Hammer Metals Advances Kalman Drilling with 124m at 2.2% Copper Equivalent

Strong Intercepts Confirm Kalman’s Resource Potential

Hammer Metals (ASX:HMX) has delivered a robust start to its 2026 drilling campaign at the Kalman Critical Metals Project in northwest Queensland, with initial assays from drill-hole K-162 revealing a substantial 124 metres at 2.2% recovered copper equivalent (CuEqRec). This intercept includes significant grades of copper, gold, molybdenum, and rhenium, validating the geological model and bolstering confidence in the resource classification.

The partial results from K-162, spanning 186m to 310m downhole, highlight multiple thick mineralised zones, including a 58m true width interval at 2.44% CuEqRec and a 30m interval rich in molybdenum and rhenium at 3.98% CuEqRec. These findings reinforce Kalman’s status as a high-grade, critical metals deposit, with rhenium grades reaching up to 49.3g/t in some samples.

Resource Upgrade Drilling Supports Scoping Study

The current drilling program’s primary objective is to convert a greater proportion of inferred resources into the indicated category within the conceptual open pit shell, thereby underpinning an upcoming Scoping Study. This study will evaluate a hub-and-spoke development model incorporating Kalman alongside Hammer’s other Mount Isa copper-gold deposits such as Overlander, Elaine, Lakeview, and Jubilee.

Commodity price assumptions used in the 2026 resource calculations have been revised sharply higher; approximately 70% above those applied in the May 2023 resource update; reflecting stronger market fundamentals for copper, gold, molybdenum, and rhenium. This price uplift significantly improves the project’s economic outlook and is a key driver behind the accelerated drilling and study timeline.

Molybdenum and Rhenium Markets Bolster Project Economics

Hammer’s focus on molybdenum and rhenium is timely, given both metals’ critical mineral status and recent price surges. Molybdenum prices have climbed above US$85,000 per tonne, supported by demand from steelmaking and emerging green technologies. Meanwhile, rhenium prices have surpassed US$7,000 per kilogram, driven by aerospace industry demand and constrained supply, as it is a by-product of copper and molybdenum processing.

The Kalman deposit remains one of the world’s highest-grade undeveloped sources of these metals, positioning Hammer to capitalise on tightening supply chains and growing demand. The company’s Managing Director, Daniel Thomas, emphasised the scale and endowment of the Kalman system, noting the drilling results continue to demonstrate mineralisation at depth within the pit shell.

Expanding Exploration Beyond Kalman

Following the Kalman program, the drilling rig will shift focus to the Black Rock IOCG target and the Lady Jenny copper-gold prospect. Both areas offer significant potential to expand Hammer’s resource base in the Mount Isa district. Black Rock, in particular, hosts high-grade copper-gold zones such as Yellowstone and Sunset, which the company plans to drill as part of its maiden program on the Blackrock-Mountain View trend.

These efforts align with Hammer’s broader strategy to grow its portfolio of Ernest Henry-style deposits, as detailed in its recent drilling and targets update. The company also anticipates a resource update for Kalman by mid-year, following completion of the current drilling and receipt of all assays.

Laboratory and XRF Data Inform Ongoing Drilling

While laboratory assays for K-162 provide the headline intercepts, Hammer is also reporting portable XRF data from other holes in the program. These readings indicate extensive mineralisation across multiple drill holes, though they are preliminary and not yet independently verified. The company cautions that some intervals within K-162 have pending assays, currently assigned zero grade, which may adjust final grades once received.

The drilling is being conducted using reverse circulation methods, with samples analysed via fire assay and ICP-MS for a comprehensive elemental suite. Quality control measures include the use of certified reference materials and duplicates to ensure data reliability.

These drilling and assay programs build on Hammer’s earlier launch of Kalman resource upgrade drilling, which was initiated amid rising critical metal prices and strong market interest.