85352999-9897-4073-b125-12b221e0426d.pdf
ASX ANNOUNCEMENT Date: 7 June 2016
Number: 473/070616
EXPLORATION UPDATE AND PRESENTATION
A major drill programme is underway at Impact Minerals Limited's (ASX:IPT) 100% owned Commonwealth Project 95 km north of Orange in New South Wales (Figure 1).
The programme, which will comprise up to 3,000 m of reverse circulation (RC) and diamond drilling, is testing a significant number of targets that have been identified by Impact at four prospects: the Commonwealth deposit, Silica Hill, Welcome Jack and Doughnut (Figure 1).
The targets were identified in geological, geochemical and geophysical data sets collected and compiled over the past 12 to 18 months and in particular as areas of variably overlapping gravity, Induced Polarisation (IP) and soil geochemistry anomalies. The targets are described in detail in announcements dated 5 April, 18 April, 26 April and 5 May 2016.
Three diamond drill holes have been completed at Commonwealth South with one in progress at Silica Hill. In addition three reverse circulation drill holes have been completed at Welcome Jack (in addition to several pre-collars for further diamond drill holes).
All completed holes have intersected vein and disseminated sulphide mineralisation over widths varying from a few metres up to ten metres and which is visually similar to the precious and base metal mineralisation seen in many previous holes at Commonwealth.
First assays are expected in two to three weeks.
As previously reported, one hole was designed to test a small EM conductor identified in a previous down hole geophysical survey and interpreted as being possibly caused by massive sulphides. The source of the conductor has not been found and a down hole EM survey will be required. The survey will be completed together with other holes towards the end of the drill programme. Other targets for massive sulphides will be tested in the next two weeks.
The drill programme has been delayed for four days because of unsafe work conditions caused by the heavy rainfall that has affected much of eastern Australia. The programme is due to recommence tomorrow.
Presentation
A presentation is attached that will be given by Impact's Managing Director at the Proactive Investors lunchtime seminar series in Sydney today and Melbourne tomorrow.
26 Richardson Street West Perth Western Australia 6005 Tel +61 (8) 6454 6666 Facsimile +61 (8) 6454 6667
Email [email protected] www.impactminerals.com.au
Figure 1. Geology and location of the four priority prospects at the Commonwealth Project: Commonwealth, Silica Hill, Welcome Jack and Doughnut.
Investment by Squadron Resources Pty Limited
The Commonwealth gold-silver-zinc-lead project and also Impact's Broken Hill platinum-copper-nickel project are part of the investment agreement between Impact Minerals and Squadron Resources Pty Ltd, part of the Minderoo Group which represents the philanthropic and business interests of Andrew and Nicola Forrest (see announcement 17 July 2015).
As part of the investment agreement, Squadron at its sole discretion, can invest a further A$1 million into either or both of the projects to earn a 19.9% interest after Impact has spent a combined total of
$2.5 million on them.
It is anticipated that Impact will meet the $2.5 million expenditure target in the September Quarter 2016.
Dr Michael G Jones Managing Director
The review of exploration activities and results contained in this report is based on information compiled by Dr Mike Jones, a Member of the Australian Institute of Geoscientists. He is a director of the company and works for Impact Minerals Limited. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mike Jones has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Investor Update
June 2016
Next Steps: 2015 Work Programme