Hammer drill time gets gold hits flowing again

ASX-listed explorer Hammer Metals has returned further encouraging gold assays from aircore drilling of the Target 1 prospect at its North Orelia gold project in Western Australia’s prospective Yandal greenstone belt, which boasts an enviable gold endowment of about 24 million ounces.

The Perth-based company resumed drilling last month after coronavirus restrictions-related delays. Better intersections from the first 66 holes, or 3,889m, of a planned 8,000m aircore program at Target 1 included 4m grading 5.79 grams per tonne gold from 40m depth, 4m going 4.38g/t gold from 48m, 4m at 1.87g/t from 12m, and 4m at 1.58g/t from 20m.

According to Hammer, the Target 1 results confirm more zones of shallow gold mineralisation at North Orelia that remain open in all directions, adding shallow mineralisation has now been identified over a 2km strike length at Target 1.

The Orelia trend is along strike from the former Cockburn and Lotus open pits and the 1.07-million-ounce Orelia gold resource beneath Lotus and Cockburn now owned by Northern Star Resources after its takeover of Echo Resources late last year.

Hammer’s tenements cover the prospective structural trends adjacent to the north of the Lotus pit for 14km. These trends were initially drilled by Australian Resources between 1987 and 1997, with minor follow-up by Newmont between 2003 and 2005.

Hammer says its interpretation of this drilling indicated many of the historical holes were too shallow to be effective or, if effective the mineralised intercepts were not adequately followed up.

Its latest assays from North Orelia are primarily from drilling between and along strike of existing intercepts on the northern half of the 2km gold mineralisation trend, with results from drilling on the southern portion of Target 1 expected to be released in a couple of weeks.

Hammer Managing Director, Daniel Thomas said: “These results further highlight the prospective nature of our North Orelia project and demonstrate the exploration potential within the Yandal belt to deliver gold mineralisation at shallow depths.”

“We are looking to capitalise on the early exploration success at Target 1 and utilise the funds received through the exercise of listed Hammer options to aggressively pursue our evolving targets in the Yandal region.”

Before the COVID-19 shutdown forced the suspension of drilling work, Hammer reported Target 1 assays of 14m going 1.8g/t gold from 12m depth including 3m at 5.57g/t from 21m, and 10m at 1.82g/t gold from 9m including 3m at 5.78g/t from 12m.

Drilling at North Orelia is continuing with extensional aircore testing to the south of Target 1 expected to be completed around the end of this month.

In May 2020 Hammer was awarded a $150,000 Exploration Incentive Scheme grant from the WA Government towards drilling at its adjacent Bronzewing South gold project, about 50km north-east of Leinster.

With about half the drill program left to run at North Orelia, expectations are building for a new chapter in the Yandal gold belt story.

Is your ASX listed company doing something interesting? Contact: matt.birney@businessnews.com.au