Impact Minerals (ASX: IPT) has been formally granted the exploration licence which comprises its 80%-owned Doonia gold project, located 75km east of Kambalda in Western Australia.
On-ground exploration plans are now in the works based on a recent re-processing of regional airborne magnetic data indicating the area’s potential to host a large intrusion-related gold deposit.
Imaging has shown the presence of an ovoid magnetic anomaly directly beneath the project, estimated to be at least 6sq km in size.
The anomaly was interpreted as a large magnetic intrusion which has been emplaced at some depth into metasedimentary rocks underlying most of the project area.
A cluster of smaller, well-defined magnetic anomalies with short strike lengths are believed to occur above the central east part of the ovoid, and do not appear to be part of the linear stratigraphy which characterises much of the surrounding greenstone belt terrain.
The anomalies are interpreted as possible near-surface magnetic porphyry intrusions which may be related to and sourced from the larger buried intrusion.
Impact has also identified a previously-unrecognised distinct and coherent zoned soil geochemical anomaly centred over the cluster.
It is believed to comprise a core area of gold-bismuth some 2,500m long and up to 1,000m wide, characterised by anomalous copper-nickel-zinc and partly surrounded by a larger halo of arsenic-antimony.
The anomaly is interpreted to be potentially related to a gold-bismuth mineralised system associated with a differentiated mafic to felsic intrusion.
It covers a large area and has become a priority drill target for the company.
The highly-prospective Doonia project is located in the world-class St Ives gold mining centre and was identified during a review of the region in light of De Grey Mining’s (ASX: DEG) Hemi discovery in the west Pilbara.
The project’s potential was further enhanced by the March discovery of significant gold-copper-magnetite mineralisation hosted by a magnetic porphyry intrusion at Lefroy Exploration’s (ASX: LEX) Burns project, located 20km to the west.
Burns is believed to be a new style of mineralisation characterised by a metal association of copper-gold-bismuth-arsenic (with molybdenum-silver-tellurium which were not analysed for at Doonia).
Impact said it “may herald a new model for further similar discoveries”.
Impact entered into the Doonia joint venture in November with Odette Resources Pty Ltd, whereby Odette has a free carried interest up to a decision to mine.
At that point, Odette may opt to contribute to future costs on a pro-rata basis or convert its interest to a 1% net smelter royalty.
The project was recognised as a large but poorly-tested unpegged gold-in-soil anomaly and was brought to Impact’s attention by mining consultancy Milford Resources Pty Ltd and Odette.