Japan Oil, Gas and Metals National Corporation (JOGMEC) has agreed to spend $6 million on exploration in a joint venture at Hammer Metals' Mount Isa copper-gold project.
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Under the agreement, JOGMEC can earn a 60% stake in one tenth of the 2,200sq km project by spending $6 million by March 31, 2024
This will give JOGMEC access to the project's Even Steven, Mount Philip, Dronfield West and Malbon targets, which are considered prospective for iron oxide copper gold mineralisation.
As part of the deal, JOGMEC must also spend at least $1 million on the project by March 31 next year.
Hammer managing director Daniel Thomas hailed the deal.
"The Hammer team is excited that JOGMEC shares our vision that a large tonnage iron-oxide copper gold deposit such as Ernest Henry is present within out Mount Isa project area," Mr Thomas said.
"The increased exploration funding allows a focussed and accelerated exploration program at Mount Isa, thereby maximising the chances of success while minimising shareholder dilution."
He said the fast-tracked program would begin "immediately" and initial joint venture exploration activities will involve collecting high-quality geological, geophysical and geochemical datasets across the earmarked areas.
Once targets have been firmed up, the highest ranking will be drilled with this program scheduled to begin in the second quarter of next year.
Hammer will also continue exploring its wholly-owned prospects within Mount Isa including Jubilee, Koppany, Alice-Kings and Perentie.
Hammer will also push ahead with its resource development studies at the Kalman deposit, which has an indicated and inferred resource of 20 million tonnes at 0.61% copper for 360,000 tonnes of contained copper equivalent metal.
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