ASX Announcement (ASX: HMX)
13th September 2016
Millennium Cobalt-Copper-Gold Project Drilling Update
Hammer Metals Limited (ASX: HMX) wishes to update shareholders on progress with its current RC drilling program at the Millennium project following receipt of assays for the first 18 holes (including extensions of two previous holes) of the 25-hole program. These results compliment previous drilling in the area with a total of 38 holes drilled by the end of the program that can be utilized in a mineral resource estimate.
Significant results to date at a nominal 0.3% CuEq* cutoff include:
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24 metres from 73 metres at 0.15% Co, 0.23% Cu and 0.09g/t Au (1.17%CuEq) including
4 metres from 73 metres at 0.51% Co, 0.46% Cu and 0.16g/t Au (3.64% CuEq) in MIRC013
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13 metres from 98 metres at 0.10% Co, 0.41% Cu and 0.10g/t Au (1.12% CuEq) in MIRC007
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12 metres from 149 metres at 0.19% Co, 0.57% Cu and 0.19g/t Au (1.85% CuEq) including
4 metres from 157 at 0.30% Co, 0.44% Cu and 0.14g/t Au (2.33% CuEq) in MIRC014
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18 metres from 62 metres at 0.11% Co, 0.40% Cu, and 0.17g/t Au (1.23% CuEq) in MIRC015
Drilling Summary
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Cross Section 7722800mN
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The objective of this drilling program is to provide an initial test of the continuity of mineralisation intersected in previous drilling at Millennium. The results are considered sufficiently encouraging to proceed immediately with a resource estimate.
Hammer has geologically mapped the Millennium lease area in detail and along with the drillhole information a 3-D geological model is in preparation. When assay results for the additional seven holes (MIRC017 - MIRC023) which have just been completed are received and compiled a mineral resource estimate will be undertaken.
Drilling to date has outlined two separate zones of strongly mineralised material at the southern half of the leases. The mineralised zones comprise moderately to steeply west dipping zones of sheared shales and quartzite up to 40 metres in thickness.
Hammer's work indicates that strong potential lies at the northern end of the leases in a very similar structural and geological situation with strongly anomalous copper and cobalt soil geochemistry that has not yet been drill tested - the "Northern Target". In addition, there is potential along strike from the old Federal Mine with reported historical production of approximately 10,000 tonnes at 26% Cu. These targets will be pursued in subsequent drilling programs.
The remaining assay results for Millennium and Scalper will be reported when received.
The drilling rig is expected to move to Overlander shortly where, as advised previously (ASX release dated 10th August 2016) preliminary positions for a planned three hole, 1500m diamond drilling program at the Overlander IOCG target within the Hammer - Newmont Farm-in and JV ground have been finalized. The purpose of this program is to test for a large, bulk-tonnage copper-gold (IOCG) system in the vicinity of the gravity and magnetic anomaly immediately to the west of the current Overlander copper resource. Drilling at Overlander is expected to take approximately seven weeks to complete.
(*Copper Equivalent Calculation - CuEq_% = Cu_%+(Co_%*5.9)+(Au_ppm*0.9)+(Ag_ppm*0.01))
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For further information, please contact:
Alex Hewlett | Executive Director
or visit our website www.hammermetals.com.au
Hammer Metals Limited (ASX:HMX), is an advanced exploration company with a major land position (2600km2) in the Mount Isa Mineral Province in NW Queensland. The tenement package is sandwiched between several large resource houses including Glencore, BHP and Chinova. Hammer is focused on developing base and precious metal resources in the district through well-targeted exploration and project acquisition activities.
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ASX Announcement (ASX: HMX)
Cross Section 7722650mN
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