Impact Minerals (ASX: IPT) has discovered its highest-grade silver ever from its Silica Hill prospect, part of the company’s wholly-owned Commonwealth project in New South Wales.
Results from three drill holes at Silica Hill’s southern zone returned a 22.5m thick intersection grading 276 grams per tonne silver, and 1.7g/t gold.
The intersection included a 0.3m interval with 4,200g/t silver (135 ounces of silver) and 1.8g/t gold, plus another 0.8m interval comprising 13.6g/t gold and 40g/t silver.
At the current silver spot price of A$21.06/oz, the 135oz interval, alone, would generate Impact around A$2,843.1 in revenue.
Another drill hole intersected 21.8m at 0.6g/t gold and 273g/t silver with a 0.4m interval containing 6,240g/t silver (200oz silver) and 1.6g/t gold.
If sold at the current spot price, the contained silver within this 0.4m interval would bring in around A$4,212.
“These results are an exciting further breakthrough for us at Silica Hill as they indicate the mineralised system is getting better at depth and to the east,” Impact managing director Dr Mike Jones said.
He added the silver grades found within the vein system were “exceptional” and occur in mineable widths and grade.
In addition to the silver, higher grade gold zones were also identified, with gold pulled out grading up to 13.6g/t.
Drilling has defined mineralisation extends to 200m depths and 200m along strike and remains open in both directions.
According to the company, drilling that has been carried out during the past two years at Silica Hills prospect indicates mineralisation extends at least 500m at depth.
Before undertaking further drilling, Impact will review and collate its drilling data to generate its next drill targets.
Dr Jones said he was excited for the 2018 exploration program, which will begin as soon as “practicable”.
Shares in Impact rose more than 12% to rest at A$0.018 in mid-afternoon trade.