Midas Resources to acquire Queensland copper-gold projects

THE BOURSE WHISPERER: Midas Resources (ASX: MDS) has entered into a Sale and Purchase Agreement with Hammer Metals Limited.

Midas is set to acquire all of the issued capital in Hammer, as well as all of the issued capital of Mount Dockerell Mining (MDM), a wholly owned subsidiary of Santana Minerals (ASX: SMI).

The deal will result in Midas taking ownership of projects in Queensland, including 1600 square kilometres of prospective ground in the Mount Isa Mineral Province and 340sqkm near the Mount Morgan gold-copper deposit.


Hammer and MDM project locations. Source: Company announcement


The Hammer projects are focused in two regions in Queensland – the Mount Isa Mineral Province in NW Queensland and the Mount Morgan region in Central Queensland.

MDM holds all of Santana’s NW Queensland mineral interests in the Mount Isa Mineral Province including the Kalman and Mt Philp deposits.

The MDM portfolio comprises eight granted EPM’s, one EPM application and one MDL application covering approximately 332sqkm.

“Upon completion of the acquisitions, Midas will hold highly-prospective ground positions with established resources, and significant exploration upside, in two of Australia’s major mineral provinces with potential for rapid organic and corporate growth,” Midas Resources said in its ASX announcement.

Projects include:

Kalman copper-gold-molybdenum-rhenium deposit.

Midas indicated the Kalman deposit has an existing 61 million tonne JORC-compliant Mineral Resource and additional high grade priority targets.

Drilling in 2008 intersected high-grade primary sulphides including:

–    7.6 metres at 23.4 per cent copper and 0.5 grams per tonne gold from 581.6 metres and 77m at 1.4 per cent copper and 1.3g/t gold from 700m; and

–    25m at 3.8 per cent copper and 0.94g/t gold from 712m.

Mount Isa projects:

Midas describe this as an, “extensive package of 1600sqkm covering multiple iron oxide copper gold (IOCG) and shear hosted copper-gold targets.”

Golden Peaks projects:

Comes with a right to farm-in to prospective volcanic sequence that hosts the eight million ounce Mount Morgan gold-copper deposit.

Copper, zinc, silver and gold mineralisation has been intersected in previous drilling, while a recent VTEM survey produced a number of high-priority conductors.

Mt Philp hematite iron deposit:

Hematite deposit, located eight kilometres northwest of Kalman and within 25km of major infrastructure.

The Mt Philp deposit has a 30 million tonnes JORC Resource established and is situated on a mineral development license application.