South32 getting active with Hammer near Mount Isa

The major has committed to initially spend about $150,000 on a 900m drilling program within the next 18 months.

Ultimately, it could earn 80% by completing a pre-feasibility study.

South32’s area of interest covers 320sq.km directly south of Mt Isa and forms part of Hammer’s broader 2800sqkm of ground holdings in the region that are considered prospective for base metal deposits.

Hammer recently received $4 million in cash (plus shares) for selling other ground in the region to emerging copper explorer Carnaby Resources — in which Hammer is now the largest shareholder.

Prior to that funding boost, Hammer had circa $2.5 million cash.