Impact Minerals (ASX: IPT) has intersected massive and vein sulphide mineralisation in drilling of the first three diamond holes at its Commonwealth gold-silver project in New South Wales, which it holds under an earn-in and joint venture agreement with Kuniko (ASX: KNI).
The Phase 1 program of six holes for 1,200 metres aims to explore extensions of high-grade mineralisation at the Commonwealth Main, Silica Hill and Commonwealth South targets.
It follows the completion of a comprehensive MobileMT airborne geophysical survey and soil and rock chip geochemistry programs, which significantly expanded the project’s exploration footprint, identifying a 4-kilometre-long conductive corridor extending beyond the current resource.
Mineralised intersections
Three diamond holes completed for 540m returned intersections at Commonwealth Main of 3.7m of massive sulphide within a broader disseminated and stringer sulphide interval of 47.3m; and 2.9m of massive sulphide within a broader disseminated and stringer sulphide interval of 41.9m, confirming continuity of the Main Shaft massive sulphide lens.
The results represent down-plunge step-outs to the existing massive sulphide zone, which remains open at depth and along plunge.
At Silica Hill, Impact hit approximately 60m of disseminated and stringer sulphide mineralisation, including visible silver sulphosalts, to highlight strong mineralised continuity.
Drilling is scheduled for completion within the next two weeks and full assays are expected next month.
Inferred mineral resources
Impact previously defined inferred mineral resources at Commonwealth and Silica Hill totalling 88,800 ounces of gold and 3.3 million ounces of silver and including significant zinc and lead credits.
The resources sit within 250 m of the surface and remain open at depth and along strike.
Importantly, copper values increase at depth in parts of the system, highlighting the potential for a deeper porphyry copper-gold source beneath the high-sulphidation, gold-rich VMS (volcanogenic massive sulphide) mineralisation.
Current drilling is testing down-plunge and along-strike extensions to the known mineralisation, as well as priority geophysical targets identified by the MobileMT survey.
Earn-in joint venture
Under the earn-in and joint venture agreement, Kuniko can earn a 51% stake in the Commonwealth Project by spending $1.5 million within two years and increase its share to 70% through an additional $1.5 million expenditure.
Impact retains a 30% free-carried interest until a decision to mine, after which it can elect to either contribute to the venture or dilute down to 10% and convert to a 2% net smelter royalty.
