Hammer Metals inks joint exploration deal with Sumitomo

Hammer Metals (ASX:HMX) has executed a joint exploration agreement with Sumitomo Metal Mining Oceania (SMMO), providing SMMO the opportunity to earn an 80% interest in the Bullrush Project in northwest Queensland. 

The Bullrush Project covers sections of the Williams-aged Wimberu Granite, comprising 87km2 within the broader Mount Isa Project area. The project has geophysical signatures that are suggestive of iron oxide copper-gold (IOCG) mineralisation. 

During the earn-in period, SMMO can achieve an 80% interest in the project area by free-carrying Hammer to the completion of a Pre-Feasibility Study (PFS). 

Under the agreement, SMMO will pay an initial farm-in fee of $100,000 to Hammer within 10 days of entering the agreement, and will fund an initial 2,000m drilling campaign within 12 months. 

By spending $4.5 million within a four-year period, SMMO can earn a 51% interest. The company may fund a further $2 million of expenditure over one year to increase its interest to 60%. 

Upon completion of the second farm-in period, Hammer may choose to contribute its pro-rata share of exploration expenditure to maintain a 40% interest in the project or SMMO may earn an additional 20% interest by solely funding a PFS.

Hammer says the PFS will consider the feasibility of a life-of-mine production scenario of at least 100,000 tonnes of copper equivalent metal. 

Hammer Metals Managing Director Daniel Thomas says the Bullrush Project features a long coincident gravity and magnetic anomaly under moderate cover with no previous drilling. 

“The nearby Devoncourt Project demonstrates that the large williams age granite intrusion is a fertile host for copper and gold mineralisation of IOCG style,” he says. 

“With a commitment to drill this compelling target in the coming year, Hammer and its shareholders have another exciting opportunity to make a breakthrough copper discovery in the world-class metal province.”

The company says a series of prospective targets have been generated which will be assessed by the joint venture parties, with a view to conduct drilling in the coming year. 

Hammer Metals is an active mineral explorer focused on discovering copper-gold deposits. The company holds a strategic tenement position covering 2,800km2 within the Mount Isa mining district. 

Write to Aaliyah Rogan at Mining.com.au   

Images: Hammer Metals
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.