Corazon Mining (ASX:CZN) has identified new zones of cobalt mineralisation at the Cobalt Ridge prospect within the Mt Gilmore cobalt-copper-gold project in New South Wales.
The mineralisation was identified in results from a recently completed soil sampling program, which defined extensions to one of the highest grade cobalt deposits in Australia.
Furthermore, several new zones of cobalt and copper mineralisation were also identified.
These results will be used to define additional drilling targets proposed for the upcoming September quarter.
Corazon is currently actively exploring two projects, the Lynn Lake nickel-copper-cobalt project in the Manitoba Province of Canada and the Mt Gilmore cobalt-copper-gold in New South Wales.
Mt Gilmore
The Mt Gilmore Project is located 35 kilometres from the major centre of Grafton in north-eastern
New South Wales.
Corazon owns a 51% interest in Mt Gilmore and has an exclusive right to earn up to an 80% interest in the project.
The prospective 18 kilometre Mt Gilmore trend includes over 25 historic copper, gold, cobalt and iron workings, including significant shafts, adits and drives with high-grade copper and gold mineralisation.
Rock chip grades have assayed up to 26.8% copper and 9.2 g/t gold.
Five large scale copper-gold targets that have been defined to date.
Corazon completed its maiden drill program at Mt Gilmore in December 2016, testing the continuity, position and extent of the cobalt-copper-gold mineralisation within the Cobalt Ridge prospect area.
The drilling validated historical mining and exploration results and confirmed the presence of multiple zones of sulphide mineralisation over a strike length of at least 300 metres.
The mineralisation remains open along strike and at depth.
Soil sampling details
The completed soil-sampling program extended coverage at Cobalt Ridge to an area of 2x1 kilometres.
In total, 390 samples were taken on a grid spacing of 50x 50 metres close to the main target area and 100x100 metres in peripheral areas.
Results have validated historical geochemistry and confirmed the presence of multiple zones of cobalt and copper mineralisation over a significant area.
Surface geochemistry suggests the cobalt mineralisation is much more extensive than that defined by previous exploration and mining, which was focused solely on the copper mineralisation.
Furthermore, there is a growing understanding that at Mt Gilmore the copper mineralisation is a separate event to the cobalt mineralisation.
Next steps
Metallurgical test work on Cobalt Ridge percussion drill chips has almost been completed.
Cobalt Ridge is a sulphide deposit and early indications are that the preferred processing options will be simple industry standard flotation utilising relatively inexpensive off-the-shelf technology.
Current studies will define additional test work required for the design criteria of a full-scale operation to be included in future scoping and feasibility studies.
3D modelling of drilling completed at Cobalt Ridge is being reviewed in response to the results of the soil geochemistry.
This work will result in the planning and permitting of drilling proposed for the September quarter, 2017.
Analysis
Cobalt Ridge hosts one of the highest-grade cobalt deposits in Australia.
It is a rare cobalt dominant sulphide deposit and Corazon believes the project has the potential to supply a quality cobalt product, suitable for use in lithium-ion batteries and the emerging rechargeable battery sector.
One of the key positives of Mt Gilmore is that very little modern exploration has been undertaken.
Aside from small-scale historic copper- gold and iron mines, previous exploration has predominantly been restricted to general prospecting, mapping, rock-chip sampling, with drilling completed at only one of the targets.
With cobalt prices trading at over US$56,000 per tonne, this is a fortuitous time for Corazon to be developing a new cobalt resource.
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