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ASX ANNOUNCEMENT Date: 21 December 2015
Number: 447/211215
MASSIVE NICKEL COPPER SULPHIDE AT PLATINUM SPRINGS
60 cm thick zone
Down hole EM survey in progress
DRILLING IN PROGRESS AT RED HILL TO FOLLOW UP HIGH GRADE ZINC-SILVER RESULTS
Massive Sulphide at Platinum Springs
A 60 cm thick unit of massive sulphide containing extensive copper and nickel sulphides has been intersected in Hole PSD02 at Impact Minerals Limited's (ASX:IPT) Platinum Springs Prospect located about 20 km north east of Broken Hill in New South Wales.
The massive sulphide unit is close to previous high grade nickel-copper-platinum group metals (PGM's) intersected in massive sulphide in two drill holes completed by previous explorers (Figure 1 and see announcement dated 11 November 2015). These previous drill holes were not surveyed and their precise location is unknown.
Holes PSD01 and PSD02 were drilled to test an electromagnetic (EM) conductor identified by Impact in a down hole survey of a previous drill hole (Figure 1). The anomaly was modelled to be a narrow and strongly conductive (>5,000 siemens) unit.
PSD01 did not intersect the conductor. PSD02 was targeted on a refined position and geometry of the conductor based on a down hole EM survey of PSD01. The massive sulphide unit is the source of the EM conductor.
There was a considerable difference in the modelled orientation and geometry between the two surveys already completed by Impact. A third down hole survey, PSD02, has now been completed and the data is being processed ready for interpretation. This data will be used to help design follow up work programmes in the first Quarter of 2016.
The massive sulphide unit occurs at the base of the host ultramafic unit (green unit at top of photograph) at the contact with underlying metasedimentary rocks and are interpreted as being magmatic in origin.
Assays are expected in about 5 to 6 weeks (because of the Christmas break).
26 Richardson Street West Perth Western Australia 6005 Tel +61 (8) 6454 6666 Facsimile +61 (8) 6454 6667
Email [email protected] www.impactminerals.com.au
Figure 1. Geology and location of PSD01 and PSD02, previous drill holes and contoured data of previous drill assays for platinum, palladium and gold (summed from down hole intervals). The location of previous drill holes DD4 and GSM06 with high grade intercepts is not known precisely because collar positions were not surveyed and have been rehabilitated.
Drilling at Red Hill for Broken Hill-style silver-lead-zinc mineralisation
Drilling is in progress at the Red Hill Prospect located 30 km south east of Platinum Springs with one hole designed to follow up very high grade zinc and silver assays returned in Hole RHD018 (see announcement dated 8 December 2015).
Drill hole RHD018 intersected a five metre thick zone of massive and disseminated zinc and lead sulphide mineralisation including two separate one metre intervals of high grade zinc sulphides that returned (Figure 2):
5.1 metres at 10% zinc, 0.8% lead, 40.4 g/t silver from 148.4 metres including
1 metre at 26.8% zinc, 2.8% lead, 133 g/t silver (4 ounces) from 148.9 metres; and
1 metre at 21.4% zinc, 0.8% lead and 31.5 g/t silver (1 ounce) from 152.5 metres
This high grade mineralisation lies within a thicker zone of lower grade mineralisation that returned:
22.7 metres at 2.4% zinc, 0.2% lead and 9.5 g/t silver from 138.9 metres down hole.
Hole RHD020 will test the up-dip extension of this mineralisation.
The Broken Hill Project comprises three exploration licences that cover a 40 km trend of rocks prospective for two distinct styles of mineralisation:
-
PGE-copper-nickel associated with ultramafic rocks; and
-
Zinc-lead-silver in "Broken Hill-style" deposits hosted mostly by metasedimentary rocks and amphibolites.
The mineral rights for one of the licences, E7390, were split in the early 2000's into the two different styles of mineralisation and these were the subject of two separate joint ventures between the original licence owner, Golden Cross Resources, and Endeavour Minerals Pty Limited and Silver City Minerals Limited respectively. Impact purchased Endeavour Minerals Pty Limited in 2013.
Subject to Ministerial approval, expected within a few months, Impact will acquire E7390 (via its 100% owned subsidiary Siouville Pty Limited), from Golden Cross Resources and this will entitle Impact to 100% of the nickel-copper-PGE rights, previously in joint venture with Golden Cross.
The consideration payable to Golden Cross upon Ministerial approval is $60,000 cash and a 1% gross production royalty on all metals to which Impact and/or Siouville has the rights for. At its election, Impact also has the right to buy back the royalty for $1.5 million at anytime up to a Decision to Mine, or leave the royalty uncapped during any production.
In addition, upon the acquisition of E7390 Impact will also move to an 80-20 joint venture for Broken- Hill style mineralisation with Silver City Minerals Limited and free-carry Silver City's 20% interest to a Decision to Mine.
The consideration payable to Silver City is $50,000 cash.
Squadron Resources Pty Limited has the right to invest $1 million for a 19.9% interest in the nickel- copper-PGE rights under the terms of an investment into Impact as outlined in the announcement to the ASX dated 17 July 2015. However, Squadron is not liable for any payment of the royalty to Golden Cross.
Squadron Resources Pty Limited has no rights to earn into the Broken Hill style mineralisation.
Table 1. Impact Drill Holes at Platinum Springs
Collar ID
|
Drill type
|
Easting
|
Northing
|
Dip
|
Azimuth
|
Depth
|
PSD001
|
Diamond
|
562,984
|
6,472,104
|
-72
|
236
|
90.8
|
PSD002
|
Diamond
|
562,984
|
6,472,104
|
-66
|
214
|
77.9
|
Dr Michael G Jones Managing Director
The review of exploration activities and results contained in this report is based on information compiled by Dr Mike Jones, a Member of the Australian Institute of Geoscientists. He is a director of the company and works for Impact Minerals Limited. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mike Jones has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears.