Corazon Mining (ASX:CZN) extends Chalice footprint through new tenure acquisition
Corazon Mining has entered into a binding agreement to secure additional tenure and gold rights across a 170km² area immediately north and south of the Chalice Gold Project in Western Australia’s Higginsville greenstone belt.
The acquisition extends Corazon’s footprint beyond the existing Chalice Mining Lease and Mineral Resource, securing the southern corridor and northern extension of the greenstone belt totalling 40km of prospective strike.
Highlights
Corazon has entered into a binding agreement to secure 100% legal and beneficial ownership of E15/1802, together with gold rights over adjoining tenements E15/1705 and E15/1721.
The acquisition comprises tenure covering 170km² immediately north and south of the Chalice Gold Project, including the southern corridor and northern extension of the greenstone belt.
The acquired tenure hosts undrilled structural and geochemical targets within the same mineralised sequence that hosts the Chalice deposit.
The consolidated tenure will be incorporated into Corazon’s exploration strategy alongside Phase 1 resource growth drilling at Chalice, targeted to commence in Q3 CY 2026.
The agreement with Dynamic Metals (ASX:DYM) comprises 100% ownership of tenement E15/1802 and sole exclusive gold rights over adjoining tenements E15/1705 and E15/1721.
The transaction follows Corazon’s previously announced Chalice, Two Pools and Feather Cap acquisitions, with the company stating that the latest acquisition extends its footprint beyond the existing Chalice Mining Lease and Mineral Resource.
The acquired tenure is hosted within the same prospective mafic ultramafic greenstone sequence that hosts the Chalice deposit.
Corazon said the acquisition secures control of a continuous corridor immediately along strike from the Chalice Gold Mine.
The company said the tenure provides opportunities to evaluate extensions of known mineralisation and identify new gold discoveries.
The southern corridor will form a priority focus for technical assessment and follow up exploration, with planned activities including geological interpretation, geochemical sampling, geophysical surveys and targeted drilling to evaluate prospective targets across the tenure.
The company also identified the northern extent of the same greenstone belt beyond the Chalice Gold Mine as an area with limited modern gold exploration.
Corazon said the acquisition provides the opportunity to undertake regional geochemistry, detailed geological mapping and targeted geophysical programs across both northern and southern extensions of the Chalice system.
The Chalice Gold Project hosts a JORC 2012 Mineral Resource Estimate of 2,181,000 tonnes at 2.74 g/t Au for 191,000oz of contained gold within the granted Mining Lease, comprising 42,000oz Measured, 94,000oz Indicated and 55,000oz Inferred.
The Chalice Gold Mine has historically produced more than 640,000oz of gold from open pit and underground operations between 1995 and 2014, at average mined grades of approximately 5.4 to 5.5 g/t Au.
Corazon Managing Director Simon Coyle commented on the acquisition and transaction structure.
“Structuring the deal with deferred, milestone-linked payments means we only pay as we grow the resource, keeping our balance sheet disciplined while we pursue district-scale upside alongside our Phase 1 drilling at Chalice.”
Under the binding agreement, Corazon will acquire 100% legal and beneficial interest in tenement E15/1802 and sole exclusive gold rights over E15/1705 and E15/1721.
Total consideration of up to A$3.5 million, plus a royalty, is payable to Dynamic Metals, including upfront consideration of A$500,000 cash and A$1,000,000 in Corazon shares.
Deferred consideration includes A$1,000,000 payable within 30 days of Corazon announcing a JORC compliant Mineral Resource Estimate of at least 150,000oz Au at the acquired tenements and a further A$1,000,000 payable within 30 days of announcing a JORC compliant Mineral Resource Estimate of at least 300,000oz Au.
A 1.5% net smelter return royalty will also be payable to Dynamic Metals on gold extracted from the tenements.
Completion remains subject to customary conditions precedent, including completion of due diligence, execution of required agreements, third party and regulatory approvals, and a waiver by Mineral Resources Limited’s subsidiary of pre emptive rights held over the joint venture tenements.
Corazon will progress completion conditions for the acquisition while undertaking staged exploration across the consolidated tenure, including geological mapping, geochemical sampling and geophysical surveys, with priority given to southern corridor targets.
The company will also continue planning for Phase 1 resource growth drilling at Chalice, targeted to commence in Q3 CY 2026.