MNS: Hawk drills into copper-gold project in US

Key Concepts

• Cactus Copper-Gold Project (Utah, USA): A historical mining site with potential for high-grade copper and gold, currently undergoing drilling. Focus on breccia pipe style mineralization and potential for a larger intrusive source.
• Olympus Scandium Project (Western Australia): A large-scale scandium anomaly identified through PXRF soil sampling, awaiting native title agreement for exploration.
• PXRF (Portable X-Ray Fluorescence): A handheld analytical technique used for rapid, on-site geochemical analysis.
• RAB (Rotary Air Blast) Drilling: A cost-effective drilling method used for initial exploration, producing relatively disturbed samples.
• Native Title Agreement: A legal agreement required in Australia for exploration activities on land subject to native title claims.
• Catalyst: An event or development expected to significantly impact a company’s share price or progress.

Cactus Copper-Gold Project – Utah, USA

Hawk Resources’ Cactus project in Utah is a key focus, stemming from historical mining activity between 1900 and 1920. This period yielded ore grades of 2% copper, 3-4 g/t gold, and 7 g/t silver. Exploration has been intermittent since the 1960s, revealing promising drill intersections. Specifically, the project has demonstrated 5 meters at nearly 7% copper within broader intersections averaging 20-40 meters at 1-2% copper (typically around 1.5%).

The company believes the mineralization is associated with a breccia pipe style, characterized by fragmented rock hosting mineral deposits. However, a significant potential lies in identifying a deeper, intrusive source for this mineralization, which could represent a substantially larger tonnage of ore. This intrusive source is a primary target for ongoing drilling efforts.

Olympus Scandium Project – Western Australia

Hawk Resources recently acquired the Olympus project in Western Australia, attracted by a substantial scandium anomaly. The anomaly covers a 7km x 4km area and exhibits soil grades exceeding 500 ppm scandium, as identified by PXRF analysis. Further supporting this, RAB drilling samples have returned intersections up to 11 meters at 930 grams per ton (ppm) scandium, confirmed by handheld XRF assays.

Currently, the primary focus is securing a Native Title Agreement to allow for on-ground exploration. The initial phase of work will involve verifying historical data, which was collected 20 years ago by a company not specifically targeting scandium. This verification will utilize laboratory assays to confirm the PXRF results. Successful lab assay results will then lead to more detailed soil sampling and, ultimately, drilling.

Exploration Methodology & Timelines

The company prioritizes a phased exploration approach. For Cactus, the immediate catalyst is the ongoing drilling program in Utah. For Olympus, the near-term catalyst is securing the Native Title Agreement.

The methodology involves:

1. Initial Reconnaissance: Utilizing PXRF for rapid soil analysis to identify anomalies (Olympus).
2. Follow-up Drilling: Employing RAB drilling for initial sample collection and assessment (Olympus).
3. Drill Core Analysis: Detailed analysis of drill core from Cactus, focusing on copper and gold grades.
4. Verification of Historical Data: Confirming previous findings with modern laboratory assays (Olympus).
5. Detailed Sampling: Expanding soil sampling grids to refine target areas (Olympus).
6. Advanced Drilling: Progressing to more sophisticated drilling techniques to delineate ore bodies.

Success Metrics & Future Outlook

According to Managing Director Scott Cathnes, success for Hawk Resources is defined as “finding an economic mineral deposit that the company can take forward.”

Specific milestones include:

• Cactus: Achieving encouraging drill results demonstrating either high-grade, moderate tonnage mineralization or larger tonnage, bulk minable copper deposits. Continued drilling will follow positive results.
• Olympus: Securing the Native Title Agreement, verifying historical PXRF data with lab assays, conducting detailed soil sampling, and progressing to drilling.

Cathnes stated, “Our near-term catalyst is is certainly the copper which we're drilling at the moment in Utah, but we see the scandium as having uh great potential going forward.” He also emphasized the importance of verifying historical data at Olympus, noting, “that was done 20 years ago and it was done when they weren't actually exploring for Scandium, the company that had it.”

Technical Definitions

• ppm (parts per million): A unit of concentration expressing the proportion by mass of a substance in a mixture.
• g/t (grams per tonne): A unit of concentration commonly used in mining to express the grade of precious metals or other valuable elements in ore.
• Breccia Pipe: A geological structure formed by the accumulation of angular rock fragments in a roughly cylindrical or conical shape, often associated with mineralization.
• Intrusive Source: The underlying magma body from which mineralizing fluids originate, potentially representing a larger ore deposit.

Conclusion

Hawk Resources is currently focused on advancing two promising projects: the Cactus copper-gold project in Utah and the Olympus scandium project in Western Australia. The company is actively drilling at Cactus, seeking to define the extent of high-grade copper mineralization and potentially identify a larger intrusive source. Simultaneously, they are working to secure the necessary agreements to begin exploration at Olympus, a large scandium anomaly. The company’s success hinges on positive drill results from Cactus and the successful verification of historical data at Olympus, ultimately leading to the discovery of economically viable mineral deposits.