The Western Australian company is currently finalising a resource estimate for the project, due by the end of the month.
Corazon managing director Brett Smith gave a presentation yesterday at the RIU Resources Investor Roadshow in New South Wales, also highlighting the “easy development opportunity” of the project which is located near infrastructure and large remnant resources.
The geologist-MD will continue with the roadshow to Grand Hyatt Hotel Melbourne tomorrow, where he’ll deliver another address at 9.45am.
Last week the company revealed contractor ALS Metallurgy in Perth had begun metallurgical test work on 500 kilograms of mineralised material from Lynn Lake.
Smith affirmed yesterday the lab work was the first comprehensive processing test work to be conducted in 50 years and was expected to highlight beneficial and modern processing options.
The company views the project as having “huge potential for discovery”.
ALS is expected to take 3-4 months to go through the material.
Recent drilling has highlighted a large-sized magmatic nickel-copper-cobalt sulphide system 5 kilometres from Lynn Lake’s historic mine area.
The new Fraser Lake Complex area had conceptual targets defined in 2016 and nickel-copper-cobalt sulphides discovered last year during drilling and geophysics work.
Targets were defined this year for future work, with the biggest drill interval to date being a disseminated 53.1 metres grading 0.4% nickel, 0.18% copper and 0.02% cobalt.
Best high-grade zone was seen in a semi-massive area where 0.29m graded 2.86% nickel, 0.89% copper and 0.10% cobalt.
The Mt Gilmore cobalt project is northwest of Grafton in New South Wales, below Queensland.
Historical results at Lynn Lake
The historically-prolific nickel-producing mining centre Lynn Lake closed in 1976 after 24 years operation.
Corazon has added 6,000 historic drill holes to its database as it seeks to update its resource statement this quarter.
Mining studies are expected to following processing studies which are currently underway.
Discoveries at the main mining centre have included 23.75 metres at 3.34% nickel, 1.54% copper and 0.079% cobalt from 731.25 metres in the EL Lower Zone in 2011 drilling.
Disco Deposit drilling in 2018 included 18 metres at 1.5% nickel, 0.70% copper and 0.040% cobalt from 96 metres.
Tango Deposit featured 17 metres at 0.6% nickel and 0.3% cobalt in 2010.
Mt Gilmore project drill target Cobalt Ridge has graded up to 2.14% cobalt.
Mt Gilmore dangles cobalt carrot
Smith, who is a director of three other publicly-listed companies, also spoke yesterday about the company’s Mt Gilmore Cobalt-Copper-Gold Project in New South Wales.
The company yesterday highlighted the project positioned Corazon to “benefit from growth in the rechargeable battery sector”.
Corazon has intersected significant mineralisation of the battery metals favourite cobalt in three holes.
Assays from the project included multiple higher grade zones in a broader cobalt-copper-gold mineralisation.
Among the prospects at the earn-in project are drill target Cobalt Ridge, where a highlight intersection included 5 metres at 2.14% cobalt within a broader intersection of 27 metres at 0.47% cobalt from a down-hole depth of 49 metres.
The company highlighted the prospect’s point of difference yesterday, saying the cobalt-dominant sulphide deposit needed only “simple, flexible inexpensive processing solutions”.
Smith previously reported: “Cobalt Ridge is an intensely altered, structurally complex system and every drill hole helps us gain a greater understanding of this deposit.”
The company views the project as metallurgically easy and the potential of its large hydrothermal system as “untapped”.
Little modern exploration has been undertaken at the project whose main lode was drilled over a 300-metre strike which had an average true width of 12 metres and was open in every direction.
Corazon can earn into a stake of up to 80% in the pure cobalt sulphide play.
The company hopes to establish Mt Gilmore as a “premier cobalt project” while demand for the strategic metal booms and rechargeable batteries become flavour of the month.
It tipped yesterday there is a “good likelihood for the discovery of additional cobalt-copper-gold sulphide deposits” at Mt Gilmore and highlighted it was located on a regionally significant corridor of cobalt anomalism.
Cobalt can be a drawcard for listed companies.
Quality projects in value-accretive programs
Smith said yesterday Corazon had “two exceptional projects with demonstrated prospectivity in key, demand-driven commodities”.
The company believes both are capable of hosting large, economically viable mineral deposits.
He reported: “Current market sentiment for cobalt, nickel and copper supports Corazon’s immediate focus on cobalt, whilst preparing Lynn Lake for possible nickel price increases in 2019 and beyond.”
Among the value-accretive programs Smith highlighted for the two projects were: the development focus at Lynn Lake, with the current resource estimate and test work activities and the upcoming scoping study; and the geophysics and soil-sampling efforts at Mt Gilmore.
Corazon said Mt Gilmore and the project’s pure-cobalt-play prospect Cobalt Ridge were its “priority focuses” and drilling at the ridge would help the company progress towards producing a resource estimation for its efforts.
To view the program for Thursday’s resources event, visit the RIU Resources Investor Roadshow website. Organiser Vertical Events offers free delegate passes to stockbrokers, fund managers and investors not employed in the resources sector. To register for the Melbourne event, click here.