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ASX Announcement (ASX: HMX)
25th May 2016
Mount Isa Exploration Update
Drilling to Commence at Millennium and Scalper
Hammer Metals Limited (ASX: HMX) ("Hammer" or "the Company") wishes to update shareholders on the Company's activities.
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Drilling scheduled to commence in late June at Hammer's 100%-owned Millennium and Scalper
prospects after hole positions are finalised and heritage clearances obtained;
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Upcoming RC drilling program at the recently purchased Millennium copper-cobalt-gold prospect;
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Drilling at Millennium is designed to follow up recent high grade cobalt and copper intersections with the objective of outlining a JORC standard resource;
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Data review indicates less than 50% of the 3km strike length of the copper-cobalt anomalous zone at Millennium has been tested by drilling;
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Hammertime and Kalman South drill planning works currently being undertaken;
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Field programs under the Farm-in and Joint Venture Agreement with Newmont to complete data acquisition and progress the copper-gold targets to the drilling stage are well under way.
As announced to the ASX on 4th May 2016 Hammer acquired five granted mining leases over the Millennium copper-cobalt-gold project near Cloncurry. The acquisition secures a prospective high-grade cobalt-copper- gold target that complements Hammer's existing tenement portfolio in the region.
The Millennium leases are situated on the northern projection of the Pilgrim Fault, approximately 50km north of the Company's Kalman deposit and 16km west of the Rocklands copper-cobalt mine. Previous drilling indicates the potential for significant copper-cobalt-gold mineralisation in the area of the historical workings including previous drill intersections of up to 19m at 1.27% Cu, 0.38% Co and 0.7g/t Au which would equate to 18m at 4% CuEq*.(Refer to the CYU ASX release dated 4/12/2013 and the attached figures for details.) (*CuEq % = Cu % + 5.161702Co % + 0.868754Au ppm.)
Data compilation and drill hole planning are nearing completion with a preliminary program of approximately 2000m allocated to further test the higher grade sections of the lode, as well as provide an initial drill test of the extensive and as yet untested copper-cobalt soil anomaly to the north. Depending on the results of this program it is anticipated that a further program of resource definition drilling will follow.
At Scalper, a program of geological mapping and sampling, gravity and ground magnetics has outlined zones of magnetic "red-rock" altered and brecciated material coincident with the geophysical anomalies and adjacent to Hammer's previous drill intersection of 58m at 0.58% Cu and 0.13g/t Au including 12m @ 1.9% Cu and 0.13g/t Au in SCRC001. Scalper has similarities to the Overlander IOCG target where shear-related copper mineralisation occurs marginal to strong magnetic and gravity features. Drilling is planned to test for extensions to the mineralised zone in SCRC001 and also to provide an initial test of the adjacent gravity/magnetic target (Refer to the attached figures and to ASX release 19 November, 2014).
At Hammertime additional geological mapping and processing of geophysical data is being undertaken prior to finalising the drilling program for this prospect. The Kalman South high grade shoot is currently being evaluated for a step out drilling program.
Field programs are continuing under the Farm-in and Joint Venture Agreement with Newmont in order to complete data acquisition and progress the copper-gold targets to the drilling stage.
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For further information, please contact:
Alex Hewlett Executive Director
[email protected]
Russell Davis Executive Chairman
+61 (0)419195087
Competent Person's Statement
The information in this report as it relates to exploration results and geology was compiled by Mr. Mark Whittle, who is a Member of the AusIMM and a consultant to the Company. Mr. Mark Whittle has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Whittle consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
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Mount Isa Project Area
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Millennium - Significant Intersections
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