysicist) from St Pierre Geoconsultant Inc., based in British Colombia, Canada. Interpretation of the MVI data has been undertaken by Dr Larry Hulbert.

The information in this report that relates to the Processing and Metallurgy for the Lynn Lake Project is based on and fairly represents information and supporting documentation compiled by Damian Connelly who is a Member of The Australasian Institute of Mining and Metallurgy and a full time employee of METS Engineering (METS). Damian Connelly has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity 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’. Damian Connelly consents to the inclusion in the report of the matters based on his 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 forward-looking 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 forward-looking 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.

Level 2, 38 Richardson St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 4 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN