Hammer Metals has launched a new drilling phase at its Kalman Critical Metals Project while identifying fresh large-scale targets across its Mount Isa portfolio. Joint venture drilling at Bullrush and Isa Valley delivers promising copper and zinc results, complemented by a mining lease application at Orelia North in the Yandal gold belt.
- New 3km RC drilling at Kalman to upgrade resources for scoping study
- Bullrush and Isa Valley JV drilling complete with encouraging assays
- High-priority SEDEX target defined at Kalman West with government funding
- Mining Lease Application lodged for Orelia North gold deposit
- Portfolio-wide prospectivity review highlights multiple underexplored targets
Kalman Drilling Targets Resource Upgrade and Scoping Study
Hammer Metals (ASX:HMX) has kicked off a 3km Reverse Circulation (RC) drilling campaign at its flagship Kalman Critical Metals Project in Mount Isa, aiming to convert a significant portion of its inferred open pit resource to indicated status. This upgrade is critical to underpinning a maiden Scoping Study planned for April, which will also integrate nearby copper-gold deposits such as Overlander and Lakeview. The drilling program targets both shallow southern extensions and deeper northern zones, with the goal of expanding near-surface tonnage and deepening the open pit design to access high-grade mineralisation.
The company’s updated recovered copper equivalent calculations incorporate recent metal price improvements, reflecting stronger copper, gold, molybdenum, and rhenium prices. This pricing revision could materially enhance the project’s economics if the resource upgrade confirms expectations. Early 2026 drilling results at Kalman have already delivered thick intercepts of copper, gold, molybdenum, and rhenium mineralisation, underscoring the deposit’s multi-metal potential. Hammer expects to release initial assay results from this campaign in May and a resource update by mid-year. This drilling build-out follows the company’s recent RC drilling underway at Kalman announcement, which highlighted the strategic importance of resource conversion amid rising critical metal prices.
New Large-Scale Targets and SEDEX Prospect at Kalman West
A comprehensive portfolio-wide review has identified several compelling new targets, notably a high-priority SEDEX-style mineral system at Kalman West. This target is supported by coincident lead-zinc-copper-gold soil anomalies and historical drill intercepts of up to 1.86% lead and 0.94% zinc. The Kalman West Schist, a graphitic and sulfidic muscovite-bearing unit, is interpreted as a key host horizon analogous to world-class SEDEX deposits in the Mount Isa district.
Hammer Metals has secured a $176,000 Queensland Government Collaborative Exploration Initiative (CEI) grant to part-fund a ~550m diamond drill hole testing this target at depth. The company plans to commence this drilling in June, aiming to validate the conceptual model that Kalman’s copper-gold-molybdenum-rhenium system may be part of a much larger mineralised system. This initiative complements the broader 3,000m drilling campaign across Mount Isa, which includes follow-up drilling at Blackrock and Lady Jenny prospects. The Kalman West SEDEX target was featured in the company’s earlier funded 2026 drilling at Mount Isa update, reflecting its strategic priority.
Bullrush and Isa Valley Joint Venture Drilling Delivers Encouraging Results
Hammer’s joint ventures continue to advance with drilling completed at the Bullrush JV (Sumitomo Metal Mining Oceania earning up to 80%) and Isa Valley JV (South32 earning up to 80%). At Bullrush, three diamond holes totaling 1,350m tested gravity highs and transitional magnetic targets, returning copper intercepts including 4m at 0.40% Cu and 1m at 0.31% Cu. Alteration vectors suggest increased prospectivity to the east and northeast, guiding future drill targeting.
The Isa Valley JV completed four RC holes for 1,166m targeting conductive and geochemically anomalous zones along the Mount Annable Fault. Zinc mineralisation was intersected, including 12m at 0.15% Zn and 10m at 0.12% Zn, with geochemical indices indicating proximity to SEDEX-style base metal mineralisation. South32 is conducting a petrological study and commissioning a magnetotelluric survey funded by a ~$160,000 CEI grant to better delineate subsurface structures. These results were previewed in Hammer’s recent promising copper and zinc hits at Bullrush and Isa Valley announcement, which highlighted the JV progress and exploration potential.
Yandal Gold Projects Progress with Mining Lease Application at Orelia North
In Western Australia, Hammer Metals submitted a Mining Lease Application (MLA) for the Orelia North gold deposit, located near Northern Star’s Orelia and Bronzewing operations. The deposit hosts multiple west-dipping mineralised lenses, with recent drilling confirming continuity of mineralisation at depth, including 8m at 0.94g/t Au. The MLA aims to facilitate a rapid transition from study to development, supported by a conceptual mining study and exploration of commercialisation options.
Drilling at Bronzewing South has identified new gold targets at West Gap, with maiden holes intersecting mineralisation such as 4m at 0.78g/t Au. Follow-up air-core and RC drilling programs are planned for 2026 to test structural corridors highlighted by gravity surveys. These developments build on Hammer’s established presence in the Yandal Belt and its strategic focus on advancing gold projects alongside its core copper-gold assets.
Corporate Position and Upcoming Catalysts
Hammer Metals closed the March quarter with $2.1 million in cash, having spent $1.17 million on exploration and evaluation activities, predominantly on drilling campaigns across Mount Isa and Yandal projects. Joint venture activities remain fully funded by partners, reducing capital demands on Hammer. The company also received $336,000 in Queensland Government grants supporting the Kalman West drilling and Isa Valley magnetotelluric survey.
Looking ahead, Hammer plans to release drilling results from Kalman, Blackrock, and Lady Jenny in May and June, followed by the Kalman West diamond drilling and Isa Valley geophysical survey in June. Additional drilling programs are scheduled for Orphan, Keyser, Redback, and Yandal gold projects through mid-year, alongside a Kalman resource update. These milestones will be critical in defining the next phase of development and resource growth potential.
Bottom Line?
Hammer Metals is methodically advancing its Mount Isa copper-gold and critical metals pipeline with targeted drilling and new high-priority targets, but modest cash reserves mean progress will hinge on timely assay results and JV partner funding.
Questions in the middle?
- Will the Kalman drilling successfully convert inferred resources to indicated status to support a robust Scoping Study?
- Can the Kalman West SEDEX target deliver a new tier-1 discovery within the Mount Isa mineral province?
- How will the Orelia North Mining Lease Application progress amid rising gold prices and regional milling options?