Announcement PDF ASX ANNOUNCEMENT Date: 19 May 2015 Number: 402/190515 WIDESPREAD HIGH GRADE RARE PLATINUM GROUP METALS CONFIRMED IN LARGE ARC EAST OF BROKEN HILL New assay data and a review of previous results has confirmed the presence of high grade and rare platinum group metals in a wide arc stretching from the northeast to the southeast of the Broken Hill township in far western New South Wales. The results, from Impact Minerals Limited (ASX: IPT) Broken Hill Joint Venture project in the area, have demonstrated high to very high grades of the rare platinum group metals (PGM) osmium, iridium, rhodium and ruthenium at many prospects as well as at the Company’s recently discovered zones of high grade copper-nickel-PGM mineralisation at the Red Hill Prospect (see announcement dated 17 April 2015) at the southern end of the arc. These rare metals – used in many specialist hard-wearing metal alloys, electronics and for catalytic converters – are currently commanding premium prices – an upside Impact Minerals Managing Director, Dr Mike Jones, says, could deliver a significant economic credit to any resource defined within the Broken Hill project. “These results reinforce our view that Impact’s Broken Hill project contains not just some of the highest grades of PGM reported in Australia but that they occur over a wide arc where we suspect even further PGM opportunities will be generated from more detailed surface exploration and drilling.” Most of the rock chip samples, which have been variably assayed for the different PGMs, come from the Moorkai Intrusive Complex in the northern part of the project area where the host ultramafic unit can be traced for 9 kilometres along trend (Figures 1 and 2). At the Platinum Springs Prospect at the southern end of the Complex, a representative 120 kg sample of gossan returned: 19.6 g/t platinum, 50 g/t palladium, 3 g/t rhodium, 3 g/t osmium, 4.4 g/t iridium, 2 g/t ruthenium, 0.57 g/t gold, 0.34% nickel and 0.71% copper; A nearby drill hole completed by a previous explorer discovered a 2 metre thick zone of fresh massive sulphide from 45 m depth that returned: 2 m at 52 g/t platinum equivalent comprising 10.9 g/t platinum, 23.6 g/t palladium, 4.5% copper and 6.1% nickel. A one metre interval of this was sampled for the rare PGMS and returned: 1 m at 1 g/t rhodium, 1.3 g/t osmium and 1.2 g/t iridium. 26 Richardson Street West Perth Western Australia 6005 Tel +61 (8) 6454 6666 Facsimile +61 (8) 6454 6667 Email info@impactminerals.com.au www.impactminerals.com.au At two other undrilled prospects in the Moorkai Intrusive Complex, previous explorers identified rhodium in grab samples at Round Hill and Back Ridge including respectively (Fig. 1): 5.6 g/t platinum, 8.8 g/t palladium, 0.8 g/t rhodium, 2.4% copper and 0.7% nickel; and 5.2 g/t platinum, 6.5 g/t palladium, 1.0 g/t rhodium, 0.6% copper and 0.1% nickel. Figure 1. PGM-copper-nickel assays at the Moorkai Intrusive Complex At the undrilled Moorkai Prospect very high grade assays of up to 27.8 g/t platinum, 27.9 g/t palladium, 14 g/t gold, 9 % copper and 1,8% nickel were returned from gossan samples near small workings. Although these samples were not been assayed for the rare PGMs, Impact considers it highly likely that they will contain appreciable amounts of those metals. Further sampling will be conducted during the upcoming field season. At the Little Darling Prospect, also not drill tested, in the centre of the Broken Hill Project area a rock chip sample of gossan returned (Figure 2): 34.8 g/t platinum, 76 g/t palladium, 3.2 g/t rhodium, 1.2 g/t gold, 1.9% copper and 1.9% nickel. Figure 2. Image of airborne magnetic data showing the host rocks to PGM mineralisation (Red) All of these results add to those returned from the Red Hill Prospect at the southern end of the project where Impact has discovered a 25 to 30 metre thick near-surface layer of copper-nickelPGM mineralisation containing two zones of high grade drill intercepts called the Upper and Lower Zones which returned (Figure 3): (Note 3PGM = Platinum-palladium-gold and 7PGM = 3PGM + osmium, iridium, rhodium, ruthenium where assayed (full details in Table 1). Upper Zone: 9.5 m at 4.7 g/t 3PGM, 1.5% copper and 0.8% nickel including 5.1 m at 11 g/t 7PGM, 1.9% copper and 0.9% nickel (RHD001) and 5.2 m at 7.9 g/t 7PGM, 1.1% copper and 1.6% nickel (RHD006) Lower Zone: 9.9 m at 6.7 g/t 3PGM, 1.4% copper and 0.3% nickel including 4.2 m at 11.8 g/t 7PGM, 2.6% copper and 0.5% nickel (RHD001) and 13.8 m at 6.6 g/t 7PGM, 1.1% copper and 0.3% nickel (RHD006). Figure 3. Cross section at the Red Hill Mine (see Figure 3 for location) Given that the current spot metal prices in Australian dollars per ounce for these metals are: rhodium: $1,506/oz; iridium $763/oz: osmium $500/oz and ruthenium $65/oz in addition to: platinum $1,528/oz, palladium $1,015/oz and gold at $1,581/oz, the rare PGMs may be a significant economic credit to any resource defined within the Broken Hill project. Osmium and iridium are used in many specialist hard-wearing metal alloys as well as the electronics industry. Rhodium and ruthenium are mostly used together with platinum and palladium for catalytic converters. Next Steps Impact has now identified six targets for further drilling at Red Hill (Targets T1 to T6, Figure 4 and see announcement dated 1st April 2015). Target T1 contains the newly discovered PGM-copper-nickel mineralisation which is interpreted to dip at a shallow angle to the south, and is close to true width. In addition the mineralisation may be increasing in width and grade with depth and is in part coincident with an Induced Polarisation (IP) chargeability anomaly identified in a ground geophysical survey (Figures 3 and 4). IP chargeability anomalies may be associated with disseminated sulphides and magnetite. Follow up drill holes are required at T1 to test the mineralisation along trend and at depth. Figure 4. Geology and drill targets at the Red Hill Prospect. The other five drill targets consist of a ground (T2) and down hole (T3) electromagnetic anomaly, a rock chip geochemical anomaly (T4), an induced polarisation (IP) anomaly (T5) and an airborne magnetic anomaly (T6) (see announcement dated 1st April 2015). The paperwork for the statutory approvals for a drill programme has been lodged and approval is expected within the next few weeks. About the Broken Hill Joint Venture Project Exploration Licence E7390 is owned by Golden Cross Resources Limited (GCR) and is the subject of two joint ventures, one between GCR and Impact and one between GCR and Silver City Minerals Limited (ASX:SCI). Impact has earned 87% of the rights to nickel, platinum and any other metals, occurring in, emanating from, or which are otherwise associated with, mafic or ultramafic complexes. Should Golden Cross dilute to less than a 5% interest in these rights then it has to transfer its interest to Impact for $1 (one dollar). Silver City has the rights to base metal, silver and gold mineralisation associated with Broken Hill style mineralisation. The drill intercepts in RHD001 and RHD006 are the first significant drill intercepts of PGM, nickel and copper within Impact’s project area away from the high grade drill intercept of 2 m at 6.1% nickel, 4.5% copper, 10.9 g/t platinum and 23.6 g/t palladium in fresh sulphide discovered some years ago by previous explorers at the Platinum Springs prospect located about 15 km to the north east. There are many strike kilometres of the same ultramafic host rock that contain high grade nickel-copper-PGM rock chip assays similar to those at Platinum Springs and Red Hill that have never been drilled. These results at Red Hill confirm Impact’s belief that there is potential for a significant discovery near Broken Hill. Of interest, CRA Exploration completed two diamond drill holes under the Red Hill workings in 1969 with no significant results (Figures 1 and 2). However these holes were drilled from north to south and detailed work by Impact has now demonstrated that these holes were drilled parallel to and below the mineralised zone (Figure 2) Dr Michael G Jones Managing Director The review of exploration activities and results contained in this report is based on information compiled by Dr Mike Jones, a Member of the Australian Institute of Geoscientists. He is a director of the company and works for Impact Minerals Limited. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mike Jones has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears. Table 1. Significant assay drill intercept results and cut off grades Hole ID From To Interval Cu Ni Pt Pd Au Ag 3PGE RHD001 12.9 19.5 6.6 0.12 0.11 1.5 2.3 0.1 1.9 1 46.0 78.0 32.0 0.97 0.45 1.5 2.3 0.1 10.6 3.9 including 46.0 49.7 3.7 0.44 0.65 0.5 1.6 0 3 2.1 and 53.7 55.6 1.9 2.01 1.19 1.1 3.4 0.2 15.9 4.7 including 53.7 63.2 9.5 1.53 0.79 2.2 2.4 0.1 13.6 4.7 also including 57.3 62.4 5.1 1.9 0.88 3.2 2.9 0.2 17.6 6.2 including 67.0 76.9 9.9 1.44 0.3 2.5 3.9 0.3 19.2 6.7 also including 71.6 75.8 4.2 2.59 0.49 4.9 5.4 0.4 0 10.6 RHD002 10.0 26.0 16.0 0.18 0.27 2.2 1.4 including 16.0 21.5 5.5 0.31 0.37 4.1 2.7 also including 16.0 19.2 3.2 also including 24.3 25.0 0.7 0.12 0.12 4.9 5.4 0.4 3.5 2.5 52.0 77.5 25.5 0.84 0.56 0.5 1.6 0 7 4.3 including 54.2 59.4 5.2 1.14 1.57 4.9 5.4 0.4 7.2 including 63.2 77.0 13.8 1.07 0.34 4.9 5.4 0.4 9.9 4.9 5.4 0.4 Au Pd Pt Os Ir Rh Ru 7PGE 0.2 3.3 3.7 1.1 1.2 0.9 0.5 11 0.34 5.11 4.35 0.58 0.70 0.51 0.27 11.85 0.16 2.17 1.25 0.08 0.10 0.09 0.04 3.89 3.45 0.17 3.89 0.78 1.03 1.17 0.93 0.65 7.87 6.34 0.37 3.68 1.99 0.14 0.17 0.14 0.07 6.55 Table 2. Drill Hole Summary Collar ID Prospect Drill type Easting Northing Dip Azimuth Depth RHD001 Red Hill Mine Diamond 555379 6454298 -55 10 94.5 RHD002 Red Hill Mine IP Diamond 555372 6454303 -75 300 243.5 RHD003 Simons Find Diamond 555431 6454598 -80 225 220 RHD004 Central IP Diamond 555517 6454391 -60 255 170 Diamond 555250 6454700 -60 90 131.2 Diamond 555377 6454301 -50 0 103.1 RHD005 RHD006 Northern EM Red Hill Mine APPENDIX 1 - SECTION 1 SAMPLING TECHNIQUES AND DATA Criteria JORC Code explanation Commentary Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Rock Chip Samples Random rock samples were taken at surface which represented favourable geology and alteration to known mineralisation in the region. Samples are variably weathered. Soil Samples Soil samples were taken at 50 m intervals from a hole 15-20 deep and sieved to -2mm to collect about 250 g of material. Diamond Drilling Diamond drilling was used to produce drill core either with a diameter of 63.5 mm (HQ) or 47.6 mm (NQ). A handheld XRF instrument was used to analyse the drill core at 50 cm intervals. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used Rock Chip Samples Representative rock chip samples at each sample site weigh between 0.8 and 1.2 kg. Soil samples are taken at a consistent depth below surface and sieved. Soil Samples and Drill Samples Sample representivity was ensured by a combination of Company Procedures regarding quality control (QC) and quality assurance / testing (QA). Examples of QC include (but are not limited to), daily workplace and equipment inspections, as well as drilling and sampling procedures. Examples of QA include (but are not limited to) collection of “field duplicates”, the use of certified standards and blank samples approximately every 50 samples. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information Rock Chip and Diamond Drill Samples Rock samples and split diamond core were sent to Intertek Adelaide where they were crushed, dried and pulverised (total prep) to produce a 25-30 g sub-sample for analysis by four acid digest with an ICP/AES finish for ore grade base metal samples and either lead collection or nickel sulphide fire assay with AAS or MS finish for gold and the PGMs. Weathered samples contained gossanous sulphide material. Soil samples were sent to SGS Perth for analysis by the MMI digest. The XRF data is qualitative only. A comparison between the XRF results and wet chemical assay data will be completed on receipt of final results. Sampling techniques Drilling techniques Drill sample recovery Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). Diamond Drilling comprises NQ (47.6 mm diameter) and HQ (63.5 mm diameter) sized core. Impact diamond core is triple tube and is oriented. Historical diamond core was not oriented. Method of recording and assessing core and chip sample recoveries and results assessed Diamond core recoveries for all holes are logged and recorded. Recoveries are estimated to be approximately >97% for the Red Hill Prospect. No significant core loss or sample recovery problems are observed in the drill core. Measures taken to maximise sample recovery and ensure representative nature of the samples Diamond core is reconstructed into continuous runs on an angle iron cradle for orientation marking. Depths are checked against the depth given on the core blocks and rod counts are routinely carried out by the driller. Criteria JORC Code explanation Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Logging Commentary No sample bias has been established. Geological logging of samples followed company and industry common practice. Qualitative logging of samples included (but not limited to); lithology, mineralogy, alteration, veining and weathering. Diamond core logging included additional fields such as structure and geotechnical parameters. Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Magnetic Susceptibility measurements were taken for each 0.5 m diamond core interval. For diamond core, information on structure type, dip, dip direction, texture, shape and fill material has been recorded in the logs. RQD data has been recorded on selected diamond holes. Handheld XRF analysis was completed at 50 cm intervals on diamond core. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. All logging is quantitative, based on visual field estimates. Systematic photography of the diamond core in the wet and dry form was completed. All diamond drill holes were logged in full. The total length and percentage of the relevant intersections logged Sub-sampling techniques and sample preparation Quality of assay data and laboratory tests Detailed diamond core logging, with digital capture was conducted for 100% of the core by Impact’s onsite geologist. If core, whether cut or sawn and whether quarter, half or all core taken. All core samples were sampled by half core. Selected intervals of quarter core will be selected for check assays if required. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. No RC drilling results are reported. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Company procedures were followed to ensure sub-sampling adequacy and consistency. These included (but were not limited to) daily work place inspections of sampling equipment and practices, as well as sub-sample duplicates (“field duplicates”). Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Laboratory QC procedures for rock sample and diamond drill core assays involve the use of internal certified reference material as assay standards, along with blanks, duplicates and replicates. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/secondhalf sampling. Rock and Soil Samples Field duplicates were taken at selected sample sites. Whether sample sizes are appropriate to the grain size of the material being sampled. Diamond Core Samples Quarter core duplicate samples are taken randomly every 50 samples. Sample sizes at Red Hill are considered adequate due to mineralisation style. The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. An industry standard fire assay technique for samples using lead collection with an Atomic Absorption Spectrometry (AAS) finish was used for gold and aqua regia digest for base metals and silver. Criteria Verification of sampling and assaying Location of data points Data spacing and distribution Orientation of data in relation to geological structure JORC Code explanation Commentary For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. No geophysical tools were used to determine material element concentrations. A handheld XRF was used for qualitative analysis only. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. Rock Chip Samples For the rock chips, quality control procedures for assays were followed via internal laboratory protocols. Accuracy and precision are within acceptable limits. Diamond Drill Samples Reference standards and blanks are routinely inserted into every batch of samples at a rate of 1 in every 50 samples. The verification of significant intersections by either independent or alternative company personnel. The results have not been verified by independent or alternative companies. This is not required at this stage of exploration. The use of twinned holes. No drilling results are reported. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Primary assay data for rock chips has been entered into standard Excel templates for plotting in Mapinfo. All historical drill data has been entered digitally by previous explorers and verified internally by Impact. Discuss any adjustment to assay data. There are no adjustments to the assay data. Accuracy and quality of surveys used to locate drillholes (collar and downhole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Sample locations and drill holes were located by hand held GPS. Specification of the grid system used. The grid system for Broken Hill is MGA_GDA94, Zone 54. Quality and adequacy of topographic control. Standard government topographic maps have been used for topographic validation. For the diamond holes, down-hole single shot surveys were conducted by the drilling contractor. Surveys were conducted at 15 m, 30 m and then approximately every 30 m down-hole. Data spacing for reporting of Exploration Results. Sample spacing for the soil survey was on a 50 m by 50 m grid. Reconnaissance drill spacing is approximately 200 m. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Estimations of grade and tonnes have not yet been made. Whether sample compositing has been applied. Sample compositing has not been applied. Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. Not relevant to soil and rock chip results. The orientation of mineralisation in RHD001 yet to be determined. Criteria JORC Code explanation Commentary If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. Not relevant to soil and rock chip results or early stage exploration drill results. Sample security The measures taken to ensure sample security. Chain of custody is managed by Impact Minerals Ltd. Samples for Broken Hill are delivered by Impact Minerals Ltd by courier who transports them to the laboratory for prep and assay. Whilst in storage, they are kept in a locked yard. Tracking sheets have been set up to track the progress of batches of samples. Audits or reviews The results of any audits or reviews of sampling techniques and data. At this stage of exploration a review of the sampling techniques and data by an external party is not warranted. SECTION 2 REPORTING OF EXPLORATION RESULTS Criteria JORC Code explanation Commentary Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The Broken Hill Project currently comprises 1 exploration licences covering 100 km2. The tenement is held 100% by Golden Cross Resources Ltd. Impact Minerals Limited is earning 80% of the nickel-copper-PGE rights in the licence from Golden Cross. No aboriginal sites or places have been declared or recorded over the licence area. There are no national parks over the license area. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. The tenement is in good standing with no known impediments. Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. There has been no significant previous work at this prospect. Geology Deposit type, geological setting and style of mineralisation. Nickel-copper-PGE sulphide mineralisation associated with an ultramafic intrusion. Drill hole Information A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:  easting and northing of the drill hole collar  elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar  dip and azimuth of the hole  down hole length and interception depth  hole length. See Table in text. In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. All reported assays have been length weighted. No top cuts have been applied. A cut-off of approximately 0.1% Cu, 0.4% Cu and 1.0% Cu has been applied for reporting of exploration results. Mineral tenement and land tenure status Data aggregation methods Criteria JORC Code explanation Commentary Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. High grade massive sulphide intervals internal to broader zones of disseminated sulphide mineralisation are reported as included intervals. The assumptions used for any reporting of metal equivalent values should be clearly stated. No metal equivalents have been reported. Relationship between mineralisation widths and intercept lengths These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’). Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Refer to Figures in body of text. Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. All results reported are representative Balanced reporting Other substantive exploration data Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. Further work The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive The orientation of mineralisation in RHD001 is yet to be determined. Assessment of other substantive exploration data is not yet complete however considered immaterial at this stage. Follow up work programmes will be subject to interpretation of results which is ongoing.