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- SILICA HILL
- High Grade at Silica Hill
- Mineralisation at Silica Hill
- $2.5 Million Raised
SILICA HILL CONTINUES TO GROW
Mineralised vein system extended to 250 metres along trend and still open.
Potential further extension of 300 metres along trend indicated by extensive zones of narrow veins with gold-silver-pathfinder metals characteristic of the upper, less mineralised parts of the system. Priority drill target at depth below these veins.
Wide copper intersect indicates increasing copper and possible porphyry coppergold system at depth. Downhole EM survey to define more specific drill targets.
Mineralised system now extends over 500 metres of trend and 400 metres vertical extent.
A significant expansion of the exploration potential over at least several hundred metres along trend and also at depth is being revealed in the on-going drill programme at Impact Minerals Limited’s (ASX:IPT) high grade gold-silver discovery at the Silica Hill Prospect, part of the 100% owned Commonwealth Project, 100 km north of Orange in New South Wales. Recent diamond drill holes (CMIPT64 to 66) have now extended the mineralised vein system, which comprises a stockwork of quartz-sulphide veins about 40 metres wide, a further 50 metres along trend to the north east and comprising multiple narrow veins containing measurable silver with a hand held XRF instrument (Figure 1).The vein system is now about 250 metres in length and is still open along trend and at depth (see announcements dated 15 August 2017 and 4 August 2017)
Full ASX release
FURTHER HIGH GRADE RESULTS AT SILICA HILL
Further drill assays from the on-going drill programme at Impact Minerals Limited’s (ASX:IPT) emerging gold-silver discovery at the Silica Hill Prospect, part of the 100% owned Commonwealth Project 100 km north of Orange in New South Wales, continue to confirm and expand the bulk-tonnage potential close to the near-surface high grade massive sulphide resource at Main Shaft, with only 10% of the target area tested to date close to surface.
In addition the closed spaced drilling completed to date has elucidated further important structural controls on high grade shoots as well as the broad vertical and lateral metal zonation within the stockwork vein system (Figures 1 and 2).
East-west trending structures have now been identified as an important control of the high grade zones and shoots within the overall north east trending zone of mineralisation, and it has been shown that the entire vertical extent of the mineralised system has been preserved from an upper barren silica-pyrite zone that passes progressively down and laterally through low grade silver +/- gold veins; higher grade gold and silver veins; and a lower zinc-lead-copper zone containing “feeder veins” of massive base metal sulphides that also have high grade gold and silver in places.
PILBARA CONGLOMERATE-HOSTED GOLD PROJECT
In early August this year Impact Minerals Limited (ASX:IPT) applied for nine new 100% owned Exploration Licences covering 1,300 sq km of ground prospective for Witwatersrand-style conglomerate-hosted gold in the Pilbara region of Western Australia (Figure 1).
This followed a review of the discovery of gold in conglomerates at the base of the Fortescue Group by Artemis Resources Limited and the subsequent joint venture with Novo Resources Corporation.
This work indicated a signficant breakthrough had been made in the search for Witwatersrand-style gold in the Pilbara and Impact immediately applied for available ground considered prospective for this style of deposit.
The majority of the licence applications have recently passed through the period for objections under the Mining Act and as such are now likely to be granted subject to the statutory Native Title notification and negotiation period which is expected to take about 8 months.
The licences cover various parts of the prospective contact between the older Pilbara granite-greenstone terrain and the overlying Fortescue Group rocks in the East Pilbara region including areas close to and adjoining licences held by Novo Resources Corporation.
The increasing recognition of extensive conglomerate-hosted gold across the entire Pilbara region at several different horizons within the Fortescue Group is in Impact’s view, confirming the long recognised potential for Witwatersrand-style gold in the area.
It is worth noting that gold in the ageequivalent Witwatersrand Basin of South Africa occurs mostly within the middle part of the 6 km thick sedimentary sequence (as opposed to the basal units) mostly as fine to coarse gold associated with carbon seams as well as the characterisitic “watermelon seed” nuggets.
In the East Pilbara where Impacts licences are located, gold-bearing conglomerates were first recognised and mined 130 years ago in the Beatons Creek area (Figure 1 and 2) and form part of the Hardy Formation in the lower to middle parts of the Fortescue Group.
The Beatons Creek project is owned by Novo Resources in joint venture with Sumitomo Corporation and is already undergoing feasibility studies for development.
In the West Pilbara the significant discoveries of gold-bearing conglomerates by Novo Resources and Artemis Resources Limited occur at the base of the Fortescue Group as does the very recent discovery of nuggets and conglomerates in the Central Pilbara by De Grey Mining Limited.
SIGNIFICANT EXTENSIONS TO MINERALISATION AT SILICA HILL, COMMONWEALTH PROJECT, NSW
Three diamond drill holes, two completed and one still in progress, have all intersected notable widths of veins containing visible silver minerals and indicate mineralisation extends to at least 500 metres down-dip at Impact Minerals Limited’s (ASX:IPT) emerging gold-silver discovery at the Silica Hill Prospect, 100 km north of Orange in New South Wales.
Drill Hole CMIPT072 Drill hole 072, which is still in progress, was drilled to test for a significant down dip extension of the gold-silver mineralisation discovered in the Silica Hill rhyolite near surface in Holes 43 and 11 (Figure 1). The hole has intersected an 80 metre thick zone of sulphide from 255 metres down-hole to the current hole depth of 330 metres down-hole. The first 5 metres of the zone comprises numerous narrow veins up to 5 cm thick which contain the distinctive “ruby red” silver mineral proustite together with zinc and copper sulphides (Figure 3).
Below this there is a 75 metre thick zone with extensive pyrite and associated anomalous pathfinder metals which occur as disseminations in the wallrock and in numerous narrow veins. All of this is similar to the outer halo of the high grade mineralisation already found to the west and suggest the hole is potentially close to similar high grade mineralisation. In addition the discovery of visible silver minerals is very encouraging and indicates the mineralised system at Silica Hill extends for at least 500 metres down dip from surface (Figure 1).
This further confirms Impact’s view that the mineralised system at Silica Hill is very large and as indicated by previous exploration results including soil geochemistry, IP and drill assay data.
IMPACT RAISES $2.5 MILLION
$2.5 million raised via oversubscribed Placement to bring Cash Balance to $5.2 million after costs
Funds to be primarily used for new Pilbara Conglomerate Gold Project and the ongoing drill programme and resource work at the Commonwealth gold-silverbase metals project in New South Wales.
Impact Minerals Limited (ASX:IPT) is pleased to announce that it has received firm commitments to raise $2,500,000 (before costs) via a placement of 125,000,000 shares (Shares) and 125,000,000 free attaching quoted options (Free Attaching Options) to sophisticated and professional investors at 2 cents per share (Placement), an 11% premium to the last closing price.
Funds raised from the Placement will be used to fund preliminary low impact ground work at Impact’s new 100% owned Pilbara Gold Project comprising 1,300 sq km of ground prospective for Witwatersrand-style conglomerate hosted gold, as well as the continuation of the drill programme at the Silica Hill Prospect at the Company’s 100% owned Commonwealth gold-silver-base metal project. Follow up geophysical surveys will also be undertaken at the high grade Broken Hill copper-nickelPGM project.
The Shares will be issued at 2 cents per Share with one Free Attaching Option (IPTOA) exercisable at 4 cents on or before 15 June 2020 for every new Share subscribed for. The new Shares will rank equally with existing ordinary shares and the Free Attaching Options will rank equally with the existing class of quoted options. The Shares and Free Attaching Options will be issued under the Company’s Listing Rule 7.1 and 7.1A capacities.
The Company does not intend at this stage to seek shareholder approval in relation to the proposed issue of Shares and Free Attaching Options. Settlement of the Placement is expected to occur on Monday 6 November 2017, with the new Shares and Free Attaching Options expected to be issued on Tuesday 7 November 2017.
Xcel Capital Pty Ltd was Lead Manager for the Placement and Mineral Intelligence provided corporate advisory services to the Company for the Placement.
Impact Minerals’ Managing Director, Dr Mike Jones, said “There was significant demand for this raising which brings the Company’s cash balance to $5.2 million. We are now in a position to maintain momentum on our projects and in particular in the Pilbara where on-ground reconnaissance work has commenced and ground access conditions are being assessed, as well as at CommonwealthSilica Hill where drill rigs are mobilising to site this week. We will complete a minimum of 1,500 m of drilling before Christmas.”
For further information please contact: Dr Mike Jones, Managing Director, Impact Minerals Limited +61 8 6454 6666
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