Corazon bolsters new Eastern Goldfields play with seasoned gold gun

Corazon Mining has brought in experienced WA geologist Will Stewart to lead the next phase of resource growth at its recently acquired Chalice gold project near Norseman, appointing him General Manager – Geology, effective from today.

Stewart holds a Bachelor of Science in Applied Geology from Curtin University and is a Member of the Australasian Institute of Mining and Metallurgy. He was recognised with the IGO Excellence in Geoscience Award in 2017 and brings more than 20 years of technical and corporate leadership across ASX-listed gold and base metals companies, most recently as geology manager at WIN Metals.

His CV also includes senior roles with Silver Lake Resources, Mineral Resources and Ardea Resources, along with experience as a Competent Person for resource estimates and exploration results.

The appointment comes as Corazon beds down its acquisition of Chalice from Westgold Resources and prepares to start drilling at a project with a 191,000-ounce JORC 2012 mineral resource grading 2.7 grams per tonne gold and a production history of 645,000oz grading 5.4g/t.

Historical drilling has confirmed unmined, high-grade mineralisation that remains open and has not been tested by modern exploration. Notable downhole intercepts include 35m at 2.5g/t gold from 149m, including 15m at 4.1g/t from 149m in the Kronos Lode, and 22m at 3g/t gold from 524m in the Olympus Lode. A near-mine hit also returned 8m at 8g/t gold from 189m.

The Chalice project is in the Higginsville district of WA’s Eastern Goldfields, some 50km northwest of Norseman and 22km by road from Westgold’s Higginsville carbon-in-leach gold processing plant. Corazon says the deposit remains open in all directions and lies within 130km of seven operating processing facilities.

Corazon Mining managing director Simon Coyle said: “Will's track record speaks for itself. He has built and grown resources at some of WA's best-known gold and base metals operations, and as Competent Person he brings the rigour and discipline we need as we move into the next phase at Chalice. With shareholder approval for the Chalice acquisition now secured, our focus shifts firmly to the geology – defining the targets, growing the resource and building the team capable of delivering on the opportunity in front of us. Will is exactly the right person to lead that work”.

Under a binding asset sale and purchase agreement, Corazon struck a $25.7 million deal in May to acquire 100 per cent of Chalice from Westgold. The package includes $8m in upfront cash, $6.7m in Corazon shares and $11m in deferred cash payments tied to anniversary and resource growth milestones. Westgold has emerged with a strategic 19.9 per cent stake in Corazon after the transaction and associated capital raising.

Corazon also received firm commitments from institutional and sophisticated investors to raise $16.5 million before costs through a placement of an estimated 117.9 million shares at 14c each. Shareholders approved the Chalice acquisition and placement at a general meeting on June 29, clearing the way for the company to shift from deal-making to fieldwork.

The placement proceeds will fund the upfront cash payment to Westgold, an accelerated drilling program, technical studies at Chalice and acquisition costs. The funds will also support exploration at the company’s Two Pools and Feather Cap gold projects, along with working capital and corporate overheads.

Once the acquisition and placement are complete, Corazon expects to hold an estimated $12m, giving it a fully funded platform for phase-one drilling and initial pre-production studies at Chalice. The company is planning a 15,000m drilling campaign at Chalice to extend known mineralisation and probe new targets.

Stewart’s brief will include leading the technical strategy to grow and upgrade the Chalice resource, prioritising drill targets and further building the company’s geological team. His broader remit also covers Corazon’s Two Pools and Feather Cap gold projects, giving the company a dedicated geology chief across its emerging WA gold portfolio.

It is a neat first move for Corazon now that Chalice is in the tent. With a proven high-grade system, a fresh technical lead, substantial funding and a sizeable drilling phase on the horizon, the company looks ready to move quickly to test whether its newest gold play has more ounces to give.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au