The joint venture had covered three prospects east of Mount Isa: Overlander, Dronfield and Even Steven.

The US$10.5 million JV over the three iron oxide-copper-gold targets was signed in late 2015, with Newmont having the potential to earn up to 80%.

Newmont met the required expenditure of US$1.45 million to earn 35% last year, but since then no field work has taken place while data compilation work progressed.

According to Hammer, the targets did not meeting Newmont's size criteria.

The local company will retain one hundred precent control of the tenements and will also have the opportunity to test identified targets that did not meet Newmont’s target size, according to Hammer executive director Alex Hewlett.

"Newmont has been an excellent partner throughout this undertaking, allowing Hammer to significantly advance our understanding of the JV targets - particularly the large mineralised system at Overlander,” Mr Hewlett said.

“The negotiated conclusion of the JV will leave Hammer with unfettered rights to pursue several untested exploration opportunities in the former farm-in areas as well as continue with the exploration of our large portfolio of prospects at Mount Isa.

“Infill and extensional drilling is set to recommence in early June at the Jubilee copper-gold deposit in joint venture with Mount Isa Mines, and results are expected shortly from the recently completed diamond drilling program on the Millennium cobalt-copper deposit.”

The Overlander prospect is an extensive area of alteration and mineralisation located six kilometres west of Hammer’s Kalman deposit.

Even Steven and Dronfield have also generated additional copper-gold targets that are expected to undergo further drill testing.

Hammer said it would seek new partners to assist at its Mount Isa tenements in Newmont’s place.