Announcement PDF ASX ANNOUNCEMENT Date: 31 July 2017 No. 530/310717 JUNE 2017 QUARTERLY REPORT SUMMARY 1. COMMONWEALTH GOLD-SILVER-BASE METAL PROJECT, N.S.W. (IPT 100%) • • • • • Drill programme in progress. First gold assays return 14 metres at 4.5 g/t gold including 3 metres at 10 g/t gold. Numerous targets being tested and identified from IP data, soil geochemistry data and previous drill results. Two 5 kilometre long trends newly identified as prospective for high grade gold-silver deposits similar to Commonwealth-Silica Hill mineralisation. Strong similarities to the Eskay Creek deposit in Canada. Possible indications of underlying porphyry copper-gold system. 2. BROKEN HILL PGM-NI-CU PROJECT, N.S.W. (IPT 100%) Market Cap A$11.8 m (0.014 p/s) Issued Capital 848,436,136 Directors Peter Unsworth Chairman Dr Michael Jones Managing Director Paul Ingram • VTEM survey identifies eight areas with nickel-copper-PGM potential along the Rockwell-Little Broken Hill Trend. • One kilometre long near surface geochemical anomaly identified along western margin. Markus Elsasser • Further areas for follow up work for nickel-copper-PGM identified in IP data from VTEM survey. Felicity Gooding • At Little Darling Creek, target area coincident with rock chip samples up to 4.5 g/t platinum and 5 g/t palladium. Bernard Crawford • Along the Rockwell-Little Broken Hill Trend, IP features in part coincident with EM anomalies. • Cobalt-Copper-Gold potential recognised including previous drill results of 92 metres of 0.04% cobalt with 10 metres at 0.1 g/t gold at end of hole. 3. MULGA TANK NI-CU-PGE PROJECT, W.A. (IPT 100%) • 20 targets for gold and 16 targets for nickel identified. Non-Executive Director Non-Executive Director Non-Executive Director Company Secretary www.impactminerals.com.au a 26 Richardson Street West Perth Western Australia 6005 t +61 (8) 6454 6666 f +61 (8) 6454 6667 e info@impactminerals.com.au 1. COMMONWEALTH GOLD-SILVER-BASE METAL PROJECT (IPT 100%) During the Quarter a follow up drill programme commenced to test and expand the high grade gold-silver mineralisation discovered by Impact Minerals at the Silica Hill Prospect, part of the 100% owned Commonwealth Project 100 km north of Orange, New South Wales (Figure 1). This drill programme is still in progress. To date one set of gold assay results have been received from the programme and returned the best gold results thus far of: 14 metres at 4.5 g/t gold including 3 metres at 10.4 g/t gold from 153 metres down hole. These results are discussed in the announcement dated 20 July 2017 and are not covered here. In a series of announcements during the Quarter Impact identified a significant number of follow up drill targets in and around the general Commonwealth-Silica Hill area. In particular targets have been identified at: Silica Hill: extensive and strong IP chargeability anomalies with coincident strong goldsilver-in-soil anomalies covering about one square kilometre (Figure 7 and see announcement 9 May 2017). Main Shaft: a prominent conductor has been identified at depth below the massive sulphide (see announcement dated 25 May 2017). Main Shaft North: a prominent conductor with coincident copper-lead-zinc-in-soil anomalies located 200 metres north of Main Shaft (Figure 7 and see announcement dated 25 May 2017). Silica Hill East: several prominent conductors, very strong IP chargeability anomalies and extensive soil geochemistry anomalies of pathfinder metals as well as gold and silver (this announcement). All of these targets have the potential to significantly expand the high grade gold-silver-zinclead-copper resources already defined which stand at an Inferred Resource of 720,000 tonnes at 2.8 g/t gold, 48 g/t silver, 1.5% zinc and 0.6% lead (4.5 g/t gold equivalent for 110,000 gold equivalent ounces). Within this resource is a massive sulphide lens about 50 metres by 50 metres by about 8 metres thick in size which has an Inferred Resource of 145,000 tonnes at 4.5 g/t gold, 142 g/t silver, 4.8% zinc, 1.7% lead and 0.2% copper (10 g/t gold equivalent for 47,000 gold equivalent ounces; see announcement 19 February 2015). The targets to be drilled have been generated and prioritised for drilling from a detailed interpretation of three lines of Induced Polarisation (IP) data and from soil geochemistry data as well as previous drill results (Figure 2). In addition a review of all of Impact’s work over the past few years has now demonstrated strong similarities between the mineralised system at Commonwealth-Silica Hill and surrounding area to the very high grade Eskay Creek Mine in British Columbia, Canada (4 million ounces of gold, 180 million ounces of silver; Figure 5). Drilling of the new targets will test this geological model. 1.1 Silica Hill At Silica Hill the new targets to be drilled occur within a large area of up to one square kilometre which contains numerous undrilled IP and gold- and silver-in soil anomalies north of the small area drilled to date (Lines 10,000 mN, 10,100 mN and 10,200 mN, Figures 1 and 2). All three traverses comprise coincident strong IP chargeablity and gold- and silver-in-soil anomalies. Previous work by Impact has shown a strong correlation between IP chargeability anomalies and gold-silver sulphide mineralisation in drill holes. On Line 10,000 mN the target area lies east of the current drilling and is 500 metres wide with peak soil geochemistry values of 50 ppb gold and 12 grams per tonne silver. These are of the same order as the soil geochemical anomalies over Silica Hill and Commonwealth on this traverse (Figure 2). On Line 10,100 mN the target area is 750 metres wide with peak soil geochemistry values of 235 ppb gold and 18.8 grams per tonne silver. On Line 10,200 mN the target area is 700 metres wide with peak soil geochemistry values of 104 ppb gold and 7.1 grams per tonne silver. The size and strength of the IP anomalies and their coincidence with strong gold- and very strong silver-in soil anomalies is very encouraging for the discovery of further high grade gold and silver mineralisation. Figure 1. Geology and exploration results for the Silica Hill-CommonwealthMain Shaft area. The Silica Hill mineralisation, shown in red, lies 150 metres north east of the Commonwealth Resource and occurs at the southern end of a large area with coincident gold- and silver-in soil and IP chargeability anomalies that has not been drilled. Figure 2. IP chargeability and gold and silver-in-soil values. Host rhyolite shown by + symbol. Line 10,200mN Drill target 700 m wide Peak gold result 104 ppb Peak silver result 7.1 g/t (ppm) Line 10,100mN Drill target 750 m wide Peak gold result 235 ppb Peak silver result 18.8 g/t (ppm) Line 10,000mN Drill target 500 m wide Peak gold result 50 ppb (undrilled) Peak silver result 12 g/t (ppm) 1.2 Priority Drill Targets for Massive Sulphides at Main Shaft North Specific drill targets have also been identified with the potential to significantly extend the high grade gold-silver-zinc-lead-copper massive sulphide mineralisation that forms part of the Commonwealth deposit (Figure 1). The targets occur at depth below and along trend from Main Shaft which lies at the northern end of the Commonwealth deposit. Accordingly this new area is called the Main Shaft North Prospect (Figure 1). The new targets have been generated and prioritised for drilling from a detailed interpretation of three lines of Induced Polarisation (IP) conductivity data and from soil geochemistry data (Figures 3, 4 and 5). IP conductivity anomalies may represent massive sulphide bodies, such as that found at Main Shaft at the northern end of the Commonwealth deposit. Here, a relatively small massive sulphide lens about 50 metres by 50 metres by about 8 metres thick in size has an Inferred Resource of 145,000 tonnes at 4.5 g/t gold, 4.8% zinc, 1.7% lead and 0.2% copper (10 g/t gold equivalent for 47,000 gold equivalent ounces; This massive sulphide resource is contained within the larger Commonwealth deposit see announcement 19 February 2015). Of note is that this small massive sulphide body has been clearly identified in the IP conductivity data (Figure 3). Figure 3. IP Conductivity data along Section 10,000 mN showing the massive sulphide body at Main Shaft and copper-rich drill hole CMIPT06. At Main Shaft North the new targets to be drilled occur on three specific traverses along trend from Main Shaft and within the large area of up to one square kilometre which contains numerous undrilled IP and gold- and silver-in soil anomalies north of the small area drilled to date (Lines 10,000 mN, 10,100 mN and 10,200 mN, Figures 2, 3 and 4). All three traverses comprise coincident good IP conductivity anomalies and coincident leadzinc-copper-in-soil anomalies. On Line 10,000 mN the IP conductivity data has clearly identified the small massive sulphide body at Main Shaft above the main rhyolite unit (Figure 3). A larger and stronger anomaly has been identified at about 200 metres below surface and just below the deepest hole drilled at Main Shaft (CMIPT06, Figure 3). This hole has returned the thickest and highest grade copper mineralisation yet discovered within the Commonwealth deposit of: 30 metres at 0.13% copper from 209 metres, including 1 metre at 0.7% copper, 1.1% zinc, 0.4% lead, 31 g/t (one ounce) silver and 0.4 g/t gold and 1 metre at 1% copper, 2% zinc and 14 g/t silver. This is a significant intercept and the conductor below it is an obvious target. The conductor appears to lie below the rhyolite and it may represent a copper-rich “feeder zone” to the upper massive sulphide deposit. On Line 10,100 mN a significant coincident lead+zinc+copper-in-soil anomaly of about 1,000 ppm combined, occurs over the northern extension of the rhyolite unit associated with the massive sulphide mineralisation. There is a strong conductivity contrast below this anomaly. On Line 10,200 mN an IP conductivity anomaly occurs at about 200 metres below surface in a similar position along trend from that on 10,000mN. This is directly overlain by another significant lead+zinc+copper-in-soil anomaly of up to 820 ppm combined (Figure 4). Figure 4. IP Conductivity data along Section 10,200 mN showing coincident IP conductivity and lead-zinc-copper-in-soil anomalies. The gold-in-soil anomaly is coincident with strong IP chargeability anomalies (see announcement 9 May 2017). The nature and location of the IP conductivity anomalies and their coincidence with strong lead-zinc-copper-in-soil anomalies is very encouraging for the discovery of further highgrade massive sulphide mineralisation. 1.3 Silica Hill East Prospect Until now, Impact’s exploration has been mostly focussed at the Main Shaft-Commonwealth South-Silica Hill Prospects up to one kilometre away on the lower, western contact of the Silica Hill Rhyolite and the underlying thinner Commonwealth Rhyolite (Figures 1 and 5). Figure 5. Geology and exploration results for the Silica Hill-Commonwealth area highlighting the new Silica Hill East Prospect on the right hand side of the diagram. However, certain features within these rhyolites and the associated mineralisation suggest that the area explored to date could be part of a much larger and very prospective high grade “feeder zone” that extends for one kilometre north east through the Silica Hill Rhyolite up to its eastern upper contact with overlying volcanic rocks (Figure 5). In addition, the position where the interpreted feeder zone intersects the upper contact is an excellent conceptual target for further gold-rich VMS mineralisation (Figure 5) and the following geophysical and soil geochemical anomalies support this interpretation and have provided specific drill targets close to or at this location: 1. A barium and other pathfinder metal-in-soil anomaly that extends for at least 800 metres north-south along the contact and which forms the southern end of a recently recognised 5 kilometre long unexplored trend identified in regional geochemical data (Figure 7 and see announcement 31 May 2017). 2. A very strong IP chargeability anomaly extending for some distance into the rocks overlying the Silica Hill Rhyolite (Figure 6). This anomaly is the strongest and largest IP chargeability anomaly identified so far in the Commonwealth Project. Such anomalies may be caused by disseminated sulphides. 3. A moderate IP conductivity anomaly of similar magnitude and strength to that related to the massive sulphide mineralization at Main Shaft (Figures 5 and 6) Figure 6. Section Line 10,200 mN (Figure 7) showing IP chargeability data from Main Shaft North to Silica Hill East. Note the size and strength of the Silica Hill East anomaly and increasing gold-in-soil response over the target contact and associated conductor. 1.4 Two 5 kilometre long trends newly identified as Prospective for High Grade Gold-Silver Deposits Two new 5 kilometre long trends that are very prospective for further discoveries of high grade gold-silver-base metal mineralisation similar to that discovered at CommonwealthSilica Hill were identified during the Quarter (Figures 7, 8 and 9). Figure 7. Barium Trends at Commonwealth. The two newly identified trends are: A. 5 km north of the Commonwealth-Welcome Jack area; and B. the Yaragal area along the western limb of the Yaragal anticline. This area contains the same rocks as at CommonwealthSilica Hill repeated by large regional folds. The prospective trends have been recognised as significant following the identification in new drill assay data of extensive barium as an important pathfinder and indicator element directly associated with the Commonwealth-Silica Hill mineralisation. This has lead to a new interpretation of the barium results from both Impact’s soil geochemistry database and also the Geological Survey of New South Wales regional stream sediment geochemistry database. Barium is significant because it is an important accessory element and can be used as a vector to, and direct indicator of, ore in gold-rich VMS (volcanogenic massive sulphide) deposits such as Eskay Creek in Canada (4 million ounces of gold and 150 million ounces of silver) which Impact’s work has now shown to have many similarities with the mineralisation at Commonwealth-Silica Hill. 1.4.1 Barium in Drill Assays from Massive Sulphide at the Commonwealth Deposit In Impact’s 2016 drill programme a very high grade 7 metre thick intercept of massive sulphide was returned in Hole CMIPT31. Recent petrographic work identified barite as a significant component of the mineralisation and accordingly the samples were re-submitted for assay. Barium mostly occurs as barite (barium sulphate) which is very resistive and which requires an (expensive) XRF fusion assay to accurately determine the quantity present. Assays of up to 1 metre at 17.7% barium were returned within a thicker intercept of 7 metres at 9.0% barium. Accordingly the entire massive sulphide intercept is: 7 metres at 6.3 g/t gold, 496 g/t silver (15.9 ounces), 7.2% zinc, 2.9% lead, 0.2% copper (17.7 g/t gold equivalent) and 9.0% barium from 91 metres including 3 metres at 10.6 g/t gold, 571 g/t silver (18.4 ounces), 7.8% zinc, 2.1% lead, 0.2% copper (23.0 g/t gold equivalent) and 14.9% barium from 92 metres and also including 1 metre at 2.5 g/t gold, 979 g/t silver (31.5 ounces), 8.3% zinc, 4.4% lead, 0.1% copper (21.4 g/t gold equivalent) and 7.9% barium from 95 metres. There is a strong correlation between high grade gold and high grade barium. Sporadic assays from drill holes completed by previous explorers also indicate high-grade barium in places and it is clearly present throughout the massive sulphide mineralisation. It is also a minor component in the surrounding disseminated mineralisation and also within the high-grade gold-silver mineralisation at Silica Hill. The recognition of extensive barite intimately associated with ore is a further compelling similarity between Commonwealth-Silica Hill and Eskay Creek as well as the nature of the host rock, the style of mineralisation, the contained commodity and pathfinder metals and the high grades of individual units and veins of commodity metals. 1.4.2 Soil Geochemistry Data A review of Impact’s soil geochemistry data has identified significant barium anomalies over Commonwealth-Silica Hill, the southern part of the Doughnut Prospect, west of the Welcome Jack Trend and the Stringers Prospect (Figure 8). At the Walls and Stringers Prospects previous rock chip results also show a close association between barium and gold-silver-base metal mineralisation (see table below). Impact has completed one drill hole at Walls which returned 20 m at 0.5 g/t gold and 27 g/t silver including 1 metre at 2.9 g/t gold, 144 g/t silver and 1.1% zinc equivalent from 55 metres with follow up drilling required (see announcement 30 June 2016). Barium was not assayed by XRF fusion and therefore correlation to the mineralised intercept is not possible at present. Figure 8. Barium-in-soil anomalies in the central Commonwealth area. Sample# Y120 Y125 Y126 Y130 Y131 Y145 Y121 Y124 Prospect Stringers Stringers Stringers Stringers Stringers Stringers Walls Walls Au g/t 0.6 2.3 0.65 0.35 0.3 1.3 2.1 15 Ag g/t 38 1100 23 6 1 16 40 600 Cu ppm 1550 26500 1050 5500 290 3400 290 360 Pb ppm 6400 13300 8800 1750 6800 19500 8550 1130 Zn ppm 500 6400 57000 2500 770 2400 2200 30 Ba % 7.65 0.16 0.4 0.04 4.05 1.95 0.54 0.05 Accordingly these areas warrant further exploration for massive sulphide deposits. Follow up drilling at Welcome Jack and Walls is planned as part of the next drill programme at Commonwealth together with field checking at Stringers. In addition to the areas of strong barium anomalism, lower grade barium occurs over several square kilometres centred on the Silica Hill area (Figure 8) and is commonly associated with silica-pyrite alteration. This association further confirms to Impact that the entire area is part of one very large hydrothermal system. 1.4.3 Regional Stream Sediment Geochemistry Stream sediment geochemistry data for barium (NSW Government) clearly identifies the central part of the Commonwealth Project as being highly anomalous in barium on a regional scale (Figure 9). The two 5 km trends clearly visible in the data are the northern extension of the Welcome Jack and to a lesser extent the Commonwealth-Silica Hill area and a newly identified area 3 km to the east called the Yaragal Prospect (Figures 7, 8 and 9). The trend north of Welcome Jack is associated with several old gold workings and ends at the dormant Kellys-Perseverance workings which have a recorded production 818 ounces of gold from 714 tonnes of ore. Face sampling of the mine in the 1970’s at a depth of 8 metres below surface returned up to 3 m at 22 g/t gold. This has not been properly followed up. The second trend covers the western limb of the Yaragal Anticline. It is evident that this area is a fold-repetition of the same rocks as those around the Commonwealth-Silica Hill area. The presence of barium over such a large strike extent is again evidence of a major regional hydrothermal system. Both trends are priority areas for follow up work. A third significant area of anomalous barium is also evident in the regional stream sediment data (Figure 9). This is directly associated with the very large North Parkes porphyry copper-gold camp where barite also occurs as an accessory mineral. North Parkes is currently in production with resources of 480 Mt at 0.56% copper and 0.18 g/t gold. The host intrusions at North Parkes are of a similar age to the volcanic rocks at Commonwealth. Commonwealt h Yaragal North Parkes Figure 9. NSW stream sediment geochemistry assays for barium shown as point data over the regional geology map. Impact’s licences are shown in white. Three areas stand out: Commonwealth, Yaragal and an area centred on the North Parkes-endeavour porphyry copper deposits. Impact’s view is that this confirms the potential, as suggested previously, that a porphyry copper-gold system may be present at depth below, and is driving the entire mineralised gold-rich VMS system, in the Commonwealth-Silica Hill-Welcome Jack area. 1.5 The Nature of the Mineralisation at Commonwealth –Silica Hill Impact has amassed a considerable amount of geological data on the nature of the mineralised system at Commonwealth-Silica Hill and surrounding areas over the past two years. All of this work, summarised below, has shown that the mineralisation belongs to a class of deposits known as “gold-rich VMS systems”, a style that has only been widely recognised in the past 20 years. The type-deposit of the gold-rich VMS systems is the well known Eskay Creek deposit in British Columbia, Canada which was mined mostly during the early 2000’s. The deposit contained over 4 million ounces of gold and 180 million ounces of silver and contained numerous very gold and silver rich ore shoots as shown in Figure 10 over a vertical extent of at least 700 metres. Silica Hill at same scale Figure 10. Long section of the Eskay Creek gold mine showing the principal ore shoots (eg 21B, NEX etc) coloured by gold equivalent grade. The graph shows the tonnes and gold equivalent grade of each of the shoots. Also shown for comparison at the same scale in the top left hand corner is the cross section of Silica Hill (image is slightly transparent in order to show the upper most Eskay Creek ore shoots). All of Impact’s work shows that there are compelling similarities specifically to Eskay Creek in terms of the nature of the host rock, the style of mineralisation, the contained commodity and pathfinder metals and the high grades of individual units and veins of commodity metals. Figure 10 also shows the depth of drilling to date at Silica Hill at the same scale as the Eskay Creek deposit for comparison. It is evident that there is scope for a significant discovery with further drilling. Evidence for a Feeder Zone at Silica Hill The features that suggest the possible presence of a feeder zone at Silica Hill include the following, all of which are seen associated with feeder zones at Eskay Creek: 1. a strong gold-silver-barium-in soil anomaly that extends for one kilometre north east from the high grade gold-silver mineralisation discovered at Silica Hill towards the upper contact. This anomaly has not been drilled. 2. a very well developed alteration mineral assemblage that shows very clear timing relationships of early silica-pyrite-K feldspar progressively overprinted by sericite and then chlorite. At Eskay Creek chlorite specifically occurs in feeder zones and veins within rhyolite (Figure11). 3. The highest-grade gold and silver veins discovered by Impact at Silica Hill have extensive chlorite within them and in the surrounding host rock e.g. 0.9 metres at 23 g/t gold and 1,100 g/t silver and 1 metre at 12.2 g/t gold and 680 g/t silver in CMIPT 046; (Figure 11 and announcement 22 February 2017). Figure 11. Conceptual model of feeder zone and related massive sulphide from published scientific papers on Eskay Creek. Also shown is drill core and the interpreted position of a “feeder vein” at Silica Hill with strong chlorite (dark green) alteration in the high grade sulphide intercept in CMIPT011 of 0.9 metres at 2.4 g/t gold and 3,146 g/t silver). All of this evidence, which is based on detailed research and development completed by Impact over the past few years, supports the feeder zone model and these concepts will be further tested in the upcoming drill programme. The work done by Impact in reaching this conclusion has included the following: • • • • • detailed field mapping and logging of diamond core to identify the principal rock types and the nature of the original submarine volcanic environment; petrographic studies of the mineralisation and host rock units to determine their relative timing relationships; detailed structural analysis of outcrops and diamond core to help identify the structural controls on mineralisation; geochemical studies that have helped define a halo of specific alteration minerals around the mineralisation and which are providing vectors to ore. These minerals include chlorite, sericite, K-feldspar and barite amongst others. The studies have included interpretation of handheld pXRF data taken on every metre sample of RC drilling and every 0.5 metres on diamond core; chemical analyses for multi-element data (up to 61 elements) for every mineralised sample and every 10 metres away from mineralisation and multispectral analysis to identify specific minerals on four key drill holes; and independent reviews from several well respected consultants. 2. BROKEN HILL PGM-Ni-Cu PROJECT (Impact 100%) 2.1 VTEM Survey During the Quarter results were received from a helicopter-borne VTEM survey completed over the Rockwell to Little Broken Hill Trend and the Little Darling Creek Prospect within Impact’s 100% owned Broken Hill Project in New South Wales (Figure 12). Moorkai Trend RockwellLittle Broken Hill Figure 12. Image of magnetic data showing Impact’s tenements at Broken Hill and key prospects. Anomalies that warrant further exploration were identified in both the EM data and also in Induced Polarisation data. The Induced Polarisation parameter is a calculated value based on the decay of the inductive current used in the VTEM survey. IP anomalies are commonly caused by disseminated sulphides although other sources are possible. Rockwell-Little Broken Hill Trend Eight areas for follow up exploration for high grade deposits of nickel-copper-platinum group metals (PGM)-cobalt were identified at in the EM data along the Rockwell-Little Broken Hill Trend. These areas are within or at the margins of an mafic-ultramafic complex interpreted from regional magnetic and gravity data to be about 8 kilometres long and up to 750 metres wide (Figure 13). The eight areas contain numerous clusters of conductors of varying strength that are consistent with the expected response for the style of very high grade nickel-copper-PGM sulphide mineralisation being explored for and as have been discovered by Impact at the Red Hill and Platinum Springs Prospects to the north (Figures 12 and 13). At Red Hill exceptional grades have been returned from drilling including a stand out intercept of 1.2 metres at 283 g/t (9.1 ounces) platinum equivalent comprising 10.4 g/t gold, 254 g/t (9.5 ounces) palladium, 7.4 % nickel, 1.8% copper, 19 g/t silver and 0.5% cobalt in vein hosted sulphide (see announcements dated 3rd February 2016 and 23rd October 2015). The processed IP data has highlighted two main areas of interest in the centre and northern parts of the Rockwell-Little Broken Hill Trend, a mafic-ultramafic complex interpreted from regional magnetic and gravity data to be about 8 kilometres long and up to 750 metres wide (Figure 13). Linear anomalies in the IP data occur along the margins of the ultramafic-mafic complex and also at high angles to it. Four specific IP anomalies are coincident with areas identified in the EM data and this is encouraging for the definition of targets for both massive sulphide and disseminated sulphide (Figure 13). The Rockwell-Little Broken Hill complex lies south of a major shear zone that separates it from the Red Hill Prospect in an area that has been very poorly explored because of extensive shallow alluvial cover. Limited shallow RAB drilling to depths of less than 20 metres has identified near surface anomalous nickel-copper-platinum-palladium-gold in several places. At Rockwell a coherent near-surface geochemical anomaly one kilometre long and 150 metres wide has been defined in shallow 2 metre deep drill holes along the north western margin of the complex with results of up to 0.1% nickel, 0.1% copper and 0.5 g/t PGM over a one metre thick intercept (Figure 13). In the Little Broken Hill area two widely spaced shallow RAB holes returned a maximum intercept of 7 metres at 0.3% nickel, 0.1% copper, 0.02% cobalt and 0.04 g/t Pt+Pd+Au from 12 metres depth. There has been no drilling at depth along the entire trend. The geometry and nature of the mafic-ultramafic host rocks along the Rockwell-Little Broken Hill trend is similar to that of the Sally Malay-Savannah deposit in northern Western Australia (approx. 20 Mt at 1.7% nickel, 0.7% copper and 0.1% cobalt) and Figure 13 also shows the geology of this area for comparison. The size of the surface expression of Sally Malay is also shown for comparison at the same scale. It is evident that considerable scope exists to discover a significant nickel-copper-PGMcobalt deposit in this area. . Red Hil-Dora East 1 km long surface anomaly Up to 0.1% Ni, 0.1% Cu 0.5 g/t PGM ROCKWELL Sally Malay at same scale Areas identified by VTEM RAB anomaly 1m at 0.6% Ni, 0.2% Cu, 0.03% Co, 40 ppb PGM LITTLE BROKEN HILL Figure 13. Processed IP data (top left) showing interpreted IP trends. In the top right the IP trends are shown in red over the magnetic data with the areas for follow up work identified in the EM data (pink). The outline of the mafic-ultramafic complex is shown in black. The geology and size of the Sally Malay orebody are shown for comparison. Geology of the Sally Malay area at same scale Sally Malay Little Darling Creek At Little Darling Creek the processed IP data has identified a prominent anomaly close to and in the centre of numerous outcrops of ultramafic rocks that are highly anomalous in nickel, copper and platinum group metals. Several small mine shafts and previous drilling attest to local high grades. Detailed field checking and rock chip sampling has recently shown that the area of the IP anomaly contains numerous small outcrops of ultramafic rocks not recognised by previous explorers. The rock chip samples are anomalous in gold, platinum and palladium with two standout results of 5 g/t palladium a