Corazon Mining has entered into a binding heads of agreement with RBH Mining for a 12-month exclusive option to acquire an 80% interest in the Feather Cap gold project.
Located in Western Australia's (WA) Gascoyne region, the project spans 154km² and consists of four exploration licences and one mining lease.
The Feather Cap project is strategically located less than 50km from Westgold Resources’ Fortnum mill and is contiguous with its Durack deposit, which holds 2.9 million tonnes at 1.2 grams per tonne (g/t) gold.
Corazon's managing director Simon Coyle said: “The grant of the Feather Cap Option is a key component of our strategy to build a significant presence in the Gascoyne region.
“With the Feather Cap Project located less than 100km from our Two Pools Gold Project, we will, subject to exercise of the option, consolidate a significant, highly prospective land package in a proven mineral province.”
Corazon plans to conduct detailed analysis of historical exploration data to refine drill targets, prioritising Durack East and Wembley.
Historical drilling at Feather Cap has revealed high-grade intercepts such as 20m at 3.01 g/t gold from 40m, including 4m at 10.7g/t, and 35m at 1.47g/t from 32m, including 5m at 5.13g/t at the Durack East prospect. In the Wembley area, shallow drilling returned 7m at 6.21g/t gold from 6m, including 2m at 18.33g/t.
Coyle observed that Wembley’s shallow mineralisation and weathered zones present a promising opportunity for early-stage project development.
Under the option terms, Corazon will pay RBH A$50,000 ($32,800) in cash and A$50,000 in shares, and commit at least A$250,000 to exploration during the 12‑month option period. If the option is exercised, Corazon will make a completion payment of A$600,000 and a further A$1m within four years.
RBH will retain rights to iron ore and manganese and be free-carried until a final investment decision, at which point its 20% stake will convert into a 3.5% net smelter return royalty.
Coyle called this deal “highly capital-efficient", saying it allows Corazon to speed up exploration while preserving its balance sheet.
