Impact Minerals Ltd (ASX:IPT) has been well and truly on the investor radar recently, on the back of a string of high grade discoveries over the past 18 months.
A major ramp-up in exploration and development activity has now commenced at its two flagship base and precious metals projects in New South Wales.
Dr Mike Jones, managing director, commented:
“The major expansion of our ground position at Broken Hill is a robust opportunity for Impact and its shareholders to significantly increase exposure to this very richly mineralised part of Australia.
"Our recent work has suggested there is significant potential in the newly acquired licences to host the same two styles of high grade mineralisation that we have discovered in our original tenements.
"This includes very high grade PGM-nickel-copper such as at Red Hill and Platinum Springs as well as very high grade zinc-lead-silver or so called “Broken Hill-style mineralisation” at Dora East.
“Amazingly, given how close our new ground is to Broken Hill, these areas have mostly been very poorly explored."
Impact is also in the final stages of preparing a drill program at Commonwealth, which forms a key project for the company due to success in quickly generating a significant number of high quality gold and base metal targets.
This could provide a platform for the discovery of new deposits as well as targeting potential extensions to the resource defined last year of: 720,000 tonnes at 2.8g/t gold, 48g/t silver and 1.5% zinc.
Investment by Squadron Resources Pty Limited
The Broken Hill and Commonwealth Projects are both part of the investment agreement between Impact and Squadron Resources Pty Ltd, part of the Minderoo Group which represents the philanthropic and business interests of Andrew and Nicola Forrest.
As part of the investment agreement, Squadron at its sole discretion, can invest a further A$1 million into either or both of Impact’s high grade Commonwealth gold-silver-zinc-lead and Broken Hill platinum projects in NSW, to earn a 19.9% interest after Impact has spent a combined total of $2.5 million on the two projects.
The Squadron agreement only applies to two licences at Broken Hill: EL 7390 and EL 8234.
The new licences at Broken Hill will be 100%-owned by Impact and are not part of the Squadron Resources Pty Ltd transaction.
Given the advances and discoveries Impact has made in a relatively short period of time at its existing licences, the ramp-up in exploration will be closely watched.
While Impact's tenements are close to the world-class Broken Hill, past exploration has been limited.
Impact therefore is in the right place at the right time.
If you want to find an elephant, go to elephant country. Impact has.
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