Hammer Metals (ASX: HMX) has announced the discovery of four new prospects boasting copper values of up to 36% at the Perentie copper-gold project in Queensland’s Mount Isa mining district.
The Paddy B, Judith, Susan and Spiros prospects were identified from rock chip samples and are believed to have visible copper mineralisation at surface.
The mineralisation occurs in veined and “red rock”-altered, Williams-age Wimberu Granite coincident with magnetic lows developed along and at fault intersections.
More than 100 samples have been assayed to date from Paddy B and Spiros, with 56 samples returning copper values greater than 1%.
Best results from the two prospects have returned up to 36% copper, 6.8 grams per tonne gold and 23g/t silver.
At Paddy B, the copper-gold mineralisation is hosted by multiple veins within a quartz-carbonate-hematite-magnetite vein breccia, occupying a demagnetitsed structural corridor.
Maximum width has been reported at 10 metres over a strike length of 650m, with widths of up to 30m where the veins coalesce.
At Judith, which is located in a similar structural setting north of Paddy B, alteration with mineralisation up to 30m in thickness occurs over a 450m strike length.
Extensive portable X-ray fluorescence (XRF) readings have been conducted at Judith with assay results still to come.
At Susan, south of Paddy B within the same demagnetised structure, copper mineralisation is located within 50m of where Mount Isa’s highly-magnetic Wimberu Granite contacts the Argylla Formation.
A zone of quartz carbonate breccia hosts copper-bearing, chalcocite-malachite mineralisation at surface and Hammer expects assays from surface sampling to be returned at the same time as Judith results.
Spiros is located to the north of the company’s Trackside prospect and mineralisation of up to 2m in width has been identified over a 300m stretch however as much of the zone is under cover, Hammer said the true width could be greater.
Hammer’s review of the magnetic response in the Perentie region has indicated the presence of at least another 20 demagnetised structures earmarked for further investigation during 2018.
The company has submitted an application for a new exploration permit across approximately 70km to secure similar structural positions in the area.
Earlier this month, Hammer announced an upcoming shareholder loyalty entitlement issue to raise funding for further exploration activities across its Mount Isa tenement package.
The offer will be for up to 161,335,205 listed options to acquire ordinary shares at an issue price of $0.005 per option, with an exercise price of $0.03 and a two-year life.
Shareholders will be eligible to purchase three options for every five shares held on the record date to raise up to $806,776 before expenses.
Details of the entitlement issue are still being prepared and Hammer expects to close the offer in September.
Hammer will use the net proceeds from its capital raising exercise to continue copper-gold exploration on tenements within the Mount Isa region.
Funds will also go towards new project generation and acquisition, general working capital and expenses associated with the offer.
At midday, shares in Hammer Metals were trading 15% higher at $0.023.