Mineral explorer Hammer Metals has generated a maiden mineral resource for the Jubilee deposit defining 1.4 million tonnes grading 1.41% copper and 0.62g/t gold.
Jubilee is part of the Mt Frosty Joint Venture between Hammer who holds 51% and Glencore Mount Isa Mines who hold the other 49%.
The project area is at Mary Kathleen, halfway between Mount Isa and Cloncurry and Hammer said the deposit extends from surface and remains open at depth, with excellent potential to extend the ore system down dip and along strike.
It follows good metallurgical results from Jubilee in 2018 with copper recoveries peaking at 98%.
Hammer said the new resource model would now be used as the basis for future open pit mining optimisation and further metallurgical studies for the Jubilee copper-gold project.
Hammer Executive Chairman Russell Davis said Jubilee's maiden mineral resource estimate brought the company another step closer to the commercialisation of the deposit.
"Much of the mineralisation is primary sulphides, close to surface, and potentially open pittable," Mr Davis said.
"The strongly elevated gold content potentially adds significant value to the project."
Mr Davis said Hammer also held the nearby Elaine-Dorothy copper-gold deposit within five kilometres of the Jubilee deposit and the Lakeview, Black Rock, and Sunset copper-gold prospects, all of which have excellent potential to define additional copper and gold resources.
"Hammer has now built up the dominant tenement position in the Mary Kathleen district, a highly mineralised and prospective terrain for copper and gold around the Mary Kathleen uranium and rare earth deposit."
Hammer said the fact Jubilee was of a similar size and style to other successful open pit copper-gold deposits in the region gave confidence it may be economically extracted.
While you are here subscribe to our weekly email to your inbox at 6am every Friday