The inferred resource contains 1.4 million tonnes at 1.4% copper and 0.62 g/t gold at a 0.5% copper cut-off grade, equating to an estimated 20,000 tonnes of copper and 28,000 ounces of gold.
The resource model will now be used as a basis for open pit mining and further metallurgical studies.
Jubilee is part of the Mt Frosty joint venture between Hammer, which holds 51% ownership, and Mount Isa Mines Limited.
Hammer executive chairman Russell Davis said the maiden resource estimate for Jubilee brought the company another step closer to the commercialisation of the deposit.
He said: “Much of the mineralisation is primary sulphides, close to surface, and potentially open-pittable – the strongly-elevated gold content potentially adds significant value to the project.”
Results from the first metallurgical program have demonstrated peak copper recovery of 98% and gold recovery of 80% to a copper concentrate.
The deposit is similar in size and style to other copper-gold deposits in the region that have been successfully mined by small-scale open pit mining techniques, implying the mineralisation may be economically extracted.
Built up dominant tenement position
Davis added: “Within five kilometres of the Jubilee deposit, Hammer holds the Elaine-Dorothy copper-gold deposit and the Lakeview, Black Rock and Sunset copper-gold prospects, all of which have excellent potential to define additional copper and gold resources.
“Hammer has now built up the dominant tenement position in the Mary Kathleen district, a highly mineralised and prospective terrain for copper and gold around the Mary Kathleen uranium and rare earth deposit.”
Hammer’s tenements in Mount Isa’s mining district cover about 3,000 square kilometres including 100% interests in the Kalman, Overlander North, Overlander South and Elaine-Dorothy deposits.
Minerals found across these deposits include copper, gold, cobalt, molybdenum and rhenium.
The company also holds a 75% interest in the Millenium copper-cobalt-gold deposit.