Drill Tracker Weekly: Hammer Drills First Hole at IOCG Target at Overlander North

Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

Hammer Metals (ASX:HMX)

Price: $0.105

Market cap: $10 million

Cash estimate: $2.7 million

Project: Overlander

Country: Australia

Ownership: 100 percent

Resources: 1.157 Mt @ 1.2% Cu

Project status: Exploration

• Hammer Metals announced the result of the first deep drill hole into the IOCG (Iron Oxide Copper Gold) target on its 100% owned Overlander North target. The Company has a 100% interest in the Overlander, as well as the Kalman molybdenum/rhenium deposit 5 kilometres to the east in Queensland, Australia.

• Highlights from the first hole into the IOCG target returned 97.3 metres grading 0.54% Cu starting at a depth of 358 metres including 21 metres of 1.7% Cu. The true width of the zone is estimated by the Company to be approximately 70 metres. The core displays strong indications of IOCG type alteration including strong iron (magnetite), sodic (albite) and potassic (biotite) alteration. The higher-grade mineralization is hosted within brecciated and strongly altered sediments.

• Previous drilling in the shear hosted Overlander North project intersected 75 metres grading 1.33% Cu and 89 metres of 1.1% Cu. Due to the orientation of the drilling relative to the geometry of the shear zone related mineralization, the true width of the earlier holes was estimated at approximately 20-25 metres.

• On July 2014, the Company announced a small copper resource on the Overlander North and South deposits of 1.1 million tonnes grading 1.2% Cu. The objective of the Company is to establish satellite resources to its core Kalman Cu/Mo/Au/Re deposit 5 kilometres to the east.

• The Kalman deposit hosts a JORC inferred resource estimate of 22 million tonnes grading 0.42% Cu, 0.22 g/t Au, 0.07% Mo and 1.9 g/t Re (rhenium). Intervals with the high-grade moly/rhenium zone have returned values of 0.65% Mo, 11.4 g/t Re, 0.16% Cu, 0.07 g/t Au and 1.5 g/t Ag over 62 metres.

• The next hole on the project is proposed to test the overlapping IP chargeability and gravity anomalies. Additional drilling is also planned for a similar IOCG type target on the Andy’s Hill prospect located 3 kilometres to the southwest of Overlander.

Discovery shear hosted mineralization (Dec 2013): 14 metres @ 2.62% Cu

Current drilling (IOCG target): 97.3 metres @ 0.54% Cu

Previous shear hosted drill results: 75 metres @ 1.33% Cu from 176 metres; 89 metres @ 1.1% Cu

Risks Analysis

Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results. 

Relevant Disclosures Applicable to: Drill Tracker Weekly 

1. The research analyst or a member of the research analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns shares in the following company: Balmoral Resources Ltd. (TSX.BAR).

Analyst Certification

I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.