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Newmont and Hammer to end Mt Isa joint venture

Hammer Metals is to conclude its joint venture (JV) agreement with Newmont Exploration as the latter has decided not to continue exploration funding.

The JV, which started in December 2015, covered three target areas at Mount Isa, Queensland — Overlander, Dronfield and Even Steven — and saw extensive drilling at the first two in particular.

Hammer will retain ownership of these three former farm-in areas and will also have the opportunity to test identified targets that did not meet Newmont’s target size.

“Newmont has been an excellent partner throughout this undertaking, allowing Hammer to significantly advance our understanding of the JV targets,” said Alex Hewlett, executive director of Hammer.

“The negotiated conclusion of the JV will leave Hammer with unfettered rights to pursue several untested exploration opportunities in the former farm-in areas as well as continue with the exploration of our large portfolio of prospects at Mount Isa.”

Even Steven and Dronfield have also generated additional copper-gold targets that are expected to undergo further drill testing. Hammer will seek new partners to assist at its Mount Isa tenements in Newmont’s place.

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