Hammer Metals Limited reports steady progress in its December 2024 quarter with multiple drilling programs underway across its Mount Isa copper-gold projects, while assay results from recent campaigns are eagerly awaited.
- Completion of two drilling phases at Lady Jenny with assays pending
- Upcoming Bullrush JV drilling targeting high-priority IOCG deposits scheduled for February
- Drilling planned at multiple 100% Hammer Metals projects including Tourist Zone and Mascotte
- South32 advances Isa Valley JV with second-stage drilling to test base metal anomalies
- Strong cash position of $2.7 million supports ongoing exploration activities
Exploration Momentum Builds at Mount Isa
Hammer Metals Limited (ASX: HMX) has delivered a comprehensive update on its December 2024 quarter activities, underscoring a busy period of exploration across its extensive Mount Isa copper-gold portfolio in Queensland. The company’s strategic focus remains on advancing multiple drilling programs designed to unlock the potential of several high-priority targets.
During the quarter, Hammer Metals completed two phases of drilling at the Lady Jenny Mining Lease, an area with historical underground and surface copper oxide mineralisation. Eleven holes totaling 1,343 metres were drilled, targeting mineralisation beneath previously mined zones. While assay results have been delayed due to laboratory staffing issues, they are expected imminently, and will be critical in defining the economic potential of this shallow, tabular deposit.
Joint Ventures Drive Targeted Exploration
Hammer’s joint ventures continue to play a pivotal role in its exploration strategy. The Bullrush Joint Venture with Sumitomo Metal Mining Oceania (SMMO) is poised to commence a significant diamond drilling campaign in February, focusing on Iron Oxide Copper-Gold (IOCG) targets beneath Cambrian cover. Geophysical surveys have delineated four compelling drill targets characterized by coincident gravity and magnetic anomalies, consistent with known Australian IOCG systems. This program represents a critical test of Hammer’s geological model and the potential for a major discovery.
Meanwhile, South32 has progressed to the second stage of its earn-in agreement at the Isa Valley JV, where ionic leach soil sampling has identified a high-priority zinc anomaly with associated silver, lead, arsenic, and cadmium signatures indicative of sediment-hosted base metal mineralisation. A 900-metre drilling program is planned to test these targets, further expanding Hammer’s exposure to diverse mineralisation styles in the region.
100% Owned Projects Set for Follow-Up
Hammer Metals is also advancing its wholly owned projects with planned drilling at the Tourist Zone, Mascotte, Revenue, and Kalman South-East targets. Notably, the Tourist Zone drilling program was delayed by adverse weather but is rescheduled for early March. Previous drilling at Mascotte has returned encouraging high-grade copper-gold intersections, prompting further fixed loop electromagnetic surveys and follow-up drilling to refine targets.
At Kalman South-East, drilling was interrupted by rain, with one hole completed and assays pending. This target is notable for its copper-molybdenum soil anomaly, comparable in scale to the nearby Kalman deposit, underscoring its exploration significance.
Financial Position and Outlook
Hammer Metals ended the quarter with a solid cash balance of $2.7 million, bolstered post-quarter by a $300,000 government incentive related to its Hardway copper-rare earth element drilling program. The company’s disciplined expenditure of $1.164 million on exploration during the quarter reflects a focused approach to advancing its portfolio while maintaining financial prudence.
Looking ahead, the company anticipates a steady flow of assay results and geophysical data throughout February and March, which will be pivotal in guiding subsequent drilling campaigns and refining its exploration model. Participation in key industry conferences in February also signals Hammer’s intent to engage with investors and stakeholders as it progresses its projects.
Bottom Line?
As assay results and drilling programs unfold, Hammer Metals stands at a critical juncture to validate its exploration potential in one of Australia’s premier copper-gold provinces.
Questions in the middle?
- What will the pending assay results from Lady Jenny reveal about the deposit’s economic viability?
- Can the Bullrush JV drilling confirm the presence of significant IOCG mineralisation beneath cover?
- How will South32’s upcoming drilling at Isa Valley impact the joint venture’s future commitments and Hammer’s stake?