Impact Minerals Limited: Exploration Update - Broken Hill Project, NSW

Perth - Eight areas for follow up exploration for high grade deposits of nickel-copper-platinum group metals (PGM)-cobalt have been identified in a helicopter-borne VTEM survey over the Rockwell to Little Broken Hill Trend within Impact Minerals Ltd.'s (ASX:IPT) 100% owned Broken Hill Project in New South Wales, (see Figure 1 in the link below).

The eight areas are spread along the Trend and are within or at the margins of an maficultramafic complex interpreted from regional magnetic and gravity data to be about 8 kilometres long and up to 750 metres wide (see Figure 2 in the link below).

The areas contain numerous clusters of conductors of varying strength that are consistent with the expected response for the style of very high grade nickel-copper-PGM sulphide mineralisation being explored for and as have been discovered by Impact at the Red Hill and Platinum Springs Prospects to the north (see Figures 1 and 2 in the link below). At Red Hill exceptional grades have been returned from drilling including a stand out intercept of 1.2 metres at 283 g/t (9.1 ounces) platinum equivalent comprising 10.4 g/t platinum, 10.9 g/t gold, 254 g/t (9.5 ounces) palladium, 7.4% nickel, 1.8% copper, 19 g/t silver and 0.5% cobalt in vein hosted sulphide (see announcements dated 3rd February 2016 and 23rd October 2015).

The Rockwell-Little Broken Hill area lies south of a major shear zone that separates it from the Red Hill Prospect and has been very poorly explored due to extensive shallow alluvial cover (see Figure 2 in the link below). Limited shallow RAB drilling to depths of less than 20 metres has identified near surface anomalous nickel-copper-platinum-palladium-gold in several places.

At Rockwell a coherent near-surface geochemical anomaly one kilometre long and 150 metres wide has been defined in shallow 2 metre deep drill holes along the north western margin of the complex with results of up to 0.1% nickel, 0.1% copper and 0.5 g/t PGM over a one metre thick intercept (see Figure 2 in the link below).

In the Little Broken Hill area only two widely spaced shallow RAB holes returned a maximum intercept of 7 metres at 0.3% nickel, 0.1% copper, 0.02% cobalt and 0.04 g/t Pt+Pd+Au from 12 metres depth.

There has been no drilling at depth along the entire trend.

The geometry and nature of the mafic-ultramafic host rocks along the Rockwell-Little Broken Hill trend is similar to that of the Sally Malay-Savannah deposit in northern Western Australia (approx. 20 Mt at 1.7% nickel, 0.7% copper and 0.1% cobalt) and Figure 1 (see the link below) also shows the geology of the area for comparison. The size of the surface expression of Sally Malay is also shown for comparison at the same scale.

It is evident that considerable scope exists to discover a significant nickel-copper-PGM-cobalt deposit in this area.

A VTEM survey was also completed over the Little Darling Creek Prospect and interpretation of this data is still in progress. Two areas have been identified for further work. A third area to the north, the Moorkai Trend, was not flown because of landowner concerns with stock animals and will be flown later in the year.

NEXT STEPS

Further interpretation and modelling of the VTEM data is in progress and follow up ground work will commence once completed. This work will include field checking, surface geochemical sampling and ground geophysical surveys where required to identify targets for drilling. Any targets identified will be drill tested together with follow up drilling at Red Hill.

The VTEM survey along the Moorkai Trend will be completed later in the year.

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About Impact Minerals Limited:

Impact Minerals Ltd. (ASX:IPT) is an exploration company listed on the ASX in November 2006.

The Company manages extensive tenement holdings (>2,000 km2) within Australia featuring significant potential for high-grade mineral deposits of gold, silver, lead, zinc, copper, nickel and PGM’s.

The Directors of the Company have extensive experience in mineral exploration and a strong history of exploration success, business development and corporate management.

Impact Minerals intends to build wealth for its shareholders through a vigorous campaign of project generation and evaluation with a view towards profitable mining operations.



Contact:

Impact Minerals Ltd.
T: +61-8-6454-6666
F: +61-8-6454-6667
www.impactminerals.com.au