Spargos Reward Project
COR 65%, MTH 35%, plus 100% COR tenements
The Spargos Reward Project is subject to a Joint Venture agreement with Mithril Resources Ltd (MTH) whereby Corona has elected to sole fund a Scoping study in order to earn 85% of the Project. The project also has some 100% Corona owned tenements including the Mining Lease on which the Lady Allison deposit sits. The Project spans an area of 35 square kilometres, located close to the Esperance-Coolgardie Highway between Widgiemooltha and Coolgardie and is near the major gold camps of St Ives (12 million ounces) and Coolgardie (5 million ounces). Corona first acquired interest in this Project area in 2015 and has added to the Project since then.
The historical Spargos Reward Gold mine is situated on the project, and produced ~30,000 ounces of gold at a grade of ~8g/t Au. A significant percentage of the Project has not been tested by soil sampling despite having very attractive geological and structural settings.
Spargos Reward Deposit
The Spargos reward deposit is centred on the historical Spargos Reward gold mine. Significant extensions to the mined mineralisation (e.g. KWDD002: 17.5m @ 4.6 g/t Au) have been identified by various exploration parties including Newmont, and gold mineralisation has been identified to a depth of 400m from surface (SPD002 23m @ 2.1 g/t Au inc 7m @ 4.94 g/t Au)) and still open. Parallel gold lodes at surface were not mined historically and have had relatively little exploration attention given them despite multiple wide high grade intersections being present less than 100meters below surface (e.g. SVDH001: 19.8m @ 3.4 g.t Au, 09BWK007: 9m@ 3.4 g/t Au, and ) which presents a modest exploration target.
In addition to this Coronas maiden drilling program in January 2016 intersected new parallel gold lodes at depth (16SPRCD007: dolerite lode: 4.8m @ 4.25 g/t Au) and showed the gold system is hosted in a major shearzone, which where intersected is over 150m wide and has seen very little exploration along strike to the north and south of the Spargos Reward mine. The potential for further parallel lodes within this very large shearzone is good and the potential extent of the new Dolerite Lode is presently unknown as it sits in the footwall of the Main Lode in a position rarely penetrated to by previous explorers. Corona is working towards a maiden resource for this gold deposit and has applied for a mining lease.
The mill tailings from the historical gold production at Spargos Reward are still present within the project. Records indicate historical production was ~100,000 tonnes of ore with ~ 85% of gold recovered from a head grade of 8 g/t Au. The remainder of this gold is located in the tails and the recovery rate indicates the grade of the tailings to be 0.8-1.2 g/t Au. Corona is considering options for the tails and they will be incorporated in Corona maiden resource estimate.
Lady Allison Deposit
Gold mineralisation was discovered here by Harmony Gold in 2004 (although small scale historical workings are present on the project) who drilled out the deposit area in two RC programs before reverting the project to Carrick Gold Ltd (now Kalnorth Gold Ltd) who contracted Snowdens Mining Ltd to undertake a resource estimate after another RC drilling program. The resource estimate was undertaken using JORC2004 reporting requirements, and thus Corona will not report the resource until it has been upgraded to JORC2012 reporting requirements. Mineralisation appears to be structurally complex and hosted in both a metasedimentary schist and a granodiorite with the schist hosted mineralisation the focus of both Harmony and Carrick.
Other prospects and exploration targets
Numerous gold exploration targets are present within the Spargos Reward Project. More than 50% of the project has not seen systematic soil sampling despite having very attractive geological and structural settings. Particularly in the North Wset of the tenure where a major jog on a regional shearzone is present. Where soil sampling has been conducted a significant 5km long gold mineralised system has been discovered with RAB and RC drilling hits such as SRC13: 2m @ 13 g/t Au, SRB040 3m @ 10 g/t Au, and SR0988 1m @ 49 g/t Au. Further work is needed to test these anomalies especially SRB040 3m @ 10 g/t Au as this is an isolated drill hole associated with a soil anomaly with no other drilling present for more than 250m.