Hammer Metals Limited announce the completion of the purchase of the 51% interest in EPM 14467 held by AuKing Mining Ltd. (formerly Chinalco Yunnan Copper Resources Limited).
EPM 14467 is located adjacent to the Mary Kathleen Uranium Mine, 60km east of Mount Isa and covers the Mary Kathleen Shear Zone that hosts several copper-gold, uranium and rare Earth element projects including Jubilee, Koppany and Blue Caesar.
As a pre-condition of the purchase a new Joint Venture Agreement with Mount Isa Mines Limited, which holds a 49% interest in the tenement, was negotiated.
Other key terms of this agreement include the signing of a Joint Venture Agreement between Mulga Minerals Pty Ltd (a 100%-owned subsidiary of Hammer Metals Limited), and Mount Isa Mines Limited (a 100% owned subsidiary of Glencore PLC). Likewise, each Party to the Joint Venture will contribute exploration expenditure according to their participating interest (Hammer Metals - 51%, Mount Isa– 49%). Dilution provisions apply if a Party elects not to contribute to a programme, or if a party’s participating interest falls below 10% their interest will convert to a 3% Net Profits Royalty. Mulga Minerals has agreed to act as the initial manager of the Joint Venture and will remain manager whilst its interest exceeds 50%.
Mount Isa Limited has the right to match the terms of any proposed sale of ore or concentrate from the tenement by Hammer to a third party. The tenement’s proximity to the Mary Kathleen Mine meant much of the historical exploration was focused on uranium mineralisation. However, recently the focus has been on copper, with Mount Isa conducting comprehensive geochemical and geophysical programmes, which were followed up by nine diamond drill holes on the Koppany project located 2 km along the strike to the south east of Mary Kathleen.
Diamond drilling by Mount Isa at Koppany intercepted a mineralised skarn sequence with zones of massive and disseminated pyrrhotite and chalcopyrite. Anomalous Rare Earth Elements were also intersected in the drilling included cerium (up to 1.7%), lanthanum (up to 1.2%) and neodymium (0.26%).
Alexander Hewlett, CEO of Hammer Metals said that:
“Hammer is very pleased to now be working side by side with Glencore in the Mount Isa district. This JV now completes Hammer’s acquisition of AuKing’s tenement interests in the Mount Isa region. The range of prospective copper-gold targets acquired are considered to significantly enhance Hammer’s current tenement portfolio in the Mount Isa region.”
Read the article online at: https://www.globalminingreview.com/exploration-development/23082017/hammer-metals-and-mount-isa-mines-to-enter-new-joint-venture/