Impact Minerals Limited’s (ASX:IPT) drill assays and studies of core demonstrate the large scale and high-grade nature of the Silica Hill gold-silver system at its Commonwealth project in Central West New South Wales.
The new assays and detailed studies show that the system extends over an area of at least 500 by 500 metres in dimension and also to a considerable depth.
Results delivered to date indicate the potential for bulk mining and to significantly increase the resources at the Commonwealth project.
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Shares are up 7% to 1.5 cents on the news from the project, which is 100 kilometres north of Orange.
Managing director Dr Mike Jones said: “Following the recent discovery of high-grade gold and very high-grade silver veins at Silica Hill, these results are a further breakthrough.
“We are also recognising different units within the Silica Hill rhyolite that are an important control on the mineralisation.
“These may also be the upper parts of a deep-rooted intrusion that could be mineralised over a significant vertical extent.”
Jones said this augured well for the company’s 2018 drill program.
Two alteration zones intersected
The eastern-most hole drilled at Silica Hill intersected two strong silica-sulphide alteration zones with anomalous gold and silver over a combined thickness of more than 200 metres down-hole.
This included a high-grade gold and silver vein within the upper zone indicating significant potential for more veins nearby.
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The upper zone returned 46 metres at 0.04 g/t gold and 5 g/t silver from 200 metres, including 0.4 metres at 2.5 g/t gold and 327 g/t silver from 257.2 metres.
In the lower zone, there was an intersection of 67 metres at 0.3 g/t gold and 1 g/t silver from 402 metres.
A simplified conceptual model for the system around Commonwealth.
Studies of drill core show that the two east-west trending mineralised structures at Silica Hill become more north west-south east orientated to the east.
They also show that the Silica Hill rhyolite is more extensive at depth to the south than previously recognised.
Commonwealth resources stand at 720,000 tonnes at 2.8 g/t gold, 48 g/t silver, 1.5% zinc and 0.6% lead.
Large areas remain untested
Large areas of the Silica Hill system remain untested by drilling and it is evident that there is exploration upside.
A detailed review and synthesis of all drill hole data including assays, hand-held XRF data and geological and structural data, is underway.
The aim of this work is to identify further controls on the mineralisation.
Identifying targets for next drilling
This work is being used to identify drill targets with the next drilling program to begin as soon as practicable.
Statutory approvals for new drill pads have been lodged and negotiations are underway to extend the land access agreement with the main landholder at the project.
Impact will prepare a resource update following the completion of the next drill program.