The new agreement includes employment, business contracting and training opportunities. Pic: via Getty Images.
Mining
Corazon Mining has signed a new exploration agreement with the Marcel Colomb First Nation (MCFN) of the Lynn Lake area in Manitoba, Canada, who are in “full support” of exploration and potential mining at the project.
Lynn Lake was a prolific historical nickel-copper-cobalt production centre that was mined for 24 years before closure in 1976.
Corazon has now consolidated the entire mining centre and surrounding tenure under its sole ownership; the first company to do so since mine closure.
The company has been exploring at Lynn Lake since 2010 and has been actively engaging with the MCFN during that time.
The new agreement replaces an existing exploration agreement established in 2018 and provides more structure on how the parties will work together to progress exploration and development at Lynn Lake and, additionally, the Fraser Lake project.
It also sets the framework for advancing a long-term relationship while working to negotiate an agreement that contemplates economic benefits to MCFN, should Corazon Mining (ASX:CZN) re-establish mining within MCFN traditional territory.
‘We are in full support of Corazon’s exploration activities regarding the projects and our goal is to ensure it benefits the original landowners of the traditional territory of Marcel Colomb First Nation for generations to come,” MCFN chief Christopher Colomb said.
“We are committed to ensuring that all development on our territory is carried out in a respectful manner that honours our Aboriginal and Treaty rights, natural environment, homelands, traditions, protocols and language.”
The agreement includes employment, business contracting and training opportunities for MCFN members and an annual contribution to MCFN based on exploration expenditures for the projects.
MCFN’s Black Sturgeon Reserve is located on Hughes Lake, 30 km east of the town of Lynn Lake, Manitoba, Canada.
This new agreement elevates the MCFN as important stakeholders in the projects’ success, and in Corazon as shareholders.
The MCFN will be issued AUD$75,000 in shares (up to 5,267,338 shares at an issue price of $0.014 per share), with 1 Corazon option for each share issued (up to 5,267,338 options at an exercise price of $0.014 and a 3 year term), for continued support and engagement on the Lynn Lake project.
“We have been very impressed with the professional attitude, co-operation and support we have received from the MCFN regarding our aspirations within their traditional territories at Lynn Lake,” Corazon chairperson Terry Streeter said.
“We welcome them as Corazon shareholders and look forward to working together as we continue to unlock the potential to develop the Project into a sustainable, low-carbon, long-life mining operation.”
Lynn Lake is Corazon’s core asset.
The aim is to ultimately bring the project — which produced 206,200t of nickel and 107,600t over a period of 24 years up to 1976 — back into production.
It boasts a substantial (and growing) resource of 16.3Mt for 116,800t nickel, 54,300t copper, and 5300t cobalt.
Lynn Lake is a major development opportunity that is becoming increasingly prospective due to strong demand outlooks for these crucial metals.
EV makers are said to be desperately short on nickel in particular, with S&P Global predicting the battery sector to near 35% of total nickel demand by the end of the decade.
Assays released earlier this week from the project flagged a ‘pipe-like’ nickel-copper-cobalt rich body that forms part of a much larger, previously unrecognised 500m wide pipe with “significant potential to host additional sulphide mineralisation,” the company said.
The two-hole program returned results of 1.85m grading 0.34% nickel and 0.24% copper from a down-hole depth of 226.75m, and 0.8m at 0.4% nickel and 0.09% copper from 24.8m.
Key to bringing the project back into production, is exploring for new mineralisation at the Fraser Lake Complex (FLC) at the project, which hosts multiple dense, pipe-like bodies.
Other work underway to restart Lynn Lake include the appointment of environmental consultant Stantec Consulting to carry out environmental assessment work for the proposed re-development.
In Australia, Corazon is exploring at its Miriam nickel-copper sulphide and lithium project in Western Australia and the Mt Gilmore cobalt-copper-gold sulphide project in New South Wales.
The company is currently securing drilling permits for a first-phase drilling program at priority nickel sulphide and lithium targets at Miriam.
At Mt Gilmore, a new campaign of mineral vectoring geochemical studies, partially funded by an Australian Government Innovation Connections Grant, utilising tools developed by the University of Tasmania’s (UTAS) Centre of Ore Deposit and Earth Sciences is underway and is expected to contribute targets for exploration drilling in 2023.
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.
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