The Hammer Metals Limited (ASX: HMX) share price reached a multi-year high today following the approval of an extended drilling program.
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The Hammer Metals Limited (ASX: HMX) share price is flying today. This comes after the company announced that it has been approved an additional drilling program at the Trafalgar prospect at its Mount Isa East Joint Venture.
During morning trade, the Hammer Metals share price reached a multi-year high of 10.5 cents. However, some apparent profit taking led the company’s shares to retreat to (at the time of writing) 8.9 cents, up 18.6% for the session.
What did Hammer Metals announce?
The Hammer Metals share price is storming higher as investors digest the company’s latest news.
According to its release, Hammer Metals advised that it has been given the green light to drill extra holes at the Trafalgar prospect. This follows on from the recent discovery of copper and gold deposits notified to the market last week. They included:
- 55 metre strike at 1.12% copper (Cu) and 0.30 grams per tonne (g/t) gold (Au) from 119m including 16 metres at 1.77% Cu and 0.49g/t Au from 149 metres in HMTRRC001; and
- 32 metre strike at 1.04% Cu and 0.25g/t Au from 64 metres including 6 metres at 2.38% Cu and 1.45g/t Au from 91 metres in HMTRRC002
The company is planning to commence drilling in opposite directions of the new holes. In addition, a third hole of 80 meters will be drilled north of its HMTRRC001 intercept.
Once the drilling operations have been completed, Hammer Metals will analyse the results, and continue drilling again in April. In addition, the company will also complete drilling works at its Shadow, Toby East, Alpha, Charlie and Juliett prospects.
A quick take on Hammer Metals and Mount Isa
Hammer Metal is a minerals exploration company that is focused on gold, iron ore, and copper projects within Australia.
The Mount Isa project covers an area of roughly 2,200 square kilometres within the district, holding a strategic tenement position. The Trafalgar prospect is part of a Joint Venture agreement whereby Japan Oil, Gas and Metals National Corporation (JOGMEC) is in the process of earning a 60% interest, in return for spending $6 million on exploration activities by March 2024.
About the Hammer Metals share price
The Hammer Metals share price has soared higher over the last 12 months, reaching gains of above 300% for investors.
Its shares hit an all-time low in March but quickly rebounded in the months following. The Hammer Metals share price broke a fresh multi-year high of 10.5 cents today on the back of positive investor sentiment.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.