The principal activity of the Group during the financial year was exploration for deposits of nickel, gold, copper and platinum group elements.
Operations and financial review
Activity during the 2017 financial year was focussed at the emerging high grade gold-silver discovery at the Silica Hill Prospect, part of the 100% owned Commonwealth Project centred about 100 km north of Orange in NSW.
Gold and silver mineralisation with base metal credits has been intersected over an area of 200 metres by 100 metres down to 100 metres below surface and with an average true thickness of about 50 metres. The veins commonly contain high to very high grades of gold and in particular silver. For example Hole CMIPT046 returned 41.3 metres at 2 g/t gold and 176 g/t silver which comprised 30 individual assays of varying widths of between 2 g/t and 24 g/t gold and 12 individual assays with more than 500 g/t silver. Hole CMIPT011 returned two veins with 3,146 g/t silver (0.9 metres thick) and 3,600 g/t silver (0.15 m thick) (refer ASX announcement dated 5 December 2016).
A follow up drill programme is in progress. The programme is testing a large number of targets generated from Induced Polarisation and soil geochemistry data that were also collected during the year. Initial results confirm that the discovery continues to grow.
Two 5 kilometre long trends within Impact's extensive ground holdings of 1,000 km2 in the area, were newly identified as prospective for high grade gold silver deposits similar to Commonwealth-Silica Hill mineralisation. Detailed studies by Impact have shown strong similarities to the well-known Eskay Creek deposit in Canada (4 million ounces of gold and 150 million ounces of silver). There is also potential for the discovery of a porphyry copper-gold system at depth below Silica Hill.
At the 100% owned Broken Hill Project a VTEM survey was completed over two key areas and identified eight targets along the Rockwell-Little Broken Hill Trend and two targets at Little Darling Creek for follow up work for nickel-copper-PGM mineralisation. In addition significant potential for cobalt-copper-gold mineralisation was recognised on Impact's large ground holding at Broken Hill including previous drill results of 92 metres of 0.04% cobalt with 10 metres at 0.1 g/t gold at end of hole (refer ASX announcement dated 5 May 2017).
At the 100% owned Mulga Tank Project about 2,500 soil samples were submitted for multi-element analysis. An interpretation of the results identified 20 targets for gold and 16 targets for nickel. Follow up drill programmes are being planned.
Exploration and evaluation costs totalling $101,406 (2016: $186,489) were expensed during the year in accordance with the Group's accounting policy. The expensed exploration and evaluation costs for the year ended 30 June 2017 primarily comprise business development activities on potential new projects.
As at 30 June 2017 the Group had net assets of $12,248,077 (2016: $11,689,939) including cash and cash equivalents of $1,917,206 (2016: $3,929,972).
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About Impact Minerals Limited
Impact Minerals Limited (ASX:IPT) is an exploration company listed on the ASX in November 2006. The Company manages extensive tenement holdings (>2,000 km2) within Australia featuring significant potential for high-grade mineral deposits of gold, silver, lead, zinc, copper, nickel and PGM's. The Directors of the Company have extensive experience in mineral exploration and a strong history of exploration success, business development and corporate management. Impact Minerals intends to build wealth for its shareholders through a vigorous campaign of project generation and evaluation with a view towards profitable mining operations. Impact Minerals intends to build wealth for its shareholders through a vigorous campaign of project generation and evaluation with a view towards profitable mining operations.
Impact Minerals Limited