South32 to Earn 80% Stake in Hammer Metals’ Isa Valley Project

South32 Group Operations has signed a Letter Agreement with Hammer Metals, granting South32 an option to earn an 80% interest in the Isa Valley Project located in North-West Queensland. The project spans approximately 320 km² of the Mount Isa Fault, part of Hammer’s larger 2,800 km² Mount Isa Project. This area is considered highly prospective for Mount Isa-style sedimentary lead-zinc-copper mineralization, similar to the Mount Isa and George Fisher-Hilton deposits.

Under the agreement, South32 will initially commit to an ionic-leach soil sampling program. Subsequent investment decisions by South32 may include a 900-meter drilling program within 18 months, estimated at around $150,000, and an expenditure of up to $3 million to earn a 70% interest in the project, to be completed within three years. South32 has the option to extend the earn-in period by one year with an additional $1 million investment, totaling $4 million.

South32 has the right to increase its stake from 70% to 80% by electing to free-carry Hammer Metals to the completion of a Pre-Feasibility Study. South32 will manage and operate the exploration program.

The deal, valued at $2.65 million, was announced on May 27, 2024.