Stage two of the Mount Frosty Joint Venture (Jubilee) will kick off next month in the mineral rich zone between Mount Isa and Cloncurry. 

In a statement issued on Tuesday, Hammer Metals said the encouraging results from recent drilling at the Jubilee copper-gold project allowed stage two to be given the green light. 

“Hammer Metals and Mount Isa Mines Limited have approved the commencement of the Stage two program and budget comprising further resource and extensional drilling, preliminary metallurgical studies and a Mineral Resource estimation,” the release read. 

“Drilling is scheduled to commence in June with diamond drilling planned to be conducted first.”

Hammer holds the management rights at the JV (51 per cent) and MIM controls the remaining 49 per cent. 

The exploration zone located in the Mary Kathleen, has undergone stage one which included 22 reverse circulation holes for 2061 metres. 

Hammer Metals said drilling density will increase and metallurgical recoveries will begin during the second stage of the JV. 

Drilling results at Jubilee – the main project in Hammer’s Joint Venture with Mount Isa Mines – include 5 metres grading 7.34 per cent copper and 3.75g/t gold from just 35m down hole.   

Hammer has completed rock chip sampling at its newly named Jubilee South prospect, 700m south of the main project area. 

Exceptional assay results up to 12.4 per cent copper and 0.74g/t gold were returned from the reconnaissance field work on the same geological unit hosting the Jubilee deposit. 

At the Lake View prospect, 4.5km southeast of Jubilee, Hammer completed an historical data review and discovered elevated copper-gold results from rock chip samples and limited shallow drilling. The Millenium copper-cobalt-gold JV with Global Energy Metals Corp has recommenced after a wet weather delay.