Hammer Metals Advances Yandal Gold Project with Promising Results
HMX (HMX) Share Update September 2024 Monday 30th
Hammer Metals Advances Yandal Gold Project with Promising Results
Hammer Metals Ltd (ASX: HMX) has provided an encouraging update on its 100%-owned Yandal Gold Project in Western Australia, highlighting promising results from recent drilling and ongoing metallurgical test work.
Instant Summary:
- Metallurgical test work on Orelia North gold deposit samples has commenced.
- Results from a 7,561m air-core drilling program reveal anomalous gold trends at Harrier and Sword prospects.
- Significant quartz veining and molybdenum anomalism observed near Julius granodiorite contact.
- Multi-element geochemical review underway on all samples.
Metallurgical Test Work
Hammer Metals has initiated metallurgical test work on samples from the Orelia North gold deposit. The test work aims to assess potential treatment options for the near-surface gold mineralisation, which is estimated at 1.5Mt at 1.15g/t for 54.5koz of gold. Results are expected in the coming weeks.
According to Managing Director Daniel Thomas, the shallow nature of the mineralisation and its proximity to existing gold mining infrastructure are advantageous, especially in the current gold price environment. This preliminary work will provide valuable information on the potential viability of a mining operation based on the resource.
Drilling Results
The company has completed a 7,561m air-core drilling program targeting gold geochemical anomalism at the Sword and Harrier prospects. The program consisted of 151 holes, with 46 holes drilled at Sword and 105 at Harrier. Anomalous gold trends (>0.1g/t) were observed at both prospects.
Significant quartz veining and molybdenum anomalism were encountered in holes near the Julius granodiorite contact. A multi-element geochemical review is currently underway on all samples. The Sword prospect's geological setting is analogous to the Julius gold mine, which exhibits halos of molybdenum and bismuth mineralisation.
Key Intercepts
Significant geochemical intercepts from the recent drilling include:
- 8 metres at 0.12g/t Au from surface in BWSAC0890
- 1 metre at 0.1g/t Au from 67m in BWSAC0891
- 1 metre at 0.13g/t Au from 41m in BWSAC0904
At the Harrier prospect, significant intercepts include:
- 1m at 0.84g/t Au from 31m within an outer envelope of 32m at 0.07g/t Au from 16m in BWSAC0942
- 1m at 0.66g/t Au from 25m with an outer envelope of 49m at 0.07g/t Au from 25m in BWSAC0937
The promising drilling results and ongoing metallurgical test work are positive indicators for Hammer Metals' Yandal Gold Project. The shallow nature of the mineralisation and proximity to existing infrastructure could lead to cost-effective mining operations. These developments are likely to boost investor confidence and positively impact the company's stock price.
Investor Reaction:
Analysts are likely to react positively to the news, given the promising drilling results and the commencement of metallurgical test work. The potential for cost-effective mining operations due to the shallow nature of the mineralisation and proximity to infrastructure is a significant advantage.
Conclusion:
Investors should keep an eye on the upcoming metallurgical test results and further drilling updates. Hammer Metals' strategic focus on unlocking the value of its gold portfolio could present significant opportunities for growth and returns.