Fraser Lake Complex

UPDATED RESOURCE ESTIMATES UNDERWAY, DRILLING HIGHLIGHTS

Improvements in nickel and cobalt metal prices are of significant potential benefit for the Lynn Lake Nickel-Copper-Cobalt Project – JORC Resource upgrades are currently in progress

  • Independent JORC Resource upgrade and Scoping Study underway for the Lynn Lake Mining Centre – to be used in mining studies for a potential future, new mining operation
    • Cobalt focus to add value to Resource work – cobalt historically produced, but not reported in resources, expected to add value to new resource estimates
    • Drill defined sulphide mineralisation not previously modelled to be included in estimates
  • Drilling – 1,415m, five hole program completed at the Lynn Lake Project
    • Three holes completed at the Fraser Lake Complex (FLC) intersected widespread low-grade sulphide mineralisation
    • Drilling of targets generated from modelling (Inversions) ground magnetic data failed to intersect massive sulphide feeder-zones – assessment of geochemical and geophysical data is continuing and is designed to define and refine further drill targets
    • The Company remains confident of the FLC’s potential to host significant nickel-copper-cobalt mineralisation and will continue to advance this opportunity

The Fraser Lake Complex

Corazon has systematically explored the Fraser Lake Complex (FLC) – an intrusive mafic body situated approximately five kilometres south of the Lynn Lake Mining Centre – since December 2016, and believes it has the potential to host significant nickel-copper-cobalt sulphide deposits.

Exploration by Corazon at the FLC (include drilling, ground geophysics, downhole geophysics and geochemistry) has resulted in the discovery of a large magmatic sulphide system that has the potential to host significant nickel-copper sulphide deposits.

The FLC has physical and chemical characteristics that suggest it is prospective for hosting Lynn Lake style magmatic nickel-copper-cobalt deposits. Corazon’s drilling has confirmed this potential, consistently intersecting Lynn Lake mine-grade nickel-copper-cobalt mineralisation. 

Current JORC Resource Estimations

Recently, the price of nickel and cobalt has risen strongly and the forecast demand outlook is similarly positive. Both factors add weight to the potential economic viability of mining at Lynn Lake.

Since Corazon’s acquisition of the entire Lynn Lake Mining Centre and subsequent release of an initial JORC resource in 2015 (ASX announcement 16th April 2015), extensive drill hole and mining data has been digitally captured for use in resource and mining studies. There have been significant changes to datasets previously used for the estimation of resources, including the addition of approximately 6,000 historical drill holes to the database. This work is expected to identify new areas for resource estimation.

Independent experts have been engaged to complete this estimation. and current expectations are for this work to be completed in June 2018.

Cobalt Focus to Add Value to Lynn Lake Resource Work

Throughout a long history of mining at Lynn Lake, cobalt was captured along with nickel and copper via simple standard flotation processing. Despite being a valued metal credit, cobalt has never been systematically reported in historical drill assays, processing reconciliations or resource estimates and mining studies.

At the current cobalt metal price, cobalt is a valuable credit not previously assessed in mining studies at Lynn Lake since mine closure in 1976. Recent assessment of historical work will, for the very first time, enable the inclusion of cobalt in Resource Estimations.

Research studies completed by the Company’s chief consultant and expert, Dr. Larry Hulbert, in the late-1980s and mid-1990s for the Geological Survey of Canada have finger-printed the Lynn Lake deposits for major elements, trace elements, rare-earths, platinum group elements and gold.

Statistically, there is a unique and variable linear relationship between nickel and cobalt for each of the deposits tested within Lynn Lake, with the cobalt grade of orebodies mined varying between 0.024% and 0.100%. This relationship (Figure 1) enables the accurate estimation of cobalt from the nickel assays and allows for cobalt to be included in resource estimates.

Figure 1: Lynn Lake Mine linear relationship between nickel & cobalt

Drilling – FLC and Lynn Lake

Drilling at the FLC continues to deliver positive results which strengthen Corazon’s geological model for the target, and belief that the FLC has the potential to host significant nickel-copper-cobalt sulphide deposits. It is noted, though, that the feeder zone(s) for this mineralisation have not yet been identified. With this aim in mind, the results of the recent drilling will enable the Company to further refine its targeting and interpretation processes for on-going exploration.

This drilling program comprised three holes at the FLC and two holes at targets closer to the Lynn Lake Mining Centre for a total of 1,415m metres. Drilling targeted high-magnetic features generated from the modelling (inversions) of ground magnetic data. The targets within the FLC were located on the margins of the Matrix Trend, a high-chargeability IP anomaly generated from extensive magmatic sulphide mineralisation.

Lynn Lake Project Interpreted Geology, mine and prospect locations. Datum UTM Zone 14 (NAD83)

Although the recent phase of drilling did not enhance the prospect, overall, the Company’s drilling to date has intersected broad zones of low-grade nickel-copper-cobalt mineralisation and identified a large “channel” of disseminated magmatic sulphide. The higher-grade massive sulphide feeder zone to this system has yet to be identified and the Company continues to work on determining cost effective methods to define such targets.

The best result from the recent drilling was from the top of holes FLC2018-018 with 4.5m @ 0.25% Ni, 0.13% Cu and 0.02% Co – this was the only portion of the drill program that tested the Matrix IP Anomaly.