IMPACT Minerals has started a major drilling program at the Commonwealth project, 95km north of Orange in Central New South Wales. The program will comprise up to 3000 metres of reverse circulation (RC) and diamond drilling to test a significant number of gold, silver and base metal targets.
The targets have been identified by Impact at four prospects – the Commonwealth deposit, Silica Hill, Welcome Jack and Doughnut. They were identified in geological, geochemical and geophysical data sets collected and compiled over the past 18 months and in particular as areas of variably overlapping gravity, Induced Polarisation (IP) and soil geochemistry anomalies.
One diamond hole has been completed to test a small EM conductor at the southern end of the Commonwealth deposit. Vein and disseminated mineralisation has been intersected over a 6 metre width at the upper contact of the main rhyolite unit and is visually similar to the base metal mineralisation seen in many other holes at Commonwealth South.
Massive sulphides were not intersected in the hole and the source of the EM conductor has not been found with a down hole EM survey now required. The survey will be completed together with other holes towards the end of the drill program.
A second diamond drill hole was started in late May to test the down dip extension of the centre of the Commonwealth deposit.
Impact has recently raised $250,000 via a placement to a sophisticated investor arranged by Patersons Securities. This follows the recent successful share purchase plan and associated placement completed on May 13, 2016.
The Commonwealth projects as well as Impact’s Broken Hill platinum-copper-nickel project are part of an investment agreement between Impact and Squadron Resources, part of the Minderoo Group which represents the philanthropic and business interests of Andrew and Nicola Forrest.
As part of the investment agreement, Squadron can invest a further A$1 million into either or both of the projects to earn a 19.9% interest after Impact has spent a combined total of $2.5 million on them. It is anticipated Impact will meet this expenditure target in the September quarter of 2016.