Impact Minerals (ASX: IPT) has confirmed that diamond drilling has commenced at its Commonwealth gold–silver project in New South Wales under an earn-in and joint venture agreement with Kuniko (ASX: KNI).
Kuniko – which can earn up to a 70% interest in the project – has launched a Phase 1 diamond drilling program of about 1,200 metres to test extensions of high-grade gold–silver mineralisation.
The program follows completion of a comprehensive MobileMT airborne geophysical survey and soil and rock chip geochemistry that expanded the exploration footprint across a roughly 4-kilometre-long conductive corridor extending beyond currently defined resources.
Resource Extension Targets
The drilling program will test down-plunge and along-strike extensions at Commonwealth Main, Silica Hill, and Commonwealth South.
Recent geophysical work identified priority targets along the expanded conductive corridor, which extends beyond the limits of existing resources.
Impact previously defined JORC (2012) Inferred mineral resources at Commonwealth and Silica Hill totalling 88,800 ounces of gold and 3.3Moz of silver, including significant zinc and lead credits.
These resources occur within approximately 250m of surface, remain open at depth and along strike, and show increasing copper values at depth in parts of the system.
Deeper Copper Potential
The company noted that increasing copper values at depth highlight the potential for a deeper porphyry copper–gold source beneath the high-sulphidation, gold-rich volcanogenic massive sulphide (VMS) mineralisation.
Kuniko has also completed soil and rock chip sampling at Gladstone West and Geenobby, returning high-grade gold–silver results and identifying further walk-up drill targets.
Several additional priority targets have been identified across the broader project area, which lies along trend from Alkane Resources’ (ASX: ALK) Boda-Kaiser porphyry copper–gold deposit.
Management said the results support the view that Commonwealth is located in a highly prospective part of the Lachlan copper–gold district.
Earn-In Structure and Strategic Leverage
Under the earn-in terms, Kuniko can secure a 51% interest by spending $1.5 million within two years and increase its interest to 70% by spending the same amount again over the following two years.
Impact retains a 30% free-carried interest until the Decision to Mine, after which it may elect to contribute or dilute to 10% and convert to a 2% net smelter royalty.
“It is extremely pleasing to see the drill rigs turning again at Commonwealth after a long hiatus,” managing director Dr Mike Jones said.
“Commonwealth is a very unusual gold-rich VMS system in Australia with strong similarities to the world-class Eskay Creek deposit in the famed Golden Triangle of British Columbia.”
“With defined resources already in place and compelling deeper copper targets, this drilling program marks an important step in unlocking the full potential of the project.”
