Impact Minerals Limited: High Grade Gold and Highest Silver Grades to Date Intersected at Silica Hill, Commonwealth Project

Perth, - High grade gold and exceptionally high grade silver assays, have been returned from the southern mineralised zone 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.

The assays, which are from three diamond drill holes, also indicate that the grades of gold and silver, and gold in particular, are increasing with depth below surface (see Figures 1, 2 and 3 in link below).

- Assays from 3 drill holes and previous results from the southern mineralised zone at Silica Hill confirm continuity and increasing grades at depth of high grade gold and silver mineralisation.

- Mineralisation extends from surface to a depth of 200 metres and for 200 metres along strike, and is also open at depth and along trend.

- CMIPT077 returned:

22.5 m at 1.7 g/t gold and 276 g/t silver from 166.7 metres down hole;

including 0.3 m at 1.8 g/t gold and 4,200 g/t (135 ounces or 0.42%) silver from 174.4 metres;

also including 0.8 m at 13.6 g/t gold and 40 g/t silver from 187.7 metres.

CMIPT074 returned:

21.8 metres at 0.6 g/t gold and 273 g/t silver from 137.9 metres down hole;

including 0.5 metres at 0.5 g/t gold and 1,485 g/t (48 ounces) silver from 143 metres;

and 0.4 m at 1.6 g/t gold and 6,240 g/t (200 ounces or 0.62%) silver from 148.5 metres.

CMIPT073 returned:

75.3 metres at 0.4 g/t gold and 62 g/t silver from 75 metres down hole;

including 10.8 metres at 1.4 g/t gold and 243 g/t silver from 134 metres

which includes 4.3 metres at 2 g/t gold and 566 g/t silver from 134 metres and including 0.3 metres at 6.9 g/t gold and 1,485 g/t silver from 136 metres.

- CMIPT078 drilled at the eastern end of the northern mineralised zone returned the thickest intercept of gold and silver to date in this zone and indicates improving grades to the east: 117 metres at 0.3 g/t gold and 11 g/t silver.

Impact Minerals Managing Director Dr Mike Jones said: "These results are an exciting further breakthrough for us at Silica Hill as they indicate the mineralised system is getting better at depth and to the east. The silver grades and minerals within the vein system we have discovered are exceptional and confirm the unique nature of this deposit in Australia. These are the highest assays returned so far at the project and they occur within robust zones of mineable width and grade. We are excited for the 2018 exploration programme."

Assays from CMIPT077 have returned an intercept of:

22.5 m at 1.7 g/t gold and 276 g/t silver from 166.7 metres down hole;

including 0.3 m at 1.8 g/t gold and 4200 g/t (135 ounces or 0.42%) silver from 174.4 metres;

also including 0.8 m at 13.6 g/t gold and 40 g/t silver from 187.7 metres.

These results confirm the southern mineralised zone to be a steeply dipping mineralised vein system that trends east-west and is open down dip and down plunge to the south east (see Figures 2 and 3 in link below).

The good continuity of gold and very high grade silver mineralisation from surface is confirmed from the assays in the other two diamond drill holes which were drilled up dip of CMIPT077 (see Figure 2 in link below).

CMIPT074 intersected (see Figure 2 in link below):

21.8 metres at 0.6 g/t gold and 273 g/t silver from 137.9 metres down hole;

including 0.5 metres at 0.5 g/t gold and 1,485 g/t (48 ounces) silver from 143 metres;

and 0.4 m at 1.6 g/t gold and 6240 g/t (200 ounces or 0.62%) silver from 148.5 metres.

CMIPT073 intersected:

75.3 metres at 0.4 g/t gold and 62 g/t silver from 75 metres down hole;

including 10.8 metres at 1.4 g/t gold and 243 g/t silver from 134 metres

which includes 4.3 metres at 2 g/t gold and 566 g/t silver from 134 metres and including 0.3 metres at 6.9 g/t gold and 1,485 g/t silver from 136 metres.

These results, together with previously reported results from Holes CMIPT011 and CMIPT043 confirm the continuity of gold and silver mineralisation in the southern zone from surface to about 200 metres true depth and over a strike length of 150 metres (see Figures 2 and 3 in link below and see announcements 2 September 2016 and 8 August 2016).

The mineralisation is open down dip to the south and down plunge to the east and further drilling is required.

In addition final assays are still awaited from CMIPT072 where visible silver minerals were observed in narrow veins at 257 metres down hole as part of an extensive zone of pyrite and lesser arsenopyrite. Assays are expected by the end of February.

Northern Zone

Assays have also been received from one RC drill hole CMIPT078 completed at the eastern end of the northern zone of mineralisation at Silica Hill (see Figure 3 in link below and see announcement 22 September 2017).

This hole has returned a very thick intercept of: 117 metres at 0.3 g/t gold and 11 g/t silver from 74 metres down hole.

This is the thickest zone of mineralisation found in the northern zone to date and also suggests that, similar to the southern zone, that lower grade mineralisation is increasing in thickness and grade at depth and to the east. This is very encouraging and further drilling is warranted.

Next Steps

All of the work to date by Impact indicates that the mineralised system at Silica Hill is very large and extends for at least 500 metres down dip from surface and large areas remain untested by drilling (see Figures 2 and 3 in link below). It is evident that there is signficant exploration upside in the area.

The nature of the mineralisation at Silica Hill with the extensive visible silver minerals proustite and pyrargyrite is unique in Australia. Therefore a detailed review and synthesis is in progress of all the drill hole data including assays, hand held XRF data and geological and structural data with the aim of identifying some of the controls on the mineralisation.

This work will be used to identify the next round of drill targets with the next drill programme to commence as soon as practicable. Statutory approvals for new drill pads will be required in many places.

In addition negotiations are in progress to extend the Land Access Agreement with the land holder at Commonwealth-Silica Hill.

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 directions 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 figures, please visit:
http://abnnewswire.net/lnk/F4Q1K9L5

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