Impact Minerals (ASX: IPT) extends Silica Hill mineralisation beyond current footprint

Dr Mike Jones, Managing Director of Impact Minerals, spoke with MarketOpen to further discuss the completion of Phase I drilling at the Commonwealth–Silica Hill Project and the identification of a new sulphide zone outside the existing mineralisation model.

The program, funded by Kuniko under the earn in agreement, comprised six diamond holes for 1239 metres, all of which intersected sulphide mineralisation.

This included a broad 70 metre visual zone at Silica Hill and additional intersections at Commonwealth South beyond previously identified areas.

With assays expected in early April, the discussion focused on how these step out results change the current geological interpretation, how visual observations should be assessed at this stage, and how the earn in structure governs funding and progression of the next phase .

How does the new zone outside the Silica Hill model change your view on system scale and continuity?

The intersection of sulphide mineralisation approximately 100 metres outside the previously modelled Silica Hill wireframe indicates that mineralisation extends beyond the current interpretation. The new zone remains open up dip, down dip and along strike, which means further drilling is required to determine its extent .

This result was delivered from a step out hole targeting a modelled fault position, and confirms that mineralisation is not confined to the existing wireframe. Additional sulphide intersections at Commonwealth South were also recorded outside previously identified mineralisation, which supports the presence of mineralisation beyond current defined areas .

At this stage, these observations are based on geological logging. Assay results are pending and will be required to determine grade and support any assessment of continuity.

With assays pending, how confident are you that visual sulphides convert into economic grades, and what remains unproven?

All six Phase I drill holes intersected visible sulphide mineralisation, including a broad 70 metre zone at Silica Hill and further sulphide intersections at Commonwealth South. This confirms that the drilling program has intersected mineralisation across multiple target areas .

However, the announcement states that visual estimates of mineralisation should not be considered a proxy for grade, and no assay results from the current drilling program have yet been reported. What remains unproven is the grade of the mineralisation, the distribution of metals within these zones, and how these results compare to previously reported intersections at the project .

All drill core has been dispatched for assay, with first results expected in early April, which will provide the basis for further evaluation.

As Phase II begins under the earn in, how should investors think about funding, capital discipline, and the pathway to resource growth?

Under the earn in and joint venture agreement, Kuniko can earn up to a 70% interest in the project by funding exploration expenditure, while Impact retains a 30% free carried interest until a decision to mine. This structure allows exploration to advance without Impact funding the current drilling programs .

Phase I drilling has been completed, and planning for a Phase II drilling program is underway. The stated objective of Phase II is to target resource expansion and follow up newly identified mineralised zones.

Progression toward resource growth will depend on the outcome of assay results and the results of follow up drilling required to define the extent of mineralisation.

What are the key risks that could limit resource expansion despite mineralisation extending beyond the current wireframe?

The primary uncertainty at this stage is that no assay results from the current drilling program have been reported, and visual observations of sulphide mineralisation do not establish grade or economic value .

While mineralisation has been intersected in all six holes, including zones outside previously modelled mineralisation, further drilling is required to determine the extent and continuity of these zones. The new zone at Silica Hill remains open in multiple directions, which means its size and geometry are not yet defined .

Follow up drilling and assay results will be required to determine whether these zones can contribute to future resource updates.

Execution now shifts to assay results and follow up drilling

The immediate focus for Impact Minerals is on receiving assay results from the completed Phase I drilling program and advancing planning for Phase II drilling. The current program has confirmed the presence of sulphide mineralisation beyond the existing model, but grade and continuity remain to be established. Phase II drilling is intended to follow up these zones and test additional targets, with results expected to guide further work programs and inform future resource definition.

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