Significant zinc, silver and lead hits recorded by recent drilling at Impact Minerals’ Limited (ASX:IPT) Broken Hill project in New South Wales have suggested the possible presence of a sizeable deposit.
New drilling at the project’s Red Hill area has delivered 1 metre at 26.8% zinc, 2.8% lead and 133 g/t silver as well as 1 metre at 21.4% zinc, 0.8% lead and 31.5 g/t silver.
These standout intersections were recorded within a broader 5.1 metres at 10% zinc, 0.8% lead, 40.4 g/t silver.
The high grades were hosted by a thicker zone of lower-grade mineralisation that returned 22.7 metres at 2.4% zinc, 0.2% lead and 9.5 g/t silver from 138.9 metres downhole.
Further drilling both up and down dip of this extensive zone of mineralisation will be required.
Subject to final ministerial approval, Impact recently purchased 80% of the rights to the Broken Hill-style zinc-lead-silver mineralisation from Silver City Minerals (ASX:SCI) and will free carry Silver City’s 20% interest in those rights up to a decision to mine.
The mineralisation occurs within a 60-metre thick zone of “Broken Hill-style” mineralisation hosted by rocks which are similar to those that are integral to the world-class Broken Hill zinc-lead-silver deposit just 15 kilometres northwest of Red Hill.
The results are considered positive reinforcement of expectations that the prospect hosts a significant zinc-lead-silver deposit.
Red Hill was mined for copper between 1906 and 1937 – both at surface and underground – from a vertical shaft to a depth of 36 metres.
Old mine records indicate that about 500 tonnes of ore was mined from four parallel lodes, each 1 metre to 2.5 metres wide. Face samples from the underground mine returned a grade range of 2-4% copper, 2-3% nickel, 22-70 g/t silver and 5-41 g/t platinum group elements (PGE).
The lodes are open along strike and at depth.
The style of mineralisation at Red Hill is distinct from, and separate to, the platinum-copper-nickel mineralisation associated with ultramafic rocks that has been the focus of Impact’s work so far at the project.
PGE exploration
Twenty kilometres northeast of Red Hill, drilling for platinum-copper-nickel will begin this week at Broken Hill’s Platinum Springs prospect with a 200-metre diamond core program.
This will test a high-conductance electromagnetic anomaly identified in a downhole survey.
The conductor, which is modelled to be at least 100 metres long, lies close to two drillholes that contain high-grade nickel-copper-PGEs in massive sulphide discovered by previous explorers.
These drillholes returned intercepts including 2 metres at 10.9 g/t platinum, 23.6 g/t palladium, 0.9 g/t gold, 6.1% copper, 4.5% nickel and 35 g/t silver from 45 metres as well as 2.3 metres 8.4 g/t platinum, 3.6% copper and 3% nickel from 47.7 metres.
Impact owns 100% of the rights to the project’s platinum-copper-nickel mineralisation.
Analysis
The latest drilling results at Red Hill are all extremely encouraging for Broken Hill-style ore deposits, these are known for their high grade.
The nearby world class Broken Hill zinc-lead-silver deposit located 15 km north west of Red Hill originally consisted of about 185mt of high grade lead, silver and zinc to a depth of 1.7km.
This outlook it strongly support by the fact that the high-grade mineralisation discovered may represent a halo to a larger massive zinc sulphide body along trend or at depth.
Importantly, Impact acquired an 80% ownership of the zinc-lead-silver mineralisation at Broken Hill in October, which set up the company strong with strong exposure to this asset immediately before its significant growth potential began to become evident.
Also, the company’s move to take a major stake in the zinc-lead-silver mineralisation is likely to prove prescient as upcoming drilling vies to connect the dots between Red Hill and the nearby Broken Hill deposit, arguably the world’s richest zinc-lead ore deposit.
A drill program to follow up the latest results is being designed and may generate additional newsflow which could further prove up Broken Hill’s potential and deliver price catalysts for Impact stock.
A strong electromagnetic conductor has also set up imminent drilling for PGEs at Platinum Springs, which could translate into value-adding newsflow for the company.
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