Impact Minerals Ltd's (ASX:IPT) shares have jumped 14.3% higher intra-day to $0.032 following a discovery at the company's wholly-owned Commonwealth Project, located 100 kilometres north of Orange in New South Wales.
A 75 metre thick zone of vein and disseminated sulphide mineralisation was intersected at the Silica Hill Prospect.
The mineralisation is in Hole IPT043 from 99 metres to 174 metres.
Assays have been received for the first 60 metres of the zone drilled by reverse circulation drilling. Results for the last 15 metres of the zone (diamond drilled) are expected in two to three weeks.
Together with the very high grade intercepts of massive sulphide recently revealed from the northern end of the Commonwealth deposit itself, this should lead to an increase in the project’s resource.
The first 60 metres contains high grade silver veins with increasing gold and base metals down hole and returned an overall intercept of:
- 60 metres at 0.4g/t gold, 51g/t silver (1.6 ounces), 0.2% zinc and 0.1% lead, or 1.3g/t gold equivalent from 99 metres.
Within this intersection were high-grade silver intercepts such as: 1 metre at 525g/t silver (17 ounces); and 2 metres at 373g/t silver (12 ounces).
Further diamond drill hole is in progress to deepen a previous drill hole with an intercept of 20 metres at 44g/t silver and now interpreted to be at the top of the same mineralised zone.
Mineralisation is open in all directions including up-dip.
Dr Mike Jones, managing director, commented:
“This new discovery by Impact at Silica Hill is a very significant development for the Commonwealth Project.
"It demonstrates that very thick widths and also high grades of mineralisation exist outside the Commonwealth deposit and to get an intercept like this in our early drilling at the prospect is very encouraging.
"We are now keen to test this new discovery along trend and at depth where potentially it may even connect to the underlying massive sulphide.”
Connection between Main Shaft and Silica Hill
The style and nature of mineralisation revealed today is similar to that encountered in the rhyolite unit within the Commonwealth deposit and further demonstrates that the mineralisation at the two prospects is part of one larger system.
It is possible that the mineralisation at Silica Hill and Main Shaft may be linked at depth.
Areas where the two styles of mineralisation may connect will be priority target areas.
Additional prospects at Commonwealth
Silica Hill has shown its potential, with the pending diamond drilling results highly anticipated.
Impact also has exploration plans at other prospects.
- Follow up drill holes to be completed along trend from the maiden drill hole at the Walls Prospect on the Welcome Jack Trend 1.2 kilometres east of Commonwealth that returned:
- 20 metres at 0.5 g/t gold and 27 g/t silver (1 g/t gold equivalent from 55 metres).
- Further drill holes to test for down hole EM conductor close to recent drill intercept of: 13.6 metres at 2.1 g/t gold, 21 g/t silver, 0.4% zinc and 0.2% lead (2.6 g/t gold equivalent).
Investment by Squadron Resources Pty Limited
The Commonwealth project and also Impact’s Broken Hill platinum-copper-nickel project are part of the investment agreement between Impact and Squadron Resources Pty Ltd.
Squadron is 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 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 current quarter.
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