Lynn Lake Mineral Resource Estimate

ADDITIONAL NICKEL SULPHIDE DEPOSIT ADDED TO THE LYNN LAKE RESOURCE

Highlights

  • The JORC Mineral Resource Estimate for the Lynn Lake Nickel-Copper-Cobalt Project (Canada) has been upgraded to;
    • 16.3Mt @ 0.72% Ni, 0.33% Cu, 0.033% Co (Indicated & Inferred, 0.5%Ni cut-off)
    • Total contained metal of 116,800t Ni, 54,300t Cu, 5,300t Co
  • The upgraded Resource includes an internal high-grade Resource Estimate of;
    • 5.4Mt @ 0.99% Ni, 0.41% Cu, 0.043% Co (Indicated & Inferred, 0.7%Ni cut-off)
  • Additions to the Resource Estimate have been confirmed by migrating the drill defined Golf Deposit to Inferred resource status
  • The current Resource incorporates only six deposits at the Lynn Lake Project – multiple other deposits are yet to be assessed, providing additional significant Resource upgrade potential
  • Drill rig is on site at Lynn Lake in preparation for drilling to commence this month

Corazon recently announced an upgrade to its Mineral Resource Estimate (Resource Estimate) for the Lynn Lake Nickel-Copper-Cobalt Sulphide Project.

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.

Full details of the new Resource Estimate are provided in Tables 1, 2 and 3, within ASX announcement dated 27 November 2019.

Lynn Lake Mining Centre – New Mineral Resource Estimation

Lynn Lake was mined continuously for 24 years before its closure in 1976 and remains one of Canada’s most prolific nickel sulphide mining centres. The newly upgraded Resource captures the Golf Deposit, a large area of drill defined mineralisation located immediately below the G Orebody which was mined in the 1970’s (Figure 1).

Corazon engaged independent resource consultants HGMC to provide an updated Mineral Resource estimation incorporating several deposits within the Lynn Lake Mining Centre. This estimation is summarised in Table 1, below (further details are provided in Tables 2 and 3, appended to ASX announcement dated 27 November 2019).

The Mineral Resource Estimate was completed in accordance with the guidelines of the JORC Code (2012 edition). The estimation is of a very high quality and is well supported by drilling and historical mining data. It is anticipated that very little additional verification drilling and sampling will be required to upgrade the majority of the defined tonnages in the Resource to the higher Measured category.

The estimation has focused on the EL, N, O, P, Disco and Golf deposits (Figures 1 and 2) within the Mining Centre. Table 2 presents a breakdown summary of the Resource Estimate on a deposit basis. The nickel sulphide deposits are proximal to each other, with the EL, N and O deposits having been subjected to historical mining and development. The Golf Deposit was drilled out just prior to mine closure and the Disco deposit was discovered in 2008, well after mine closure in 1976.

Lynn Lake hosts additional deposits, as well as numerous occurrences of drill-defined mineralisation, that are yet to be considered for resource studies. These areas support the potential for further upgrades to Lynn Lake’s Mineral Resource.

The Lynn Lake deposits provide the opportunity for mining using large tonnage, low cost methods. The historical mined grades at the A Plug were approximately 0.86% Ni and 0.44% Cu; with the higher-grade EL Plug being mined at 2.50% Ni and 1.15% Cu. The new Resource Estimate grades are consistent with the tenor of mineralisation previously mined at Lynn Lake.

Figure 1: 3D Lone-Section of Lynn Lake resource areas, mined deposits and main underground workings

Figure 2: Plan view of Lynn Lake resource areas, mined deposits and main underground workings

A Summary of Additional Information Required in Accordance with ASX Listing Rule 5.8.1 can be found within the ASX announcement dated 27 November 2019.

Drill Targets Identified – Drilling About to Commence

Recent work at Lynn Lake has focused on defining additional areas of mineralisation that may add to the existing resources. Priority Lynn Lake Mine Area drill targets include:

  • near-surface mineralisation;
  • areas on-trend from historical mines; and
  • areas adjacent to Corazon’s existing resources.

Recent mining studies at Lynn Lake have predominantly centred on nickel deposits at depths of more than 400 metres below surface. The Company’s work has highlighted the potential to define additional resources closer to surface adjacent to historically mined areas. These areas are the initial focus for the current drilling program

Several new high-potential areas that are geophysically analogous to previously mined areas have also been defined within the Lynn Lake Mining Centre.

Results from drilling and any further Mineral Resources Estimation upgrades will be released to the market as they become available.