Hammer Metals is moving ahead with an exploration program at the Lady Jenny mining leases, where it has completed due diligence relating to an option to purchase an 80 per cent stake.

The company said it had started earthworks in preparation for a reverse circulation drilling program to test the copper sulphide mineralised zone at the North-West Queensland site.

The drilling program was expected to commence at the end of October but had been delayed due to bushfire interruptions around Cloncurry, Hammer said.

Image at top of page: Drill pad preparation at Lady Jenny.

The Lady Jenny mining leases (ML2701 and ML90601) are located about 16km south along the Fountain Springs Rd from the Barkly Highway between Mount Isa and Cloncurry.

They are near Hammer’s defined JORC mineral resources at Kalman, Overlander, Lakeview, Elaine and Jubilee.

Hammer said it had satisfied itself with respect to due diligence over the tenements and had made the option payment of $150,000 ($100,000 plus $50,000 in Hammer shares) to owner Corella Valley Corporation.

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.

The Lady Jenny sites have previously been mined for copper oxide ore that was transported to a processing facility in Cloncurry.

Mining was suspended as the orebody transitioned into copper sulphide mineralisation, Hammer said.

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