ASX RELEASE
onlyDIRECTORS /
15 February 2022
MANAGEMENT
Russell Davis
Chairman
useDaniel Thomas Managing Director
Ziggy Lubieniecki Non-Executive Director
David Church Non-Executive Director
Mark Pitts Company Secretary
Mark Whittle
Chief Operating Officer
CAPITAL STRUCTURE
ASX Code: HMX
Sha e Price (14/02/2022) $0.073
Shares on Issue | 815m |
Mark t Cap | $59m |
Options Unlisted | 27m |
Performance Rights | 8m |
personalFor |
KALMAN DEPOSIT EXTENDED WITH SHALLOW
COPPER-GOLD-MOLYBDENUM HITS
- Drilling at Kalman has intercepted broad zones of shallow copper/gold/molybdenum/rhenium mineralisation, extending the deposit to the north of the existing JORC resource. Significant intercepts include:
-
50m* at 0.63% Cu and 0.49g/t Au, (0.79% CuEq† ) from 20m in K-144;
o including 16m* at 1.38% Cu and 0.84g/t Au (1.59% CuEq†) from 43m -
64m* at 0.23% Cu, 0.12% Mo, 0.10g/t Au, 2.97g/t Ag, and 2.64g/t Re (0.75% CuEq† ) from 67m in K-143;
o including 16m* at 0.19% Cu, 0.34% Mo, 0.08g/t Au, 8.84g/t Ag, and 8.59g/t Re (1.71% CuEq† ) from 114m - 22m* at 0.82% Cu, 0.37g/t Au and 0.03% Mo (1.0% CuEq† ) from 99m in K-145;
o Including 8m* at 1.41% Cu, 0.75g/t Au, 0.08% Mo, 1.5g/t Ag, and 1.7g/t Re (1.88% CuEq†) from 99m.
-
50m* at 0.63% Cu and 0.49g/t Au, (0.79% CuEq† ) from 20m in K-144;
- The most recent JORC Mineral Resource estimate on the Kalman deposit and reported to the ASX on 27 September 2016 was 20Mt at 1.8% CuEq.
- Follow up drilling to determine the extent of the mineralised zone and potentially increase the Kalman resource is planned.
- Drilling continues at the Ajax prospect where Hammer has intercepted shallow copper bearing sulphide. Initial analysis by portable XRF was completed with samples being submitted to the laboratory‡. Intercepts include:
- 10m§ at 3.5% Cu from 25m in HMLVRC014*;with a maximum individual 1m PXRF analysis of 8.9% Cu (see ASX Announcement 14 February 2022)
Hammer's Managing Director, Daniel Thomas said:
"Kalman remains Hammer's most advanced prospect and these results highlight the latent potential in immediate proximity to the project. Drilling has improved confidence in the defined JORC resource and has also opened up the deposit to the North at shallow depths, whilst the high-grade potential of the system remains open at depth and along strike to the South. In an environment of rising metal prices and with a surge in demand for new economy metals, Hammer is presented with an immediate opportunity to further explore Kalman focussing on increasing the potential economic return from this system.
Combined with continued exploration success near this deposit, the underlying potential of the Mount Isa Inlier region is finally garnering the investor and industry interest it deserves. Hammer is positioned for success through the advancement of our JORC compliant resources and our numerous exploration prospects during the coming year. Drilling continues at our prospects and within the Mount Isa East Joint Venture providing a solid stream of exploration news in the months ahead."
- True thicknesses are interpreted to be approximately 55-75% of the down-hole thicknesses.
- "Recovered Copper Equivalent" - includes metallurgical recovery factors for each metal. Detailed explanation of the assumptions and price underpinning the copper equivalent calculations are at the end of this document.
‡ These portable XRF results should be considered preliminary, and they will be subject to confirmation by subsequent laboratory analyses. The lab analyses may vary from those obtained by portable XRF.
§ True thicknesses cannot be ascertained as this is the first drillhole into the Ajax Prospect.
T (08) 6369 1195 | E info@hammermetals.com.au | ASX:HMX |
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- Strong copper (US$10,220/t) and molybdenum prices (US$44,750/t) present an opportunity to accelerate the assessment of potential development scenarios for Kalman as well as Hammer's Overlander and Jubilee deposits.
- Further work is being commissioned to assess:
- potential opportunities related to ore sorting and metallurgical recoveries; and
- investigate potential mining scenarios using updated commodity prices and costs.
- The current drilling program includes several prospects with drilling at the Trafalgar trend within the Sumitomo Metal Mining Joint Venture and at Hammer's 100% prospects at Orion, Neptune and Sunset. Assay results are expected to be received throughout March including results for recently completed rock and soil geochemical surveys
- Following the "Major Copper Discovery" by Carnaby Resources (ASX: CNB) at Nil Desperandum (~35km southwest of Kalman), Hammer has instigated a geological review of its neighbouring tenements and targets including Revenue (~5km to the east of Nil Desperandum) and Overlander
- An Induced Polarisation (IP) survey is scheduled for March/April. Targets being considered include: Kalman, Trafalgar, Shadow, Hammertime, Neptune, Revenue, St Mungo, Mt Mascotte and Saint Andrew.
Hammer Metals Ltd (ASX:HMX) ("Hammer" or the "Company") is pleased to release results from shallow reverse circulation drilling conducted on the northern margin of the Kalman Deposit.
Kalman Cu-Au-Mo-Re Deposit
The 100% HMX owned Kalman Deposit located 50km southeast of Mt Isa is one of the few polymetallic deposits in Queensland to contain significant molybdenum and rhenium in addition to copper and gold. With open pit and underground mining potential, the deposit remains open at depth and along strike.
The most recent Mineral Resource estimate conducted on the Kalman deposit and reported to the ASX on 27 September 2016 was 20Mt at 1.8% CuEq#. The resource remains open at depth.
Table 1. Kalman JORC Resource Estimate (refer to ASX announcement dated 27 September 2016)
# Note
Numbers rounded to two significant figures. Totals may differ due to rounding
Note that the CuEq calculation reported in 2015 is based on 2014 commodity prices - CuEq = Cu + (0.864268 * Au) + (0.011063 * Ag) + (4.741128 * Mo) + (0.064516 * Re)
Copper Equivalent Price assumptions are: Cu: US$4,650/t; Au: US$1,250/oz; Ag: US$16/oz; Mo: US$10/lb; and Re: US$3,000/kg.
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Figure 1. Kalman oblique view looking northwest copper equivalent % blocks
(Refer ASX announcement 27 September 2016)
Kalman Drilling
Four RC holes for a total of 776m were drilled to test a poorly tested area at the northern end of the deposit. The successful delineation of near-surface mineralisation in this area has potential to materially upgrade the Kalman Resource. Hammer is currently reviewing options to conduct further drilling, targeting this lode along strike and at depth.
Significant intercepts include:
- 9m* at 0.65% Cu, 0.23% Mo, 0.27g/t Au, 12.09g/t Ag, and 4.82g/t Re (1.74% CuEq† ) from 41m in K- 142;
- 64m* at 0.23% Cu, 0.12% Mo, 0.10g/t Au, 2.97g/t Ag, and 2.64g/t Re (0.75% CuEq† ) from 67m in K- 143;
- 50m* at 0.63% Cu, 0.01% Mo, 0.49g/t Au, 0.53g/t Ag, and 0.08g/t Re (0.79g/t CuEq† ) from 20m in K- 144;
- 22m* at 0.82% Cu, 0.03% Mo, 0.37g/t Au, 0.8g/t Ag, and 0.63%Re (1.0% CuEq† ) from 99m in K-145;
- 6m* at 0.4g/t Au, 1.3g/t Ag, 1.13% Cu, 0.13% Mo and 2.71g/t Re (1.73% CuEq† ) from 161m in K-145.
Mineralisation intercepted at 99m in hole K-145 represents an extension of a mineralised lode approximately 100m to the North of the existing JORC resource blocks. Future drilling will aim to extend this zone of mineralisation which remains open at depth and to the North (Figure 2).
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Similarly, a broad zone of mineralisation intercepted in hole K-144 potentially indicates the amalgamation of two interpreted mineral lenses (Figure 3). The previous resource model also constrained the eastern zone of mineralisation at depth below hole K-144. This also represents a zone for further resource definition at a shallow depth which would be amenable to future open pit mining.
Figure 2. Plan view of the Kalman Deposit showing the current resource model, location of K-142 through K-
145 and the eastern target zone.
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Figure 3. Section through K-144 showing the potential for a down-dip target volume outside of the current
JORC Resource Model (refer also ASX announcement 27 September 2016)
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Hammer Metals Limited published this content on 14 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 February 2022 22:45:46 UTC.