Horseshoe Metals (ASX: HOR) has received a boost to its direct shipping ore (DSO) strategy with new assays confirming shallow copper mineralisation in the Motters zone at its Horseshoe Lights (HSL) project.
The results come at a time when the company is mobilising key operations personnel for the commencement of DSO operations at HSL, approximately 800 kilometres northeast of Perth and 140km north of Meekatharra.
Horseshoe received mining approval for HSL in July and is now investigating the potential for significant early cash flow from sales of existing high-grade copper stockpiles.
Phase 1 Infill Drilling
The company is about to wrap up its Phase 1 infill reverse circulation (RC) drilling at the northern end of the Motters zone, which it is conducting in several phases at a 10m by 10m spacing to a depth of about 50m.
It then plans to commence a Phase 2 program of RC drilling to test the Main Zone northern extension and Motters southern extension.
Horseshoe reported in early October that it had intersected shallow, wide copper grades in the early stages of its drilling at Motters.
The HSL project includes the historical open pit of the Horseshoe Lights copper-gold mine that operated up until 1994, producing more than 300,000 ounces of gold and 54,000 tonnes of contained copper.
This included in excess of 110,000t of DSO that graded between 20% and 30% copper.
Considerable Copper Upside
General manager of oxide-copper operations Steven Sickerdick said the new assays further demonstrate the considerable upside and shallow nature of the copper mineralisation in the Motters zone.
"These shallow, broad zones of copper mineralisation continue to improve our confidence levels in the oxide resources in this area as we aim to lift them from Inferred to Indicated, which will allow their inclusion in a scoping study,” he said.
Highlight returns to date include 32m at 0.95% and 33m at 1.18% copper, 34m at 0.71% copper, 28m at 0.77% copper and 43m at 0.68% copper—all from surface, with further assays expected shorty.
After a recent site visit, the company is continuing its negotiations with multiple well-known commodity traders regarding potential copper offtake and funding arrangements.
