Impact Minerals advances drilling despite weather delays but drill samples lost and silver-lead-zinc alliance scrapped

Impact Minerals (ASX: IPT) reports that drilling is well advanced at its Broken Hill project even with numerous delays from continuing “excessive” wet weather, which at times prevented access to the drill sites.

The company described the rain as “unseasonal” and so heavy it has brought logistical challenges.

That is one problem.

The other: drill samples have been lost.

“Unfortunately, a significant batch of samples has been lost by the couriers in transit to the laboratory and, despite an extensive search, it has yet to be located. Re-sampling of the relevant drill holes is in progress,” Impact said today.

Too early to interpret first results

While first assays have been received from Platinum Springs and from some air core holes at the Little Broken Hill Gabbro prospect, a meaningful interpretation of the results is not yet possible, the company said.

Further assays are expected “shortly”, it added.

Meanwhile, further rain is expected over the next three days.

However, Impact has managed to maintain reverse circulation (RC) drilling at Platinum Hill and Red Hill, with two rigs on site.

Weather permitting, drilling at those two prospects should be finished this week and both RC rigs will move on to the Little Broken Hill Gabbro target.

Impact began RC drilling at the Platinum Springs prospect in August to follow up previous drilling that had returned high-grade platinum group elements (PGE), copper, nickel, gold and silver.

The 2016 drill program has produced assays including 2.75m at 3.5 grams per tonne platinum, 7g/t palladium, 0.4g/t gold, 2% copper, 1.9% nickel and 11.6g/t silver from 55m.

Impact withdraws from proposed alliance

In a third development, Impact Minerals has withdrawn from a non-binding deal with Castillo Copper (ASX: CCZ) and a private company to jointly market the silver-lead-zinc rights of its and the two partners’ ground holdings in the Broken Hill area.

In February, Impact planned to retain the PGEs (palladium, platinum, rhodium, osmium, iridium and ruthenium) as well as associated nickel-copper on its ground.

At the time, Impact managing director Dr Mike Jones said, with rhodium and palladium then at record prices, it was important to focus spending on the platinum group metals.

However, the company today said a deal intended to maximise returns to Impact’s shareholders did not materialise.

Impact said it has amassed a considerable amount of intellectual property over the past few years about the potential for silver-lead-zinc mineralisation, or so-called ‘Broken Hill-style’ mineralisation, on its extensive land position.

“The company will now pursue its own strategy for these metals,” it added.