Hammer Metals (ASX:HMX) disclosed the progression of the Isa Valley Project, with South32’s (ASX:S32) wholly-owned subsidiary committing to the second stage of the earn-in agreement.
This follows a soil sampling program uncovering zinc anomalies in the region, indicating a SEDEX base metal association.
The project, located in the Western Succession of the Proterozoic Mount Isa Inlier, yielded geophysical and geochemical results over potential SEDEX deposits.
An ionic leach soil sampling program conducted by South32 highlighted anomalous zinc along with silver, lead, arsenic, and cadmium.
"The early work completed at the Isa Valley Project supports the geological concepts that were envisaged in the earn-in agreement. It’s exciting to see the emergence of a coincident geophysical and geochemical anomaly on the highly prospective Mount Isa Fault setting," stated Hammer Metals' Managing Director Daniel Thomas.
The next stage involves drilling 900m, aiming to test the defined anomalies in the first half of 2025.
Should South32 choose to advance past this stage, they have the option to invest further in exploration to earn a 70% interest in the project.
Hammer Metals will continue collaborating with South32 in developing the exploration targets in anticipation of significant breakthroughs in this highly prospective region.
At the time of reporting, Hammer Metals' share price was $0.035.