South32 Commits to Next Stage of Hammer Metals Isa Valley Earn-In

5 June 2026 | Queensland - Hammer Metals has announced that South32 has elected to proceed with Stage 3 of the Isa Valley Earn-In Agreement, committing to a further A$3 million in exploration expenditure over three years.

The Isa Valley Project is located in north-west Queensland and covers sections of the Mount Isa Fault. Hammer said South32’s decision to move into Stage 3 follows positive results from the initial stages of the earn-in program.

Under the Stage 3 terms, South32 must fund A$3 million of exploration expenditure to earn a 70% interest in the tenement and joint venture. South32 may extend the Stage 3 period by a further 12 months, increasing the expenditure commitment to A$4 million.

Hammer also said a magnetotelluric survey across the Mount Isa Fault is expected to commence in the coming months. Funding for the survey has been provided by the Queensland Government through the Collaborative Exploration Initiative.

Managing Director Daniel Thomas said Hammer was pleased to see South32 continue into Stage 3, saying the decision reflected the encouraging technical results generated so far and the prospectivity across the project.

Why it matters: The Isa Valley earn-in gives Hammer exposure to continued exploration funding from a major mining company in one of Australia’s most important base metals districts. The project is considered prospective for Mount Isa-style sediment-hosted lead-zinc-copper mineralisation, similar in style to major deposits in the region.

Hammer said the Isa Valley Project covers approximately 320km² and is being managed and operated by South32 under the earn-in agreement. If South32 completes Stage 3, it will earn 70%, with the ability to move to 80% by sole funding a Pre-Feasibility Study for a mine development on the tenement area.

Hammer also advised that Sumitomo Metal Mining Oceania has informed the company of its intention to withdraw from the Bullrush Joint Venture. The Bullrush JV recently completed two phases of diamond drilling across deeper iron oxide copper-gold targets within the Wimberu Granite.

Thomas thanked Sumitomo for its contribution to Bullrush, saying the work had helped improve Hammer’s understanding of the system and that the company would continue to build on that work as it assessed the geological setting and nearby targets.

Hammer’s near-term newsflow includes drilling results from Kalman, Blackrock and Lady Jenny, the Isa Valley magnetotelluric survey, Kalman West diamond drilling, a Kalman Resource update, drilling at Orphan, Keyser and Redback, and air-core drilling at the Yandal Gold Project.

For the broader resources sector, South32’s continued participation highlights ongoing interest in the Mount Isa district, where large-scale copper, lead, zinc and silver systems remain a key exploration focus.

Source: Hammer Metals ASX announcement, “Mount Isa JV and Earn-In Updates”, 5 June 2026.