The new Mt Frosty joint venture between Hammer and Glencore is off to a good drilling start with intersections of visible sulphides suggesting the presence of copper with copper sulphide chalcopyrite present in early samples.
On Friday Hammer told the ASX it had completed nine RC holes in the first phase of a maiden drilling program at the Jubilee prospect in the Mt Frosty JV targeting copper and gold.
One drill hole encountered sulphides over an eight metre mineralised section from 60m down hole and the other was a 7m intersection from just 33m down hole.
Mt Frosty is near Mary Kathleen Uranium mine, 50km east of Mount Isa and is being explored under a newly-formed, 51-49 joint venture between Hammer and Glencore, owners of Mount Isa Mines.
Hammer said intersections showed visible sulphide mineralisation from shallow depths and assay results in January will reveal the grade and full significance of the new drill hits.
Hammer bought their Mt Frosty stake from AuKing, which drilled 19 holes at Jubilee and returned some impressive results, including 10 metres at 3.37 per cent copper and 2.27 g/t gold from 107 metres, and 9 metres at 2.8 per cent copper and 1.44 g/t gold from 73 metres.
Hammer believes AuKing’s results suggest excellent potential to delineate a shallow copper-gold resource at Jubilee with minimal infill drilling.
Hammer has moved the RC rig to drill three holes at their Millennium copper-cobalt deposit, 25km further north-west but will bring it back to Jubilee to begin a second phase of drilling before the end of the month.
Follow-up RC drilling has also started at Kalman West and Hammertime, while drilling is planned at Serendipity, Pharaoh East and Elaine.
Hammer Metals CEO Alex Hewlett, said they believed the north west region was an amazing opportunity for a small company.
“We’ve grown a large landholding in the area, with 3000 sq kms,” Mr Hewlett said.
“Our sole focus is to make copper-gold, base metal discoveries in this area.”
We are surrounded by a lot of large companies with a lot of infrastructure in place and we think that a discovery in this area would be hugely meaningful for our shareholders.”