Impact Minerals Limited: Two New 5km Long Trends for High Grade Gold-Silver at Commonwealth, NSW

Two new 5 kilometre long trends that are very prospective for further discoveries of high grade gold-silver-base metal mineralisation similar to that discovered at Commonwealth-Silica Hill have been identified within Impact Minerals Ltd.'s (ASX:IPT) 100%-owned Commonwealth Project 100km north of Orange in New South Wales (Figures 1, 2 and 3 - refer to link below).

The prospective trends have been recognised as significant following the identification in new drill assay data of extensive barium as an important pathfinder and indicator element directly associated with the Commonwealth-Silica Hill mineralisation. This has lead to a new interpretation of the barium results from both Impact's soil geochemistry database and also the Geological Survey of New South Wales regional stream sediment geochemistry database.

Barium is significant because it is an important accessory element and can be used as a vector to, and direct indicator of, ore in gold-rich VMS (volcanogenic massive sulphide) deposits such as Eskay Creek in Canada (4 million ounces of gold and 150 million ounces of silver) which Impact's work has shown to have many similarities with the mineralisation at Commonwealth-Silica Hill (see announcement 9 May 2017).

Barium in Drill Assays from Massive Sulphide at the Commonwealth Deposit

In Impact's 2016 drill programme a very high grade 7 metre thick intercept of massive sulphide was returned in Hole CMIPT31. Recent petrographic work identified barite as a significant component of the mineralisation and accordingly the samples were re-submitted for assay. Barium mostly occurs as barite (barium sulphate) which is very resistive and which requires an (expensive) XRF fusion assay to accurately determine the quantity present.

Assays of up to 1 metre at 17.7% barium were returned within a thicker intercept of 7 metres at 9.0% barium. Accordingly the entire massive sulphide intercept is:

- 7 metres at 6.3 g/t gold, 496 g/t silver (15.9 ounces), 7.2% zinc, 2.9% lead, 0.2% copper (17.7 g/t gold equivalent) and 9.0% barium from 91 metres

- including 3 metres at 10.6 g/t gold, 571 g/t silver (18.4 ounces), 7.8% zinc, 2.1% lead, 0.2% copper (23.0 g/t gold equivalent) and 14.9% barium from 92 metres and also;

- including 1 metre at 2.5 g/t gold, 979 g/t silver (31.5 ounces), 8.3% zinc, 4.4% lead, 0.1% copper (21.4 g/t gold equivalent) and 7.9% barium from 95 metres.

There is a strong correlation between high grade gold and high grade barium.

Sporadic assays from drill holes completed by previous explorers also indicate high-grade barium in places and it is clearly present throughout the massive sulphide mineralisation. It is also a minor component in the surrounding disseminated mineralisation and also within the high-grade gold-silver mineralisation at Silica Hill.

The recognition of extensive barite intimately associated with ore is a further compelling similarity between Commonwealth-Silica Hill and Eskay Creek as well as the nature of the host rock, the style of mineralisation, the contained commodity and pathfinder metals and the high grades of individual units and veins of commodity metals (see announcement dated 9 May 2017).

Soil Geochemistry Data

A review of Impact's soil geochemistry data has identified significant barium anomalies over Commonwealth-Silica Hill, the southern part of the Doughnut Prospect, west of the Welcome Jack Trend and the Stringers Prospect (Figure 2, see link below).

At the Walls and Stringers Prospects previous rock chip results also show a close association between barium and gold-silver-base metal mineralisation (Table 1, see link below). Impact has completed one drill hole at Walls which returned 20 m at 0.5 g/t gold and 27 g/t silver including 1 metre at 2.9 g/t gold, 144 g/t silver and 1.1% zinc equivalent from 55 metres with follow up drilling required (see announcement 30 June 2016). Barium was not assayed by XRF fusion and therefore correlation to the mineralised intercept is not possible at present.

Accordingly these areas warrant further exploration for massive sulphide deposits. Follow up drilling at Welcome Jack and Walls is planned as part of the next drill programme at Commonwealth together with field checking at Stringers.

In addition to the areas of strong barium anomalism, lower grade barium occurs over several square kilometres centred on the Silica Hill area (Figure 2) and is commonly associated with silica-pyrite alteration. This association further confirms to Impact that the entire area is part of one very large hydrothermal system.

Regional Stream Sediment Geochemistry

Stream sediment geochemistry data for barium (NSW Government) clearly identifies the central part of the Commonwealth Project as being highly anomalous in barium on a regional scale (Figure 3, see link below).

The two 5 km trends clearly visible in the data are the northern extension of the Welcome Jack and to a lesser extent the Commonwealth-Silica Hill area and a newly identified area 3 km to the east called the Yaragal Prospect (Figures 1 and 3).

The trend north of Welcome Jack is associated with several old gold workings and ends at the dormant Kellys-Perseverance workings which have a recorded production 818 ounces of gold from 714 tonnes of ore. Face sampling of the mine in the 1970's at a depth of 8 metres below surface returned up to 3 m at 22 g/t gold. This has not been properly followed up.

The second trend covers the western limb of the Yaragal Anticline. It is evident that this area is a foldrepetition of the same rocks as those around the Commonwealth-Silica Hill area. The presence of barium over such a large strike extent is again evidence of a major regional hydrothermal system.

Both trends are priority areas for follow up work.

A third significant area of anomalous barium is also evident in the data (Figure 3). This is directly associated with the very large North Parkes porphyry copper-gold camp where barite also occurs as an accessory mineral. North Parkes is currently in production with resources of 480 Mt at 0.56% copper and 0.18 g/t gold. The host intrusions at North Parkes are of a similar age to the volcanic rocks at Commonwealth.

Impact's view is that this confirms the potential, as suggested previously, that a porphyry copper-gold system may be present at depth below, and is driving the entire mineralised gold-rich VMS system, in the Commonwealth-Silica Hill-Welcome Jack area.

NEXT STEPS

Follow up drilling at Commonwealth-Silica Hill, Welcome Jack and Walls will commence at the end of the current Share Purchase Plan. In addition, a review and synthesis of previous exploration data from along the newly identified barium trends is in progress. Field checking of these new trends will also commence during the drill programme.

Under the Share Purchase Plan and related Shortfall Offer, existing Shareholders on the Company's register of Shareholders as of Wednesday, 10 May 2017 can subscribe for new fully paid ordinary shares in the Company at an issue price of $0.018 each, with three free attaching options exercisable at $0.04 each, on or before 15 June 2020 (Free Attaching Options) for every two New Shares issued.

Further details are in the announcement dated 11 May 2017 and all shareholders are encouraged to participate. To view the announcement, please visit: http://www.abnnewswire.net/press/en/88273/

To view tables and figures, please visit:
http://abnnewswire.net/lnk/5J91FOPW

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. 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:

Dr Mike Jones Managing Director
Impact Minerals Ltd.
T: +61-8-6454-6666
E: info@impactminerals.com.au