Copper-Gold Find Sends Hammer Metals’ Share Price Up (ASX:HMX)
The share price of Hammer Metals Ltd [ASX:HMX] has soared today thanks to newly identified broad copper-gold mineralisation at its Mt Isa East Joint Venture in Queensland.
At time of writing, HMX shares are up 63.64% or 2.1 cents to trade at 5.4 cents per share, closing in on its 52-week high of 6.3 cents.
With HMX’s focus largely exploring the gold potential of its project over the past several months, its share price has come under pressure from volatility in the gold price.
However, with strong demand driving up the price of copper, we could see a change in momentum for HMX.
A small explorer situated in the world’s largest base metals province
HMX’s Mt Isa East Joint Venture boasts some 2,000km2 in tenements in some of the best-endowed country in the world.
Today, the explorer announced it had uncovered broad copper and gold intercepts at the previously undrilled Trafalgar prospect on the project.
Significant intercepts in the two holes drilled include:
- 55m at 1.12% copper (Cu) and 0.30g/t gold (Au) from 119m including 16m at 1.77% Cu and 0.49g/t Au from 149m
- 32m at 1.04% Cu and 0.25g/t Au from 64m including 6m at 2.38% Cu and 1.45g/t Au from 91m
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Source: Hammer Metals
HMX say the Trafalgar prospect forms part of an extensive copper-gold soil anomaly, which stretches for 2.7 kilometres and has had little previous exploration.
Though these results are impressive, I believe what might have stirred up excitement in the share price today is the prospect that Trafalgar is part of a larger system.
HMX’s Managing Director Daniel Thomas explains:
‘To intercept a broad zone of significant sulphide mineralisation containing both gold and copper with two wide spaced holes is extremely encouraging.
‘Whilst the oxide mineralisation at this prospect has been previously exploited by previous small-scale miners, there are no records or evidence of this system ever having been drill tested. Significantly the association of copper and gold with magnetite and rare earth mineralisation is a feature of number of prominent large scale IOCG deposits.’
IOCG meaning iron-oxide-copper-gold.
Eastern Mt Isa hosts the large Ernest Henry IOCG deposit and its namesake mine.
Ernest Henry represents one of the largest copper reserves in the world having estimated reserves of 167 million tonnes with ore grading of 1.1% copper and 2.67 million ounces of gold.
Could HMX be sitting on something similar?
Currently, drilling at the site is limited to two holes, meaning we cannot gauge the size of the resource at the moment.
HMX said drilling at the project resumed last week and is currently ongoing with drilling planned for the Alpha, Charlie, Juliett, Shadow and Toby East prospects.
No time frame as to when we can expect further results was given.
I will tell you that I’ll be keeping a close eye on HMX and how its project develops.
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