Impact Minerals Ltd (ASX:IPT) has identified at least three undrilled and open south plunging ore shoots at its 100% owned gold-silver-zinc-lead-copper Commonwealth Project 95 kilometres north of Orange, NSW.
This provides Impact with potential to add to Commonwealth’s already established resource of 100,000 ounces of gold equivalent.
The new targets are to be tested as part of an extensive drill programme to be undertaken in the June quarter.
This could increase the size of known resource at the Commonwealth deposit and identified several new nearby targets for similar deposits of high grade massive sulphide.
This adds to potential upside from Impact's exploration portfolio, including the high grade PGM-nickel-copper projects at Broken Hill which has attracted investment from an Andrew Forrest company.
Commonwealth Project
This new potential at the Commonwealth project has been identified using data from drill hole assays, two down-hole electromagnetic (EM) surveys and a ground gravity survey.
All three shoots are undrilled at depth and open, in particular below a previous Impact drill intercept of 4 metres at 41.8 g/t gold, 93 g/t silver, 5.5% zinc and 2.3% lead.
Gravity data has directly detected known high grade massive sulphide mineralisation and identifies possible depth extension. Gravity data also has identified three new nearby targets for massive sulphide mineralisation.
Upcoming Drill Program and Gravity Survey
An interpretation of ground gravity data, induced polarisation data and soil geochemistry data is in progress at the Silica Hill, Doughnut and Welcome Jack Prospects, which sit within the Commonwealth project.
A programme of up to 3,000 metres of reverse circulation and diamond drilling is scheduled to start within the next 6 to 8 weeks.
A further ground gravity survey is underway that will extend coverage to about 8 square kilometres centred on the Commonwealth deposit looking to identify more massive sulphide targets.
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.
It is anticipated that Impact will meet the $2.5 million expenditure target in the September Quarter 2016.
Analysis
Impact has shown it has a number of high impact opportunities within its exploration portfolio by following its recent momentum at Broken Hill with this exploration update at Commonwealth.
With all three undrilled shoots open, below a previous Impact drill intercept of 4 metres at 41.8 g/t (1.3 ounces per tonne) gold, 93 g/t silver (3 ounces per tonne), 5.5% zinc and 2.3% lead; the Commonwealth project is shaping as an interesting play and potential to lift the resource base by a significant amount.
The company has detailed a near term drilling campaign which positions shareholders well for upcoming news flow.
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