THE BOURSE WHISPERER: Hammer Metals (ASX: HMX) has struck a new Joint Venture Agreement with Mount Isa Mines Limited.
Hammer Metals explained the ne JV was negotiated as a pre-condition to its purchase of the 51 per cent interest in EPM 14467, held by AuKing Mining (ASX: AKN) (formerly Chinalco Yunnan Copper Resources Limited).
EPM 14467 is located adjacent to the Mary Kathleen uranium mine, east of Mount Isa and covers the Mary Kathleen Shear Zone that hosts several copper-gold, uranium and REE prospects, including Jubilee, Koppany and Blue Caesar.
Mount Isa Metals retains its 49 per cent interest in the tenement.
Hammer considers the tenement to be highly prospective as the tenement covers a sequence of altered rocks adjacent to the Mary Kathleen Shear Zone with the known copper, gold, uranium and REE deposits mentioned above to the north and south.
According to Hammer there are several soil anomalies and drill intersections that remain to be followed up with drilling, as well as a gap in recent surface geochemistry coverage between Koppany North and Koppany – a distance of 1.8 kilometres – which also needs to be looked at.
The company said this data will be fully reviewed and an initial program of work will be prepared and presented to the JV committee for review.
“Hammer is very pleased to now be working side by side with Glencore in the Mount Isa district,” Hammer Metals CEO Alexander Hewlett said in the company’s announcement to the Australian Securities Exchange.
“This JV now completes Hammer’s acquisition of AuKing’s tenement interests in the Mount Isa region.
“The range of prospective copper-gold targets acquired are considered to significantly enhance Hammer’s current tenement portfolio in the Mount Isa region.
“The acquisition includes a 100 per cent interest in EPMs 14019, 14022 and 12205, which cover the previously defined Elaine-Dorothy copper-gold inferred resource, the GEM copper-gold resource, and the Elaine uranium prospect as well as a range of other copper-gold drill intersections at the Jubilee, Koppany, Mt Dorothy, Pindora and Prince of Wales prospects.
“The tenements also cover strike extensions of mineralised trends and favourable host rocks identified within Hammer’s adjacent tenements.”