Hammer Metals Commences Exploration at Bronzewing South Project

High-Grade Gold Discovery: Hammer Metals Zeros In on Prime Targets at Bronzewing South

Hammer Identifies High-Grade Gold Zone Just 40m From Tenement Boundary

Hammer Metals (ASX: HMX) has announced high-priority gold drilling targets at its Bronzewing South project in Western Australia's prolific Yandal Belt, including a significant high-grade zone discovered just metres from its tenement boundary. Historical drilling intercepted 2m at 20.8g/t Au less than 40m from Hammer's ground, with follow-up drilling in 2002 hitting 1m at 6.5g/t Au approximately 150m below the initial discovery.

This remarkable finding is part of a comprehensive exploration review that has prompted Hammer to pivot back to its WA gold assets amid record gold prices. The company has scheduled drilling before the end of the financial year, targeting several promising zones that remain surprisingly underexplored despite their proximity to Northern Star's 3-million-ounce Bronzewing gold mine.

Daniel Thomas, Hammer's Managing Director, highlighted the exceptional opportunity: "It's remarkable that we have an area so close (<200m) to the multi-million-ounce Bronzewing mine that has been completely neglected by historical drilling. Adding to our excitement, ore grade intercepts have been observed at depth, along strike and less than 40m from our tenure."

Understanding "Transported Cover": The Key to Unlocking Hidden Gold Potential

A critical insight from Hammer's technical review explains why this high-potential zone has remained undiscovered despite its proximity to a major gold mine. The target area sits beneath what geologists call "transported cover" – a layer of soil and sediment that has been moved and deposited over the bedrock, effectively masking the gold mineralisation beneath.

Transported cover presents a significant challenge for conventional exploration techniques. Shallow drilling methods like RAB (Rotary Air Blast) and air-core drilling often fail to penetrate this material effectively, resulting in false negatives. In the case of Bronzewing South's Eastern Zone, this transported cover created a ~300m gap in historical air-core drilling directly over what may prove to be a significant gold zone.

This geological phenomenon explains why shallow exploration has missed what could be a substantial extension of the Bronzewing gold system. By recognising this exploration blind spot, Hammer plans to implement deeper Reverse Circulation drilling with diamond tail extensions specifically designed to test beneath this masking layer.

Multiple High-Potential Target Zones Identified

Exploration at Hammer Metals Ltd Bronzewing South has identified several key target areas across its Yandal Project that warrant immediate follow-up:

1. Boundary Eastern Zone (EZ)

• Historical high-grade intercepts including 2m at 20.8g/t Au less than 40m from Hammer's boundary
• Hammer's initial shallow testing returned 1m at 1.2g/t Au at 120m depth
• Zone lies beneath transported cover that has prevented effective historical exploration

2. Central Target Zone (1,700m south of Bronzewing)

• Significant previous Hammer drilling results including 20m at 1.5g/t Au from 120m, including:
  • 8m at 2.4g/t Au from 120m
  • 4m at 3.9g/t Au from 120m

• Five distinct target zones now identified for progressive testing

3. Boundary Northern Zone

• Targeting the potential southerly plunge of the main Bronzewing ore bodies
• 2022 RC drilling confirmed the host stratigraphy of Bronzewing mine

4. Ken's Bore Granite Contact

• Located 11.6km southeast of Bronzewing Mine
• Historical rock chip samples yielded values of 12.1g/t Au and 6.18g/t Au
• Previous drilling intercepted gold mineralisation including 2m at 2.73g/t Au and 1m at 4.57g/t Au

The Investment Case: Why Hammer Metals Deserves Attention

Exploration at Hammer Metals Ltd Bronzewing South represents a compelling investment opportunity for several key reasons:

1. Strategic Location: The project sits immediately adjacent to Northern Star's 3Moz Bronzewing gold mine in the world-class Yandal Belt

2. Overlooked Potential: Historical legal disputes and depressed gold prices restricted effective exploration, creating an opportunity to discover what others have missed

3. Proven Gold System: The company has already defined an inferred resource of 54,500oz at North Orelia (1.48Mt @ 1.15g/t Au)

4. High-Grade Indicators: Drilling less than 40m from Hammer's boundary has intercepted significant gold grades (20.8g/t Au)

5. Favourable Market Timing: Exploration is resuming amid record gold prices, enhancing the economic potential of any discoveries

6. Strong Cash Position: $3.2 million cash (as of March 31, 2024) to fund planned exploration activities

7. Diversified Portfolio: Beyond Yandal, Hammer holds strategic copper-gold assets in Queensland's Mt Isa district

Why Investors Should Follow Hammer Metals

Exploration at Hammer Metals Ltd Bronzewing South represents a compelling opportunity for gold-focused investors looking for exploration upside amid record gold prices. The company has positioned itself with a strategic land package adjacent to a multi-million-ounce gold mine, with demonstrated high-grade mineralisation literally metres from its boundary.

What makes this opportunity particularly interesting is the identification of a specific geological factor—transported cover—that explains why this potentially significant gold zone has remained undiscovered despite its proximity to a major mine. For investors interested in navigating junior mining investments, this presents an intriguing case study of overlooked potential in a premium location.

With drilling scheduled before the end of the financial year, investors can expect significant news flow in the coming months. This timing is particularly advantageous given the skills shortage in the global energy sector, which makes established projects with existing infrastructure increasingly valuable.

At a market capitalisation of just $25.7 million and with multiple near-term catalysts across both its WA gold and Queensland copper-gold projects, Hammer offers a compelling risk-reward profile for investors seeking exposure to precious and base metals discovery potential. Furthermore, with Northern Star's recent acquisition of DeGrey Mining highlighting the premium valuations for quality gold assets, Hammer's strategic position gains additional relevance.

The company's approaching catalysts include:

• May-June: Bullrush drilling results
• May-June: Tourist Zone South, Lex and Mount Mascotte RC results
• May-July: Soil sampling program across 100% HMX ground
• June: Yandal Gold drilling program

With record gold prices providing strong sector tailwinds and a focused exploration strategy targeting overlooked high-grade zones, Exploration at Hammer Metals Ltd Bronzewing South is positioned to potentially deliver significant shareholder value through its upcoming drilling campaigns. For those investing in mining stocks, particularly in the current environment where Trump's tariffs are transforming global metal flow dynamics, companies with quality domestic assets like Hammer offer an attractive proposition.

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