Impact Minerals : Bonanza Silver Grades at Silica Hill

• CMIPT011 returns bonanza-grade silver within a 48 metre thick zone of silver-gold mineralisation. Key intercepts include: 23 metres at 224 g/t silver (3.6 ounces) and 1.0 g/t gold from 147.7 metres

  including: 1.75 metres at 1,785 g/t silver (57 ounces) and 1.8 g/t gold from 147.7 metres

  which includes: 0.9 metres at 3,146 g/t silver (101 ounces) and 2.4 g/t gold from 148.1 metres

  and also including: 2.9 metres at 406 g/t silver (13 ounces) and 0.6 g/t gold from 157.6 metres which includes a 15 cm vein that returned 3,600 g (116 ounces) of silver and 0.4 g/t gold;

  and also including: 4 metres at 104 g/t (3.4 ounces) silver and 1.5 g/t gold from 160 metres

  and 1 metre at 4.7 g/t gold and 23 g/t silver from 169.5 metres.

• Overall intercept is 48.6 metres at 137 g/t silver (4.4 ounces) and 0.5 g/t gold for 2.5 g/t gold equivalent* from 122 metres down hole, also with zinc and lead credits.
• Mineralisation at Silica Hill is about 50 metres true thickness and silver grade and gold content are increasing with depth.

  * Gold equivalency calculations are based on the following US dollar prices: Gold $1326/oz; silver $18.82/oz; zinc $1.03/lb; lead 0.81/lb.

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  Exceptional silver grades together with good grades of associated gold have been returned from a 48 metre thick zone of mineralisation at the emerging Silica Hill discovery within Impact Minerals Limited's (ASX:IPT) 100% owned Commonwealth Project, 100 km north of Orange in New South Wales.

  The mineralised zone in Hole CMIPT011 is comprised of numerous narrow high grade and bonanza grade sulphide veins that are up to 40 cm thick as well as disseminated sulphides within the rock surrounding the veins. Both the veins and the surrounding rock contain extensive visible silver minerals and lesser zinc and lead sulphides (see announcement 19th August 2016).

  The overall intercept for Hole CMIPT011 is:

  48.6 metres at 137 g/t silver (4.4 ounces) and 0.5 g/t gold from 122 metres down hole, or 2.5 g/t gold equivalent*.

  The zone has an upper silver rich part and a lower gold rich part (Figure 1). Significant intercepts within the zone are:

• 1.75 metres at 1,785 g/t silver (57 ounces) and 1.8 g/t gold from 147.7 metres

  including: 0.9 metres at 3,146 g/t silver (101 ounces) and 2.4 g/t gold from 148.1 metres.

• 23 metres at 224 g/t silver (3.6 ounces) and 1.0 g/t gold from 147.7 metres

  including: 2.9 metres at 406 g/t silver (13 ounces) and 0.6 g/t gold from 157.6 metres within which is a 15 cm vein that returned 3,600 g (116 ounces) of silver and 0.4 g/t gold;

  and also including: 4 metres at 104 g/t (3.4 ounces) silver and 1.5 g/t gold from 160 metres

  and 1.1 metres at 4.7 g/t gold and 23 g/t silver from 169.5 metres.

  Impact Minerals' Managing Director Dr Mike Jones said:

  "These exceptional silver grades and associated good gold grades indicate that grade is increasing as we get deeper into this unusual and unique deposit. We have believed for some time that the mineralisation discovered so far lies at the top of a system that may have considerable depth extent. To get grades this good in this particular part of the system is very encouraging for further high-grade mineralisation at depth. We look forward to further drilling as we continue in our search to uncover what lies beneath Silica Hill".

  Extent of mineralisation at Silica Hill

  Significant silver-gold mineralisation has now been intersected over an area of 200 metres by 100 metres and down to a depth of 100 metres below surface.

  The mineralised zone at Silica Hill has now been intersected in four holes: Hole CMIPT026, which intersected mineralisation from surface, and Holes CMIPT046, CMIPT043 and CMIPT011 intersecting deeper parts of the system down to about 100 metres below surface (Figures 1 and 2). These holes have established the true thickness of the zone in the area drilled to be about 50 metres (see announcements dated 8th August, 19th August and 31st August 2016).

  Figure 1. Interpreted cross section through Silica Hill and Main Shaft

  Although assays have still to be returned for Hole CMIPT046, it appears that the grade is increasing with depth.

  • Hole CMIPT026 returned 39 metres at 0.3 g/t gold and 16 g/t silver from 5 metres down hole with individual one metre assays up to 1 g/t gold and 32 g/t silver.

  • Hole CMIPT046 (assays expected in about 10 days) returned a 70 metre thick intercept of visible silver mineralisation with lesser molybdenum sulphide.

  • Hole CMIPT043 returned:

    68 metres at 0.5 g/t gold, 43 g/t silver, or 1.3 g/t gold equivalent from 99 metres including the upper silver-rich zone of 37 metres at 71 g/t silver (2.3 ounces) and 0.1 g/t gold and the lower gold-rich zone of 18 m at 1.7 g/t gold and 24 g/t silver from 149 metres. The upper silver rich zone contains eight individual one metre intercepts that returned between

    122 g/t (4 ounces) and 525 g/t (17 ounces) of silver. Two assays of semi-massive sulphide veins about 15 cm thick in the lower gold-rich part of the system in Hole 043 returned 5.6 g/t and 5.8 g/t gold. (see Figure 3 in announcement dated 8 August 2016).

  • Hole CMIPT011 has now returned bonanza silver grades with gold within a 48 metre thick interval as reported here.

In addition it is evident that there is a large silver "halo" of up to 10 to15 g/t silver in the Silica Hill rhyolite which extends further outwards over many hundreds of square metres (Figure 1). It is possible that this may be a "leakage halo" from depth and accordingly the down-dip extension of the mineralisation in Holes 043 and 011 is a compelling drill target.

0.9 m at 3,146 g/t Ag, 2.4 g/t Au g/t

48 m at 0.5 g/t Au,137 g/t Ag

The drill rig has been moved to Welcome Jack to test an Induced Polarisation geophysical anomaly. This has allowed down hole EM surveys to be completed at Silica Hill and the Commonwealth deposit.

All data from Silica Hill and the other prospects tested in this drill programme is now being compiled to prioritise follow up drilling.

The Commonwealth gold-silver-zinc-lead project and also Impact's Broken Hill platinum-copper-nickel project are part of the investment agreement between Impact Minerals and Squadron Resources Pty Ltd, part of the Minderoo Group which represents the philanthropic and business interests of Andrew and Nicola Forrest (see announcement 17 July 2015).

As part of the investment agreement Squadron can at its sole discretion, 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 from a total of $3 million of exploration funds provided.