Horseshoe Metals (ASX: HOR) continues to discover high grade near surface copper in a resource reverse circulation drilling program at the historic Horseshoe Lights open pit.
The wholly owned Horseshoe Lights Copper/Gold Project is hosted within the mineral rich Peak Hill Mineral Field of Western Australia.
The latest highlights from the North West Stringer Zone, immediately north - west of the Main Zone of high grade mineralisation includes:
- 18 metres at 4.4% copper from 38 metres, including 1 metres at 23.5% copper and 4 metres at 8.6% copper;
- 17 metres at 0.9% copper from 72 metres, including 4 metres at 2.4% copper;
- 15 metres at 1.6% copper from 115 metres; and
- 26 metres at 1.4% copper from 83 metres, including 3 metres at 2.5% copper.
Drilling was testing for shallow copper mineralisation north along strike of the open pit, with the specialist rig completing over 50 holes for around 7300 metres ranging from 60 metres to 195 metres in depth.
Much of the drilling has been in shallow areas outside the limits of the previous mineral resource estimate - and importantly shows good continuity of the mineralisation.
Exploration will continue at speed at the project, with additional conventional reverse circulation drilling planned for next month, with an updated mineral resource in 2013.
The new drilling will test for deep, high grade copper/gold zones - potentially located down dip and down plunge of the Main Zone - while also following up exploration targets outside of the immediate pit area.
Horseshoe Lights currently has a Measured, Indicated and Inferred Resource of: 8.6 million tonnes at 1.06% copper and 0.13g/t gold at 0.5% cut-off for 91,000 tonnes of contained copper metal and 37,400 gold ounces.
Motters Zone
The Motters Zone is located 100 metres north-east of the existing open pit and is considered to be a parallel zone of oxide copper mineralisation to the Main Zone, with a dozen reverse circulation holes now completed testing for extensions of this shallow copper mineralisation.
RC1085 was drilled from the top of the north waste dump into the Motters zone which extends under the toe of the dump, intersecting 9 metres at 0.3% copper from 70 metres and 7 metres at 0.6% copper from 113 metres.
Kumarina Project news on the horizon
Not to be forgotten is the company's highly prospective Kumarina Project, with the latest phase of reverse circulation drilling wrapping up about a week ago - which comprised 39 holes for 4700 metres.
The news flow for Horseshoe Metals will remain strong as all the drill samples are presently with a laboratory for analysis.
Highlighting the potential of the project, recorded production to the late 1960s is 481 tonnes of copper ore at a high-grade of 37.0% copper and 2,340 tonnes at 17.51% copper.
Analysis
Two months ago Proactive Investors published: "Now consider that Horseshoe Metals has a market cap of $12 million and cash of $2.5 million (June 30 2012), the market is placing a valuation of less than $10 million on the company's projects - which not only includes Horseshoe Lights - but another potential "company maker" in Kumarina.
Since that article, the Horseshoe Metals share price has jumped 56% to $0.25.
We still see a catalyst for a further re-rating in the stock which will feature strong news flow in the short term, including assays from Kumarina in coming weeks and additional results from Horseshoe lights before the end of the year.
If the high grade copper drilling results continue in the near term, then Proactive Investors can see the Horseshoe Metals share price garner further investor support and push towards - and over - $0.30.
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