Exploration has kicked off under a $6 million joint venture arrangement on a parcel of Hammer Metals tenements in the Mount Isa region.

Hammer said the phase 1 exploration program was designed to collect baseline data over the large iron oxide copper-gold (IOCG) target areas and finalise targets for drilling anticipated in the next quarter.

Two survey teams are conducting ground-based gravity surveys in each of the four joint venture target areas, Even Steven, Mount Philp Breccia, Dronfield West and Malbon.

Another key element is ground electromagnetic (EM) surveys at Toby and Charlie prospects, following up on previously reported coincidental VTEM anomalies and rock chips with grades of up to 18.4g/t gold and 15.15 per cent copper.

Hammer says also that early activities at the Shadow prospect continue to highlight the area’s prospectivity, with visible observations of chalcopyrite in a breccia evident over a strike extent of 350m and maximum width of 100m.

Rock chip sampling in 2019 recorded a maximum individual grade of 4.6g/t gold and 27.7 per cent copper.

The current mapping program is expected to firm up the first round of targets for drill testing early in the second quarter

The joint venture deal sealed late late year will see Japan Oil, Gas and Metals National Corporation (JOGMEC) invest up to $6 million in a cluster of Hammer’s North West Queensland projects.

JOGMEC has the right to earn a 60 per cent interest in the areas covered by the agreement by spending $6 million by March 31, 2024, with a minimum expenditure commitment of $1 million by 31 March this year.

The map below shows the joint venture areas, marked in orange with a black outline.