Corazon Mining Ltd (ASX:CZN) (OTCMKTS:CRZNF) has commenced new mining studies at its Lynn Lake Nickel-Copper-Cobalt Sulphide Project in the Manitoba Province, Canada.
The Project was mined for 24 years until 1976 and was one of North America’s major nickel operations, producing 206,200 tonnes nickel and 107,600 tonnes copper but since that time, mining studies undertaken for a potential re-start of the mine have only considered mining and processing methods historically used at Lynn Lake.
The new phase of mining studies being undertaken is designed to assess optionality and determine the most appropriate development pathway to deliver a robust, long-lived, economically viable mining operation, utilising modern mining and processing techniques.
“Significant step in the path towards development”
With expectations of a rapidly increasing global market for quality Class-1 nickel to meet rising demand from the rechargeable battery sector, the company is confident that Lynn Lake Project presents an excellent redevelopment opportunity close to the massive North American market and shipping ports for major international markets.
And the commencement of mining studies represents a significant step forward in the Project’s development pathway.
Corazon chairman Terry Streeter said: “We have the opportunity to completely redefine a mining operation at Lynn Lake by incorporating modern technology and a modern approach, to optimise the Project’s geology and infrastructure.
“Previous mining studies for the Lynn Lake Project utilised mining and processing practices from the 1950’s.
“We think there is a significant opportunity to pursue the development of a substantial modern mining operation by leveraging current mining practices, more suited to the Project’s significant resource base.”
Mining studies scope
Large, high-quality JORC resources (116,800 tonnes of nickel, 54,300 tonnes copper and 5,300 tonnes of cobalt) and key established infrastructure provide an excellent foundation for the potential recommencement of mining operations.
International mining consultant Palaris has been engaged to undertake the studies, which will be aimed at reducing operating costs by adopting modern mining and processing practices, with the scope of work including:
- Undertaking individual bridging studies in key areas to identify a viable basis of project design before progressing into future study phases; and
- Determining the favoured path forward, utilizing ‘best-fit’ mining and processing techniques to deliver an attractive, long-life mining operation at Lynn Lake.
The studies are expected to be completed in the following quarter and will feed into more detailed work designed to advance the development of the Project.