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HAMMERMETALS
(ASX:HMX)
DAN THOMAS MANAGING DIRECTOR
COMPANYPROFILE
HammerMetals has built a sizable copper resource after establishing a large footholdin one of the world’s most significant iron oxide-copper-gold regions,providing it an advantage over many other explorers.
The company has a vast 2600sq km of highly prospective ground in Mt Isa inQueensland, one of the largest base metal provinces in the world.
IOCG deposits can host massive and highgrade concentrations of copper, gold,and other minerals. BHP’s Olympic Dam mine in South Australia, for example, isone of the world’s largest deposits of copper, gold, silver, and uranium.
Late last year, HMX expanded its resource at Mt Isa to over 400,000 tonnes ofcopper equivalent metal at an average grade of 1.5% copper equivalent byannouncing a maiden resource for its Lakeview deposit.
Further growth is anticipated as the company prepares to deliver a resourceupgrade for the project’s cornerstone Kalman deposit in 2023 based on recentdrilling and promising recent ore sorting results.
The current in-ground value of Kalman’s resources, based on current metalprices, is more than $6 billion, and recent exploration shows strong potentialto increase resources further.
Kalman also has the added advantage of being the world’s third-highest gradeundeveloped molybdenum deposit.
The numbers justify more than 10 years spent accumulating a significant landposition at Mt Isa, where work is ongoing across the board. HMX has a pipelineof targets here, from greenfield prospects with strong IOCG potential throughto advanced development study projects.
Mining studies are already underway at Kalman, as well as the Jubilee,Overlander, and Elaine prospects, to assess development options.
Hammer also has joint ventures in Mt Isa with two globally significant copperproducers, Sumitomo Metal Mining and Glencore, which validates the company’sthesis of the potential that lies within its tenure.
The JVs cover only 15% of HMX’s ground and exclude the already defined JORCresources.
In Western Australia, the explorer has a large position in the heart of thefertile yet underexplored Yandal belt that boasts production of over 24 millionounces (Moz) of gold.
The 260sq km of highly prospective ground sits close to existingmulti-million-ounce mines, including the 4Moz Bronzewing and 1.1Moz Orelia golddeposits.
Hammer Metals has identified numerous zones of highly anomalous gold indrilling at the Bronzewing South and North Orelia prospects.
HMX has also uncovered a highly encouraging lithium-bearing zone at its Yandalground, 40km east of the world-class Kathleen Valley lithium-tantalum project.
Rock chip sampling delivered grades of up to 0.65% Li2O from the newlydiscovered Tapenade prospect.
The established copper inventory and extensive exploration blue sky underpinsthe underlying value attributed to Hammer Metals.
KEY POINTS
◾ Company Name: Hammer Metals
◾Company ASX code: HMX
◾Key Commodities: Copper, gold
◾Key Personnel: Dan Thomas, Managing Director | Russell Davis, Chairman | ZiggyLubieniecki, Non- Executive Director
◾Locations: Mount Isa, Queensland & Yandal region, Western Australia
◾Market Cap as of 25/01/23: $59.14M
◾52-Week Share Price Range at 25/01/23: $0.044 - $0.130
◾W: hammermetals.com.au
INVESTMENT HIGHLIGHTS
◾ JORC resource inventory of over 400,000 tonnes of copper equivalent metal atan average grade of 1.5% copper equivalent with a resource upgrade expected inQ2 2023.
◾ Multiple high-grade exploration targets in Australia’s most desirable copperdistrict with follow up drilling programs underway.
◾ Experienced team with a proven track record for large-scale mineraldiscoveries.
