Demetallica has released results for the final 13 holes of a maiden 56-hole drill program as it heads towards a new JORC resource estimate for Jericho next month.

The company said the high tenor and breadth of copper-gold mineralisation encountered was highly encouraging.

Standout copper intercepts include:
Jumbuck Shoot – 5m grading at 3.83 per cent copper and 0.58g/t gold from 178m, and 12.5m at 2.22 per cent copper and 0.55g/t gold from 386m;
Matilda Shoot – 23m at 2.21 per cent copper and 0.41g/t gold from 155m, and 30m at 1.08 per cent copper and 0.16g/t gold from 430m;
Billabong Shoot – 22m at 1.79 per cent copper and 0.24g/t gold from 157m, and 12.4m at 2.46 per cent copper and 0.20g/t gold from 517m.

The Jericho copper-gold system is the most advanced asset in Demetallica’s Chimera portfolio near Cloncurry in North-West Queensland.

The company is the subject of a takeover bid by Eloise copper mine owner AIC Mines.

Jericho lies just 4km from the Eloise processing facility and AIC sees combining assets as a fast track to mining it and potentially other deposits within Demetallica’s Chimera project.

It has announced an off-market takeover offer which values Demetallica at about $36 million.

Demetallica, which launched on the Australian Securities Exchange in May, was formed after Minotaur Exploration spun out its non-kaolin projects in Queensland and South Australia. 

Earlier this month Demetallica managing director Andrew Woskett said recent assays from Jericho drilling underscored the potential for the October Mineral Resource Estimate (MRE) to reflect higher confidence through conversion of inferred material to JORC indicated category in the shallower parts of the deposit.

“Moreover, we are starting to see potential for shallow, open-pit developments on the Jumbuck and Matilda shoots which, when scoped and ultimately shown to be economic, could significantly enhance Jerichoʼs prospects for mine development,” he stated.

The company said significant exploration potential remained to be tested following the new mineral resource publication.

Demetallica has identified numerous zones to drill and expand the resource in 2023.