Hammer Metals Bullrush Drilling Results Reveal Major Gold-Copper Discoveries

Hammer Metals Strikes IOCG Alteration System at Bullrush Maiden Drilling

Hammer Metals (ASX: HMX) has completed its maiden drilling program at the Bullrush Joint Venture project with Sumitomo Metal Mining Oceania Pty Ltd (SMMO), successfully detecting a favourable Iron Oxide Copper-Gold (IOCG) alteration system beneath Cambrian sedimentary cover in Queensland's Mt Isa region.

Successful Proof of Concept Drilling Confirms IOCG Potential

The 4-hole diamond drilling program totalling 2,268 metres has validated the exploration concept by identifying key indicators of a potentially significant IOCG system. All four targets drilled corresponded with zones of increased magnetic response and gravity highs – telltale signatures of IOCG deposits.

"Our first drilling at the Bullrush prospect has been a successful test of the exploration concept, confirming that all of the ingredients are present for a large-scale IOCG system," said Daniel Thomas, Hammer's Managing Director.

The Hammer Metals Bullrush drilling results identified:

• Multiple Williams-suite intrusive phases ranging from granite to monzonite compositions
• Two distinct alteration phases, including a key second phase featuring hematite, potassium feldspar, biotite, actinolite and chlorite
• Visual chalcopyrite and bornite copper mineralisation accompanied by hematite
• Favourable zones of brecciation and alteration throughout granite and monzonite hosts

While economic grades weren't encountered in this initial program, the discovery of IOCG-style alteration confirms the property's potential to host significant mineralisation.

Understanding the Geological Setting

The Hammer Metals Bullrush drilling results targeted geophysical anomalies in the Proterozoic basement beneath 100-250m of Cambrian sedimentary cover of the Georgina Basin. The program revealed intrusive rocks from the Williams suite, which both spatially and temporally have close associations with IOCG deposits in the region.

Importantly, the drilling confirmed two key alteration phases:

1. An early phase of magnetite and sodic feldspar alteration
2. A later phase featuring hematite, potassium feldspar, biotite, actinolite and chlorite

The second alteration phase is spatially related to east-west trending structures marked by carbonate, quartz and minor fluorite vein in-fill with local development of breccias. Sulphide mineralisation, including pyrite with lesser chalcopyrite and bornite, was introduced after this second alteration phase.

Key Intercepts

While not economically significant yet, several copper-bearing zones were identified:

Refining the Exploration Approach

A key finding from the Hammer Metals Bullrush drilling results is the observation of magnetite destruction and hematite alteration accompanying copper mineralisation, which provides an important vector for future exploration. This suggests that demagnetised zones may become favoured targets in subsequent programs.

The company is now conducting detailed follow-up work to refine its targeting strategy:

• Petrophysical and petrological analysis to better understand the alteration and mineralisation
• Down-hole electromagnetic surveys planned for this quarter
• Induced Polarisation (IP) surveys to be completed in the same timeframe

Understanding IOCG Deposits

What is an IOCG Deposit?

Iron Oxide Copper-Gold (IOCG) deposits represent a diverse family of mineral deposits characterised by iron oxide minerals (magnetite or hematite) with economic concentrations of copper and gold, plus variable amounts of uranium, rare earth elements, and other metals. They typically form large to giant deposits associated with intrusive activity and structural controls.

Australia hosts several world-class IOCG deposits, including Olympic Dam, Prominent Hill, and Carrapateena in South Australia. The exploration model being applied at Bullrush draws inspiration from these analogues rather than the more common deposit styles in the Mount Isa region.

IOCG deposits are particularly attractive exploration targets because they:

• Can form very large mineral systems with substantial tonnage
• Often contain multiple valuable commodities
• May occur at various depths, including under cover rocks
• Typically have distinctive geophysical signatures that can be detected through overlying sediments

The Hammer Metals Bullrush drilling results demonstrate characteristics consistent with the early stages of IOCG system recognition, including the crucial alteration styles and mineralisation associations.

Joint Venture Strategy and Future Outlook

The Bullrush Joint Venture with Sumitomo Metal Mining Oceania provides a strong joint venture partner for Hammer. This partnership combines Hammer's exploration expertise with Sumitomo's financial and technical strength.

Under the agreement, SMMO can:

• Earn 51% interest by spending $4.5 million within four years
• Increase to 60% with an additional $2 million in expenditure
• Potentially reach 80% by free-carrying Hammer to completion of a Pre-Feasibility Study

For investors, this structure provides Hammer with exploration upside while managing capital expenditure risk.

Why Investors Should Watch Hammer Metals

Hammer Metals offers several compelling reasons for investor attention:

1. With its strategic land position of approximately 2,800km² within the prolific Mt Isa mining district, Hammer controls significant exploration potential.
2. Partnership with Sumitomo, a global mining house with over 300 years of experience
3. Beyond Bullrush, Hammer is pursuing multiple exploration fronts at Bronzewing South, Ken's Bore, and Isa Valley, providing multiple catalysts.
4. Hammer holds established resources including 100% interests in the Kalman (Cu-Au-Mo-Re) deposit and several other copper-gold deposits.
5. Leadership with proven track records in discovery and development

With upcoming drilling programs, geophysical surveys, and soil sampling campaigns scheduled for Q3 2025, Hammer offers investors exposure to significant exploration upside across multiple projects and commodities.

Key Takeaway:

Hammer Metals has demonstrated proof of concept at Bullrush with the identification of IOCG-style alteration and mineralisation, validating the exploration model. With a strong joint venture partner in Sumitomo Metal Mining and a pipeline of exploration activities across its portfolio, the company is well-positioned to make significant discoveries as it refines its targeting approach at Bullrush and advances its broader project portfolio.

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