Hammer eyes major stake in Lady Jenny mining leases

Hammer Metals is looking to expand its Mount Isa region footprint with an 80 per cent stake in the Lady Jenny mining leases. The company has entered into a binding term sheet with Corella Valley Corporation to acquire an option for a major interest in the ground, centred on an historical copper and gold mining operation. "This region continues to deliver substantial opportunities associated with historical mining operations," Hammer managing director Daniel Thomas said. Hammer managing director Daniel Thomas at Lady Jenny. "As we’ve seen with neighbouring projects, the propensity for these historical mines to deliver high grades of copper from close to surface offers Hammer an advanced exploration opportunity. "The Lady Jenny mining lease is entirely complementary to our established exploration tenure and our existing hub copper-gold resources at Kalman, Jubilee, Lakeview, Elaine and Overlander. "The establishment of another potential source of ore for a regional processing mill represents another piece of the Mount Isa Inlier puzzle and will ensure that Hammer’s already substantial resource inventory continues to grow.“ Mr Thomas said that as the region looked to establish the next set of mines to replace the Mount Isa copper operation, advanced prospects such as Lady Jenny, with proven production potential, would have a tremendous opportunity to expeditiously deliver that source. "The added bonus of this prospect is that it is located on a granted mining lease, with Hammer holding all of the tenure surrounding the established mine,” he said. Related: Cash boost for Hammer’s Hardway efforts The Lady Jenny mining leases (ML2701 and ML90601) cover about 26ha and are located approximately 16km south along the Fountain Springs Rd from the sealed Barkly Highway that runs between Mount Isa and Cloncurry. They are near Hammer's defined JORC mineral resources at Kalman, Overlander, Lakeview, Elaine and Jubilee. Subject to due diligence and receipt of approvals, Hammer is planning to commence drilling to test the copper sulphide mineralised zone at Lady Jenny towards the end of October. The company has completed a basic rock chip analysis of material from within the existing pit, highlighting the high-grade nature of the existing workings. Rock chips grading up to 58.5 per cent copper were recorded using PXRF analysis. Regarding the terms of the potential acquisition, an option payment fee of $100,000 plus $50,000 in Hammer shares is payable by Hammer upon the fulfilment of the conditions precedent including completing satisfactory due diligence on the tenements. An option period of 24 months will allow Hammer to accurately define the size and grade of a potential resource on the property, with a payment of $500,000 required to secure an 80 per cent interest in the project. Hammer will remain responsible for the costs associated with the exploration program until it completes the purchase of the interest in the project. You may also like: https://industryqld.com.au/ironbark-zinc-snaps-up-majority-ownership-in-two-aeon-metals-leases/

Hammer eyes major stake in Lady Jenny mining leases

Industry Queensland

Related News

Case of ‘mind the gap’ in mining safety messages

Sandy Mitchell mining licence application lodged

Codelco eyes Mount Cannindah copper project

Get access to breaking mining news, now.