Corazon Mining (ASX:CZN) strengthens Gascoyne strategy with option over Feather Cap Gold Project

Corazon Mining Limited (ASX:CZN) has secured an exclusive 12-month option to acquire an 80 percent interest in the Feather Cap Gold Project in Western Australia, expanding its presence in the highly prospective Gascoyne region.

The project spans approximately 154 square kilometres across four exploration licences and one mining lease, strategically located less than 100 kilometres from Corazon’s Two Pools Gold Project and within 50 kilometres of Westgold’s operating Fortnum Mill.

The Feather Cap Project is contiguous with Westgold’s Durack Deposit, which hosts a mineral resource of 2.9 million tonnes at 1.2 grams per tonne gold.

Combined with historical drilling results at Feather Cap showing strong mineralisation at both Durack East and Wembley, the option provides Corazon with a capital-efficient pathway to consolidate a significant exploration footprint in one of Western Australia’s most prospective gold provinces.

To provide further clarity on the transaction, the potential of the project, and the company’s next steps, Managing Director Simon Coyle responded to investor questions.

What is the strategic significance of securing the Feather Cap Gold Project option?

The Feather Cap Gold Project is an important addition to Corazon’s portfolio as it expands the company’s footprint in the Gascoyne region and positions it within a proven mineral province that already hosts large-scale gold and copper deposits.

Its proximity to Corazon’s Two Pools Project and Westgold’s Fortnum Mill creates clear operational and geological synergies, while its location within the Bryah-Padbury Basin ensures strong exploration potential.

“The grant of the Feather Cap Option is a key component of our strategy to build a significant presence in the Gascoyne region. With the Feather Cap Project located less than 100km from our Two Pools Gold Project, we will, subject to exercise of the Option, consolidate a significant, highly prospective land package in a proven mineral province.”

What historical results give confidence in the project’s potential?

Historical drilling across the tenements has delivered strong intercepts, confirming the presence of high-grade gold mineralisation.

At Durack East, results included 20 metres at 3.01 grams per tonne gold from 40 metres with a section of 4 metres at 10.7 grams per tonne, as well as 35 metres at 1.47 grams per tonne from 32 metres including 5 metres at 5.13 grams per tonne.

At Wembley, drilling returned 7 metres at 6.21 grams per tonne from only 6 metres below surface, which included 2 metres at 18.33 grams per tonne.

These intercepts demonstrate the quality of the mineralisation and its distribution across multiple prospects within the project area.

“Within the tenement package is the Wembley Mining Lease, which has known gold mineralisation within close proximity to surface and within weathered zones, which could provide an early-stage development opportunity for the company.”

How is the option structured to balance opportunity with capital efficiency?

The option agreement allows Corazon to test the project’s potential in a cost-effective manner.

An initial payment of $50,000 in cash and $50,000 in shares secures the 12-month exclusive option to acquire an 80 percent interest.

During this period, Corazon is required to commit at least $250,000 to exploration across the tenements. Should the option be exercised, a joint venture will be formed with RBH Mining, with Corazon making an upfront payment of $600,000 and a deferred payment of $1 million within four years.

Both payments can be made in either cash or shares, subject to shareholder approval.

“The Option structure itself is highly capital efficient, enabling Corazon to fast-track exploration to validate the high-grade historical hits, while preserving our balance sheet.”

What are the next steps for exploration and evaluation?

Corazon is undertaking a full review and analysis of historical geochemical and drilling data to refine exploration targets.

This will include compiling soil and geochemical samples for greenfields target generation and evaluating historical drill results to better understand mineralised zones and assess the potential for resource estimation.

Immediate focus areas are Durack East and Wembley, given the quality of historical results and the near-surface mineralisation at Wembley which could support an early-stage development pathway.

With the favourable geological setting, including the prospective contact between the Narracoota and Ravelstone formations, Corazon is preparing to advance exploration programs that will validate and expand on the existing results.

How will the joint venture with RBH Mining operate if the option is exercised?

If the option is exercised, Corazon will hold an 80 percent interest in the Feather Cap Project, while RBH Mining will retain 20 percent.

Under the agreement, RBH will be free carried through exploration until Corazon makes a positive final investment decision for a commercial mining operation.

At that stage, RBH’s interest will convert into a 3.5 percent net smelter return royalty on all minerals extracted other than iron ore and manganese.

This arrangement gives Corazon majority control while ensuring RBH remains aligned to the project’s success.

Looking ahead with confidence

“This transaction is a major step towards creating a gold exploration focus for Corazon in Western Australia.”

The Feather Cap Gold Project option provides Corazon with a cost-effective opportunity to consolidate a strategically located landholding in the Gascoyne region.

Historical drill results confirm high-grade mineralisation, the option structure preserves capital while enabling exploration, and immediate next steps are focused on building a clear pathway towards resource definition and potential development.

As Managing Director Simon Coyle highlighted through this Q&A, Corazon Mining is committed to advancing Feather Cap in parallel with the Two Pools Project, strengthening its regional position and enhancing its ability to deliver value through discovery and development.

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