Corazon Mining Ltd (ASX:CZN) is awaiting final results from soil sampling at its Mt Gilmore Cobalt-Copper-Gold Project in northeast NSW where it also hopes to define a large deposit at the Cobalt Ridge prospect and identify priority targets early in 2019.
The company, which also has the Lynn Lake Nickel-Copper-Cobalt Sulphide Project in Canada, has been finding cobalt with copper at its projects.
Corazon acquired the Mt Gilmore project, northwest of Grafton and southwest of Ballina, in 2016.
The company hopes to define a deposit for its Cobalt Ridge prospect, and produce drill targets similar to the prospect.
A standout intersection at Cobalt Ridge 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.
Results from a geochemical soil sampling program at the project up to November 2018 indicated cobalt and copper values of up to 450ppm and 1,060ppm, respectively
Rock chip samples have graded up to 1,795ppm cobalt and 16.3% copper.
Corazon has collected 3,533 soil samples and 206 rock chip samples since acquiring Mt Gilmore project, accepting 3,335 returned assays.
The company believes growth in the rechargeable battery sector could bode well for the success of the project, which features the attractive battery metals of cobalt and copper.
Assays from Mt Gilmore included multiple higher grade zones in broader cobalt-copper-gold mineralisation.
Corazon managing director Brett Smith spoke to Proactive Investors in the December 2018 quarter about the project, saying “Cobalt Ridge and Mt Gilmore is really stacking up to be a nice little project.”
The geologist-MD highlighted the results of a 21-hole RC and diamond drill program in the late November 2018 interview.
Smith told Proactive’s Stocktube video channel: “The results are exceptional.
“We’ve established a few things. We understand the structural controls of the high-grade cobalt sulphide mineralisation — so that’s a first.
“We’ve been able to trace it to depth. Previously there was a theory that the mineralisation pinched out with limited tonnages but that’s not the case, it does continue at depth.
The Mt Gilmore cobalt project is northwest of Grafton in New South Wales, below Queensland.
“We’ve also hit mineralisation where we didn’t expect it, but was coincident with an IP geophysical anomaly.
“We can take that method of geophysics and then apply it regionally … there’s a lot of good things.”
The company will be drawing on that information as it generates new targets for the Cobalt Ridge area in an effort expected to be complete early this year.
Smith said: “We’ve only drilled that deposit, the main lode, the one lode, over a 300-metre strike.
“The extension still remains open to the west and to the east, and this parallel zones of mineralisation that’s defined by historical copper mines.
“That’s how they found the cobalt, the old-timers. You can’t see the cobalt mineralisation. They found it by chasing copper.”
The company hopes to define the main Cobalt Ridge lode as a deposit this quarter.
Smith said: “We think we’ve done enough to be able to define a good sense of tonnage and grade for that main load where we have drilled it.
Corazon hopes to define a deposit for Cobalt Ridge at Mt Gilmore project
“That’ll give us some idea of value, which we can attribute to other areas that we’re targeting and ranking, as far as expiration targets and drilling targets.
“A lot of geology is going into (that modelling), and it’s quite detailed.
“We hope that will result in us making some statement of the size, tonnage and grade wise, for that particular part of the deposit.”
Lynn Lake another priority
Defining JORC resources was also on the cards at Corazon’s Lynn Lake project in Canada last year.
The company hopes to redevelop the historical Lynn Lake mining centre where mining was undertaken in the EL Plug and A Plug areas.
Corazon increased total tonnes at the project by more than 60% in October 2018, also increasing nickel and copper metal by 35%.
The resulting new resource was 15.3 million tonnes grading 0.72% nickel, 0.34% copper, 0.034% cobalt for 110,300 tonnes of nickel, 51,400 tonnes of copper and 5,200 tonnes of cobalt.
This resource upgrade came from just five of the deposits at the Lynn Lake project.
A big drill interval with a disseminated 53.1 metres grading 0.4% nickel, 0.18% copper and 0.02% cobalt had been followed during last year’s campaign.
An area featuring a high-grade zone in a semi-massive area where 0.29 metres graded 2.86% nickel, 0.89% copper and 0.10% cobalt was also targeted.
Eleven other deposits are still to be assessed at Lynn Lake.
Lynn Lake's deposits provide the opportunity for mining using large tonnage, low-cost methods.
Historically mined grades at the A Plug were 0.86% nickel and 0.44% copper with the higher-grade EL Plug being mined at 2.50% nickel and 1.15% copper.
The new resource grades reported in October 2018 are consistent with this tenor of mineralisation.
Corazon Mining managing director will deliver a presentation at the upcoming RIUExplorersConference at Esplanade Hotel Fremantle on February 19-21, taking the stage at 5.45pm on day two. To view the program, visit riuexplorersconference.com.au.