a941aa98709e255e8a7bb4.pdf

ASX ANNOUNCEMENT Date: 5 October 2015

Number: 435/051015

FURTHER HIGH GRADE COPPER-NICKEL MINERALISATION INTERSECTED AT BROKEN HILL

1.2 metre thick massive nickel-copper sulphide unit within 4 metre thick zone of mineralisation

Further high grade copper-nickel mineralisation has been intersected about 20 m beneath previous high grade drill intercepts at the Red Hill Mine shaft as part of a drill program underway at Impact Minerals Limited (ASX:IPT) copper-nickel-platinum (PGM) joint venture project near Broken Hill in New South Wales (Figure 1).

Hole RHD012 intersected a 1.2 metre thick unit of massive copper and nickel sulphides within a 4 metre thick zone of variable disseminated and vein-hosted nickel and copper mineralisation at about 60 metres below surface. The photograph shows about 40 cm of the unit.

Numerous spot readings using a hand held XRF instrument indicate grades of copper of between 1 and 5% copper and 2% to 8% nickel.

The XRF instrument has also highlighted minor metals that in previous laboratory assays have been indicative of high grade PGM mineralisation are also strongly anomalous. PGM's can not be measured directly by the XRF instrument.

Drill hole RHD012 was drilled 20 m below two zones of mineralisation intersected in Holes RHD001 and 006 beneath the Red Hill Mine and called the Upper Zone and Lower Zone.

The high nickel grades (XRF) suggest that the new zone is the down-dip extension of the Upper Zone. The Upper Zone is still open at depth, and is in part coincident with an Induced Polarisation anomaly that is modelled to extend to at least 100 m below surface.

The Lower Zone has not been intersected in this hole. This is possibly because the mineralisation has a shallow plunge to the east and Hole RHD013 is in progress about 25 metres along strike to the east to test this.

Further holes are also planned to test the mineralisation further at depth and along strike to the west.

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

011

009

010

008

012

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Figure 1. Drill hole location and geology of the Red Hill Prospect

Three holes have also been completed at the northern end of the main Red Hill intrusion.

Hole RHDH009 tested a modest gravity anomaly adjacent to the north west contact of the intrusion with surrounding rocks and intersected a thick zone of disseminated pyrite with copper, lead and zinc sulphides. The copper sulphides are preferentially developed close to the contact with the Red Hill intrusion and may be sourced from it.

Hole RHDH010 tested the eastern contact of the intrusion with the adjacent schist. The margin of the intrusion contains weak copper mineralisation.

Hole RHDH011 attempted to test a magnetic target immediately north of the intrusion. The hole appears to have drilled below the target, which is interpreted to dip to the east.

Assays from these three holes are expected in about four weeks.

Collar ID	Prospect	Drill type	Easting	Northing	Dip	Azimuth	Depth
RHD007	Central IP	Diamond	555517	6454391	-70	150	420.9
RHD008	Red Hill Mine	Diamond	555382	6454373	-45	178	50
RHD009	Simons Find	Diamond	555436	6454598	-55	300	195.3
RHD010	Simons Find	Diamond	555443	6454596	-45	110	168.4
RHD011	Simons Find	Diamond	555440	6454604	-50	345	96.5
RHD012	Red Hill Mine	Diamond	555381	6454280	-55	10	120.5
1051.6m

TOTAL

Table 1. Summary of Drill Holes About the Broken Hill Joint Venture Project

Exploration Licence E7390 is owned by Golden Cross Resources Limited (GCR) and is the subject of two joint ventures, one between GCR and Impact and one between GCR and Silver City Minerals Limited (ASX:SCI).

Impact has earned 87% of the rights to nickel, platinum and any other metals, occurring in, emanating from, or which are otherwise associated with, mafic or ultramafic complexes.

GCR has elected not to contribute to the upcoming drill programme and accordingly Impact's interest in the mineral rights will increase to about 90%.

If Golden Cross dilutes to less than a 5% interest in these rights then it has to transfer its interest to Impact for $1 (one dollar).

Silver City has the joint venture rights to base metal, silver and gold mineralisation associated with Broken Hill style mineralisation.

In addition Squadron Resources Pty Limited has the right to invest $1 million for a 19.9% interest in the project under the terms of an investment into Impact as outlined in the announcement to the ASX dated 17 July 2015.

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.

APPENDIX 1 - SECTION 1 SAMPLING TECHNIQUES AND DATA

Criteria JORC Code explanation Commentary

Sampling techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information

Rock Chip Samples

Random rock samples were taken at surface which represented favourable geology and alteration to known mineralisation in the region. Samples are variably weathered.

Soil Samples

Soil samples were taken at 50 m intervals from a hole 15-20 deep and sieved to -2mm to collect about 250 g of material.

Diamond Drilling

Diamond drilling was used to produce drill core either with a diameter of 63.5 mm (HQ) or 47.6 mm (NQ). A handheld XRF instrument was used to analyse the drill core at 50 cm intervals.

Rock Chip Samples

Representative rock chip samples at each sample site weigh between 0.8 and 1.2 kg. Soil samples are taken at a consistent depth below surface and sieved.

Soil Samples and Drill Samples

Sample representivity was ensured by a combination of Company Procedures regarding quality control (QC) and quality assurance / testing (QA).

Examples of QC include (but are not limited to), daily workplace and equipment inspections, as well as drilling and sampling procedures.

Examples of QA include (but are not limited to) collection of 'field duplicates', the use of certified standards and blank samples approximately every 50 samples.

Rock Chip and Diamond Drill Samples

Rock samples and split diamond core were sent to Intertek Adelaide where they were crushed, dried and pulverised (total prep) to produce a 25-30 g sub-sample for analysis by four acid digest with an ICP/AES finish for ore grade base metal samples and either lead collection or nickel sulphide fire assay with AAS or MS finish for gold and the PGMs. Weathered samples contained gossanous sulphide material. Soil samples were sent to SGS Perth for analysis by the MMI digest.

The XRF data is qualitative only. A comparison between the XRF results and wet chemical assay data will be completed on receipt of final results.

Drilling techniques

Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast,

auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard Diamond Drilling comprises NQ (47.6 mm diameter) and HQ (63.5 mm diameter) sized core. Impact

tube, depth of diamond tails, face-sampling bit or other type, whether core diamond core is triple tube and is oriented. Historical diamond core was not oriented.

is oriented and if so, by what method, etc).

Drill sample recovery Method of recording and assessing core and chip sample recoveries and

results assessed

Diamond core recoveries for all holes are logged and recorded. Recoveries are estimated to be approximately >97% for the Red Hill Prospect. No significant core loss or sample recovery problems are observed in the drill core.

Measures taken to maximise sample recovery and ensure representative nature of the samples

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Diamond core is reconstructed into continuous runs on an angle iron cradle for orientation marking. Depths are checked against the depth given on the core blocks and rod counts are routinely carried out by the driller.

No sample bias has been established.

Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	Geological logging of samples followed company and industry common practice. Qualitative logging of samples included (but not limited to); lithology, mineralogy, alteration, veining and weathering. Diamond core logging included additional fields such as structure and geotechnical parameters. Magnetic Susceptibility measurements were taken for each 0.5 m diamond core interval. For diamond core, information on structure type, dip, dip direction, texture, shape and fill material has been recorded in the logs. RQD data has been recorded on selected diamond holes. Handheld XRF analysis was completed at 50 cm intervals on diamond core.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	All logging is quantitative, based on visual field estimates. Systematic photography of the diamond core in the wet and dry form was completed.
The total length and percentage of the relevant intersections logged		All diamond drill holes were logged in full. Detailed diamond core logging, with digital capture was conducted for 100% of the core by Impact's on- site geologist.

Sub-sampling techniques and

sample preparation If core, whether cut or sawn and whether quarter, half or all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc and whether

All core samples were sampled by half core. Selected intervals of quarter core will be selected for check assays if required.

sampled wet or dry. No RC drilling results are reported.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second- half sampling.

Company procedures were followed to ensure sub-sampling adequacy and consistency. These included (but were not limited to) daily work place inspections of sampling equipment and practices, as well as sub-sample duplicates ('field duplicates').

Laboratory QC procedures for rock sample and diamond drill core assays involve the use of internal certified reference material as assay standards, along with blanks, duplicates and replicates.

Rock and Soil Samples

Field duplicates were taken at selected sample sites.

Whether sample sizes are appropriate to the grain size of the material being sampled.

Diamond Core Samples

Quarter core duplicate samples are taken randomly every 50 samples. Sample sizes at Red Hill are considered adequate due to mineralisation style.

Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	An industry standard fire assay technique for samples using lead collection with an Atomic Absorption Spectrometry (AAS) finish was used for gold and aqua regia digest for base metals and silver.
For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.		No geophysical tools were used to determine material element concentrations. A handheld XRF was used for qualitative analysis only.
Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.		Rock Chip Samples For the rock chips, quality control procedures for assays were followed via internal laboratory protocols. Accuracy and precision are within acceptable limits. Diamond Drill Samples Reference standards and blanks are routinely inserted into every batch of samples at a rate of 1 in every 50 samples.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

The results have not been verified by independent or alternative companies. This is not required at this stage of exploration.

The use of twinned holes. No drilling results are reported.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Primary assay data for rock chips has been entered into standard Excel templates for plotting in Mapinfo. All historical drill data has been entered digitally by previous explorers and verified internally by Impact.

Discuss any adjustment to assay data. There are no adjustments to the assay data.

Location of data points	Accuracy and quality of surveys used to locate drillholes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Sample locations and drill holes were located by hand held GPS.
Specification of the grid system used.		The grid system for Broken Hill is MGA_GDA94, Zone 54.
Quality and adequacy of topographic control.		Standard government topographic maps have been used for topographic validation. For the diamond holes, down-hole single shot surveys were conducted by the drilling contractor. Surveys were conducted at 15 m, 30 m and then approximately every 30 m down-hole.

Data spacing and distribution Data spacing for reporting of Exploration Results. Sample spacing for the soil survey was on a 50 m by 50 m grid.

Reconnaissance drill spacing is approximately 200 m.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Estimations of grade and tonnes have not yet been made.

Whether sample compositing has been applied. Sample compositing has not been applied.

Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible Not relevant to soil and rock chipresults. structures and the extent to which this is known, considering the deposit type. The orientation of mineralisation in RHD001 yet to be determined.
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, Not relevant to soil and rock chip results or early stage exploration drill results. this should be assessed and reported if material.

Sample security The measures taken to ensure sample security.

Chain of custody is managed by Impact Minerals Ltd. Samples for Broken Hill are delivered by Impact Minerals Ltd by courier who transports them to the laboratory for prep and assay. Whilst in storage, they are kept in a locked yard. Tracking sheets have been set up to track the progress of batches of samples.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

At this stage of exploration a review of the sampling techniques and data by an external party is not

warranted.

SECTION 2 REPORTING OF EXPLORATION RESULTS

Criteria JORC Code explanation Commentary

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The security of the tenure held at the time of reporting along with any

The Broken Hill Project currently comprises 1 exploration licences covering 100 km2. The tenement is held 100% by Golden Cross Resources Ltd. Impact Minerals Limited is earning 80% of the nickel-copper-PGE rights in the licence from Golden Cross. No aboriginal sites or places have been declared or recorded over the licence area. There are no national parks over the license area.

known impediments to obtaining a licence to operate in the area. The tenement is in good standing with no knownimpediments.

Exploration done by other

parties

Acknowledgment and appraisal of exploration by other parties.

There has been no significant previous work at this prospect.

Geology Deposit type, geological setting and style of mineralisation. Nickel-copper-PGE sulphide mineralisation associated with an ultramafic intrusion.

Criteria JORC Code explanation Commentary

Drill hole Information A summary of all information material to the understanding of the

exploration results including a tabulation of the following information for all Material drill holes:

• easting and northing of the drill hole collar

• elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

• dip and azimuth of the hole

• down hole length and interception depth

• hole length.

Data aggregation methods In reporting Exploration Results, weighting averaging techniques, maximum

and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

The assumptions used for any reporting of metal equivalent values should

See Table in text.

All reported assays have been length weighted. No top cuts have been applied. A cut-off of approximately 0.1% Cu, 0.4% Cu and 1.0% Cu has been applied for reporting of exploration results.

High grade massive sulphide intervals internal to broader zones of disseminated sulphide mineralisation are reported as included intervals.

be clearly stated. No metal equivalents have been reported.

Relationship between

mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of

Exploration Results.

If the geometry of the mineralisation with respect to the drill hole angle is The orientation of mineralisation in RHD001 is yet to be determined. known, its nature should be reported.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').

Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Refer to Figures in body of text.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not

practicable, representative reporting of both low and high grades and/or All results reported are representative widths should be practiced to avoid misleading reporting of Exploration

Results.

Criteria JORC Code explanation Commentary

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Assessment of other substantive exploration data is not yet complete however considered immaterial at this stage.

Further work

The nature and scale of planned further work (e.g. tests for lateral

extensions or depth extensions or large-scale step-out drilling). Follow up work programmes will be subject to interpretation of results which is ongoing.

Diagrams clearly highlighting the areas of possible extensions, including the

main geological interpretations and future drilling areas, provided this information is not commercially sensitive