Impact Minerals (ASX:IPT) has started a much anticipated drilling program at its Broken Hill joint venture project in New South Wales to follow up its discovery of some of the highest grades of platinum ever reported in Australia.
Up to 1,500 metres of drilling will be carried out at the Red Hill prospect where it discovered a 25 to 30 metre thick near-surface layer of copper-nickel-PGM mineralisation.
The drill program is expected to take up to 4 weeks to test 7 targets with assays to follow as soon as practicable.
Target T5 will be drilled first with an expected hole depth of about 450 metres.
Dr Mike Jones, managing director, commented:
“We are very excited to have started drilling again at Red Hill, the first step in our accelerated work program on all three of our high grade Australian projects over the next year.
“Having three such strings to our exploration bow increases our chances of delivering a major discovery in the next 12 months and following the recent investment from the Minderoo Group and monies being raised through our current rights issue we are well funded to do so.”
Red Hill Targets
At T1, Impact discovered a 25 to 30 metre thick near-surface zone of mineralisation beneath the dormant Red Hill mine that contains high grade PGM’s together with nickel and copper associated with an ultramafic intrusion.
Four significant intercepts have been returned from drill holes RHD001 and RHD006 that define an Upper and Lower Zone of mineralisation:
Upper Zone
- 9.5 metres at 4.7g/t 3PGM, 1.5% copper and 0.8% nickel including 5.1 metres at 11g/t 7PGM, 1.9% copper and 0.9% nickel (RHD001); and
- 5.2 metres at 7.9g/t 7PGM, 1.1% copper and 1.6% nickel (RHD006).
Lower Zone
- 9.9 metres at 6.7g/t 3PGM, 1.4% copper and 0.3% nickel including 4.2 metres at 11.8g/t 7PGM, 2.6% copper and 0.5% nickel (RHD001); and
- 13.8 m at 6.6g/t 7PGM, 1.1% copper and 0.3% nickel (RHD006).
*3PGM = Platinum-palladium-gold and 7PGM = 3PGM + osmium, iridium, rhodium, ruthenium where assayed.
Importantly it appears that the mineralised zones dip at a shallow angle to the south, are close to true width and are increasing in width and grade at depth.
Mineralisation is open at depth, where it is in part coincident with an Induced Polarisation (IP) chargeability anomaly identified in a ground geophysical survey.
IP chargeability anomalies may be associated with disseminated sulphides and magnetite.
Follow up drill holes will test the mineralisation along trend and at depth.
Of interest, CRA Exploration completed two diamond drill holes under the Red Hill workings in 1969 with no significant results.
However these holes were drilled from north to south and detailed work by Impact has now demonstrated that these holes were drilled parallel to and below the mineralised zone.
Target T2 is an electromagnetic anomaly identified in a ground geophysical survey and modelled to be at depth of about 100 metres below surface.
The target is possibly related to the depth extension of linear zones of weathered sulphide called “lode rocks” associated with a mafic complex in the metasedimentary rocks and which returned rock chip samples with up to 0.8% copper, 0.9 g/t gold and 0.1 g/t palladium.
Target T3 is a small electromagnetic anomaly identified in a down-hole electromagnetic survey completed in Impact’s drill hole RDH003.
It lies vertically beneath the Simons Find prospect which returned rock chip samples of up to 1.1% nickel, 1.9% copper, 1.9 g/t gold, 54 g/t silver and 1.7 g/t palladium.
Target T4 is a rock chip geochemistry target that will test the eastern contact of the intrusion with the surrounding rock.
The eastern side of the Red Hill intrusion is characterised by elevated copper-gold-platinum-palladium in soil and rock chip samples
In addition, an IP anomaly (T5) has been identified at a depth of about 100 metres below surface in the centre of the Red Hill intrusion.
This anomaly may be caused by disseminated sulphide and/or magnetite towards the base of or below the intrusion.
Modelling of magnetic data together with the results of a recently completed gravity survey indicates that the Red Hill intrusion maybe at least 400 metres thick in this area.
The lower parts of the intrusion do contain anomalous anomalous PGM and base metal values as evidenced in Impact’s drill hole RHD003 (58 metres at 0.1g/t PGM, 0.16% nickel and 124 ppm copper from 107 metres)
Airborne magnetic data indicates that the Red Hill intrusion extends for about 100 metres to the north of the last outcrop beneath a recent stream bed.
This area (T6) lies at the projected intersection between the Lode Rocks of Target T2 and the intrusion and is thus similar to the location of the Red Hill mine, which is also associated with Lode Rocks close to the western edge of the intrusion.
T7 was recently identified to the east of the out crop of the Red Hill intrusion.
There is potential for a buried extension of the Red Hill intrusion in this area. Specific drill hole locations will be identified on receipt of geophysical modelling currently in progress.
Analysis
Impact Minerals has started what is expected to be a closely watched drilling program at the Red Hill prospect, which delivered one of Australia's highest ever platinum group metal discoveries.
This was one of the drawcards for Andrew Forrest's Squadron Resources decision to make a $7.3 million investment in the company.
Adding further interest, Red Hill is just one of three projects the company is carrying out exploration at over the next 12 months.
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