Lynn Lake

Lynn Lake Nickel-Copper-Sulphide Project, Manitoba – Canada

Recent News: Drilling to Recommence at Lynn Lake

Corazon has announced that preparations are underway for the recommencement of drilling at the Lynn Lake Project. The Company’s recent exploration activities at Lynn Lake were interrupted in May due to seasonal local flooding caused by the northern hemisphere spring melt. Personnel and equipment are being mobilised to site – drilling is planned to commence before the end of July.

The current phase of drilling at Lynn Lake is focused on its priority exploration target, the Fraser Lake Complex (FLC), located five kilometres south of the Lynn Lake Mining Centre and displaying widespread areas of sulphide mineralisation.

Corazon is currently testing a compelling new nickel-sulphide target at the FLC. Priority hole FLC2020-22 has been drilled to the top of the geophysical target – approximately 400 metres below surface.  Sulphide content is increasing with depth towards the geophysical target, and the base of the target is interpreted to be approximately 500 metres below surface.

Further updates will be provided once drilling commences.

Drilling Delivers High-Grade Results

Corazon received high-grade assay results from its latest phase of drilling at its 100% owned Lynn Lake Project (ASX announcement 01 May 2020).

Highlights:

• Drilling at the “A Orebody” within the Lynn Lake Mining Centre has intersected further significant near-surface sulphide mineralisation
  • Mineralised high-grade nickel intervals include:
    • 37 m @ 1.34%Ni, 0.50%Cu, 0.040%Co from 8 metres; including
      • 8.35 m @ 2.36%Ni, 0.66%Cu, 0.063%Co from 17 metres; and
    • 21 m @ 0.67%Ni, 0.50%Cu, 0.020%Co from 8 metres
  • Broad zones of near surface mineralisation define the potential for an open-pit mining operation at Lynn Lake
• Drilling at the Fraser Lake Complex has paused due to high levels of temporary/seasonal surface water from spring meltwater
  • Hole FLC2020-22 has been drilled to the top of the geophysical target – approximately 400 meters below surface
  • Sulphide content is increasing with depth towards the geophysical target
  • The base of the target is interpreted to be approximately 500 metres below surface
• Current plans are focused on the recommencement of drilling of FLC2020-22 once the meltwaters recede

All assay results have now been returned from the three-hole, 243.4 metre drill program (holes LL2020_07 to LL2020_09) completed at the A Orebody within the Lynn Lake Mining Centre (Mining Centre). These results have delivered further exceptional high-grade nickel, copper and cobalt intersections.

This phase of work explored areas highlighted in drilling completed by Corazon in December 2019, in a program testing the potential for high-grade nickel-copper-cobalt surface extensions of historically mined underground deposits.

Combined with the December 2019 drilling, a total of six holes have targeted the surface expression of the A Orebody. This drilling was successful in defining additional areas of high-grade mineralisation with the potential to add to the Project’s significant existing resource base.

The definition of additional high-grade mineralisation in this latest phase of drilling within the Mining Centre bolsters the Company’s belief in the strong potential for near-surface mineralisation to add beneficial “start-up” material for any future mining operation at Lynn Lake.

 Lynn Lake Resource Upgrade

Corazon has recently upgraded its Mineral Resource Estimate for the Lynn Lake Nickel-Copper-Cobalt Sulphide Project (Lynn Lake).

The current total Resource Estimate includes just six deposits within the Mining Centre, with multiple additional areas of mineralisation yet to be evaluated as potential additions to the Resource base. The current Resource includes:

• 16.3Mt @ 0.72% Ni, 0.33% Cu, 0.033% Co (Indicated and Inferred, at 0.5% Ni cut-off), for total contained metal of 116,800t Ni, 54,300t Cu, 5,300t Co; with
• 5.4Mt @ 0.99 Ni, 0.41% Cu, 0.043% Co (Indicated and Inferred, 0.7% Ni Cut-off) of high-grade material

Corazon’s Chairman, Mr Terry Streeter stated, “Corazon now has almost 117,000 tonnes of nickel metal in sulphide Resource sitting in one of the best mining provinces in Canada. All indications are that this will be further expanded. We’ve a drill rig on site setting up on targets recently generated in and around the Mining Centre. The forecasts for Class 1 Nickel demand is quite strong and we are keen for Lynn Lake to be in a position to take advantage of that market.”

Further details of the new Resource Estimate are provided in Tables 1, 2 and 3 within the Lynn Lake Resource Upgrade ASX announcement.

Click here for more information on Lynn Lake’s Mineral Resource Estimate.

Re-focus on Lynn Lake Nickel Precinct

The recent recovery in the price of nickel has led Corazon to undertake a positive strategic review of its Lynn Lake Project, and the opportunity to re-focus and accelerate its exploration and development plans.

The Lynn Lake Mining Centre (Lynn Lake) in Manitoba, Canada, is a historically significant mining centre with large JORC compliant resources and supporting infrastructure. The recent recovery in the price of nickel has led Corazon to undertake a positive strategic review of Lynn Lake, as well as providing the opportunity to re-focus and accelerate its exploration and development plans to deliver value for shareholders.

Corazon has consolidated the entire Lynn Lake nickel camp and its extensive historical datasets, which includes more than 75 years of exploration and 24 years of mining information. Corazon is the first company to have control of the entire Lynn Lake nickel camp since mine closure in 1976, providing the opportunity to complete detailed interrogation and targeting within the mine area and across the wider project area.

The nickel-copper-cobalt sulphide deposits at Lynn Lake were mined continuously between 1954 and 1976 (in that time processing more than 20 million tonnes), and it was one of Canada’s major nickel mining centres of its time. Substantial resources remain and further extensive drill defined mineralisation also exists within the mining centre. These areas outline targets with the potential for further discoveries, which would underpin a potentially sizable resource base at Lynn Lake.

Lynn Lake has been described as one of the best “brown-fields” exploration plays in North America. With little modern exploration undertaken to date, the opportunity for discovery at Lynn Lake is substantial. New exploration techniques and a better understanding of these nickel-copper-cobalt sulphide systems has resulted in Corazon’s discovery of several new areas of mineralisation at Lynn Lake in recent years.

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 Project location within Canada

Scoping Studies

As part of Corazon’s process of defining Lynn Lake’s development potential, new quality resource estimations have been completed and modern metallurgy has been undertaken. The metallurgical work has delivered a major technical breakthrough, for the first time in Lynn Lake’s history producing separate high-value and high-purity nickel and copper concentrates (refer to ASX announcements dated 11^th and 12^th February 2019). This work will underpin the commencement of a scoping study into the potential redevelopment of Lynn Lake.

Fraser Lake Complex

Corazon has systematically explored the Fraser Lake Complex (FLC) – located just 5 kilometres south of Lynn Lake – since December 2016, and believes it has the potential to host significant nickel-copper-cobalt sulphide deposits. Corazon’s FLC activities have included drilling, ground geophysics, downhole geophysics and geochemistry.

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. Subsequent analysis of past results has provided direction and targets for future drilling at the FLC.