DRILLING RESULTS FROM HILL 99 COPPER GOLD PROJ ECT
ASX Release – 25 August 2011
Anomalous copper – zinc suppor ting high gr ade copper-gold tar get with geological similar ities
t o Nor th Lyell style miner alisation f ur ther to the nor th
• Highly encouraging first-stage drilling at Hill 99 VHMS copper-gold project
• Anomalous copper-zinc supporting high grade copper – gold mineralisation with geological similarities
to North Lyell style mineralisation further to the north (4.7Mt @ 5.28% Cu, 0.4 g/t Au and 34.3 g/t Ag)
• Best results Hole H99-4: 0.3m @ 10.55% copper, 15 g/t Ag, 0.244% zinc from 177.6m
• Best results Hole H99-5: 1m @ 0.165% copper, from 169.5m
MHM Metals Limited (ASX:MHM) is pleased to announce the results of two diamond drillholes completed at its
100% owned Hill 99 copper – lead - zinc prospect in Western Tasmania. Hill 99 lies within the Noddy Creek
Volcanics, believed to be the southerly extension of the Mount Read Volcanics, host to several world class gold
and base metal mines. The drill holes were completed in July and are shown on Figure 1, below.
Three copper (+ minor gold) zones are apparent (see Figures 1 to 3 below). These are defined by previous soil
samples (shown as dots on Figure 1) and intersections drawn on the cross sections. All are hosted by highly
altered volcanics that have strong affinities with alteration assemblages at the North Lyell (previous production
listed as 4.7Mt @ 5.28% Cu, 0.4 g/t Au and 34.3 g/t Ag) and Henty (reserves: 2.8Mt @ 12.5g/t Au) mines further
to the north of Hill 99.
Drilling by MHM Metals identified strong chlorite, white mica, carbonate and localised quartz-albite
assemblages, similar to the North Lyell deposit. The intense alteration mineralogy from the current drilling
comprises strong (replacement) silica-white mica assemblages with pyrite and various copper sulphide
minerals, very similar to the mineralogy found at the North Lyell deposit.
A second mineralisation model for Hill 99 is the Henty gold deposit. The high grade gold at Henty occurs in a
silicified, structurally altered zone with adjacent copper mineralisation. Current drilling and a geological review of
previous drilling at Hill 99 has found zones of silicification similar to those at Henty. A mixed zone of pervasive
quartz and sericite alteration from hole H99-4 shows anomalous gold, nickel and zinc values (from 155m to
173m). The Henty gold deposit was discovered by assaying similarly silicified core for gold some 10 years after
the holes had been drilled. Similar low grade assays such as found in hole H99-4 also occur in the periphery at
Henty (Figure 3).
Significant historical information for Henty/Rosebery style VMS mineralization and Mount Lyell style coppergold-zinc provides an excellent drill core library for MHM Metals to apply its new exploration techniques to focus
the second-stage drilling, targeting the mineralization potential at depth. The results are sufficiently
encouraging that a second stage drilling program of three diamond drill holes totaling 1,200m has been
recommended, to test along strike and deeper than the existing drilling. The timeframe for the second stage
program has not yet been determined.
Company management believes the drilling program has added value to the Hill 99 project, and that it is an
attractive prospect for further development as the company continues to assess opportunities to engage with
project development partners, divest or spin-off the mineral assets of the company at a time that maximises
returns to shareholders.
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