Hammer Metals (ASX:HMX) is preparing, with its joint venture partner Sumitomo Metal Mining Oceania, to initiate a drilling program in the first quarter of 2025 at its Bullrush Project in north-west Queensland.
The 2,000m diamond drilling program, which will be funded by Sumitomo, aims to test multiple high-priority iron oxide copper-gold (IOCG) targets within the state’s Mt Isa district.
Four drilling targets have been delineated through recent geophysical programs, which included infill gravity, a magneto-telluric survey, and three dimensional modelling of geophysical datasets.
Hammer Metals, which has a market capitalisation of $29.29 million, says each target is characterised by significant coincident gravity and magnetic features.
The southern targets are also coincident with a zone of lower resistivity, as defined through the three-dimensional magneto-telluric survey.
Hammer Metals Managing Director Daniel Thomas says the initial work completed has provided valuable insights into the covered targets.
“The surveys have delineated compelling geophysical targets in an area which is shaping up as a fertile IOCG district,” Thomas says.
“2025 is set to be an exciting year for Hammer as we test several buried large-scale tier-one targets. The knowledge gained from exploration of these projects will increase our overall understanding of the geological potential of these systems, in turn increasing the opportunity for discovery success across our portfolio.”
Since the joint venture was initiated in June 2024, both parties have been conducting further geophysical surveys to delineate targets beneath the Georgina Basin.
According to the joint venture arrangement, Sumitomo may acquire an initial 51% interest in the Bullrush Project by spending $4.5 million within four years. That stake may then be increased to 60% should Sumitomo spend another $2 million within an additional 12-month period.
From there, Hammer can retain its 40% interest by contributing its share of expenditure, or allow Sumitomo to free-carry Hammer to the completion of a Pre-Feasibility Study, at which point Sumitomo will hold an 80% stake.
Sumitomo Metal Mining has over 300 years of mine development and operation experience. The company operates the Hishikari Mine, while also participating in developing and operating several mines across Australia, Chile, Canada, Peru, and the US.
Hammer Metals holds a strategic tenement position covering 2,800km2 within the Mount Isa mining district. The company’s assets are considered prospective for copper, gold, and cobalt.
Write to Aaliyah Rogan at Mining.com.au
Images: Hammer Metals
