Corazon Mining (ASX: CZN) has discovered a significant new geophysical anomaly at the Lynn Lake Nickel Sulphide Project in Canada and has plans to drill it within the week.
The new priority drill target is at the 150 Prospect, located just 1 kilometre southwest from the company’s historic EL Nickel-Copper Sulphide Mine which has produced 1.9 million tonnes (Mt) at 2.5% nickel and 1.15% copper.
The anomaly has never been tested by drilling. However, historic drilling nearby intersected up to 1% nickel and 1% copper in rocks very similar to the EL Mine ore.
The top of the anomaly is just 60-100 metres below surface. Additional sulphide mineralisation was intersected in first hole into the EL Resource.
The company expects the EL Resource will be up-graded subsequent the return of recent drilling results in three or four weeks time.
The area is well serviced with mining infrastructure and support, offering rapid development potential. Also, the Thompson Nickel Refinery is located only 320km from the project and is accessible by all weather road.
In addition there is rail access (currently under care and maintenance) to the Flin Flon zinc-copper refineries approximately 250km to the south.
The company proposes to drill 5,000 metres of core drilling, targeting the EL Plug and other nickel-copper sulphide and VMS targets.
On 25 January 2011, Corazon announced a shareholder share purchase plan to acquire additional Shares at 10 cents per Share. The Plan recently closed with acceptances totaling $734,000.
The plan shortfall is fully underwritten by Barclay Wells Limited and will raise $2.3 million in total for the exploration of Lynn Lake, subject to shareholder approval.