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Impact Minerals' shares soar as it parachutes into the Pilbara

The company is positioning itself in a red hot position in the Pilbara.
Impact Minerals' shares soar as it parachutes into the Pilbara
Impact's shares are flying higher

Impact Minerals Ltd (ASX:IPT) shares have jumped 69.2% intra-day to $0.022, with 88 million having changed hands in afternoon trade.

Impact's major shareholder, a German based consortium, will be very happy with the positive re-rating after increasing its stake by investing $900,000 at $0.018 after snapping up the shortfall from the recent Share Purchase Plan.

READ NOW: Impact Minerals' major shareholder increases stake

The company has caught investor attention as it is progressing applications for nine new 100% owned exploration licences in the Pilbara region of Western Australia.

The licenses cover 1300 square kilometres, with the ground prospective for Witwatersrand-style conglomerate-hosted gold.

The majority of the licence applications have recently passed through the period for objections under the Mining Act and as such are now likely to be granted subject to the statutory Native Title notification and negotiation period which is expected to take about eight months.

The licences cover various parts of the prospective contact between the older Pilbara granite-greenstone terrain and the overlying Fortescue Group rocks in the East Pilbara region including areas close to and adjoining licences held by Novo Resources Corporation.

Why is the location important?

Dr Mike Jones, managing director for Impact, commented on the importance of the area:

"As soon as we recognised the significance of the break through that had been made by Novo-Artemis in the search for Witwatersrand-style gold in the Pilbara we were relatively early movers in the area and were able to secure some very prospective tenements.

"One of the overlooked breakthroughs made by Novo is in research published by Novo’s CEO Dr Quinton Hennigh which clearly shows that many of the nuggets in the Witwatersrand may have been sourced from the reworking of gold deposited by microbial activity and basinal fluids early in the history of the sedimentary basin.

"This removes the requirement for a source for the nuggets from the underlying granite-greenstone terrain, one of the criticisms levelled at the potential for these conglomerates to host significant gold.

"This was an important breakthrough by Dr Hennigh and, once we understood that we acted quickly to acquire the ground."

Next up

Impact has now commenced a review of previous exploration and will also start initial on-ground activities in early November under a Miners Right.

The company added that it will also consider its options for funding exploration on this new project given the company’s focus on its emerging high-grade gold and silver discovery at Commonwealth-Silica Hill, located 100 kilometres north of Orange in New South Wales.

READ NOW: Impact Minerals receives new assays from Silica Hill

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Impact Minerals Ltd Timeline

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