Corazon Mining (ASX:CZN) is set to acquire three zinc-copper-gold deposits in Manitoba, Canada, near the company’s wholly owned Lynn Lake Nickel-Copper-Cobalt Sulphide Project.
The three deposits — MacBride, Wellmet, and Barrington — add to the company’s existing portfolio of seven zinc-copper-gold deposits within the Lynn Lake tenure.
A dual explorer and project developer, Corazon says a core component of its work is the redevelopment of the historical Lynn Lake Nickel Sulphide Mining Centre.
Initial mining and metallurgical studies are in the final stages of completion, with flotation processing techniques for nickel-copper mineralisation showing similarities with the flotation of zinc-copper volcanogenic massive sulphide (VMS) mineralisation.
The current phase of studies is expected to be completed in the third quarter of 2024. Once complete, a fully optimised and scheduled mine plan will be generated for assessment.
Chairman Terry Streeter says the company’s strategy for Lynn Lake is to deliver a low-cost operation.
“The knock-on effect of this is that with lower costs, there are lower cut-off 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,” he says.
“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.”
According to the terms of the “opportunistic” acquisition, Corazon will pay C$153,600 ($168,040) to vendor PC Dunlop, who will retain a 2% net smelter royalty (NSR) over the ground. Corazon retains the right to purchase up to 1% — or half — of the NSR for C$500,000 per 0.5%.
At MacBride, which lies 65km east of Lynn Lake, past drilling has uncovered consistent zinc and copper over a 400m strike length and at a depth of 300m.
Wellmet, which lies 6km to the northwest of MacBride, has shown multiple sulphides and geophysical anomalies. Previous drilling intersected several zones, including a main zinc-rich massive sulphide horizon and a copper-gold dominant stringer horizon.
Meanwhile, at Barrington, which lies 43km east of Lynn Lake, previous drilling defined copper mineralisation, along with several geophysical anomalies that are yet to be followed-up with drilling.
Initial due diligence has been completed on the project areas, with the digital capture of all available historical exploration data — including mapping, surface, sampling, geophysics, and drilling — underway.
Write to Aaliyah Rogan at Mining.com.au
Images: Corazon Mining
