Impact Minerals Limited: New Drill Targets at Silica Hill East, Commonwealth Project

Perth - Compelling new drill targets have been now identified along the eastern, upper contact of the Silica Hill Rhyolite at Impact Minerals Ltd.'s (ASX:IPT) 100% owned Commonwealth Project, 100km north of Orange, New South Wales.

Until now, Impact's exploration has been mostly focussed at the Main Shaft-Commonwealth South- Silica Hill Prospects up to one kilometre away on the lower, western contact of the Silica Hill Rhyolite and the underlying thinner Commonwealth Rhyolite (see Figures 1 and 2 in the link below). Here, Impact has discovered high grade gold-silver-base metal mineralisation interpreted to be part of a so-called "gold-rich Volcanogenic Massive Sulphide (VMS) system" with strong similarities to the Eskay Creek deposit in Canada (>4 million ounces of gold and 150 million ounces of silver; see announcement 9 May 2015).

However, certain features within these rhyolites and the associated mineralisation suggest that the area explored to date could be part of a much larger and very prospective high grade "feeder zone" that extends for one kilometre north east through the Silica Hill Rhyolite up to its eastern upper contact with overlying volcanic rocks (see Figures 1 and 3 in the link below).

In addition, the position where the interpreted feeder zone intersects the upper contact is an excellent conceptual target for further gold-rich VMS mineralisation (see Figure 3 in the link below) and the following geophysical and soil geochemical anomalies support this interpretation and have provided specific drill targets close to or at this location:

1. A barium and other pathfinder metal-in-soil anomaly that extends for at least 800 metres north-south along the contact and which forms the southern end of a recently recognised 5 kilometre long unexplored trend identified in regional geochemical data (see Figure 1 in the link below and see announcement 31 May 2017).

2. A very strong IP chargeability anomaly extending for some distance into the rocks overlying the Silica Hill Rhyolite (see Figure 2 in the link below). This anomaly is the strongest and largest IP chargeability anomaly identified so far in the Commonwealth Project. Such anomalies may be caused by disseminated sulphides.

3. A moderate IP conductivity anomaly of similar magnitude and strength to that related to the massive sulphide mineralisation at Main Shaft (see Figure 2 in the link below for location and announcement dated 25 May 2017 for details on the conductivity anomaly at Main Shaft and also at Main Shaft North).

The results of a soil geochemistry survey over the chargeability and conductivity anomalies are awaited. However the last soil sample from available data shows increasing gold over the prospective contact (see Figure 2 in the link below).

Evidence for a Feeder Zone

The features that suggest the possible presence of a feeder zone include the following, all of which are seen associated with feeder zones at Eskay Creek:

1. a strong gold-silver-barium-in soil anomaly that extends for one kilometre north east from the high grade gold-silver mineralisation discovered at Silica Hill towards the upper contact. This anomaly has not been drilled.

2. a very well developed alteration mineral assemblage that shows very clear timing relationships of early silica-pyrite-K feldspar progressively overprinted by sericite and then chlorite. At Eskay Creek chlorite specifically occurs in feeder zones and veins within rhyolite (see Figure 3 in the link below).

3. The highest-grade gold and silver veins discovered by Impact at Silica Hill have extensive chlorite within them and in the surrounding host rock e.g. 0.9 metres at 23 g/t gold and 1,100 g/t silver and 1 metre at 12.2 g/t gold and 680 g/t silver in CMIPT 046; (see Figure 3 in the link below and announcement 22 February 2017).

All of this evidence, which is based on detailed research and development completed by Impact over the past few years, supports the feeder zone model and these concepts will be further tested in the upcoming drill programme.

TIMING OF DRILL PROGRAMME

In a series of recent announcements Impact has identified a significant number of follow up drill targets in and around the general Commonwealth-Silica Hill area. In particular targets have been identified at:

Main Shaft: a prominent conductor has been identified at depth below the massive sulphide (see announcement dated 25 May 2017).

Main Shaft North: a prominent conductor with coincident copper-lead-zinc-in-soil anomalies located 200 metres north of Main Shaft (see Figure 1 in the link below and see announcement dated 25 May 2017).

Silica Hill: extensive and strong IP chargeability anomalies with coincident strong gold-silver-in-soil anomalies covering about one square kilometre (see Figure 1 in the link below and see announcement 9 May 2017).

Silica Hill East: several prominent conductors, very strong IP chargeability anomalies and extensive soil geochemistry anomalies of pathfinder metals as well as gold and silver (this announcement).

All of these targets have the potential to significantly expand the high grade gold-silver-zinc-lead-copper resources already defined which stand at an Inferred Resource of 720,000 tonnes at 2.8 g/t gold, 48 g/t silver, 1.5% zinc and 0.6% lead (4.5 g/t gold equivalent for 110,000 gold equivalent ounces).

Within this resource is a massive sulphide lens about 50 metres by 50 metres by about 8 metres thick in size which has an Inferred Resource of 145,000 tonnes at 4.5 g/t gold, 142 g/t silver, 4.8% zinc, 1.7% lead and 0.2% copper (10 g/t gold equivalent for 47,000 gold equivalent ounces; see announcement 19 February 2015).

A significant drill programme to test these new anomalies and also at Welcome Jack will commence on the completion of the Share Purchase Plan which is currently underway.

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 tables, figures and links of the announcements, please visit:
http://abnnewswire.net/lnk/2QHY9XQ1

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:

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