Mount Isa, Queensland, Australia
|Historic Estimate*||JORC (2012) Inferred Resource on the property of 3.1 million tonnes @ 0.14% Co, 0.34% Cu and 0.12g/t Au (using CuEq cutoff of 1.0%)|
The Millennium Project is a significant cobalt-copper deposit that remains open for expansion.
The Project is located close to well established mining, transport and processing infrastructure along with a skilled workforce in the regional centres of Mount Isa and Cloncurry.
Excellent potential and further upside in extending the known mineralized structure through exploration work to the north and to the east. Preliminary hydrometallurgical studies have demonstrated the potential for the recovery of saleable cobalt and copper concentrates.
|Project Status||Exploration Stage|
|Ownership||GEMC currently has a 25% interest in the Project and has a right to earn-in up to 75% interest through direct project exploration and development spend.|
*This work was based on a technical report by Haren Consulting Pty Ltd., issued November 29, 2016 conforming to JORC (2012) reporting standards for resources estimates. As Hammer uses JORC categories, it should be noted that the confidence in the estimate of JORC inferred mineral resources is usually not sufficient to allow the results of the application of technical and economic parameters to be used for detailed planning. For this reason, there is no direct link from an inferred resource to inferred resource as defined under NI 43-101. However, the Company deems this resource still relevant because economic parameters have not changed significantly since publication date and the Company has confidence in the estimate based on review of technical data. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the issuer is not treating the historical estimate as current mineral resources or reserves. CuEq%= Cu% +(Co%*5.9) +(Au ppm*0.9) +(Ag ppm*0.01). Price assumptions utilised by Hammer for the JORC resource estimate and drill hole intercepts are (in USD); Au - $1,300/oz, Ag - $20/oz, Co - $27,000/t and Cu - $4,600/t.
The Project presents as an excellent opportunity to acquire a cobalt asset of significant size with potential to expand mineralisation in close proximity to a processing solution and excellent infrastructure within the Mount Isa region of Queensland, Australia. It is anticipated that GEMC will conduct further infill drilling to tighten drill spacing and test for potential extensions at depth and along strike, which the Company believes, could result in a material increase in the size of the current JORC resource. Additional drilling will allow for greater modelling continuity and increased confidence level of the current reported “inferred resource” category to Indicated and/or Measured categories under NI 43-101 reporting standards.
At current and future predicted cobalt prices, cobalt is the dominant economic metal within the deposit and GEMC will remodel the deposit on a cobalt-equivalent basis.
The Mount Isa Inlier is a highly mineralised, established mining jurisdiction with significant regional infrastructure and several world-class copper-gold-cobalt and lead-zinc-silver mines and deposits, including CuDeco Limited’s operating Rocklands copper-gold-cobalt project located 19 kilometres to the northwest.
The Project comprises five Mining Leases; ML’s 2512, 2761, 2762, 7506 and 7507. Hammer currently has a 100% interest in all five Mining Leases. The tenements are in good standing with no known impediments.
Phase One - 2018
The objective of the 10-hole, 1,141 metre drilling campaign was to test the up-dip continuity at the Millennium North deposit and confirm historical estimates of cobalt mineralization reported in 2016 by operating partner Hammer Metals. Drilling results correlate well with the previous deeper drilling with the further delineation of wide zones of cobalt, copper and gold mineralisation nearer to surface. The drilling campaign is now complete. Analysis and reporting of the previous drill results can be found in news releases dated June 19, 2018, May 31, 2018, April 30, 2018 and January 17, 2018.
Rock chip sampling has also been conducted to test for additional zones of cobalt and copper mineralisation along the Millennium trend and in particular the northern strike extension (“Northern Extension”) where similar host rock units and strong soil geochemical anomalies have been identified.
This zone is located approximately 1 kilometre north of the current Millennium resource as defined. Results indicate high priority targets for further work to expand the known resource area.
The presence of anomalous cobalt and copper in rock chip samples and analogous geology between the Millennium resource area and the Northern Extension indicate that this area is a priority target for further investigation.
Phase One 2018 Progressive Drilling Intersections
Drilling in 2016 from Hammer’s 23 RC drill hole program (Hammer ASX releases, 13/09/2016 and 14/10/2016 ) included peak cobalt results with 8 metres at 0.35% Co in MIRC023 and 4 metres at 0.51% Co in MIRC013.
Other intercepts included:
- 19 m at 0.38% Co, 1.27% Cu, 0.70 g/t Au, (4.12% CuEq) in Q-012;
- 24 m at 0.15% Co, 0.23% Cu and 0.09 g/t Au (1.17% CuEq) in MIRC013;
- including 4 m at 0.51% Co, 0.46% Cu and 0.16 g/t Au (3.64% CuEq),
- 12 m at 0.19% Co, 0.57% Cu and 0.19 g/t Au (1.85% CuEq) in MIRC014;
- including 4 m at 0.30% Co, 0.44% Cu and 0.14 g/t Au (2.33% CuEq),
- 40 m at 0.07% Co, 0.32% Cu and 0.13 g/t Au (0.82% CuEq) in MIRC017;
- including 5 m at 0.15% Co, 0.82% Cu and 0.21 g/t Au (1.90% CuEq); and
- 33 m at 0.16% Co, 0.66% Cu and 0.34 g/t Au (2.11% CuEq) in MIRC023;
including 8 m at 0.35% Co, 0.08% Cu (2.19% CuEq).
All intercepts reported represent core lengths; true width will vary depending on the intersection angle with the targeted zone. Holes are generally planned to intersect mineralised zones as close to perpendicular as possible. Copper equivalent (CuEq) calculation is as follows: CuEq% = Cu% +(Co%*5.9) +(Au ppm*0.9) +(Ag ppm*0.01). Price assumptions utilised by Hammer for the JORC resource estimate and drill hole intercepts are (all $US); Au - $1,300/oz, Ag - $20/oz, Co - $27,000/t and Cu - $4,600/t.
There are no more recent estimates or data available. To upgrade this work from an historical estimate to a current mineral resource, the Company will review the data set and complete additional drilling and modeling work to verify the historic estimate as a current mineral resource or mineral reserve.
Recent drilling and exploration to date has returned outstanding, high-grade intercepts and there is excellent potential to build upon the historic estimate as developed by Hammer. Based on previous work by Hammer and others, mineralisation is interpreted to extend over a strike length of 1,600 metres and extends to approximately 280 metres below surface. Multiple high-grade targets are awaiting further exploration and the mineralised zone remains open at depth and to the north along strike.
Hammer drilled a total of 23 RC holes and extended two previous holes at Millennium in a late 2016 work program. The results build on previous drilling conducted in the area and 40 drill holes were used in the first JORC (2012) mineral resource estimate for the project.
Mr. Paul Sarjeant, P. Geo., the Company’s VP Projects and Director, is the qualified person for this release as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and verified the technical information contained herein.