Hammer Metals has submitted a Mining Lease Application for its Orelia North gold deposit in Western Australia, aiming to accelerate development amid a buoyant gold price. Recent drilling results extend mineralisation, supporting resource growth ahead of a planned 2026 upgrade.
- Mining Lease Application submitted for Orelia North gold deposit
- Recent drilling extends gold mineralisation down-dip into fresh rock
- Resource upgrade planned for 2026 to expand open-pit constrained resource
- New gold target identified at Bronzewing South with promising drill intercepts
- Company advancing commercialisation options and seeking mining partners
Mining Lease Application Signals Development Momentum
Hammer Metals Ltd (ASX, HMX) has taken a significant step towards developing its Orelia North gold deposit in Western Australia's Yandal Belt by submitting a Mining Lease Application (MLA). This move aims to transition the project swiftly from the study phase to potential production, capitalising on the current strong gold price environment which has more than doubled since the maiden resource estimate was reported in mid-2024.
The MLA covers 275 hectares and is designed to support a low-cost mining and haulage operation, with ore expected to be transported to nearby processing mills. The deposit lies just 9.5 kilometres north of Northern Star Resources’ existing Orelia operations, placing it within a well-established gold mining province with strong regional infrastructure.
Encouraging Drilling Extends Mineralisation
Recent reverse circulation drilling at Orelia North has successfully extended gold mineralisation down-dip into fresh rock, beyond the previously defined oxide zones. Notably, an intercept of 8 metres at 0.94 grams per tonne gold from 127 metres depth, including 4 metres at 1.03 grams per tonne, confirms continuity of mineralisation beneath the weathered profile. This suggests the deposit remains open at depth and along strike, presenting opportunities to grow the resource ahead of a planned upgrade in 2026.
The drilling results underpin the company’s confidence in the deposit’s potential to support a small-scale, shallow open-pit operation. Hammer Metals is concurrently undertaking a conceptual mining study and exploring commercial pathways, including toll treatment options at several active mills in the region such as Jundee, Thunderbox, Bellevue, Darlot, and Agnew.
New Target Emerges at Bronzewing South
Alongside progress at Orelia North, Hammer Metals has identified a new gold target at Bronzewing South, located approximately 12 kilometres southeast of Orelia North. A maiden drill hole at the West Gap target intersected 4 metres at 0.78 grams per tonne gold from 72 metres, above a significant fault zone. This area has seen limited historical drilling, and further air-core and reverse circulation drilling is planned for 2026 to test this promising structural corridor.
Broader Portfolio and Strategic Outlook
While advancing its gold projects, Hammer Metals continues to develop its copper and critical minerals portfolio in Queensland, including the Kalman deposit. Managing Director Daniel Thomas highlighted the strategic advantage of having an established resource base in a Tier-1 jurisdiction, which supports unlocking further value across the company’s diverse assets.
As the company progresses technical studies and seeks mining and off-take partners, the next phases will be critical in defining the commercial viability of Orelia North. The upcoming resource upgrade and scoping study will provide further clarity on the project’s economics and development timeline.
Bottom Line?
Hammer Metals is positioning Orelia North for rapid advancement, but securing processing partnerships and confirming resource growth remain key hurdles.
Questions in the middle?
- What timeline can investors expect for MLA approval and commencement of mining?
- How will Hammer Metals secure toll treatment agreements with regional mills?
- What impact will fluctuating gold prices have on the project's economic viability?