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
