Sumitomo Exits Two JV Areas, Returning 58% Ownership to Hammer Metals
Hammer Metals has regained full ownership of the Mount Philp and Even-Steven areas within its Mount Isa East Joint Venture, opening fresh exploration avenues including advancing the Trafalgar copper-gold deposit.
- Sumitomo exits Mount Philp and Even-Steven AOIs, returning 58% of JV area to Hammer
- Hammer to progress JORC resource at Trafalgar copper-gold deposit
- New exploration targets include copper, gold, tungsten, and iron oxide prospects
- Mount Isa East JV continues over Malbon and Dronfield AOIs with Sumitomo
- Ongoing Bullrush JV drilling and multiple upcoming exploration programs
Strategic Shift in Mount Isa East Joint Venture
Hammer Metals Limited (ASX – HMX) has announced a significant change in its Mount Isa East Joint Venture (MIEJV) with Sumitomo Metal Mining Oceania Pty Ltd (SMMO). Sumitomo has agreed to exit two of the four Areas of Interest (AOIs); Mount Philp and Even-Steven; returning full ownership of these regions, which represent approximately 58% of the original 334 square kilometre JV area, back to Hammer Metals at no cost.
This move allows Hammer Metals to independently pursue a range of exploration opportunities that did not align with Sumitomo’s target size or metal focus criteria. The JV will continue with SMMO over the remaining Malbon and Dronfield AOIs.
Unlocking New Exploration Potential
With full control regained over Mount Philp and Even-Steven, Hammer Metals is poised to advance several promising projects. Central to this is the Trafalgar copper-gold deposit, where the company plans to progress towards a maiden JORC resource and target high-grade mineralised shoots. Trafalgar’s mineralisation style is consistent with Iron Oxide-Copper-Gold (IOCG) systems, a highly sought-after deposit type.
Beyond Trafalgar, Hammer intends to explore Kalman lookalike targets along the Pilgrim Fault at Pharoah and Jimmy Creek, pursue gold prospects at White Dingo and Ross, investigate a tungsten anomaly at Tungsten Hill, and develop new copper-gold targets within the Mt Philp breccia zone. Additionally, the company will review iron oxide potential and consider joint ventures for the Mt Philp iron deposit.
Continued Collaboration and Broader Portfolio
Hammer Metals’ Managing Director Daniel Thomas acknowledged the valuable partnership with Sumitomo and JOGMEC since the JV’s inception in 2019. While Sumitomo exits two AOIs, the companies maintain a strong relationship through ongoing collaboration on the Malbon and Dronfield AOIs, as well as the nearby Bullrush Joint Venture, where drilling is currently underway.
Hammer’s broader portfolio includes significant copper-gold assets such as the Kalman, Jubilee, Elaine, Lakeview, and Overlander deposits, alongside the Bronzewing South Gold Project in Western Australia. Upcoming activities include multiple drilling programs, soil sampling, and a comprehensive project review, all expected to generate newsflow through November and December.
Implications for Investors and Market
The return of key AOIs to Hammer Metals enhances the company’s strategic flexibility and control over its exploration agenda in the prolific Mount Isa region. This could accelerate resource definition and discovery potential, particularly at Trafalgar and other IOCG-style targets. However, the success of these initiatives will depend on forthcoming drilling results and exploration outcomes.
Bottom Line?
Hammer Metals’ regained control sets the stage for a pivotal exploration phase that could reshape its Mount Isa East prospects.
Questions in the middle?
- What timeline and budget has Hammer allocated to advance the Trafalgar JORC resource?
- How will Hammer prioritize exploration targets across the newly regained AOIs?
- What impact will Sumitomo’s exit have on JV funding and operational dynamics?
