Corazon Mining Ltd (ASX:CZN, OTC:CRZNF) has entered an agreement to lift its landholding in Manitoba, Canada, via the acquisition of three drill-defined zinc-copper-gold deposits, near its flagship Lynn Lake nickel-copper-cobalt sulphide project.
The low-cost, opportunistic acquisition of these high-grade polymetallic deposits adds to Corazon’s portfolio of seven zinc-copper-gold deposits within its Lynn Lake tenure.
Importantly, the acquisition provides the potential to transform Lynn Lake into a regional polymetallic processing hub with zinc and copper seen as possible high-value feedstock for a future mineral processing operation and maintains the company’s Canadian focus on critical minerals.
MacBride the headline
Headlining the acquisition is the high-grade MacBride deposit, which features a significant historically published metal endowment, with continuity from surface to around 300 metres drilled depth.
Drilled over a 400-metre strike and open in all directions – MacBride, which is about 65 kilometres east of Lynn Lake, is part of a 1,800-metre-long EM conductor defined by modern aerial geophysics.
Representative drill results from MacBride include 10.7 metres at 9.98% zinc and 0.56% copper from 32.9 metres; 4.9 metres at 9.86% zinc and 0.20% copper from 119.8 metres; and 7.5 metres at 7.76% zinc and 0.31% copper from 238.2 metres.
The Wellmet Prospect, which exhibits numerous surface copper shows and EM conductors, is about six kilometres northwest of MacBride.
Drilling has returned 4.2 metres at 6.20% zinc and 0.91% copper from 36.1 metres, 6.9 metres at 4.95% zinc and 0.13% copper from 247.6 metres and 6.0 metres at 5.13% zinc and 0.25% copper from 434.2 metres.
Barrington Prospect is 43 kilometres east of Lynn Lake and is where sparse exploration drilling has targeted a small outcrop of around 107 metres in strike, averaging 4.6 metres wide and 2.63% copper.
View to restart Lynn Lake mining
Corazon chairperson Terry Streeter said, “Our strategy for the Lynn Lake mining studies is to deliver low operational costs.
"The knock-on effect of this is that with lower costs, there are lower cutoff grades, resulting in a much larger mining inventory for consideration, within the existing resource areas.
"We don’t need more tonnes. This VMS concept is about value.
“The grade we see in some of these zinc-copper deposits is very good and we will seek to establish if this is value we can exploit up-front for a restart of mining at Lynn Lake. Alternatively, we will explore whether the VMS deposits are better suited to mining later in the project’s mine plan.”
The Lynn Lake region has a history of mining and exploration for magmatic nickel sulphide, volcanogenic zinc-copper-gold massive sulphide (VMS) and orogenic gold, dating back to the late 1940s.
The main historical mining operations have included the Lynn Lake nickel sulphide mining centre, the Fox Lake copper-zinc mine and the MacLellan-Gordon gold deposits.
Corazon has a dual exploration and development focus at Lynn Lake. A core component of its work is establishing a pathway to redevelop the historical Lynn Lake Nickel Sulphide Mining Centre, with initial mining and metallurgical studies in the final stages of completion.
The flotation processing techniques for nickel-copper mineralisation is similar to the flotation of zinc-copper VMS mineralisation. The opportunity to mine high-grade zinc-copper-gold deposits, as part of a future mining operation at Lynn Lake, may benefit the project's economics.
Acquisition consideration
Corazon will acquire 100% of the mineral tenure for C$153,600 (~A$168,000). The vendor, PC Dunlop, will retain a 2% net smelter royalty (NSR) over the ground, with Corazon retaining a right to purchase up to 1% of the NSR for C$500,000 per 0.5%.
The company has a long association with Dunlop, who from previous transactions, also retains a royalty over areas within the Lynn Lake Project.
Corazon has completed initial due diligence of the project areas to be acquired.