Hammer (ASX:HMX) strikes Sumitomo JV for Mt Isa IOCG

Hammer (ASX:HMX) strikes Sumitomo JV for Mt Isa IOCG

June 27, 2024 Off By Jack Baker

Hammer Metals has struck another joint exploration deal with Sumitomo Metal Mining Oceania on the hunt for large-scale iron-oxide-copper-gold deposits in a portion of its large Mt Isa project landholdings in North-West Queensland.

The full Sumitomo Metal Mining (TSE:5713.T) subsidiary made a first minimum commitment to cap off a 2000-metre drill campaign within the year over the 87 square kilometre Bullrush project within Hammer’s greater 2800km2 holdings.

Subsequent investment decisions from the Japanese power can take its interest to 51 per cent by committing $4.5 million in exploration, with another $2 million over the next year taking its interest to 60%.

Bullrush has been noted for suggestive geophysical signatures of IOCG mineralisation beneath cover varying between 80m and 250m in thickness.

Hammer Metals Managing Director Daniel Thomas said the company was excited to broaden its relationship with Sumitomo through a new agreement over the highly prospective project.

“We look forward to further strengthening our relationship in the quest for the development of a large-scale copper and gold mine in the Mount Isa district,” he said.

“Bullrush features a large coincident gravity and magnetic anomaly under moderate cover with no previous drilling.”

Thomas added the Carnaby Resources (ASX:CNB) Devoncourt project sitting less than 10km away had demonstrated the large Williams-age granite intrusion partially covered by Bullrush is a fertile host for IOCG-style copper-gold.

“With a commitment to drill this compelling target in the coming year, Hammer and its shareholders have another exciting opportunity to make a breakthrough copper discovery in this world-class metal province,” he said.

After the current deal’s conclusion, Hammer can then elect to maintain a 40% stake by paying its share of exploration or take a free ride at 20% to a pre-feasibility study.

Hammer will manage and operate the joint program until completion of the first earn-in as it continues the investigation over the vast landholdings.

The greater project currently includes five copper-gold JORC resources totalling around 530,000 tonnes of copper-equivalent and more greenfield prospects considered prospective for IOCG deposits.

The Perth-based company already had one JV deal with Sumitomo in place alongside a 51%-held project with Glencore (LON:GLEN), and a recently signed deal with BHP (LON:BHP, NYSE:BHP, ASX:BHP) spinout South 32 (ASX:S32) within its tenements.

Hammer also sold off a chunk of three sub-blocks to Carnaby for as much as $20 million.

In spite of Glencore’s impending Mt Isa copper closure, there is obviously still a major belief that Queensland’s North-West could be hiding more of the elephants that made its name as one of the world’s richest mineral-producing regions.

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