Corazon in next phase of exploration, development as it eyes Lynn Lake mining restart

Corazon is progressing both exploration for new nickel sulphide deposits and studies aimed at re-establishing mining at its Lynn Lake nickel-copper-cobalt project in Manitoba, Canada.

The new phase of exploration at the project was kicked off by the recent completion of a high-powered, ground-based 3D induced polarisation geophysical survey to better define the extent of sulphide mineralisation intersected at the Fraser Lake Complex (FLC) by wide-spaced drilling.

Corazon Mining (ASX:CZN) is also carrying out detailed processing, mining and resource studies to optimise Lynn Lake as a long-life, low-cost, nickel sulphide mining operation.

To achieve this, new knowledge gained from integrated geochemical and geological analysis of sulphide deposits within the Mining Centre will be incorporated into new resource estimations, which are expected to be finalised by the end of July, and the current mining/processing redevelopment studies.

Additionally, a bulk-scale metallurgical testwork program is assessing the opportunity to upgrade the extensive low-grade mineralisation within the resource areas to higher grade feed material.

Lynn Lake exploration

The FLC is a key exploration focus for new nickel sulphide discoveries at Lynn Lake where the company has defined a large 6km by 3km magmatic sulphide system and tested a 1.5km by 1.5km area with wide-spaced drilling.

Corazon’s recently completed field work for its 3D IP survey covers areas where past drilling has defined good levels of magmatic nickel-copper-cobalt sulphide mineralisation. Results and interpretation (including target generation) are expected by the end of May.

The broad intercepts of disseminated and matrix to net-textured sulphide mineralisation intersected by previous drilling at the FLC are geophysically coincident with chargeability-high anomalies defined by past 2D IP surveys.

However, 2D surveys can only identify near-surface near surface features and are not effective in defining the form, shape and depth extent of an anomaly.

This will be addressed by the high-powered 3D IP survey, which is expected to map the sulphide dispersion in three dimensions, down to at least 700m below surface.

Corazon has also completed the latest phase of exploration drilling consisting of one hole at the FLC and eight holes within the Lynn Lake Mining Centre.

The hole at the FLC is designed to test the extent and nature of the extreme southern end of the Matrix Trend IP-chargeability anomaly and its junction with a pronounced east-west gravity trend, and an associated magnetic trend.

Meanwhile, the drilling at the Lynn Lake Mining Centre tested the D-extensions, Upper F, E-J North and K-D Hotspot targets within the A Plug.

Past drilling has not effectively tested these areas, and this program provided the opportunity for the discovery of additional mineralisation in and around the known nickel sulphide deposits and mine infrastructure at the Mining Centre.

Lynn Lake development work

The company has also started a new round of metallurgical testwork as an integral part of the current mining and processing studies being undertaken.

This aims to finalise the flotation process, investigate pre-flotation ore-upgrade of low-grade material, and carry out initial work on the amenability of Lynn Lake mineralisation to produce battery-grade products for rechargeable lithium-ion batteries.

Historical recoveries and concentrate grades along with the company’s work to date has suggested that Lynn Lake mineralisation performs very well via flotation while ore of this type tends to have no difficulty in producing high-grade battery products.

Bench-scale ore-upgrade and ore-sorting testwork completed on low-grade material from the EL Deposit has returned encouraging results.

This next phase of work will include both bench-scale and bulk-scale testwork, investigating several processing techniques.

Corazon is also assessing resources at Lynn Lake after recent work returned findings which provide confidence and support for its assessment that past mining practices at Lynn Lake were not optimally suitable for the style of mineralisation being exploited.

Notable findings were that each deposit studied is geologically and geostatically unique, such that these differences may have implications for economic cut-off grades and mining practices.

This provides a great level of variability given there are more than 20 deposits within the Lynn Lake Mining Centre alone.

Additionally, low-grade and high-grade nickel and copper statistical populations are defined within the dominant Lynn Lake Amphibolite lithological host.

There are structural and lithological controls on the mineralised domains that are well-defined at lower grades. While some good, continuous high-grade trends exist within the resource areas, in general the boundaries and location of higher-grade material is less predictable and sit within well-constrained lower-grade domains.

At lower grades, there are defined “hard” boundaries which could constrain mining operations.

This new understanding and detailed knowledge of Lynn Lake’s mineralisation is being used to update the project’s resource estimations, which will form the basis of mining studies into the economic viability of Lynn Lake’s redevelopment.

Mining engineering studies underway are focused on early-stage assessment of the bulk mining concept to push the mining cut-off grade lower, materials handling solutions that enable higher hoisting rates in the existing Farley Shaft (the decommissioned main historical shaft), mine site layout, and infrastructure requirements.

Corazon is hosting an investor webinar on 4 April 2023 at 9.30am AWST (Perth time) where managing director Brett Smith will touch on the latest news from Lynn Lake and the Miriam project in Western Australia. Click here to register.

This article was developed in collaboration with Corazon Mining(ASX:CZN), 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.