How Corazon’s Feather Cap Option Could Reshape Its Gold Footprint in WA

Strategic Expansion in a Proven Gold Province

Corazon Mining Ltd (ASX, CZN) has taken a decisive step to bolster its presence in Western Australia’s Gascoyne region by securing a binding heads of agreement granting an exclusive 12-month option to acquire an 80% interest in the Feather Cap Gold Project. This move complements Corazon’s recently acquired Two Pools Gold Project, consolidating a substantial landholding in a region renowned for its gold and base metal deposits.

The Feather Cap Project spans approximately 154 square kilometres and comprises four exploration licences and one mining lease. Its location is particularly strategic, situated less than 50 kilometres from Westgold Resources’ Fortnum Mill and within 100 kilometres of Corazon’s Two Pools Project. This proximity offers potential operational and geological synergies that could accelerate exploration and development efforts.

Historical Data Highlights Promising Gold Mineralisation

Historical drilling within the project area reveals encouraging gold mineralisation across multiple targets. Notably, the Durack East prospect features intercepts such as 20 metres at 3.01 grams per tonne gold, including a high-grade 4 metres at 10.7 grams per tonne. Similarly, the Wembley area returned 7 metres at 6.21 grams per tonne gold, including 2 metres at an impressive 18.33 grams per tonne. These results, while derived from legacy drilling programs, underscore the project’s potential and justify further exploration.

Corazon plans to undertake a comprehensive review and analysis of all historical geochemical and drilling data to refine target generation and validate these high-grade zones. The company’s Managing Director, Simon Coyle, emphasised that the option structure is capital efficient, enabling rapid advancement of exploration while preserving financial flexibility.

Option Terms and Future Joint Venture Structure

The option agreement requires Corazon to pay an initial fee comprising $50,000 in cash and $50,000 worth of Corazon shares by mid-October 2025. During the 12-month option period, the company commits to a minimum of $250,000 in exploration expenditure on the tenements. Exercising the option will trigger a joint venture formation, with Corazon holding an 80% interest and RBH Mining retaining 20%, free carried until a final investment decision is made.

Upon a positive final investment decision, RBH’s interest converts into a 3.5% net smelter return royalty on minerals extracted, excluding iron ore and manganese. Deferred consideration payments totaling $1.6 million are structured over four years, payable in cash and/or shares subject to shareholder approval.

Positioning for Growth in Western Australia’s Gold Sector

This transaction aligns with Corazon’s broader strategy to establish a significant gold exploration presence in Western Australia’s proven mineral provinces. The Feather Cap Project’s location within the Capricorn Orogen and Bryah-Padbury Basin places it in a geological setting known for hosting major gold and copper deposits, such as Westgold’s Durack and Sandfire Resources’ DeGrussa.

Recent high-grade discoveries nearby, including Tambourah Metals’ Beatty Park South Project, further enhance the prospectivity of the region. Corazon’s consolidation of these tenements positions it well to leverage regional exploration successes and potentially fast-track development opportunities, particularly given the near-surface mineralisation at Wembley.