Corazon Mining (ASX:CZN) defines Chalice Exploration Target

Corazon Mining has defined a maiden Exploration Target at its 100% owned Chalice Gold Project near Higginsville, Western Australia, based on historical drilling and mining data, assay results, geological interpretation, detailed 3D mineralised wireframes and preliminary exploration modelling.

Highlights

The Exploration Target includes the current Chalice Mineral Resource Estimate and additional mineralisation that has not been classified as a Mineral Resource.

It is not additional to the existing Mineral Resource, which remains the company’s current estimate for the project.

The potential quantity and grade are conceptual in nature, as there has been insufficient exploration to estimate a Mineral Resource for the additional mineralisation, and it is uncertain whether further exploration will result in one being estimated.

The previously reported Mineral Resource was estimated and reported targeting an underground mining method.

The Exploration Target includes near surface mineralisation and underground targets at depth, while no updated Mineral Resource has been reported because technical review work, including a review of cut off grades and geological interpretation, is continuing.

The lower case of approximately 9.7Mt at 1.9g/t Au was derived from preliminary exploration block modelling undertaken within interpreted mineralised wireframes.

These wireframes outline multiple stacked lodes through the deposit and incorporate available drilling, assay information and geological interpretation.

The preliminary model was prepared solely to establish a reasonable basis for the Exploration Target and does not constitute a Mineral Resource estimate.

The upper case of approximately 12.3Mt at 2.1g/t Au incorporates potential mineralisation associated with interpreted strike and down dip extensions of the mineralised system, supported by the geometry of the interpreted domains and surrounding drilling.

The upper case also includes potential associated with an interpreted footwall mineralised system that has received comparatively limited exploration but is supported locally by historical underground drilling and sampling.

An assumed dry bulk density of 2.6t/m³ was applied to the assessment and is planned to be reviewed as part of any future Mineral Resource estimation, while the majority of the higher grade mineralisation is located within fresh rock.

The supporting historical exploration and mining dataset comprises diamond, RC and RAB drilling, together with underground face and sludge sampling.

Excluding open pit grade control blast hole sampling, 369 drillholes intersect the interpreted mineralised domains.

These comprise 216 diamond drillholes, 136 RC drillholes, 13 RAB drillholes and 4 combined RC and diamond drillholes.

Corazon Managing Director Simon Coyle said:

“There is real work still to do before any of that potential can be converted to a Mineral Resource, and we intend to get on with the drilling required to confirm it.”

Corazon intends to conduct a minimum 7,500m of additional RC drilling at Chalice over the next 6 months, subject to funding, access and regulatory approvals.

The program is intended to test the geological and grade continuity assumptions underpinning the Exploration Target and provide information required to assess whether future Mineral Resource estimation may be appropriate in areas not presently classified as Mineral Resources.

The proposed work is intended to test strike and down dip extensions, infill areas with wider drill spacing, test continuity between interpreted domains and improve understanding of mineralised widths, structural controls and grade continuity, with no certainty that the program will result in the estimation of a Mineral Resource.

Chalice has a granted Mining Lease and a historical production history of approximately 645,000oz at approximately 5.4g/t Au.

There are 7 operating processing facilities within 130km, including Westgold Resources’ Higginsville CIL plant approximately 22km away.

Corazon will finalise the scope of the drilling program, progress its technical review of cut off grades and geological interpretation, continue its Western Australian gold exploration programs at Two Pools and Feather Cap, and assess following further exploration whether Mineral Resource estimation is appropriate for any part of the Exploration Target.