Hampton Hill Mining (HHM)

Shares / Stock Code

HHM

Stock Exchange / Sharemarket

Australian Securities Exchange

Hampton Hill Mining NL (HHM) is an exploration company primarily searching for gold and base metals with tenements mainly in Australia. Key projects are located in the Yilgarn Craton, Murchison and East Pilbara regions of Western Australia. Exploration companies aim to discover and delineate occurrences of metals and minerals that can be economically mined and extracted. The company was listed on the ASX on 10 May, 1994.

Apollo Hill Gold Project

The project is situated 40 kilometres southeast of the eastern goldfields township of Leonora. Major gold mines in the region include the Sons of Gwalia and Tarmoola mines to the northwest and the Carosue Dam mine to the southeast. The large Apollo Hill project covers 27 kilometres of the Keith Kilkenny structural corridor which is thought to be a major focus for gold mineralisation. The shear zone is largely concealed beneath transported overburden associated with the Lake Raeside drainage system and previous surface geochemical sampling and shallow RAB drilling has been of limited effect.

2007 has seen joint venture partner Apex Minerals Ltd return encouraging results from the aggressive drilling program aimed at locating extensions of the three known gold mineralised trends at the central Apollo Hill location where the shear zone is exposed at the surface. Apex has expended more than $1 million on the project and has the right to earn a 51% interest by expending $3 million within three years. Should Hampton wish, it can contribute at the 49% level or allow Apex the right to earn a further 9% interest by free carrying Hampton for an additional $2 million within a further 2 years.

Hampton also has the right to reduce its interest from 40% to 20% in exchange for being free carried to a decision to mine. At the decision to mine point, should it have elected to reduce to 20%, Hampton can elect to have its share of mine capital costs loaned to it by Apex to be repaid with accrued interest out of 80% only of its share of mine proceeds.

The rocks exposed at surface at the Apollo Hill discovery location exhibit alteration and shearing up to 30 metres in width with five sets of gold bearing quartz veins accompanied by varying widths of intense alteration. Fine grains of visible gold occur at various narrow intervals in the drill core. These features demonstrate the strength of the system and its potential to host significant gold mineralization.

Twenty six reverse circulation and diamond holes were drilled during 2007. Significant extensions to the main, eastern and western zones of mineralization were outlined. The best gold results from the main zone included 10 metres of averaging 6.5 grams per tonne from 256 metres, 11.97 metres averaging 4.5 grams per tonne from 186 metres, and 6 metres averaging 4.4 grams per tonne from 124 metres. These results indicate that gold mineralization improves where the lode systems transgress away from the contact with underlying felsic schists into the overlying basalts.

All the drilling during 2007 has been on and around the original discovery location at Apollo Hill. The next phase of exploration will concentrate on drilling regional targets. A structural review has identified 10 targets. A drilling program to test at least 5 of these targets involving 50 aircore holes totalling an estimated 3,000 metres is proposed subject to aboriginal heritage clearance.

Capricorn Nickel Sulphide Project

The Capricorn project is situated 50 kilometres southeast of the township of Newman in the East Pilbara region of Western Australia. It covers a gabbroic complex prospective for nickel sulphide mineralisation situated along the northern margin of the Sylvania Dome. Hampton has a 75% interest in the project with an unlisted private company holding the remaining 25% interest.

Nickel and platinoid anomalism was discovered by Hampton in gossan, rock chip and soil sampling within the gabbroic complex at the Millipede prospect. Two early RC holes returned a best result of 6 metres averaging 0.38% nickel, 0.2% copper and 0.8 parts per million platinum from 15 metres below surface. Hampton then commissioned an EM survey which highlighted two targets 1.8 kilometres apart that were coincident with the soil and/or shallow RC drill hole geochemical anomalies.

Subsequent drilling resulted in best intersections of 2 metres of 1.36% nickel with 0.62% copper and 5 metres of 0.31% nickel with 0.21% copper hosted in semi-massive sulphides. Encouragingly, these intersections were associated with the upper of two steeply dipping ultramafic units about 80 metres apart within the layered gabbroic complex.

An RC program is planned for September 2008, subject to approvals and rig availability. The Centipede Zinc Prospect will also be the target of RC drilling later in 2008. Best results to date are 8 metres of 1.95% zinc including 2 metres at 6% zinc. During the year Hampton reappraised the past exploration data and outlined new concepts for further significant exploration for nickel sulphides.

Ryansville Iron Ore Project

The Ryansville project is now wholly owned by Hampton following the withdrawal of Aurora Minerals Ltd from joint venture arrangements. The tenement is considered to have potential for iron ore lenses buried beneath surficial sediments over a possible strike of over 2 kilometres. Reverse circulation percussion drilling to test for buried iron ore lenses beneath these sediments is planned to commence as soon as all regulatory approvals have been obtained.

Sylvania Uranium Project

The Sylvania uranium project consists of two exploration licenses over airborne radiometric anomalies in the Sylvania region, south of Newman, identified from a survey carried out by the Company. These prospects have the potential to contain calcrete hosted uranium deposits. Reconnaissance drilling of the anomalies is required to determine whether uranium mineralisation is present. Native title negotiations will be required prior to this exploration proceeding.

Weebacarry Gold Project

The Weebacarry gold project covers the central part of a regional north east trending shear zone between the abandoned Big Bell gold mine (3.9 million oz gold production) in the south and the Meekatharra gold mines (2.4 million oz gold production) to the north. Twelve kilometres of this shear zone which is known locally as the Jungar Bore Shear Zone ("JBSZ") are covered by the project.

Until the end of 2007 the Weebacarry Project was a Joint Venture with Aurora Minerals. Aurora completed geological mapping, rock chip sampling and a scout aircore/ RAB drilling program before withdrawing.

Hampton has reviewed the previous work and has planned further drilling to follow up extensions of known mineralisation and test conceptual gold targets generated from aeromagnetic interpretation. All approvals have been obtained for this program and drilling will commence as soon as a suitable drill rig is available.

Weld Range Iron Ore Project

Hampton has a joint venture with Midwest Corporation Ltd involving tenements located along the northern margins of the Weld Range, about 65 kilometres northwest of the township of Cue in the Murchison region of Western Australia.

The Weld Range tenements are part of the rapidly evolving endeavours by a number of companies to unlock the iron ore potential in the mid-west region of Western Australia. Midwest Corporation Ltd (Midwest), as manager of the joint venture, has the right to earn a 60% interest by completing prior to February 2011 a pre feasibility study relating to the project which is to include the evaluation of the iron ore resources of the Hampton tenements. While Midwest has begun prefeasibility study programs over the Hampton tenements, work is much less advanced than on the more substantial adjacent Midwest tenements on which Midwest has announced total Mineral Resources of 133.4 million tonnes at an average grade of 58.5% iron, using a cut off grade of 50% iron.

Wheatley Base Metal Project

The Wheatley project is located in the south west of Western Australia near Manjimup. During 2007 Hampton negotiated the takeover of the management of the Wheatley project near Manjimup from its longstanding joint venture partner Teck Cominco Ltd of Canada (Teck). The terms of the joint venture now provide for Hampton to gain total ownership of the project by being the sole contributor of $1,500,000 of project expenditure prior to 30th June 2011 subject to Teck's right, at any time, to revert ownership to a 50:50 basis by electing to replace Hampton as sole contributor and contributing three times Hampton's contributions to that date. Should Teck elect to earn back in to the project, then it will be required to provide Hampton with a 30% free carry to the end of feasibility studies. In line with these arrangements Hampton has already expended over $300,000.

Most of the exploration undertaken by the joint venture has been focused on the Kingsley prospect which is associated with a three kilometre long magnetic anomaly and one of the more prominent project electromagnetic anomalies. The best result from drilling to date was a semi-massive sulphide intersection of 4.1 metres averaging 2.2% zinc with minor copper and lead. This confirmed Kingsley as an exciting target and provided encouragement for the testing of the other electromagnetic targets within the project area.

Yillaree Nickel Project

The project is located in the North Eastern Goldfields of Western Australia in a world class nickel sulphide province with the Perseverance mine to the north, the Waterloo mine to the east and the Sinclair deposit to the south. Breakaway Resources Limited has recently announced an inferred resource of 8,300 tonnes of nickel metal at nearby Horn discovery

Breakaway Resources Limited has completed earning an 81.27% interest in this project and Hampton's 18.73% interest has now ceased to be free carried. In light of the recent encouraging results highlighting the potential for nickel sulphide mineralisation Hampton has decided to contribute to future exploration expenditure.

Compilation of drilling in the last quarter revealed a number of clusters of coincident nickel, copper and platinum group element anomalies located near what is interpreted to be a possible closure of a tightly folded north-north-west trending ultramafic sequence. These anomalies suggest that the sequence is highly prospective for nickel sulphide accumulations.

Hampton Hill Mining (HHM) Products and Services

  • Gold and basemetal exploration

Hampton Hill Mining (HHM) Locations and Subsidiaries

Hampton Hill Mining Head Office
2nd Floor, 9 Havelock Street,
WEST PERTH, WA 6005
Phone: (08) 9321 9811
Fax: (08) 9481 8445

Hampton Hill Mining (HHM) Share Price

Submitted by ASX Listed Company on 15 April, 2010 - 23:22

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