YANDAL GOLD PROJECT ACQUISTION
ASX Announcement 14 March 2019
- Terms agreed for the acquisition of a 100% interest in the Bronzewing South Gold Project located in the heart of the Yandal Greenstone Belt in Western Australia. Agreement subject to approval under Section 195(4) of the Corporations Act.
- Secures under-explored terrain immediately along strike of the 4 million-ounce Bronzewing Gold mine and the 1 million-ounce Orelia deposit.
- Limited previous drilling has intercepted high-grade gold mineralization in bedrock.
- Initial proposed program comprises detailed structural targeting and RC drilling.
Hammer’s Chairman, Russell Davis said: “With the proposed acquisition of the Bronzewing South Gold Project Hammer will have strategic tenement positions in two of the world’s great mining provinces – the Mount Isa Province in NW Queensland and the Eastern Goldfields of WA.
Bronzewing South is strategically located in the heart of the 24 million-ounce Yandal Greenstone Belt with its current high levels of gold mining and exploration activity and existing infrastructure. Hammer also has substantial Board and management experience in gold exploration with a track record of success in this endeavour.”
BRONZEWING SOUTH GOLD PROJECT
The Bronzewing South Gold Project is situated in the heart of the 24 million-ounce Yandal Greenstone Belt in the Western Australian Goldfields, immediately along strike from both the Bronzewing gold mine (4 million ounces) and the Orelia deposit (1 million ounces), held by Echo Resources Limited.
The Yandal Greenstone Belt is an active mining jurisdiction with the currently operating Jundee Mine that produces approximately 300,000 ounces of gold per year as well as the Darlot and Thunderbox Gold Mines.
The tenements to be acquired are all within a 20km radius of Echo’s 2.5mtpa Bronzewing Mill that is currently the subject of a study to determine the feasibility of its re-opening as part of a new mining operation.
It is anticipated that the Bronzewing South Project will be a positive addition to Hammer’s portfolio for the following reasons:
- Bronzewing South is in a prime gold exploration location, close to existing infrastructure and active exploration and development activities;
- The principal tenement (E36/854) has not received the intensity of exploration you would expect considering its location adjacent to a major historical mine;
- Previous exploration drilling was mostly shallow and did not consider the structural framework inherent in the Bronzewing area;
- The limited deeper drilling confirmed zones of high-grade gold mineralization in bedrock;
- Hammer has a well-considered exploration program planned for the project, targeting favourable structural orientations within the mineralised corridors that are yet untested;
- Hammer’s management has a successful track record in gold exploration in general and specifically in the Western Australian Goldfields;
- The consideration is ordinary shares in Hammer Metals only, with no cash payments, aligning the Vendors with Hammer shareholders on potential exploration success.
TENURE
The Bronzewing South Project consists of five granted Exploration Licences and two granted Prospecting Licences for a total area of approximately 111km2 . The tenements are all held (100%) by Carnegie Exploration Pty Ltd.
Tenement Schedule
TERMS AGREED FOR SHARE PLACEMENT TO RAISE $1 MILLION
ASX Announcement 7 February 2019
Hammer Metals Limited (“Hammer” or “the Company”) (ASX: HMX), is pleased to advise that it has agreed terms for a share placement to sophisticated investors to raise $1 million.
The funds will enable the Company to continue with planned exploration activities. DJ Carmichael Pty Limited (“DJC”) has acted as Lead Manager to the offer and will receive advisory fees for its work on industry accepted commercial terms.
Terms of Share Placement
A placement of approximately 50,000,000 shares at $0.02 per share to raise $1,000,000 (“Placement”) will be made to sophisticated investors and will incorporate a free attaching listed option on the basis of 1 listed option for every 2 placement shares. The options to be issued will have the same terms as the existing class of quoted options, they will be exercisable on or before 30 September 2020 by payment of $0.03. The Company reserves the right to accept over subscriptions.
Directors Mr Russell Davis and Mr Ziggy Lubieniecki have agreed to participate in the Placement on the same terms subject to shareholder approval. Accordingly, a Notice of Meeting will be circulated in due course
The Placement will be completed in two tranches with 14,000,000 shares and 7,000,000 options to be issued to Directors and subject to shareholder approval. The balance of the Placement will be issued under the Company’s current available capacity pursuant to ASX Listing Rules 7.1 and 7.1A as follows:
- 8,170,292 ordinary shares and 18,000,000 listed options pursuant to listing rule 7.1; and
- 27,829,708 ordinary shares pursuant to listing rule 7.1A.
Firm bids for the Placement have been received and an Appendix 3B and section 708A notice will be issued in due course on finalisation of applications and receipt of cleared funds.
Use of funds
The Company will use the net proceeds from the Offer in a targeted program as follows:
- Mining Studies – Jubilee / Overlander/ Kalman/ Elaine
- Drilling high-grade copper-gold assets
- Generating drilling targets for potential large-scale copper-gold systems at Mt Philip Breccia / Perentie; and
- Identifying new copper and gold projects.
QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDING DECEMBER 31, 2018
ASX Announcement 31 January 2019
Copper-Gold Exploration
Jubilee - Mt Frosty Joint Venture (Hammer 51% and operator)
- Maiden Inferred Mineral Resource Estimate of 1.41Mt @ 1.41% Cu and 0.62g/t Au (at 0.5% Cu cut-off).
- Metallurgical sulphide flotation test work completed with 99% Cu recovery and 87% Au recovery to concentrate.
Black Rock Copper-Gold Project (Hammer 100%)
- Purchase of the Black Rock project near Hammer’s Elaine and Jubilee deposits further consolidates Hammer’s tenure position in the Mary Kathleen area. Significant potential for discovery of large copper-gold systems supported by previous drilling – 78m at 0.54% Cu and 0.13g/t Au in wide spaced drilling.
Perentie - Dronfield Joint Venture (Hammer 80% and operator)
- First pass SAM survey completed over Susan, Paddy B, Judith and Trackside.
- A 15-hole, 1329m RC drilling program at Paddy B, Judith and Trackside confirms exploration concept. Multiple targets remain to be tested. Significant results include 2m at 2.36% Cu and 2g/t Au.
Mt Philp Breccia IOCG Target
- Awarded Collaborative Exploration Initiative grant from the Department of Natural Resources and Mines to progress exploration over the Mt Philp Breccia IOCG target.
- Hammer Metals Limited soil program has defined multiple copper targets
Millennium Cobalt Joint Venture (Hammer 75% and operator)
- First pass metallurgical sulphide flotation test work completed with 95% Cu recovery, 95% Co recovery and 81% Au recovery to concentrate achieved in the high-grade composite test.
- Sale of 75% Hammer Metals Limited interest to GEMC awaiting satisfaction of conditions precedent.
Corporate
- Cash balance at end December 2018 is $0.86 million
- Ziggy Lubieniecki previously Exploration Director at Gold Road Resources Limited joined the board as a Non-Executive Director as part of a board and management restructure.
OPERATIONS SUMMARY
MOUNT ISA PROJECT
Hammer Metals Limited (ASX: HMX) (“Hammer” or “the Company”) is exploring the Mount Isa project for large iron oxide copper-gold (IOCG) deposits of the Ernest Henry style (approximately 220 million tonnes at 1.1% Cu and 0.5g/t Au). The project area is also prospective for iron sulphide copper-gold (ISCG) deposits, an example of which is the Eloise deposit. Eloise contained a pre-mining resource of approximately 3.1 million tonnes at 5.5% Cu and 1.4g/t Au but it is estimated that over 10 million tonnes have been mined since 1996. 1 2
During the quarter Hammer completed the first metallurgical study and the maiden resource estimate at the Jubilee Copper-Gold Deposit. The Jubilee deposit is located within EPM 14467 and is one of many targets within the Mt Frosty Joint Venture (with Mount Isa Mines Limited). The Inferred Mineral Resource estimate of 1.41Mt @ 1.41% Cu and 0.62g/t Au (utilising a 0.5% Cu cut-off grade) is open at depth. Excellent metallurgical recoveries were achieved with the first flotation test-work with 99% Cu recovery and 87% Au recovery to concentrate.
At Millennium the first metallurgical work was completed on the northern quartzite domain. This domain hosts the bulk of the mineral resource. Very good recoveries were achieved with 95% Cu recovery, 95% Co recovery and 81% Au recovery to concentrate achieved in the high-grade composite test.
In October Hammer completed the acquisition of two exploration permits that cover the Black Rock and Sunset copper-gold prospects 5km west of Jubilee. The Black Rock prospect has returned broad intersections of up to 78m at 0.54% Cu and 0.13g/t Au and 94m at 0.44% Cu and has an approximate strike length of 1.2 kilometres with true widths of up to 60 metres.
Late in the quarter the Company focused on further testing of the Perentie discovery with geological mapping, an 80 line-kilometre Sub Audio Magnetometric (“SAM”) survey and a 15 hole, 1329m scout RC drilling program. Intersections from the program include:
- 2m at 2.42% Cu from 74m including 1m at 4.21% Cu and 0.13g/t Au from 75m in HDRC012 at Paddy B and,
- 2m at 2.36% Cu and 2g/t Au from 37m in HDRC016 at Trackside.
The drilling tested 3 of 30+ targets within the project area and assays indicated vectors towards potential sources of mineralisation north of the areas drilled.
Hammer was awarded an $80,000 Collaborative Exploration Initiative (“CEI”) funding grant from the Queensland Department of Natural Resources. The CEI grant will partly fund grassroots programs on the Mt Philp Breccia IOCG target leading toward drill target generation in 2019.
The status of the Hammers’ high priority targets is shown below.
Figure 1 - Project status
