Hammer Metals Ltd. announced an initial Mineral Resource Estimate (MRE) for the Lakeview copper-gold deposit, located 2km south of the Barkly Highway approximately mid-way between Mt Isa and Cloncurry in north-west Queensland. The deposit lies approximately 4.5km south-east of the Jubilee copper-gold deposit which forms part of the Mt Frosty Joint Venture (HMX 51% and Glencore 49%). The Mount Colin mine, operated by Aeris Resources, is located approximately 7.5km to the north.

Lakeview Mineral Resource Estimate: Geowiz Consulting was commissioned by Hammer Metals Limited to undertake a Mineral Resource Estimate (MRE) for the Lakeview copper-gold deposit. The MRE has been estimated in accordance with the 2012 Edition of the JORC code. The understanding of the geology, mineralisation, continuity, and methodology is sufficient for the mineralisation to be classified as an Inferred Mineral Resource.

The deposit is similar in style to other copper- gold deposits in the region that have been successfully mined by small-scale open pit mining techniques and, together with the pit optimisation hurdle, the implications are that the mineralisation can be successfully extracted. Hammer plans to conduct sighter metallurgical studies on the deposit in order to further de-risk eventual economic extraction. Drilling techniques: The Mineral Resource Estimate was based on 13 Reverse Circulation holes for a total of 1,380m and 717 samples.

All drill-holes utilised in the estimate were drilled by Hammer Metals Limited. The sampling length varies between 1m and 4m with an average of 1.92m. Drill fence spacing is irregular with 7 drill fence spacings of approximately 40m.

Drillholes were primarily drilled to the south with dips varying between 55 to 70 degrees. The rig utilised was a Sandvik DE840 with a face sampling bit diameter of approximately 5.25'. Down-hole orientation surveys were conducted by gyro.

Sub-sampling techniques: Sampling was conducted using a face sampling RC bit. Sample was collected via a configurable cone splitter and the output of each meter consisted of 2 calico bag samples (A & B) with weights between 2.5 and 3kg and a third sample which weighed approximately 15kg. Samples were assessed on site and sample length decisions were made based on observable and portable XRF indicated copper mineralisation.

Mineralised samples were submitted for assay at 1m intervals. Barren samples were submitted as 4m composites. Composite creation was done at the drill rig by Hammer personnel utilising a 12.5% riffle splitter to create an appropriately sized composite sample.

Sample analysis methods: Samples were submitted to SGS Townsville and ALS Mount Isa. At both labs the methodology was the same with sample preparation of coarse crush with 70% passing 2mm followed by pulverisation of a riffle split 1kg subset to 85% passing 75 microns. Analyses conducted were via 50gm fire assay fusion with AAS determination for Au and a four-acid digest ICP MS method to determine multielement concentrations.

Specific gravity determinations were selectively conducted on samples via Gas Pycnometric analysis and 30 analyses were undertaken with 18 samples within the three interpreted lode wireframes and the remainder used to assess waste rock specific gravity. During the sample collection process Hammer inserted company certified reference samples (or CRM's) at a rate of one standard and one blank per 25 inserted samples. In addition, duplicate samples were inserted at a rate of two samples per 50 ordinary samples.

Cut-off grades: The mineralised domains were constrained by wireframes constructed using a 0.3% Cu cut-off grade guided by geological and geochemical interpretation. This process identified two main mineralised areas termed the northern and southern zone. Within the southern zone, 3 separate lodes were interpreted however the lower two zones could not be identified on adjacent sections.

Mineral Resource estimation methods: Hammer Metals provided Geowiz with interpreted mineralisation string files and a drill hole database. Geowiz used Hammer's mineralised zone outlines to create strict wireframes at the 0.3% Cu cut-off. A block model was constructed in the regional datum (GDA94 Zone 51) to encompass the full extent of the Lakeview deposit.

Block parameters, based on a possible open pit mining scenario were a parent block size extent of 4m north, 10m east and 5m elevation with block sub-celling to 2m north, 5m east and 2.5m elevation. Based on the weathering profile encountered in drilling a weathering surface was created assigned to blocks within the block model. Both Au and Cu were estimated via univariate ordinary kriging using only the input data from the mineralised zone.

An oriented ellipsoid (based on variography) was used to select data for the interpolation. Validation of the block model was conducted by visual checks on screen in plan and cross section, statistical comparison of sample and block grades and swath plots to visualise the correlation between the composite grades and block model grades. Mineral Resource reporting - JORC Classification: The Mineral Resource has been classified based on the guidelines specified in the JORC Code.

Although the RC drilling has defined 3 continuous mineralised lodes, exploration of the Lakeview deposit is in the early stages and more drilling is required to better define the extent of the deposit. Due to the limited amount of drilling, the MRE has been classified as Inferred only based on the guidelines specified in the JORC Code. Mineral Resource reporting - Reasonable Prospects of extraction hurdle and JORC Classification: Clause 20 of the JORC Code (2012) requires that all reports of Mineral Resources must have reasonable prospects for eventual economic extraction, regardless of the classification of the resource.

The Competent Person deems that there are reasonable prospects for eventual economic extraction as the Lakeview deposit is of sufficient grade and tonnage to be mined from surface. To satisfy the JORC guideline that the resources should have the potential to be mined, the resource was constrained within an optimised pit shell run using a Cu price of AUD 5.30 per pound and a AUD 2,500 per ounce Au price. Blocks above a 0.3% Cu cut-off grade within the optimised open pit shell are determined to have reasonable prospects of future economic extraction by open pit mining and are included in the Resource estimate on that basis.

The optimised pit model was run using a Lerch-Grossman optimiser with the following parameters. Au price of $2,500 per oz - $83 per gram; Cu price of $5.30 per lb - $116 per 1%; Recoveries of 80% for Au and 98% for Cu; Ore Mining costs of $2.50/t and waste mining costs of $2.00/t; Processing costs of $20.00/t; and Pit slopes of 45º.