Partner swap in Mount Isa East prospect development

One of Japan’s largest and oldest mining houses has entered a Joint Venture with Hammer Metals to develop the Mount Isa East Joint prospect. Sumitomo Metal Mining Oceania (Sumitomo) will take over the position in the partnership from Japan Oil, Gas and Metals National Corporation (JOGMEC). SMMO, a 100 percent owned subsidiary of Sumitomo, won the tender which had been put to several Japanese companies by invitation. Demonstrated capabilities SMM’s demonstrated capabilities in exploration, project development and finance were a significant boost to the JV in its pursuit to delineate and develop a large-scale iron oxide copper-gold project said Hammer’s Managing Director David Thomas. “SMM and Hammer have developed a rigorous exploration program for the remainder of 2021 with various activities concentrated on the further development of the Trafalgar trend,” he said. “… in addition to further drilling, several geophysical, geochemical and mapping activities have been prioritised.” Sumitomo had a prestigious history in the global development of large-scale copper and gold projects, said Mr Thomas. “… and their current operations span several world class operating copper and gold mines,” said Mr Thomas. “Attracting interest from a successful international mining company is further recognition of the copper potential in the Mount Isa district and the Joint Venture’s progress to date. “The Joint Venture with JOGMEC was originally signed in November 2019 with field work commencing in early 2020. “In less than a year of exploration, the JV made the Trafalgar discovery and have set the scene for the ongoing success of the Joint Venture. Related: Hammer Metals buoyed by early drill results It showed the success of these JV arrangements said Mr Thomas. “The immediate plans for the JV are being finalised and we expect a return to the Trafalgar trend before the end of the year. “Several high-ranking targets along this trend remain untested with numerous old workings similar in nature to those at Trafalgar and at Hammer’s 100 per cent owned prospects at Lakeview and Neptune. “Further geophysical and geochemical surveys are also being planned to further aid targeting along these trends. “We look forward to working with our new partner Sumitomo Metal Mining and harnessing their expertise in the development of a world class copper and gold operation.” The original terms of the JV continue, with SMMO/SMM replacing JOGMEC as the earn-in partner the company told the ASX. The original JV terms required total expenditure of $6 million by 31 March 2024 to earn a 60 percent interest in the JV area. Hammer remains as operator of the JV until at least the completion of the earn- in period. Sumitomo Metal Mining Co. Ltd has over 300 years of mine development and operation. Tne company runs the Hishikari Mine, the largest gold mine in Japan to continue operating on a commercial scale and also participates in the development and operation of mines in various locations around the world including Northparkes (NSW), Morenci (USA) and Cerro Verde (Peru).

Partner swap in Mount Isa East prospect development

Industry Queensland

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