Hammer copper-molybdenum grade in Mt Isa jumps by nearly 40%

For the first time since it was first drilled in the 1970s, the Kalman polymetallic deposit near Mt Isa in Queensland looks a real chance of becoming an economically viable mine thanks to a targeted exploration program by Perth based Hammer Metals.

The ASX listed junior exploration company today announced a new resource estimate for the Kalman project, based on eight new drill holes that intersected shallow, higher grade copper and molybdenum with gold and rhenium credits.

The resource estimate now stands at 20 million tonnes at 1.8% copper equivalent, based on 0.61% copper, 0.34 g/t gold, 0.14% molybdenum and 3.7 g/t rhenium in the Indicated and Inferred categories.

Whilst the overall tonnage is lower than the previous 30m tonne estimate in 2014, the copper equivalent grade has jumped from 1.3% to 1.8%, greatly enhancing the project economics. The project has also been boosted by the fact that 13.3 million of the 20 million tonnes is at a depth of less than 100 metres and more than half of this shallow resource has been upgraded to the indicated resource category.

Hammer says the new resource estimate is potentially just the start of the 100%-owned deposit, which remains open along strike and down plunge.

Hammer Metals CEO, Alexander Hewlett said “This updated resource estimate lays the foundations for further resource definition drilling and mining studies into Kalman and we consider there to be potential for Kalman to become a significant producer of copper and molybdenum concentrates with gold and rhenium credits.” 

“Our early exploration success at Overlander North, just six kms west of Kalman, provides additional confirmation of the project’s exploration potential.”

“Kalman also has the advantage of being located in an established mining district. The extensive geological, environmental and metallurgical studies already completed on Kalman will assist in fast-tracking the project towards production.”

The new resource estimate for Kalman continues a run of exceptional news for Hammer Metals, which was voted Queensland explorer of the year in 2015 based on its spectacular drill intercepts at the Overlander North IOCG deposit.

The promising drill results, which included 131 metres at 0.59% copper and 289 g/t cobalt, quickly attracted mining giant Newmont as a joint venture partner with drill program at Overlander now imminent.

With a heavyweight like Newmont involved, the results will no doubt be of great interest to market punters.