DRILLING UNDERWAY AT CLERMONT GOLD PROJECT QUEENSLAND
RC Drill programme testing 5 target areas. Targets highlighted by exceptional IP survey results that identify a quartz vein system extending for at least 6,000 metres. Clarification to the terms of the recently announced Broken Hill Joint Venture
Drill testing of five target areas identified in geophysical and geochemical data is underway at Impact Minerals Limited’s 100% owned Clermont gold project located in the southern part of the Drummond Basin in Central Queensland; a prolific epithermal gold-silver belt which hosts several world class gold deposits such as Pajingo (Vera-Nancy) (>5 Moz), Mt Leyshon (>3 Moz) and Mt Wright (>1 Moz) (Figure 1).
The project lies 30 km south of the town of Clermont and about 50 km south of the recently acquired Blackridge conglomerate-hosted gold project (Figure 1 and see announcement May 29 2018).
A recently completed gradient array Induced Polarisation (IP) survey has identified multiple coherent northeast trending linear resistivity anomalies that coincide in part with numerous outcrops of gold-bearing quartz veins. The resistivity data suggests that the quartz veins extend over a strike length of at least 6,000 metres (Figure 2).
A total of 98 rock chip samples taken from variably gossanous quartz veins over the 6,000 metres of strike returned assays of up to 8.1 g/t gold (Figure 2) with 35 samples returning assays of more than 0.1 g/t gold and 10 returning assays greater than 1 g/t gold.
A review of an MMI soil geochemistry survey completed by Impact in 2012 showed that the linear resistivity anomalies are concident with elevated gold, silver and lead in soil values as well as elevated copper to the north and zinc to the east.
The IP data together with the soil and rock chip geochemistry data have been used together with previous drilling data where appropriate to identify five priority areas for drilling.
CAD$5.5 MILLION JOINT VENTURE WITH TSX:V LISTED BLUEBIRD BATTERY METALS INC ON IMPACT’S BROKEN HILL PROJECT
- CAD$150,000 Cash
- 5,250,000 shares in BlueBird (current market value CAD$2.63 million)
- CAD$2.25 million expenditure over 3 years to earn a 75% interest
- A further CAD$500,000 of shares in BlueBird over the 3 year earn-in.
Impact Minerals Limited (ASX:IPT) is pleased to announce that it has signed a binding Letter of Intent (“LOI”) to joint venture its Broken Hill project with TSX Venture exchange-listed BlueBird Battery Metals Incorporated (TSX:V BATT).
Under the terms of the farm-in Bluebird has the right to earn a 75% interest in the five Exploration Licences that comprise Impact’s Broken Hill project by payments of cash and shares and exploration expenditures totaling CAD$5.525 million (at the last closing price of BlueBird shares of CAD$0.50).
Impact Mineral’s Managing Director Dr Mike Jones said “We are very pleased to partner with BlueBird Battery Metals on the Broken Hill Project. The management of BlueBird have a strong track record in exploration discovery and resource development and they are committed to exploration success on their Australian portfolio. They have chosen to focus on the Broken Hill project because of its prospectivity for a wide range of metals that will form a critical part of the emerging market for batteries and renewable energy sources and we look forward to working with them on their exploration programme. This will include early drilling on the targets Impact has already identified.”
“Our partnership with BlueBird is also a successful outcome of the strategic review of our portfolio completed earlier this year and which has also led to the recently announced sale of our Pilbara gold project and drill programmes at our Commonwealth Project in New South Wales and Clermont Project in Queensland. All of this forms part of our overall strategy of generating first class projects and finding partners where appropriate.”
Impact and BlueBird have also reached a unique agreement, detailed below, that protects Impact’s shareholding in the short term from any down side movement in BlueBirds share price and also allows BlueBird a short to medium term right to buy back one third of the shares issued to Impact at a price of CAD$0.75 per share and a further one third at CAD$1.25 per share.
DETAILS OF THE JOINT VENTURE TRANSACTION
The principal terms of the joint venture are:
- A non-refundable payment of CAD$25,000 cash (completed).
- A cash payment of CAD$125,000 and the issue of 5,250,000 shares (“Tranche 1”) in BlueBird at a deemed price of CAD$0.40 (“Trance 1 Price”) on the later of the signing of a Definitive Agreement (“DA”) or the approval of the transaction by the TSX Venture Exchange. The Definitive Agreement is to be completed within 45 days of signing of the LOI.
- On-ground exploration expenditures totaling CAD$2.25 million as follows:
- A minimum of CAD$500,000 within one year of signing the DA (“Year 1”).
- A further CAD$750,000 by the end of Year 2.
- A further CAD$1 million by the end of Year 3.
- The issue of a further CAD$500,000 of shares in BlueBird as follows:
- CAD$125,000 in shares prior to the end of Year 1.
- CAD$125,000 in shares prior to the end of Year 2.
- CAD$250,000 in shares prior to the end of Year 3.
DRILLING UNDERWAY AT COMMONWEALTH
A follow up diamond drill programme to test the depth extent of high grade gold and silver mineralisation is now underway at the Silica Hill Prospect, part of Impact Minerals Limited’s (ASX:IPT) 100% owned Commonwealth Project 100 km north of Orange in New South Wales.
The drill holes are targeted at the down dip and down plunge extension of the southern and northen mineralised zones identified either side of a recently identified porphyry unit within the Silica Hill rhyolite (Figure 1 and see announcement 28 March 2018).
The southern mineralised structure has good grade and geological continuity over a strike extent of at least 150 metres and recently returned high grade gold and very high grade silver results within the north west trendng part of the zone. For example diamond drill hole CMIPT077 (Figure 1) returned an intercept of:
22.5 m at 1.7 g/t gold and 276 g/t silver from 166.7 metres down hole;
including 0.3 m at 1.8 g/t gold and 4200 g/t (135 ounces or 0.42%) silver from 174.4 metres;
and also including 0.8 m at 13.6 g/t gold and 40 g/t silver from 187.7 metres.
This structure has not been drilled at depth nor along trend to the east (Figure 1 and see announcement 13 February 2018).
The northern mineralised zone, whilst of lower grade, also demonstrates very good continuity and recently returned a very thick intercept in RC drill hole CMIPT078 of:
117 metres at 0.3 g/t gold and 11 g/t silver from 74 metres down hole.
This is the thickest zone of mineralisation found in the northern zone to date and also suggests that, similar to the southern zone, that lower grade mineralisation is increasing in thickness and grade at depth and also to the east. This is very encouraging and further drilling is also warranted here (Figure 1 and see announcement 13 February 2018)
The robust and significant results delivered thus far from Silica Hill continue to demonstrate the potential for bulk mining and to significantly increase the resources at the Commonwealth Project, which currently stand at 720,000 tonnes at 2.8 g/t gold, 48 g/t silver, 1.5% zinc and 0.6% lead (see announcement 19 February 2015).
The recently identified porphyry unit within the Silica Hill rhyolite is similar in composition to the porphyry unit at the Commonwealth deposit 150 metres to the west which comprises a gold-silver rich base metal massive sulphide lens and veins and disseminations of gold and silver mineralisation.
This suggests a common link between the two mineralised areas and importantly indicates that this new porphyry unit could be the top of a pipe or sheet like feature that extends to some depth. This is a key feature of the model previously proposed by Impact for the area which suggests the entire system may be underlain and be driven by a porphyry copper-gold similar to Cadia-Ridgeway and North Parkes (see announcement 31 July 2017 and Figure 2).
IMPACT TO RAMP UP EXPLORATION ACROSS ITS PORTFOLIO
Exploration work will be ramped up over the next six months at four of Impact Minerals Limited’s (ASX:IPT) 100% owned gold and base metal projects across Australia.
Following recent Board approval, follow up drill programmes are planned for the Commonwealth goldsilver-base metal project in New South Wales, the Clermont gold project in Queensland and the Mulga Tank gold and nickel project in Western Australia. In addition the first bulk samples will be taken at the Blackridge conglomerate gold project in Queensland in which Impact recently acquired an option to earn 95%.
Following a recent strategic review of the Company’s projects, eleven of the most prospective targets for gold and other metals across the exploration portfolio will be drill tested. Work will commence at Commonwealth and Clermont with drill rigs likely to be operating concurrently before moving on to Mulga Tank and Blackridge by about September-October.
OVERVIEW OF THE PROGRAMME
An outline of the planned work is given below. Further details will be announced in due course
At Commonwealth, all statutory approvals are in place to commence follow up drilling at the Silica Hill Prospect where gold and very high grade silver intercepts were returned from the previous drill programme (see announcement February 13th 2018). Step out diamond drill holes are planned to test the down dip and down plunge extensions of the mineralisation. The drill programme will start within a few weeks subject to the completion of the drill contractor’s current contract (with another company).
At Clermont follow up RC and diamond drilling is planned at five targets to test previous high grade drill intercepts and rock chip and soil geochemistry anomalies (see announcement May 15th 2018). In addition the drilling will test various IP anomalies that have been identified in a recently completed gradient array IP survey. This data is still being interpreted.
The mineralisation style at Clermont indicates strong similarities to the high grade, low sulphidationstyle Pajingo gold deposit located 250 km to the northwest with total resources of >5 million ounces at gold grades between 10 g/t and 17 g/t.
The Clermont drill programme will commence on completion of Land Access Agreement negotiations which are on going and expected to be completed in early July.
At Mulga Tank in Western Australia, Impact has identified a signficant number of gold and nickel targets for follow up work. The project comprises 20 strike kilometres of Archaean greenstone belt 200 km north east of Kalgoorlie and is highly prospective for Tier 1 gold deposits such as Gruyere located 200 km to the north east with current resources of 3.8 million ounces at 1.2 g/t nickel as well as komatiite and dunite-hosted nickel deposits.
The top three gold and top two nickel targets will be tested by a programme of aircore drilling which will commence on the availability of an appropriate drill rig. All statutory approvals for the programme are in place.
At the Blackridge conglomerate gold project also located near Clermont in Queensland, bulk samples will be taken at several places along the mineralised unconformity between the gold-bearing sedimentary units and the underlying basement (see announcement May 29th 2018). A few drill holes may also be completed. A review of appropriate sampling methodologies and equipment is underway. This work will commence on completion of a number of statutory agreements which are expected to be completed early in Quarter 4 2018.
The Company is considering various options for its Broken Hill project in New South Wales.