Hammer Metals Limited · ASX:HMX
Hammer Metals — Investor Presentation (May 2017)
30 slides from Hammer Metals's investor presentation, May 2017
Slide 1: Hammer Metals Limited Presentation May 2017
Hammer Metals Limited ABN. 87 095 092 158 Presentation May 2017
Slide 2: Corporate Summary (May 2017)
Corporate Summary (May 2017) 10.0 14 Capital Structure 9.0 Share Price (9-May-17) $0.045 12 8.0 Shares on Issue 198.3m 10 7.0 Share Price (cps) Market Cap $8.9m 6.0 Volume (m) 8 Options Unlisted 55.2m 5.0 Cash (31 March 2017) $2.0m 6 4.0 Enterprise Value $6.9m 3.0 4 2.0 2 Significant Shareholders 1.
Slide 3: Board & Management
Board & Management Board of Directors Russell Davis Chairman BSc (Hons) MBA MAusIMM, AICD Geologist with +30 years’ of exploration and development experience. Previously Exploration Director and NED of Gold Road Resources Limited and MD of Syndicated Metals Limited and a founding Director of both. A
Slide 4: Mount Isa Project Overview
Mount Isa Project Overview Hammer has a major land position (3200km2) located in the Mount Isa province One of the world’s most significant iron oxide copper-gold (IOCG) provinces and is Australia’s largest lead, zinc and silver producer; hosting almost 30% of the world’s lead and zinc reserves Clos
Slide 5: Strong Project Pipeline: Multiple Large Scale Targets
Strong Project Pipeline Multiple Large Scale Targets • Substantial and systematic exploration programs planned in a known major copper province. • Very large ground holding – multiple targets. • Multiple projects at different stages being progressed • Drilling over the next few months on both 100% o
Slide 6: Three Strategies to Discovery and Production: Strategy 1
Three Strategies to Discovery and Production Strategy 1 Explore 100% owned Hammer ground; • Kalman is our lead deposit with 20mt of Cu/Au/Mo/Re • Now drill testing multiple targets close to Kalman. • The goal is to reach a critical mass of copper gold ore tonnes capable of supporting proceeding to p
Slide 7: Three Strategies to Discovery and Production: Strategy 2
Three Strategies to Discovery and Production Strategy 2 JV, manage joint ventures where partners finance EXPLORATION; • Hammer currently has a JVA with Newmont to explore three large IOCG systems within Hammer’s portfolio • Newmont is to spend $10 million USD to earn 75% with Hammer managing the fir
Slide 8: Three Strategies to Discovery and Production: Strategy 3
Three Strategies to Discovery and Production Strategy 3 JV, manage joint ventures where partners finance DEVELOPMENT; • Canadian Cobalt focused group GEMC has paid an option fee to Hammer to advance the Millennium Co/Cu/Au deposit • The goal is to advance the existing mineral resource through to a p
Slide 9: Pilgrim Fault - Multiple VTEM Targets
Pilgrim Fault - 100% HMX Multiple VTEM Targets • 23km stretch of the Pilgrim Fault was flown by a VTEM survey late 2016 to look for massive sulphide zones such as those seen in Kalman South. • Several conductors have been identified for drill testing after the Dronfield drilling program, likely late
Slide 10: Mt Philp Breccia - IOCG Target
Mt Philp Breccia - 100% HMX IOCG Target • Large breccia body located north of Kalman between the Fountain Range and Pilgrim Faults. • Extensive untested areas of red-rock (magnetite-hematite- potassium feldspar) alteration, brecciation and intrusive activity. • Target is a large breccia hosted IOCG.
Slide 11: Hammertime - Larger Soil Geochemical Anomaly than Kalman
Hammertime - 100% HMX Larger soil geochemical Anomaly than Kalman • Coincident soil geochemistry (Cu and Au) and IP anomaly • Rock chips with grades of +2.4g/t Au and 29.3% Cu1 • 3.4km in length and 1km in width • Prospect crosses the tenement boundary with Glencore Copper. 1. Refer to ASX release d
Slide 12: Hammertime - Only 1 drillhole to date
Hammertime - 100% HMX Only 1 drillhole to date • Intersected thick zone of alteration and mineralisation in first RC hole 216m @ 0.17% Cu & 0.05g/t Au • Highly encouraging first intersection with favourable rocks, structures and alteration. • More drilling planned in 2017 Q2 with cultural clearanc
Slide 13: Chinalco Acquisition - Low cost purchase enhancing ground holding
Chinalco Acquisition - 100% HMX Low cost purchase enhancing ground holding • Purchase of Chinalco’s Mount Isa region tenement interests • High grade gold – 30m at 6.7g/t Au • Includes Elaine Dorothy Copper-Gold Deposit, Gem Copper Deposit and several IOCG targets • Priority is high-grade gold potent
Slide 14: Kalman - Mineral Resource Estimate
Kalman - 100% HMX Mineral Resource Estimate • Open pit and underground potential • Remains open at depth • Good potential for base load plant feed Classification Mining Method Tonnes (t) CuEq (%) Indicated Open Pit 7,100,000 1.5 Inferred Open Pit 6,200,000 1.6 Inferred Underground 7,000,000 2.4 TOTA
Slide 15: Kalman: High Grade Mo-Re
Kalman: High Grade Mo-Re - 100% HMX High-grade molybdenum and copper-gold zones enhance open pit mining potential • High grade molybdenum & rhenium intersections: 62m @ 0.65% Mo, 11.4g/t Re, 0.16% Cu, 0.07g/t Au & 1.5g/t Ag (62m at 4.3% CuEq*) from 152m, Incl. 7m @ 3.44% Mo, 57g/t Re, 0.33% Cu,
Slide 16: Kalman: High Grade Copper
Kalman: High Grade Copper - 100% HMX High-grade copper at depth • Multiple zones, needs further work 7.6m @ 23.4% Cu, 0.5g/t Au & 20g/t Ag from 581.65m in K106A 77m @ 1.4% Cu & 1.3g/t Au from 700m in K106A 53m @ 2.1% Cu & 0.52g/t Au including 25m at 3.8% Cu & 0.94g/t Au from 712m in K106C K-10
Slide 17: Kalman South Drilling
Kalman South Drilling - 100% HMX Following up the high-grade copper at depth • K140 completed at 904 metres depth • Target was extensions to high grade copper zones in K106 • Down-hole EM indicates drilled below conductive body • Daughter holes to test DHEM conductor under consideration K-140 – Nigh
Slide 18: Dronfield - Newmont JV Drilling now
Dronfield - Newmont JV Drilling now • Williams granite suite. • Widespread alteration • Coincident gravity – magnetic, gravity and IP anomalies with geochemical anomalism. • Copper - gold anomalism. 2m @ 6.1% Cu + 1.54g/t Au from 37m in HDRC001 IOCG Targets on BA1VD gravity Imagery HAMMER METALS L
Slide 19: Dronfield - Newmont JV Large scale target
Dronfield - Newmont JV Large scale target Planned holes on the western chargeability target • Geochemical, Gravity, Magnetic and NEWDAS (IP) Surveys completed • Drilling target outlined at Dronfield West • Drilling partly funded by CDI Funding grant April 30th 2017 – First day of Dronfield Drilling
Slide 20: Overlander - Newmont JV IOCG Target
Overlander - Newmont JV IOCG Target • Mineralised rhyolite: RC and diamond drilling has hit high grade Cu with Co zones from surface at Overlander North • Large system - 6km of strike, 6km west of Kalman • Strong IOCG alteration intersected in diamond drill holes OVD001 – OVD003 with coincident geoc
Slide 21: Overlander North Deposit - Very promising results to date
Overlander North Deposit - Newmont JV Very promising results to date • Last 3 RC holes intersected: 75m @ 1.33% Cu incl. 28m @ 1.91% Cu & 16m @ 1.92% Cu in OVRC29 87m @ 0.74% Cu incl. 27m @ 1.4% Cu in OVRC30 89m @ 1.1% Cu incl. 56m @ 1.4% Cu & 11m @ 2.4% Cu & 10m @ 1.6% Cu in OVRC31 • Open to
Slide 22: Overlander North Deposit - Requires follow up drilling
Overlander North Deposit - Newmont JV Requires follow up drilling • Vertical zone on eastern edge of magnetic – gravity anomaly. • OVD001 Intersects IOCG target 21m @ 1.7% Cu from 435m 97.3m @ .54 Cu from 359.5m HAMMER METALS LTD | 22
Slide 23: Tourist Zone - Encouraging first pass results
Tourist Zone - Newmont JV Encouraging first pass results • Similar geological position to Overlander and 2km to west • Mineralised breccias, silicification and ‘red rock’ alteration • Previous drilling returned: 26m at 1.04% Cu and 0.24g/t Au in TRC-11 and 35m at 1% Cu and 0.18g/t Au in TRC-19 H
Slide 24: Millennium - GEMC JV Option: A New Cobalt Deposit
Millennium - GEMC JV Option A New Cobalt Deposit • Deal announced with GEMC to develop Millennium in May 2017 with Hammer managing next 2 phases of exploration and further resource definition. • Adjacent to the major Pilgrim Fault zone and just 19km from Rocklands copper-cobalt plant • Granted Minin
Slide 25: Millennium - GEMC JV Option Maiden Resource
Millennium - GEMC JV Option Maiden Resource • 23 RC holes since May 2016 acquisition to deliver a cobalt-copper-gold resource in December 2016 • Open at depth and to the north with high grade extensions (+ 0.5% Co) to be tested • Parallel structure to the east at Federal untested • Term Sheet signed
Slide 26: Summary: Multiple Large Scale Targets
Summary Multiple Large Scale Targets • Substantial and systematic exploration programs planned in a known major copper province. • Very large ground holding – lots of targets. • Dronfield Joint Venture drilling started on April 30th. • Hammer drilling is planned to flow on from the JV drilling with
Slide 27: Disclaimer & Competent Person Statements
Disclaimer & Competent Person Statements Disclaimer Overlander North + South Resource Estimate The information in this presentation that relates to This presentation by its nature contains summarised Mr Downing consents to the inclusion in the report of the matters based on the information in the fo
Slide 28: Kalman Resource Estimate & Notes On Copper Equivalence Calculation
Kalman Resource Estimate & Notes On Copper Equivalence Calculation The Kalman Mineral Resource Estimate was updated in August 2016 in accordance with the JORC Code (2012 Edition). (Refer to the ASX Release dated 27th September 2016 for full details of the Resource Estimate.) Kalman Deposit Inferred
Slide 29: Kalman Resource Estimate & Notes On Metallurgical Recoveries
Kalman Resource Estimate & Notes On Metallurgical Recoveries Assumed Metallurgical Recoveries Based on the testing completed and the current understanding of the material characteristics it has been assumed that the Kalman material can be processed using a “typical” concentrator process flowsheet. T
Slide 30: Millennium Resource Estimate & Notes On Copper Equivalence Calculation
Millenium Resource Estimate & Notes On Copper Equivalence Calculation The Millennium Mineral Resource Estimate was conducted in December 2016 in accordance with the JORC Code (2012 Edition). (Refer to the ASX Release dated 6th December 2016 for full details of the Resource Estimate.) Millennium Depo