Hammer Metals has kicked off a Reverse Circulation drilling campaign at its Mount Isa Kalman project, aiming to upgrade inferred copper-gold resources and expand near-surface mineralisation. The program supports an upcoming Scoping Study and reflects optimism due to recent strength in copper, molybdenum, and rhenium prices.
- RC drilling underway at Kalman to upgrade inferred resources
- Scoping Study to incorporate Kalman and nearby copper-gold deposits
- Drilling targets include Lady Jenny and Blackrock prospects
- Results expected from late May with resource update mid-year
- Metal price assumptions for copper, molybdenum, and rhenium revised higher
Drilling Program Targets Resource Upgrade and Expansion at Kalman
Hammer Metals (ASX:HMX) has commenced a Reverse Circulation (RC) drilling program at its flagship Kalman copper-gold and critical metals project in the Mount Isa district. The program aims to upgrade the substantial inferred open pit resource; currently less than 35% indicated; to a higher confidence indicated status, while also testing extensions of shallow mineralisation at the southern end of the proposed open pit. This resource upgrade is pivotal for underpinning a Scoping Study that will integrate Kalman with Hammer’s nearby copper-gold deposits such as Overlander and Lakeview.
The drilling campaign also targets high-grade shoot potential at the Lady Jenny prospect and higher-grade zones within the broader Iron Oxide Copper Gold (IOCG) system at Blackrock. Drilling is expected to wrap up in May, with assay results anticipated from late that month, setting the stage for a resource update in June or July.
Hammer’s Managing Director Daniel Thomas highlighted the timing of the program amid a backdrop of strengthening commodity prices. "With recent strength in copper, molybdenum and rhenium prices, we look forward to demonstrating the scale and potential of the Kalman deposit and its broader regional significance as a future development opportunity," Thomas said.
Updated Metal Price Assumptions Boost Project Economics
The company has updated its recovered copper equivalent (CuEq) calculations to reflect significantly higher metal price assumptions for 2026 compared to those used in the 2023 resource estimate. Copper prices have been revised up from US$7,714/t to US$12,125/t, gold from US$1,850/oz to US$5,000/oz, molybdenum from US$37,468/t to US$60,000/t, and rhenium from US$1,800/kg to US$4,000/kg. These adjustments notably increase the CuEq grades of drill intercepts, potentially enhancing the economic viability of the Kalman deposit.
The metallurgical assumptions remain consistent with previous test work, with expected recoveries of 86% for copper and molybdenum, 74% for gold and silver, and 77% for rhenium. The inclusion of rhenium; a rare critical metal recovered as a by-product of molybdenum concentrate processing; adds a valuable credit to the project, although public data on rhenium pricing remains limited.
Broader Exploration Momentum at Mount Isa
This drilling campaign builds on Hammer Metals’ recent strategic push at Mount Isa, including a funded 3,000m program targeting SEDEX-style mineralisation and gold anomalies in the region. Notably, the company secured Queensland Government grants totaling $336,000 to support deep diamond drilling and geophysical surveys, including planned programs at Kalman West and Isa Valley. These initiatives aim to unlock new critical mineral deposits and complement the ongoing RC drilling at Kalman.
Upcoming milestones include the commencement of the Scoping Study in April, diamond drilling at Kalman West in June, a magnetotelluric survey at Isa Valley, and additional drilling at Orphan, Keyser, and Redback prospects through June and July. Hammer also plans air-core drilling at its Yandal Gold project in Western Australia, reflecting a diversified exploration pipeline.
The current drilling and study timelines align with Hammer’s strategy to elevate the Kalman project’s resource confidence and advance its economic assessment. The integration of historical data with new drilling results could refine the deposit’s open pit potential, which extends to approximately 400m depth based on conceptual models.
These developments follow Hammer’s recent announcement of a major 2026 drilling push at Kalman and other Mount Isa targets, signalling a concerted effort to upgrade resources and deliver a maiden Scoping Study that could reshape the company’s asset profile funded 2026 drilling at Mount Isa. The company’s ability to secure government grants further supports this exploration momentum $336K to probe Mount Isa.
Bottom Line?
The Kalman drilling campaign and updated metal price assumptions set the stage for a critical resource upgrade and economic study that could redefine Hammer Metals’ prospects in Mount Isa.
Questions in the middle?
- Will the drilling results confirm extensions to near-surface mineralisation at Kalman?
- How materially will the updated metal price assumptions impact the upcoming resource estimate and Scoping Study?
- What is the potential scale and timing for incorporating rhenium credits into project economics given limited market data?