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Corporate Spotlight

Hammer Metals is positioned in two of the world’s great metal provinces - the Yandal Gold Province and the Mount Isa Base Metals Province. Hammer's Bronzewing South gold project borders Northern Star takeover target, Echo Resources’ Bronzewing Mine, sharing the same structural corridor.
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INTERVIEW WITH RUSSELL JOHN DAVIS

EXPLORATION UPDATE

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HAMMER PROVIDES EXPLORATION UPDATE FOR MT PHILP BRECCIA COMPLEX IOCG TARGET 

ASX Announcement 10 September 2019 


  • Follow-up rock chip sampling over copper-gold soil anomalies at the Mt Philp Breccia Complex has discovered a new zone of mineralisation called Shadow. Sampling has been conducted over a 200m strike length and up to 50m width. 
  • The prospect is at the northern end of a series of magnetic anomalies within a breccia zone that abuts the Mt Philp Hematite Deposit to the west and southwest. The magnetic anomaly at Shadow is due to magnetite alteration within the breccia. 
  • Preliminary sampling returned results in individual samples of up to a maximum of 4.64g/t Au and 27.7% Cu. Copper mineralisation is present as disseminations and blebs within an intensely altered breccia matrix. 
  • Further mapping and sampling of the Shadow zone is planned along with ongoing evaluation of the remaining soil geochemical anomalies at the Mt Philp Breccia Complex. 
  • In Western Australia, the first phase RC drilling program at Bronzewing South is now complete with all samples submitted for assay. Results are expected in two to three weeks. A second drill program is anticipated to begin later this month.


Hammer’s Chairman, Russell Davis said: “The sampling of the Mt Philp Breccia Complex continues to generate new zones of copper and gold mineralisation and supports our contention that the 20 square kilometres of breccia is a favourable host for large tonnage IOCG deposits such as Glencore’s Ernest Henry Deposit. Work will continue at both of Hammer’s exciting Mount Isa and Bronzewing South Projects for the remainder of the 2019 field season with ongoing news flow from both areas.” 


Copper mineralisation at Shadow within strongly altered Mt Philp Breccia (MJB490) 

Table 1 – Results from rock chip sampling 


Competent Person Statements 

The information in this report as it relates to exploration results and geology was compiled by Mr. Mark Whittle, who is a Fellow of the AusIMM and an employee of the Company. Mr. Whittle who is a shareholder and optionholder, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Whittle consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.


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MAIDEN DRILL PROGRAM

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HAMMER’S MAIDEN DRILL PROGRAM TO COMMENCE AT BRONZEWING SOUTH GOLD PROJECT 

ASX Announcement 15 August 2019 


  • The Reverse Circulation (RC) drilling rig is now mobilising to site to commence Hammer’s maiden exploration drilling program at the Bronzewing South gold project. 
  • A preliminary program of 2,500m of RC drilling is planned to provide an initial assessment of several targets generated from Hammer’s structural analysis and assessment of the historic geochemical data and new geophysical data. 
  • Targets located immediately along strike to the south of the Bronzewing mine will be the focus of this current program. 
  • The Induced Polarisation (IP) survey completed south of the historic Bronzewing mine has successfully identified conductive zones that are in most cases spatially associated with areas of higher gold accumulation anomalies in historical drilling (Figure 2). 
  • Assessment of the detailed gravity survey data acquired during the quarter has also aided in interpretation of the sub-surface structure, geology and alteration, and importantly a series of northeast trending structures which are believed to be one of the controls on the gold mineralisation at the neighbouring Bronzewing deposit (Figure 3). Positions where the conductive zones are displaced by northeast trending faults are considered prime targets. 
  • The Bronzewing South project comprises 110km2 of prospective 100%- owned tenements that cover structural corridors to the south of the 2.3Moz Bronzewing gold mine and to the north of the 1.1Moz Lotus and Orelia gold deposits held by Echo Resources Limited (ASX:EAR). 
  • Additional conductivity and IP features have also been identified in positions peripheral to the main mineralised trends that will require further evaluation, potentially by RAB drilling, prior to additional RC or diamond drill testing being undertaken. 
  • Interpretation of the IP and gravity data along with data assessment and target generation activities along both the Orelia trend and at the Ken’s Bore prospect is ongoing.


Hammer’s Chairman, Russell Davis said: “The Company looks forward to commencing its maiden drilling program at Bronzewing South. This program represents Hammers first step towards testing a range of gold targets the Company has started to generate in what we consider a very prospective part of the Yandal Greenstone Belt. We look forward to reporting the results as they become available.” 


Competent Person Statements 

The information in this report as it relates to exploration results and geology was compiled by Mr. Mark Whittle, who is a Fellow of the AusIMM and an employee of the Company. Mr. Whittle who is a shareholder and optionholder, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Whittle consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.


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QUARTERLY

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QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDING 30 JUNE 2019 

ASX Announcement 31 July 2019 


BRONZEWING SOUTH PROJECT 

  • On 17 May 2019 shareholders ratified the acquisition by Hammer Metals of Carnegie Exploration Pty Ltd. Carnegie holds a 100% interest in the Bronzewing South Gold Project which is located within the Yandal Greenstone Belt in Western Australia. 
  • The tenements acquired are all within a 20km radius of Echo’s 2.5Mtpa Bronzewing Mill, securing under-explored terrain immediately along strike of the 2.3Moz Bronzewing Gold Mine and the 1Moz Orelia Deposit. 
  • An Induced Polarisation (IP) survey was underway late in the quarter with RC drilling scheduled to commence in the second week of August.


MOUNT ISA COPPER-GOLD PROJECT 

  • Reconnaissance rock chip sampling over soil anomalies defined in the Mt Philp Breccia continued to identify new zones of mineralisation at the Mt Philp East, Range View, Mt Philp Cu-Au, Old Camp, Pelican Waterhole and Charlie Prospects. Maximum individual grades of 18.5% Cu and 2.41g/t Au have been reported from these prospects. Detailed mapping and a regional gravity survey are planned in the second half of 2019. 
  • At the Kings prospect near Malbon gold and copper mineralisation has been defined in a north south mineralised quartz vein system over a strike length of 700m. The east-west trending Charlotte structure which intersects the Kings structure has also been sampled along a 500m strike length. Individual maximum grades of 12.9g/t Au and 15.8% Cu have been reported from this area. 
  • High grade gold has been reported at the El Questro Prospect with maximum individual grades of up to 99g/t Au sourcing from ferruginous quartz veins. 
  • Pit optimisation studies continue on the Kalman, Overlander and Jubilee deposits with results expected to be reported soon.


CORPORATE 

  • The sale of Hammers’ 75% interest in the Millennium Cobalt Project and portions of tenements covering the cobalt prospects, Mt Dorothy and Cobalt Ridge was finalised. Consideration for the sale was the issue of GEMC ordinary shares giving Hammer a 19.9% interest in GEMC for a total deemed consideration of A$1,364,102 at CAD0.065 per share. 
  • The acquisition of Carnegie Exploration Pty Ltd was ratified by shareholders at a general meeting on 17 May 2019. Consideration for the purchase was the issue to the vendors of Hammer ordinary shares to the value of $550,000 at AUD0.025 per share. 
  • Subsequent to the end of the quarter Hammer announced that it had received firm bids to raise approximately $1.76 million to accelerate exploration at the Bronzewing South Gold Project. (Refer to ASX release dated 30 July 2019.) 
  • Cash balance at end of June is $1.05 million.


BRONZEWING SOUTH GOLD PROJECT 

On 17 May 2019 shareholders ratified the acquisition of Carnegie Exploration Pty Ltd. (Refer to ASX announcement dated 17 May 2019.) Carnegie holds the Bronzewing South Gold Project which is located within the Yandal Greenstone Belt in Western Australia (Figure 1). 


The project is considered to be a positive addition to Hammers’ portfolio as it is located in a prime gold exploration location and close to existing infrastructure. 


E36/854 located immediately south of the Bronzewing Mine is considered highly prospective due to the area’s disrupted exploration history and extensive blanketing by barren transported cover (Figure 2). Historical grid based RAB and aircore drilling to bedrock indicates that surficial cover ranges between 2m and 40m in thickness. The drilling highlighted several anomalous zones within the Bronzewing corridor at Gleeson, Gaudron, Kirby and McHugh which have received limited follow-up with deeper RC and diamond drilling. The previous drilling only tested for north-south lode orientations which did not take into account the inherent structural complexity and variable orientation of the Bronzewing lodes. Significant results include1:


  • 4m @ 6.53g/t Au from 56m in NEWBWSA0453
  • 4m @ 1.11g/t Au from 56m in ABWSA295 
  • 4m @ 1.48g/t Au from 108m in NEWBWSA0445 
  • 1m @ 5.67g/t Au from 127m in NEWBWSD0001
  • 1m @ 3.45g/t Au from 161m, 1m @ 2.54 from 188m, 1m @ 4.42g/t Au from 230m and 1m @ 3.27g/t Au from 242m in NMTBWRCD3208 


The Carnegie tenements also cover approximately 15km strike length of the shear zones along strike to the north of the Lotus pit and adjacent Orelia deposit held by Echo Resources Limited (Figure 2). Gold mineralisation occurs within north-northwest trending shear zones and is associated with quartz carbonate veinlets. The mineralised zones are more elongate, rather than pipelike as at Bronzewing. 


RAB interface and aircore drilling to an average depth of 30m along the trend outlined numerous bottom-ofhole gold anomalies (0.1-1g/t Au) some of which have not been tested by deeper RC or diamond drilling. Significant intersections include2:


  • 3m @ 12g/t Au from 18m in ARL6340/1057 
  • 3m @ 3.60g/t Au from 9m in ARL6160/1152
  • 3m @ 2.35g/t Au from 6m in ARL6290/1055 
  • 3m @ 1.65g/t Au from 17m in ARLMM247


The Kens Bore prospect within E36/868 returned several strongly anomalous gold results in rock chips coinciding with a 3km long gold-in-soil anomaly at a granite – basalt contact marked by quartz veining. The previous shallow drilling at Ken’s Bore is not considered to have fully tested the prospect.


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RAISES $1.76 MILLION

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HAMMER RAISES $1.76 MILLION TO ACCELERATE EXPLORATION AT BRONZEWING SOUTH

ASX Announcement 30 July 2019 


  • Placement to raise $1.76 million at an issue price of $0.020 per share 
  • Demand for the capital raising was in excess of the amount Hammer sought to raise and was well supported by a number of existing shareholders and new sophisticated and institutional investors representing a strong endorsement of Hammer’s recent acquisition of the Bronzewing South project and planned exploration strategy 
  • The placement will position Hammer with a strong cash balance to complete the current geophysical survey and undertake the maiden drilling program at Hammer’s Bronzewing South Gold Project 
  • Management’s track record for gold exploration in Western Australia and the recent acquisition of the Bronzewing South Gold Project has attracted support from the original founders and early supporters of Gold Road Resources (ASX:GOR)


Hammer’s Chairman, Russell Davis said: “We are delighted with the outcome of the placement that generated demand from existing shareholders and a number of new institutional investors exceeding the amount sought. With the IP survey well underway at the Bronzewing South Gold Project and drilling planned for the second week of August on top of the promising results from low-cost exploration at the Mt Isa Project, we are anticipating an exciting period for the company for the remainder of 2019.” 


Overview 

Hammer Metals Limited (ASX: HMX) (“Hammer” or the “Company”) is pleased to announce that it has successfully undertaken a placement to both new and existing institutional and sophisticated investors.


The placement will raise a total of $1.756 million from the issuance of approximately 87.8 million new shares (“New Shares”) at an issue price of $0.020 per share (“Placement”). The Placement was strongly supported by existing shareholders and introduced a number of new, high quality domestic and international investors to Hammer’s share register.


The Placement ensures Hammer will be well funded to undertake its planned 2019 exploration programme on its 100% owned tenements with its focus on the current geophysical survey and maiden drilling program at the Company’s recently acquired Bronzewing South Gold Project. Previous exploration has outlined unexplained gold anomalies coincidental with a gravity low, similar to that observed at the 4 Moz Bronzewing deposit immediately along strike to the north. The IP survey is expected to further refine these targets prior to the drilling program scheduled to commence in the second week of August. Hammer will also continue the low-cost exploration and strategic rationalisation of the Mt Isa portfolio in Queensland.


Details 

The issue price represents a discount of 13.0% to Hammer’s last close of $0.023 per share on 25 July 2019 and a 16.6% discount to the 15-day volume weighted average price (“VWAP”) of $0.024 per share.


New Shares issued under the Placement will rank equally with existing shares on issue and are expected to be allotted on Tuesday, 6 August 2019. Trading of the New Shares will commence on a normal settlement basis on the ASX on the same day.


The Placement has been conducted pursuant to the Company’s existing placement capacity, with 52,682,062 New Shares to be issued under ASX Listing Rule 7.1 and 35,121,375 New Shares to be issued under ASX Listing Rule 7.1A.


Discovery Capital Partners acted as Lead Manager to the Placement.


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