‘A lot of smoke’: Corazon acquiring highly prospective nickel project near Coolgardie
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Corazon is looking to build its inventories of nickel with an exclusive option to acquire the Miriam project near Coolgardie in WA’s Goldfields region.
The project, which will complement the company’s core Lynn Lake nickel sulphide project in Canada, was first discovered in 1969 with historical drilling identifying a ‘high nickel tenor’ within massive and disseminated sulphide.
Notable results from initial drilling include 9.6m at 5.6% nickel and 12.5m at 0.56% nickel.
Corazon Mining (ASX:CZN) says the nickel sulphide prospectivity of the Miriam project is defined by broad zones of “cloud sulphides” within multiple ultramafic channel sequences, over a 2.5 kilometre strike.
This includes the Miriam Deposit as well as the Miriam North and Bouchers North nickel prospects.
“The Miriam Project presents an opportunity to strategically add to our nickel project portfolio and provide a new exploration asset to complement our quality nickel sulphide project at Lynn Lake in Canada,” chairman Terry Streeter said.
“What attracted us to Miriam is the amount of sulphide that has been identified on that trend from the historical, widely spaced exploration drilling.
“There is a lot of smoke and we believe, that with modern high-powered geophysics, there is a good opportunity to better define nickel sulphide concentrations along strike or down-dip from the defined prospects.”
He noted that high nickel content was observed in the sulphides intersected in previous drilling.
“We are currently undertaking project due diligence and once its completed, we will advise of the outcome,” Streeter added.
Nickel is red hot right now with BHP (ASX:BHP) recently announcing it will supply nickel to Tesla for its electric vehicle batteries while projecting that demand for the battery metal could grow by over 500% over the next decade.
Miriam consists of five prospecting licence applications covering an area of about 6km by 1.5km just 10km south-southwest of Coolgardie.
It was discovered by Anaconda Australia in 1969, which carried out work defining the core of the Miriam deposit over a strike of about 150m and to a depth of 150m below surface.
Subsequent drilling extended the drilled depth in places up to about 300 metres below surface.
Corazon noted that much of the historical drilling that tested the ultramafic sequence north and south of the Miriam Deposit, was shallow percussion drilling that did not substantially penetrate the overlying oxidised zone nor reached the ultramafic footwall target.
As such, there is extensive untested opportunity to target nickel sulphide mineralisation at depth and also along strike from previous drilling.
More recent work has continued to identify massive and disseminated nickel sulphides, located within or close to a well-defined channel sequences.
This defined target trend will allow the company to undertake focused and detailed exploration programs, using modern higher-powered electromagnetic geophysics.
Corazon secured the three month option to conduct due diligence over Miriam by paying vendor Limelight Industries an option fee of $75,000.
Should it exercise the option, the company will pay the vendor $125,000 within five-days and a further $400,000 at the earlier of either six months from the exercise date or the grant of the tenure.
It will also grant the vendor a net smelter royalty of 2% and the right to mine mullock dumps for gold mineralisation and to metal detect for a three year period following the grant of the licences.
This article was developed in collaboration with Corazon Mining, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.