Impact Minerals Limited: Significant Extensions to Mineralisation at Silica Hill

Perth - Three diamond drill holes, two completed and one still in progress, have all intersected notable widths of veins containing visible silver minerals and indicate mineralisation extends to at least 500 metres down-dip at Impact Minerals Ltd.'s (ASX:IPT) emerging gold-silver discovery at the Silica Hill Prospect, 100 km north of Orange in New South Wales (see Figures 1 and 2 in link below).

Drill Hole CMIPT072

Drill hole 072, which is still in progress, was drilled to test for a significant down dip extension of the gold-silver mineralisation discovered in the Silica Hill rhyolite near surface in Holes 43 and 11 (see Figure 1 in link below).

The hole has intersected an 80 metre thick zone of sulphide from 255 metres down-hole to the current hole depth of 330 metres down-hole. The first 5 metres of the zone comprises numerous narrow veins up to 5 cm thick which contain the distinctive "ruby red" silver mineral proustite together with zinc and copper sulphides (see Figure 3 in link below). Below this there is a 75 metre thick zone with extensive pyrite and associated anomalous pathfinder metals which occur as disseminations in the wallrock and in numerous narrow veins.

All of this is similar to the outer halo of the high grade mineralisation already found to the west and suggest the hole is potentially close to similar high grade mineralisation. In addition the discovery of visible silver minerals is very encouraging and indicates the mineralised system at Silica Hill extends for at least 500 metres down dip from surface (see Figure 1 in link below).

This further confirms Impact's view that the mineralised system at Silica Hill is very large and as indicated by previous exploration results including soil geochemistry, IP and drill assay data.

Drill Holes CMIPT073 and 074

Previous work by Impact has shown that there are two east-west trending zones of mineralisation in the south-western part of the Silica Hill rhyolite (see Figure 2 in link below and see announcement 22 September 2017).

Drill holes CMIPT 073 and 074 were drilled to test the southern-most of these two trends to follow up signficant intercepts in drill holes 043 and 011.

Hole 011 has previously returned 48 metres at 0.5 g/t gold and 137 g/t silver from 122 metres down hole including 23 metres at 224 g/t silver (3.6 ounces) and 1 g/t gold which includes numerous zones of very high grade silver and gold (e.g. 0.9 metres at 2.4 g/t gold and 3,146 g/t silver - see announcement 2 September 2016).

Hole 043 has previously returned 68 metres at 0.5 g/t gold and 43 g/t silver from 99 metres down hole including 18 metres at 1.7 g/t gold and 24 g/t silver which includes 8 one metre intercepts that returned between 122 g/t (4 ounces and 525 g/t (17 ounces) of silver and two 15 cm thick veins which returned 5.6 g/t gold and 5.8 g/t gold (see announcement 8 August 2016).

Hole 073 has tested an important gap of 60 metres between Holes 011 and 043 and has intersected a 71 metre thick zone from 78 metres down-hole of numerous veins of pyrite and arsenopyrite with extensive visible silver minerals and lesser zinc and copper sulphides (see Figures 1 and 3 in link below). The veins are commonly up to 10 cm thick with occasional veins up to 40 cm thick. The wall rock around the veins also contains up to 10% pyrite and arsenopyrite as disseminations.

Hole 074 has tested a 30 metre down plunge extension of the mineralised zone and has intersected a 24 metre thick zone from 137 metres down-hole of similar veins and sulphide (see Figures 2 and 3 in link below).

Together, all of these results demonstrate good continuity of mineralisation over about 150 metres down dip from close to surface. This is very encouraging for any potential open pit development.

Hole 077 is in progress to test the down plunge extension of the mineralisation a further 30 to 40 metres down plunge.

Assays are expected by late January.

Drill Programme Update

There have been significant delays to the current drill programme. An electronic part failed on one of the diamond rigs and had to be imported from overseas and an RC rig failed to meet specifications for hole deviation and the contractor was removed from the programme.

At present there are two diamond drill rigs on site with drilling due to cease by December 18th for the holiday period. Drilling will recommence in mid-January at the Silica Hill East Prospect located 1,500 metres east of Silica Hill to test strong IP anomalies and the upper contact of the Silica Hill rhyolite at depth (see announcement 8 August 2016). Further drilling at Silica Hill will recommence on receipt and interpretation of assays from the current round of drilling in order to prioritise areas for follow up.

Other Drill Hole Assays

Final assays have also been received and interpreted for four other drill holes that tested the upper portions of the northern-most east-west trending zone of mineralisation and one hole that tested the western part of the southern-most trend (see Figure 2 in link below).

The assays have confirmed previous nearby drill holes which show that the holes were drilled in the upper parts of the mineralised system and comprise thick intercepts of low grade gold and modest silver grades with numerous high grade silver veins with increasing base metals at depth. The system is still open at depth and two RC holes will be completed before Christmas to test down dip and down plunge extensions to the mineralisation.

- Hole 071 returned:

87 metres at 0.3 g/t gold and 18 g/t silver from 75 metres down hole

including 6 metres at 1.4 g/t gold, 50 g/t silver and 0.2% zinc from 109 metres which includes

0.6 metres at 4 g/t gold, 79 g/t silver, 0.5% zinc and 0.3% lead from 109.7 metres; and

2 metres at 1.1 g/t gold, 14 g/t silver, 0.3% zinc and 0.1% lead from 141 metres.

- Hole 070 returned

23.6 metres at 0.15 g/t gold and 37 g/t silver from 55 metres including

1.8 metres at 0.16 g/t gold and 144 g/t silver from 56.8 metres; and

1 metre at 0.3 g/t gold and 111 g/t silver from 95 metres.

- Hole 069 returned

48.5 metres at 0.5 g/t gold and 18 g/t silver from 42.5 metres including

1 metre at 4.4 g/t gold, 9 g/t silver and 1.4% zinc from 46.4 metres.

- Hole 067 returned

45.6 metres at 0.4 g/t gold and 53 g/t silver from 28 metres including

0.7 metres at 0.7 g/t gold and 1,1880 g/t silver from 36.8 metres and

2.1 metres at 0.8 g/t gold and 124 g/t silver from 59.4 metres.

- Hole 066 returned

34.5 metres at 0.5 g/t gold and 40 g/t silver from 47.4 metres including

1.3 metres at 1 g/t gold and 164 g/t silver from 66 metres and

2.6 metres at 0.8 g/t gold and 110 g/t silver from 69 metres.

About the Commonwealth Project

The Commonwealth Project forms part of Impact's extensive 100% owned land holding of 1,000 sq km in the Lachlan Foldbelt, home to numerous gold and copper mines including the giant Cadia deposit near Orange (40 million ounces of gold and 12 million tonnes of copper).

At Silica Hill significant gold and silver mineralisation covers an area of 200 metres by 100 metres down to a depth of 120 metres below surface and with an average true thickness of at least between 40 metres and 70 metres. The mineralisation is open in all direct ions including up dip.

Four drill holes have also returned gram-times-metre intercepts of more than 100 gram.metres and a fifth hole returned an intercept of greater than 50 gram.metres. These are robust and significant results for potential bulk mining and indicate the potential to significantly increase the resources at the Commonwealth Project, which currently stand at 720,000 tonnes at 2.8 g/t gold, 48 g/t silver, 1.5% zinc and 0.6% lead (see announcement 19 February 2015).

In detail, these thick widths of mineralisation actually comprise numerous narrow veins and vein stockworks of high grade gold and very high grade silver hosted by the Silica Hill rhyolite that contain lower grade disseminated gold and silver.

For example, Hole CMIPT046 returned an intercept of

41 metres at 2 g/t and 176 g/t silver from 61 metres including 30 individual assays of varying widths of between 2 g/t and 24 g/t gold and 12 individual assays with more than 500 g/t silver including

1 metre at 12.2 g/t gold and 680 g/t silver including 0.3 metres at 23 g/t gold and 1,110 g/t silver;

1 metre at 5.3 g/t gold and 924 g/t silver;

1.7 metres at 3.8 g/t gold and 1,176 g/t silver; and

0.7 metres at 1.5 g/t gold and 855 g/t silver.

(see announcements dated 5th December 2016 and 22nd February 2017).

To view tables and figures, please visit:
http://abnnewswire.net/lnk/40Q80Q0M


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