Breaking Ground: MHM Awards Drill Contract for 3,800m Program Starting Mid-August
Mount Hope Mining (ASX: MHM) has reached a significant milestone in its exploration journey, awarding a drilling contract for its maiden drilling program at the Mt Hope Project in New South Wales. The program, set to commence in mid-August, will include over 3,800 metres of Reverse Circulation (RC) and Air Core (AC) drilling across three high-priority targets.
Site preparations are already well underway, with drill pad construction and access tracks being established at the Mt Solitary prospect, where the company has defined a substantial gold Exploration Target. The program will also deliver first-ever drilling at the Black Hill and Mt Hope East prospects—both untested targets characterized by strong geochemical and geophysical anomalies.
"We are pleased to have awarded the drill contract for our inaugural drilling program at the Mt Hope Project – an important milestone for the Company. This program will test three high-priority targets, including the Mt Solitary gold Exploration Target and first-pass drilling at the Black Hill and Mt Hope East prospects. With permits secured, funding in place, and site preparations already well advanced, we're focused on executing this inaugural program and unlocking the broader potential of the southern Cobar Basin."
— Fergus Kiley, Managing Director & CEO
Mt Solitary: A Promising Gold Exploration Target
The centerpiece of the upcoming drilling program is the Mt Solitary gold Exploration Target, which presents significant potential:
| Exploration Target | Tonnage (Mt) Range | Au (g/t) | Au (kOz) |
|---|---|---|---|
| Total | 1.32 – 1.87 | 1.0 – 1.35 | 42.5 – 81.4 |
This Exploration Target suggests the potential for a deposit containing between 42,500 and 81,400 ounces of gold. It's important to note that this target is conceptual in nature, with insufficient exploration to date to estimate a Mineral Resource. The upcoming drilling campaign across Australia aims to test this conceptual target and determine whether further work could lead to a JORC-compliant resource.
Understanding Cobar-Style Mineralisation: Why It Matters
The Mt Hope Project is targeting "Cobar-style" gold-polymetallic mineralisation, a distinctive deposit type found in the Cobar Basin. These deposits typically form in high-strain zones along major fault systems and can contain economically significant concentrations of gold, copper, lead, zinc, and silver.
What makes Cobar-style deposits attractive to investors:
- Multi-commodity potential – These deposits often contain multiple valuable metals, providing natural hedging against price fluctuations in any single commodity
- Structural controls – Mineralisation is typically associated with fault intersections, making targeting more predictable once the structural framework is understood
- Potential for size – The Cobar Basin hosts several world-class deposits, including CSA (copper), Peak (gold-polymetallic), and Endeavor (lead-zinc-silver)
- Discovery potential – Recent "blind" discoveries in the region demonstrate that significant new deposits continue to be found with modern exploration techniques
MHM's exploration strategy focuses on areas where north-to-north-northeast fault zones intersect with cross-cutting northwest or northeast faults—structural settings known to control mineralisation in the district.
Strategic Location with Established Infrastructure
The Mt Hope Project encompasses 422 square kilometres in the prolific Cobar Super Basin, strategically positioned with excellent infrastructure access:
- The NSW major state highway B87 (Kidman Way) runs directly through the project area
- The southern tenement is crossed by the Broken Hill rail line, providing direct access to NSW seaports
- Tenement EL8654 is located just 800 meters north of the Matakana Rail siding
- Proximity to the historic town of Mount Hope provides access to accommodation, meals, services, and 5G coverage
This infrastructure advantage could significantly reduce future development costs and timelines if exploration proves successful. Similar to Vital Metals' funding for rare earth projects, securing proper funding and infrastructure access is crucial for advancing exploration projects effectively.
Rich Mining History Points to Future Potential
The project area has a notable mining history that underscores its mineral endowment:
- The Mount Hope Mine produced approximately 7,891 tonnes of copper from 75,000 tonnes of ore at an impressive average grade of 10.5% copper between 1878-1919
- An additional 4,000 tonnes of copper was extracted in 1942 before operations ceased
- The project hosts multiple historical mining centres, including the Mount Hope, Comet, and Great Central copper mines along the Sugar Loaf Fault
- The Mount Solitary and Solar gold mines are located along the eastern side of the tenement package adjacent to the Scott Craig Fault
What's Next for Mount Hope Mining
With the drilling contract now awarded and site preparations underway, MHM is positioned to execute its maiden drilling program starting in mid-August. The 3,800-meter program will focus on three key targets:
- Mt Solitary – Testing the defined gold Exploration Target
- Black Hill – First-ever drilling of this untested geochemical/geophysical anomaly
- Mt Hope East – First-ever drilling of this untested target
Investors should watch for:
- Initial drilling results, expected in the weeks following program commencement
- Potential expansion of the program based on early results
- Further target generation across the 422km² land package
In a similar approach to Austin Metals' gold target drilling, Mount Hope Mining's inaugural drilling program is strategically positioned near historically productive areas.
Why Investors Should Watch MHM
Mount Hope Mining represents an opportunity to gain exposure to a focused exploration company targeting gold and copper in one of Australia's most prolific mineral provinces. Several key factors make this story compelling:
- Defined Exploration Target – The Mt Solitary gold Exploration Target provides a tangible focus for initial drilling
- Virgin Drilling Targets – The Black Hill and Mt Hope East prospects have never been drilled, offering genuine discovery potential
- Historical High Grades – Past production from the Mount Hope Mine at 10.5% copper demonstrates the potential for high-grade mineralisation
- Infrastructure Advantage – Excellent access to transportation, power, and services reduces exploration costs and future development hurdles
- Proximity to Recent Discoveries – The project's location near recent "blind" polymetallic discoveries in the district (Achilles, Wagga Tank-Southern Nights, Mallee Bull, and Federation) highlights the region's continued exploration upside
With Mount Hope Mining's inaugural drilling program set to commence in mid-August and all necessary permits and funding in place, MHM is poised to generate significant news flow in the coming months as it tests multiple targets across its Mt Hope Project. Furthermore, similar to recent gold discoveries in Queensland and new gold targets at Side Well, the Mount Hope mining inaugural drilling program has the potential to uncover valuable mineral deposits in this historically productive region.
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