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Corazon takes full control of the Miriam Nickel Sulphide Project
Corazon Mining Limited (ASX: CZN) (Corazon or Company) is pleased to announce it has further progressed its rights to acquire 100% of the Miriam Nickel Sulphide Project (Miriam or Project) near Coolgardie in Western Australia’s Goldfields minerals district.
Previously, the Company announced it had entered into an agreement with Limelight Industries Pty Ltd (Vendor) to acquire 100% of the Miriam Project (ASX announcements 26 July and 15 October 2021); the Company is now pleased to advise it has successfully completed Stage 2 of the acquisition. Corazon will acquire a 100% interest in the Project (and take control and management of the Project) in consideration of the payment to the Vendors of $400,000 and a 2% net smelter return royalty, pursuant to the Option Agreement, details of which are included in this ASX announcement.
The completion of Stage 2 sees Corazon being entitled to 100% of the Project and taking sole control and management of the Project, on behalf of all parties, with the Vendor retaining the right to mine mullock dumps (for gold mineralisation) and to metal detect on the area for the first three (3) years post grant of the relevant tenure.
Miriam is a highly prospective nickel exploration project that represents a strategic addition to Corazon’s portfolio of nickel sulphide assets. The Project is located approximately 10 kilometres south-southwest of Coolgardie on an ultramafic trend, which also hosts Auroch Minerals’ (ASX: AOU) Nepean Nickel Deposit.
Corazon is enthusiastic about the Project’s exploration potential. Drilling undertaken predominantly in the 1960s and 1970s at the Miriam Nickel Deposit intersected ‘high nickel tenor’ massive and disseminated sulphides. Corazon has highlighted extensions to areas of known mineralisation as the initial priority exploration focus.
Highlights
- Stage 2 in the acquisiton process for the Miriam Nickel Sulphide Project has been completed
- Corazon has assumed sole management of the Project and is progressing the grant of tenure as a priority
- Work programs under development will focus on modern, high-powered geophysics to test areas of known mineralisation for follow-up drilling
About the Miriam Project
The Miriam Project is located approximately 10 kilometres south-southwest of Coolgardie on a trend of ultramafics best identified by the Miriam and Nepean nickel deposits (Auroch Minerals, ASX: AOU).
The Miriam Project covers an area of about 6 kilometres by 1.5 kilometers and comprises five Prospecting Licence applications (P15/6135 to P15/6139 inclusive).
In 1969, Anaconda Australia Limited discovered the Miriam Deposit, located within the Project, and conducted most of the known nickel exploration during the late 1960s and early 1970s. This work defined the core of the Miriam Deposit over a strike of about 150 meters and to a depth of at least 150 metres below surface. In places, subsequent drilling extended the drilled depth to about 300 metres below surface.
Referenced open-file documents (ASX announcement, 26 July 2021) detailing historical work defines a nickel-copper endowment for the Miriam Deposit. This work is not compliant with current JORC standards, and further drilling is required for the definition of a JORC resource estimate at Miriam.
Much of the historical drilling, which tested the ultramafic sequence north and south of the Miriam Deposit, was shallow percussion drilling that did not penetrate the overlying oxidised zone, and many of the holes did not reached the ultramafic footwall target. There is extensive untested opportunity to target nickel sulphide mineralisation at depth and along strike from previous drilling.
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This article includes content from OCorazon Mining Limited , licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
CZN
Lynn Lake Nickel Sulphide Project Update
Key Highlights
- Exploration drilling continuing at Fraser Lake Complex testing geophysical anomalies within the Motriuk ultramafic intrusion - encouraging nickel and copper sulphide mineralisation intersected
- New detailed geological modelling underway at the Lynn Lake Mining Centre to identify additional near surface resource potential not included in previous resource estimates or mining studies
- Metallurgical testwork on lower-grade mineralisation from the mining centre is underway – incorporating innovative “ore-sorting” technology as an upgrading option
Corazon’s ongoing focus is the pursuit of the potential redevelopment of Lynn Lake’s historical nickel sulphide Mining Centre towards production, and the targeted exploration for new nickel-copper-cobalt sulphide deposits within the Project area.
At the Mining Centre, the Company is assessing the potential to benefit from the extensive low-grade sulphide mineralisation surrounding known deposits and identifying relatively untested extensions to the current resources (within the upper levels of the mine surrounds).
Metallurgical testwork on lower grade material is currently underway and new 3D models of structure, rock type and geophysical surveys for the A-Plug Mining Centre (Figure 1) are being utilised to define potential areas for exploration and resource definition drilling.
Exploration drilling is ongoing at the Fraser Lake Complex (FLC) (Figure 1), testing geophysical targets (ASX announcement 11 April 2022). Encouraging nickel and copper sulphide mineralisation has been intersected at the Motriuk intrusion (ASX announcement 7 June 2022). The existence of visible pentlandite (nickel sulphide) in blebs and the potential for these sulphides to accumulate at depth, provide a compelling target for the drilling currently in progress.
Figure 1 – Lynn Lake Project - MobileMT survey magnetic susceptibility inversion depth slice at 50m below surface - over a GeoTem total-field regional aeromagnetic image, with the area of the gravity high target outlined.
Fraser Lake Complex Exploration Drilling
Exploration drilling at the Fraser Lake Complex is continuing, following early encouraging results from drilling at the Motriuk Ultramafic (ASX announcement 7 June 2022).
Progress of the drilling has been slow, with the drilling contractor needing to revert to one shift per day, due to the limited availability of personnel. This is an industry-wide issue due to both the effects of the Covid-19 pandemic and the seasonal demands for exploration personnel.
Currently, there is a 10-day scheduled break in drilling, which is due to recommence on the 22nd of July 2022. With an all-inclusive per-metre rate for this drilling program, Corazon bears no additional cost for drilling down-time or slow meterage.
In mid-June 2022, senior Company personnel traveled to site to review the progress of the drilling, including the sulphides intersected at Motriuk (ASX announcement 7 June 2022). While the amount of sulphide mineralisation reported was low (typically 1-5% of volume) and as such the expectations for the nickel content is also low, the existence of visible pentlandite is very encouraging. The Motriuk Complex historically has been considered nickel-deficient compared to the average for such ultramafic rock (pyroxenites and peridotites). It is assumed the nickel was extracted from the melt as sulphide (pentlandite) during the magma’s transportation to Motriuk, or in-situ.
The Motriuk Ultramafic body is “keel-like” in shape, with a base that has been defined by geophysics. The current drilling is targeting the base of this intrusion, which has a dense and magnetic geophysical signature.
Updates regarding this drilling will be provided in due course.
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This article includes content from Corazon Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Porphyry Copper Target Identified at Mt Gilmore Project
Key Highlights
- Initial mineral vectoring geochemical studies have been completed by CODES at the University of Tasmania on rock and drill core samples collected from the Mt Gilmore Project
- The studies show the Mt Gilmore Cu-Au-Co trend has a complex hydrothermal history and geochemical characteristics particular to known large porphyry Cu deposits
- Results are extremely encouraging – additional mineral studies and geophysics will assist the definition of targets expected to be easily testable with drilling.
The new porphyry copper target area has been generated from initial results of a mineral chemistry vectoring study conducted by the University of Tasmania. Based on the positive results of this work, Corazon plans to undertake a new phase of targeted fieldwork at the Mt Gilmore Project.
Corazon's Mt Gilmore Project is located within the New England Orogen of northeastern NSW (Figure 1). Geochemical and geophysical surveys completed by Corazon at Mt Gilmore have indicated the potential for concealed intrusion related or porphyry copper-gold hydrothermal systems. However, identifying precise drill targets has been difficult due to the size of the geochemical anomalies (i.e. main target area of ~8km x 2km – Figure 2), poor surface exposure and lack of historical drilling.
In recent years, significant research has been devoted to mineral chemistry studies to assist in the exploration for blind mineral deposits. Work by the Centre for Ore Deposit and Earth Sciences (CODES) at the University of Tasmania has included porphyry vectoring and fertility tools (PVFTs), which use the chemical compositions of hydrothermal minerals to predict the likely direction and distance to mineralised centres, and the potential metal endowment of a mineral district.
Such studies completed by CODES on samples from Mt Gilmore have delivered exceptional early results, supporting the Project’s prospectivity and strong porphyry copper potential.
Figure 1 – Mt Gilmore Project Location
Rationale for Mineral Chemistry Vectoring Studies
Exploration by Corazon at the Mt Gilmore Project has identified a very large copper-cobalt-gold-silver soil geochemical anomaly over the full 22-kilometre strike of exposed basement rocks (Figure 2). This soil geochemical anomalism is supported by high-grade rock-chip samples from outcrops throughout the Project (ASX announcement 5 February 2019).
Reconnaissance induced polarisation (IP) geophysical surveys over the three main anomalies at Gordonbrook Hill, Lantana and May Queen (Figure 2) (ASX announcement 23 July 2019) identified chargeability anomalism at all prospects. Subsequent drilling of the Gordonbrook Hill IP anomaly (ASX announcement 16 June 2021) supported that, despite no strong sulphide mineralisation being identified, the IP method was a very good mapper of alteration. The detail provided by the drilling contributed to conflicting models for the potential style of mineralisation at Gordonbrook Hill.
Advances in the understanding of using mineral chemistry to identify and vector towards porphyry related hydrothermal deposits, including successful case studies, provided the opportunity for Corazon to potentially:
- Define the type of hydrothermal system(s) present at Mt Gilmore and their occurrence in time (relative to other geological features);
- Define the possible size and fertility of any the mineralised system(s); and
- Identify the location(s) in three-dimensions of the heat source that caused the hydrothermal mineralisation.
Rock chip and drill core samples from the May Queen, Gordonbrook Hill and Cobalt Ridge prospects (Figure 2) were submitted to CODES for testwork, sampling a variety of mineralisation/alteration styles over a strike of ~16km within the Mt Gilmore Trend.
Figure 2 – Mt Gilmore Project interpreted geology with a copper in soils geochemical image over the sedimentary/volcaniclastic basement rocks, with mineral occurrences and prospect locations.
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This article includes content from Corazon Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Nickel Price 2024 Year-End Review
Nickel price in Q4
Nickel reached its 2024 peak of US$21,615 per metric ton on May 20, but was back below the US$16,000 mark by the end of July. Following some volatility in August and September, the price of nickel gained momentum at the end of Q3, reaching US$18,221 on October 2.
However, the increased prices were not to last, and nickel spent much of the final quarter in a downward trend.
By the end of October, the price had fallen to US$15,732 before climbing back to US$16,607 on November 7.
Since then, the nickel market has seen some volatility but has continued its downward trend. On December 19, it slumped to its 2024 low of US$15,090. However, it saw some small gains, ending the year at US$15,300 on December 31.
Nickel price, Q4 2024.
Chart via Trading Economics.
Nickel’s weak prices are largely due to high output from Indonesia and low demand, particularly from Asian markets, as China’s recovery has failed to gain traction.
As a result, on December 19, it was reported that Indonesia is considering implementing cuts to mining quotas to boost prices. The move would see the country cut output by nearly half, from 272 million metric tons of ore produced in 2024 to 150 million metric tons in 2025.
Additionally, Indonesia is looking to tighten environmental regulation compliance for miners in the new year and could introduce increased volatility into metals markets, including nickel. The move comes not long after it signed several new agreements in November with Chinese companies that would see billions invested in nickel operations in Indonesia.
Indonesia had previously worked to distance itself from China’s partnerships as it sought to improve relations with the United States and be included under the US Inflation Reduction Act (IRA).
The new agreements emerged shortly after Donald Trump won the US presidential election on November 7. Trump’s return to the Oval Office is unlikely to bode well for Indonesian officials seeking to secure a trade deal with the United States. However, a loosening of rules in the IRA might create new inroads for Indonesian nickel producers.
How did nickel perform for the rest of the year?
Nickel price in Q1
The story since the start of the year has been high output from Indonesian operations.
Low prices saw some nickel producers, including First Quantum Minerals (TSX:FM,OTC Pink:FQVLF) and Australia’s Wyloo Metals, cut production. However, New Caledonia was most affected. The country is more dependent on the nickel sector, with industry giants like Glencore (LSE:GLEN,OTC Pink:GLCNF), Eramet (EPA:ERA) and raw materials trader Trafigura owning significant stakes in nickel producers in the country.
Ultimately, cuts there led to a 200 million euro bailout package from the French government, which exacerbated tensions over New Caledonia's independence from France. Opponents of the agreement argued it risks the territory's sovereignty and that the mining companies aren’t contributing enough to bail out the mines, which employ thousands.
Nickel price in Q2
The second quarter was defined by a surge in nickel prices.
Positive momentum began to work its way into the market at the end of Q1, as Indonesia experienced delays in approving mining output quotas and speculation grew that Russian nickel could be sanctioned by the US and UK.
On April 12, news broke that Washington and London had banned US and UK metal exchanges from admitting new aluminum, copper and nickel from Russia. Taking immediate effect, the prohibitions also halted the import of those metals causing the price to soar to a year-to-date high of US$21,615 on May 20.
At the time Joe Mazumdar, editor of Exploration Insights, suggested this move would have little impact on the sector.
“That nickel is still going to make it into the market, it’s just going to go to a different exchange, probably Shanghai … So I could still see that nickel moving and getting consumed in the global market — it’s just not coming to the west,” he explained to the Investing News Network in an interview.
Ultimately, by the end of the quarter, the price was trending toward US$17,000.
Nickel price in Q3
Nickel saw a strong end to the third quarter with the price rising above the US$18,000 mark.
Nickel found pricing support in September as the Chinese government introduced a raft of stimulus measures intended to boost economic growth in the country. Among the measures were a 0.5 percent interest rate cut on existing mortgages and a reduction in the downpayment required to purchase a home to 15 percent from 25 percent.
The announcement came alongside cuts at Chinese smelters as they were forced to deal with a shortage in feeder supply due to more delays to Indonesia’s permitting and quota system.
Investor takeaway
The nickel market is expected to remain oversupplied for some time.
With China’s economy on a slow path to recovery, demand will remain weak. Meanwhile, supply will likely hinge on if Indonesia chooses to make significant cuts to supply output.
While demand for nickel in electric vehicle batteries is expected to be up 27 percent year-on-year in 2024, producers have also been looking to alternatives that don’t require as much nickel. Additionally, more consumers are looking to plug-in hybrid vehicles with smaller batteries that require less nickel.
Even with the increased demand from the battery sector, nickel is primarily used in stainless steel products, which are still dominated by the Chinese manufacturing and real estate sectors.
Perhaps the most significant factors to consider are political. A new administration in the United States and a shift in the IRA's approach to sourcing critical metals like nickel could alter the landscape for nickel producers in 2025.
Don’t forget to follow us @INN_Resource for real-time news updates.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Accelerated Non-Renounceable Entitlement Offer Results
Under the Entitlement Offer, eligible shareholders were invited to subscribe for one (1) New Share for every four (4) existing Shares held at an offer price of $0.03 per share.
The Company has now closed the retail component of the Entitlement Offer with applications totalling 2,767,788 shares including additional acceptances to be issued at $0.03 on top of the 18,650,023 shares issued under the institutional component of the Entitlement Offer on 15 November 2024. In accordance with the timetable, the New Shares will be issued on or before 4 December 2024.
The retail component of the Entitlement Offer is partially underwritten by Nanjia Capital Limited “(Nanjia”) for the amount of approximately $1.09m. Accordingly, Nanjia will now subscribe for 36,349,900 New Shares in accordance with the underwriting arrangements summarised in section 7.4(b) of the Prospectus and the Company expects to finalise this process within the next week.
Shortfall Share Placement
A total of 74,946,591 New Shares were not taken up under the Entitlement Offer by eligible securityholders or issued to Nanjia as underwriter (“Shortfall Shares’”) The directors will work with the lead manager to the Entitlement Offer and the major shareholders to place the shortfall within three (3) months of the closing date, subject to requirements of the ASX Listing Rules and Corporations Act 20021 (Cth) continuing to be met. Please refer to the Prospectus dated 4 November 2024 for further details on the issue of the shortfall.
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This article includes content from Blackstone Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
