Hammer Metals (ASX:HMX) has secured an option to acquire an 80% interest in the Lady Jenny mining leases, located within its Mount Isa copper-gold portfolio in NW Queensland.
The leases are strategically positioned near Hammer's established JORC mineral resources.
The Lady Jenny mining leases, ML2701 and ML90601, have a history of copper oxide ore extraction, which was processed in Cloncurry before mining ceased as the orebody transitioned into copper sulphide mineralisation.
The leases are surrounded by Hammer's own EPM26904, presenting promising opportunities for mineral extension.
Hammer's Managing Director, Daniel Thomas, stated, "This region continues to deliver substantial opportunities associated with historical mining operations. As we’ve seen with neighbouring projects, the propensity for these historical mines to deliver high grades of copper from close to surface offers Hammer an advanced exploration opportunity."
Hammer plans to commence drilling in late October, pending due diligence and approvals, to test the copper sulphide mineralised zone.
Historical drilling records are currently being verified by the company.
The acquisition terms involve an initial payment of $100,000 and $50,000 in Hammer shares, with an option period of 24 months to define the resource size and grade, requiring a payment of $500,000 to secure the interest.
Hammer Metals is an ASX-listed company, which is involved in mineral exploration in Western Australia and Queensland. The company's projects include the Bronzewing South Au/Li/Ni Project and Mount Isa Projects.