Fraser Lake Complex

Recent news:

Phase 3 Drilling Completed at Lynn Lake (ASX announcement 02/06/2017)

  • Phase 3 drilling has been completed at the Fraser Lake Complex (“FLC”), Lynn Lake, Canada.
  • Drilling comprised 4 core holes for 1,857.25 metres targeting a large geophysical anomaly coincident with the “neck” of the feeder zone to the FLC.
  • Program was successful in intersecting extensive magmatic (Fe-Ni-Cu) sulphide mineralisation – all holes mineralised over their entire lengths.
  • Sulphide content within the “neck” of the FLC feeder zones is significantly stronger than that in Phase 1 and 2 drilling which targeted the northeast extensions of the anomaly.
  • Downhole electromagnetic geophysics is underway to test for conductive massive sulphide bodies proximal to the areas drilled to identify further drill targets.
  • Assay results from drilling phases 1 and 2 have been returned, Phase 3 assay results are expected in July 2017.

Corazon recently completed its third phase (Phase 3) of drilling at the Fraser Lake Complex (“FLC”), located just five kilometers south of its 100% owned Lynn Lake Nickel-Copper-Cobalt Mining Centre in Canada. Drilling completed has re-confirmed the potential for the FLC to host significant nickel-copper sulphide deposits.

Three phases of drilling have been completed on the FLC this year, for a total of 13 holes for 5,363.75 metres. Within this, 10 holes have targeted the Matrix Trend (Figure 1), a large Induced Polarization (IP) chargeability anomaly of more than 1.7 kilometres, coincident with the interpreted feeder zone to the FLC intrusion. Feeder zones within intrusive complexes, such as the FLC, provide environments conducive for the formation of massive sulphide deposits.

Drilling phases 1 and 2 (refer to previous Company ASX announcements) targeted the northeastern extensions of the Matrix Trend (Figure 1). Phase 3 drilling was completed closer to the origin (neck) of the feeder zone.

The overall sulphide content intersected in the Phase 3 drilling is significantly greater than previously identified. The intensity of the mineralisation is increasing closer to the interpreted source of the feeder zone.

All holes in the Phase 3 program were extensively mineralised for their entire lengths. The intensity of the iron-nickel-copper (Fe-Ni-Cu) magmatic sulphide mineralisation intersected varied from weakly disseminated to strongly disseminated, matrix to semi-massive and massive styles. Nickel and copper-bearing sulphides are observed throughout the drill core. Samples are currently being processed for submission and analysis.

Figure 1 – The Matrix Trend – IP chargeability geophysical image with drill hole locations

Figure 1 – The Matrix Trend – IP chargeability geophysical image with drill hole locations

 

Phase 3 Drilling

The Phase 3 drilling program commenced in early May and has included four core holes (holes FLC-2017-014 to FLC-2017-017) for a total of 1,857.25 metres. All holes drilled targeted coincident IP chargeability and magnetic geophysical highs.  Hole FLC-2017-015’s target was also a coincident electromagnetic (EM) anomaly.

The area targeted by the Phase 3 drilling exhibits a greater intensity of magmatic sulphide mineralisation (compared to earlier drilling), as well as a complexity of structures, alteration styles and lithologies.  This suggests a much more dynamic, higher-energy environment closer to the source of the feeder zone within the FLC.

All holes were extensively mineralised from start to finish.  Holes FLC-2017-014 and FLC-2017-016 exhibited by far the best mineralisation seen to date (Figure 3).  The targeted EM anomaly for hole FLC-2017-015 can be partly explained by the presence of barren sulphidic sediments (volcanogenic massive sulphide – VMS – mineralisation).

Magmatic sulphide mineralisation intersected in Phase 3 drilling varied from weakly disseminated to strongly disseminated, matrix to semi-massive and massive.  The typically higher-grade semi-massive to massive zones were commonly narrow (<10 centimetres), but were intersected up to approximately 1.5 metres in thickness.  Images of this mineralisation are presented in Figure 3.

Drilling within the Matrix Trend indicated that multiple pulses of sulphide-rich magma have been injected into the FLC.  The Ni-Cu-Co mineralisation within the Matrix Trend is significant in that it identifies the feeder zone of the FLC as a long-lived, multi-phase, well-mineralised magmatic system with the potential to develop high-grade sulphide deposits.

The Lynn Lake style magmatic sulphide mineralisation includes pyrrhotite (Fe), pentlandite (Ni) and chalcopyrite (Cu).  The average grade of the ore mined in Lynn Lake is approximately 1% nickel and 0.5% copper; cobalt has not historically been reported but ranges from 0.03% and 0.1%.  This style of mineralisation provides the opportunity for large tonnage, low cost mining operations, as higher grade massive sulphide and sulphide breccia deposits exist within these large systems.  As an example, the EL Mine (Lynn Lake) produced 1.9Mt at 2.4% Ni and 1.15% Cu.

Phases 1 and 2 Drilling Assay Results

Assays from Phase 1 and Phase 2 drilling programs have been received.  A summary of significant results for Phase 1 and 2 drilling is presented in Table 1, below.

Hole

From (m)

Interval (m)

Ni%

Cu%

Co%

NiEq%

FLC-2017-02

14.00

6.00

0.21

0.10

0.02

0.38

FLC-2017-03

129.70

4.46

0.28

0.11

0.02

0.45

incl

0.48

1.34

0.40

0.05

1.90

387.50

1.36

0.92

0.91

0.07

1.96

392.14

1.31

1.03

0.67

0.07

1.92

FLC-2017-08

164.00

5.45

0.45

0.36

0.02

0.78

incl

0.45

0.46

1.75

0.01

1.66

FLC-2017-10

82.30

0.43

1.13

0.49

0.11

2.17

145.08

0.29

2.86

0.89

0.10

4.05

FLC-2017-12

324.50

7.50

0.21

0.12

0.02

0.39

336.50

4.50

0.23

0.11

0.02

0.41

Table 1: Phase 1 and 2 assay results +4m @ +0.20% Ni and any assay +1% Ni.  Nickel equivalents (NiEq %) are used as an indicator of value, with there being reasonable expectations for the recovery of all metals reported.  NiEq % = Ni%+((Cu% x (Cu$/Ni$))+((Co% x (Co$/Ni$)) where Ni$ = $US 8,922/t  Cu$ = $US 5,658/t  Co$ = $US 56,250/t.

 

This data is currently being collated and analysed for on-going drill-targeting purposes.  While the drilling completed to date is relatively widely spaced, the distribution of geochemical results along the Matrix Trend will provide valuable information that is expected to be useful in vectoring in on sulphide targets.

Assays indicate broad nickel anomalism (<0.2%) throughout the Matrix Trend.  Preliminary observations in the core and the analytical data demonstrates multiple pulses (a cyclicity) of magmatic sulphides and the major element chemistry of the host gabbroic rocks.

The Company’s current interpretation of the Matrix Trend suggests the northeast extensions targeted by the first two phases of drilling are distal to the source of the sulphide rich melts.  This interpretation is supported by an increase in sulphide content in the areas targeted by Phase 3 drilling, which are closer to the origin of the feeder zone.

Current Activities

Exploration activities at the FLC have been on-going since December 2016. This work has included drilling, ground geophysics, downhole geophysics and geochemistry. A large amount of data has been generated for the Matrix Trend. This data is currently being collated for interpretation and modelling. It is it is expected these geophysical and geochemical models for the Matrix Trend will determine the focus for future drilling.

Exploration is continuing on site with the completion of down-hole EM (DHEM) on the Phase 3 drill holes. Based on the mineralisation observed in the drill core, this work is expected to generate numerous in-hole and off-hole conductors and targets for follow-up.

Sampling of the Phase 3 drill core is almost completed. The last of these samples are expected to be shipped to the laboratory early next week. Assay results from Phase 3 are expected in July 2017.

Project Location and Geology

Project Location and Geology