Maiden 1.8Mt resource at EL Mine, Lynn Lake Nickel Sulphide Project, Canada

Australian exploratlime kiln manufacturers in indiaion company Corazon Mining is pleased to announce that is has defined a maiden inferred resource of 1.8 Mt at 1% Ni equivalent* at the historical EL Mine at the Lynn Lake nickel sulphide project in Canada.

The EL Mine resource has been defined beneath the historic EL Mine within the Lynn Lake Nickel Sulphide Project. The resource is based upon defined mineralisation between the base of previous mining (210 metres depth) and approximately 600 metres depth. Further drilling is planned to test and potentially extend the resource beyond these limits.

The resource is considered to be a conservative estimate based upon the limited drill density to date and as such potential remains to extend the resource following further work, particularly for the higher grade zones.

Resource Statement

At a cut-off grade of 0.6% Ni equivalent*, the resource defines 1.8 Mt at 1% Ni equivalent*, including contained metal of 14,000t nickel, 9,000t copper and 400t cobalt, Corazon have yet to complete mining studies or metallurgical/processing analysis on the EL Mine mineralisation.

However, Lynn Lake is an historical nickel, copper and cobalt mining camp which operated for more than 20 years. Reported historical mine base cut-off grades were between 0.5% and 0.7% nickel.

Metal recoveries reported were approximately 85% for nickel, 93% for copper and 80% for cobalt.

Past mining utilized very simple open stope with sublevel mining methods. The historical EL Mine main stope is up to 100 metres in diameter, plus 200 metres in depth, and provides a large tonnage - low cost mining opportunity.

The EL Mine was one of the highest grade nickel mines in the district, having operated between 1954 and 1962 and produced 1.9Mt @ 2.5% nickel and 1.15% copper to a mined depth of only 210 metres. Whilst the defined boundary of the mineralised host unit is well established, drilling in areas of the resource has not been of sufficient density to accurately define the distribution of high-grade sulphide mineralisation. For this reason, the influence of the high grade material within the resource has been restricted and consequently the resource is categorised as inferred.

This resource provides a very good base from which to focus on-going exploration, and it is the Company’s opinion that it is conservative in terms of the full potential of the deposit and that additional drilling will provide a more accurate model particularly for the distribution of high-grade mineralisation.