A mineral exploration company, Hammer Metals Limited (ASX: HMX) has a large and strategic tenement position in the Mount Isa mining district, covering an area of around 3,000km2.
The company is currently exploring the Mount Isa project for large iron oxide copper-gold (IOCG) deposits of the Ernest Henry style. The project area is also prospective for iron sulphide copper-gold (ISCG) deposits, Eloise deposit being a major example, which contains a pre-mining resource of approximately 3.1 million tonnes at 5.5% Cu and 1.4g/t Au.
Lately, the company has been investigating potential development strategies with preliminary open-pit mining studies for the in-house program planning use being undertaken on the Elaine, Jubilee, Overlander and Kalman Deposits. The initial pit optimisation studies on the Jubilee Inferred Mineral Resource Estimate of 1.41Mt @ 1.41% Cu and 0.62g/t Au (at 0.5% Cu cut-off) were considered encouraging. The company, at present, is planning the infill drilling program to upgrade the resource category from Inferred to Indicated status.
During the 2019 March quarter, the company reported laboratory gold results for soil sampling conducted on the Mt Philp Breccia IOCG Project. Multiple gold-copper targets were reported by the soil sampling, and in parallel, the initial rock chip sampling returned highly encouraging results. Anomaly reviews over the Mt Philp IOCG Breccia Project continue and further results from this ongoing sampling program are expected shortly.
At the company’s Mt Philp Breccia IOCG Project, a number of strong copper-gold anomalies and multiple gold-only geochemical anomalies were identified. These anomalies could be indicative of Tick Hill style gold mineralisation. The company has commenced a fieldwork on this project, which has already located strong anomalous rock chips with elevated copper and gold values of up to 16% Cu and 2.41g/t Au.
One of the major highlights during the March quarter was the announcement of the proposed acquisition of Carnegie Exploration Pty Ltd, which holds the Bronzewing South Gold Project tenements in the Yandal Greenstone Belt in Western Australia. The company believes that the Bronzewing South Project will be a positive addition to the company’s portfolio.
Recently, in the Malbon region, the rock chip sampling defined the Speculation, Pioneer Prince and Alice-Kings trends. The first phase of rock chip sampling indicated that these zones have a high gold-copper ratio with elevated cobalt and bismuth.
Significant Results from Rock Chip Sampling (Source: Company Reports)
In February, the company raised $1 million via placement. At the end of the March quarter, the company had $1.1 million on deposits.
For June 2019 quarter, Hammer Metals is focusing on finalising the proposed Bronzewing South Gold Project Acquisition. The company intends to commence a targeted ground exploration program focusing on the prospective corridors along strike from Bronzewing and Orelia deposits. Further, the company is expecting to seek ways for completing its preliminary pit optimisation studies at Kalman, Overlander, Jubilee, Elaine and Black Rock.
In the last six months, HMX has soared by 4%, offering a YTD return of 8.33% as on 29th May 2019. At the time of writing, i.e. on 30th May 2019, AEST 02:30 PM, the stock of the company is trading at a price of $0.027, up 3.846% during the day’s trade with a market capitalisation of $9.13 million.
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