PRIORITY DRILL TARGETS FOR MASSIVE SULPHIDES AT MAIN SHAFT NORTH, COMMONWEALTH PROJECT, NSW
Specific drill targets have now been identified with the potential to significantly extend the high grade gold-silver-zinc-lead-copper massive sulphide mineralisation that forms part of the Commonwealth deposit at Impact Minerals Limited’s (ASX:IPT) 100%-owned Commonwealth Project 100km north of Orange, New South Wales (Figure 1).
The targets occur at depth below and along trend from Main Shaft which lies at the northern end of the Commonwealth deposit. Accordingly this new area is called the Main Shaft North Prospect (Figure 1).
Figure 1. Geology and exploration results for the Silica Hill-Commonwealth area. The Main Shaft North Prospect lies along trend from the Commonwealth Resource.
The new targets have been generated and prioritised for drilling from a detailed interpretation of three lines of Induced Polarisation (IP) conductivity data and from soil geochemistry data (Figures 1, 2 and 3).
IP conductivity anomalies may represent massive sulphide bodies, such as that found at Main Shaft at the northern end of the Commonwealth deposit. Here, a relatively small massive sulphide lens about 50 metres by 50 metres by about 8 metres thick in size has an Inferred Resource of 145,000 tonnes at 4.5 g/t gold, 4.8% zinc, 1.7% lead and 0.2% copper (10 g/t gold equivalent for 47,000 gold equivalent ounces; see announcement 19 February 2015).
Of note is that this small massive sulphide body has been clearly identified in the IP conductivity data (Figure 2).
The massive sulphide resource is contained within the larger Commonwealth deposit which has an Inferred Resource of 720,000 tonnes at 2.8 g/t gold, 48 g/t silver, 1.5% zinc and 0.6% lead (4.5 g/t gold equivalent for 110,000 gold equivalent ounces; see announcement 19 February 2015).
At Main Shaft North the new targets to be drilled occur on three specific traverses along trend from Main Shaft and within the large area of up to one square kilometre which contains numerous undrilled IP and gold- and silver-in soil anomalies north of the small area drilled to date (Lines 10,000 mN, 10,100 mN and 10,200 mN, Figures 1, 2 and 3).
All three traverses comprise coincident good IP conductivity anomalies and coincident lead-zinc-copper-in-soil anomalies.
Figure 2. IP Conductivity data along Section 10,000 mN showing the massive sulphide body at Main Shaft and copper-rich drill hole CMIPT06.
On Line 10,000 mN the IP conductivity data has clearly identified the small massive sulphide body at Main Shaft above the main rhyolite unit (Figure 2). A larger and stronger anomaly has been identified at about 200 metres below surface and just below the deepest hole drilled at Main Shaft (CMIPT06, Fig 2).
This hole has returned the thickest and highest grade copper mineralisation yet discovered within the Commonwealth deposit of:
30 metres at 0.13% copper from 209 metres, including 1 metre at 0.7% copper, 1.1% zinc, 0.4% lead, 31 g/t (one ounce) silver and 0.4 g/t gold and 1 metre at 1% copper, 2% zinc and 14 g/t silver.
This is a significant intercept and the conductor below it is an obvious target. The conductor appears to lie below the rhyolite and it may represent a copper-rich “feeder zone” to the upper massive sulphide deposit.
On Line 10,100 mN a significant coincident lead+zinc+copper-in-soil anomaly of about 1,000 ppm combined, occurs over the northern extension of the rhyolite unit associated with the massive sulphide mineralisation. There is a strong conductivity contrast below this anomaly.
On Line 10,200 mN an IP conductivity anomaly occurs at about 200 metres below surface in a similar position along trend from that on 10,000mN. This is directly overlain by another significant lead+zinc+copper-in-soil anomaly of up to 820 ppm combined (Figure 3).
Figure 3. IP Conductivity data along Section 10,200 mN showing coincident IP conductivity and lead-zinc-copper-in-soil anomalies. The gold-in-soil anomaly is coincident with strong IP chargeability anomalies (see announcement 9 May 2017).
The nature and location of the IP conductivity anomalies and their coincidence with strong lead-zinc-copper-in-soil anomalies is very encouraging for the discovery of further high-grade massive sulphide mineralisation.
These new targets lie up to 200 metres west of and are separate to, other recently identified drill targets in IP chargeability data at the nearby Silica Hill Prospect where Impact has discovered high grade gold-silver mineralisation. The chargeability anomalies may represent disseminated sulphides (Figure 1 and see announcement 9 May 2017).
Timing of Drill Programme
A significant drill programme to test these new anomalies and those identified at Silica Hill and also at Welcome Jack will commence on the completion of the Share Purchase Plan which is currently underway.
Under the Share Purchase Plan and related Shortfall Offer, existing Shareholders on the Company’s register of Shareholders as of Wednesday, 10 May 2017 can subscribe for new fully paid ordinary shares in the Company at an issue price of $0.018 each, with three free attaching options exercisable at $0.04 each, on or before 15 June 2020 (Free Attaching Options) for every two New Shares issued.
Further details are in the announcement dated 11 May 2017 and all shareholders are encouraged to participate.
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