Announcement PDF ASX ANNOUNCEMENT Date: 18 June 2019 Number: 626/18062019 SECOND PHASE OF BULK SAMPLING TO COMMENCE THIS WEEK AT THE BLACKRIDGE GOLD PROJECT, CLERMONT QUEENSLAND. A second phase of bulk sampling will commence this week at Impact Minerals Limited’s (ASX:IPT) Blackridge conglomerate-hosted gold project located about 30km north of Clermont in central Queensland. The bulk samples, which will mostly be taken on the company’s 100% owned granted Mining Lease ML2386, will be up to 25 tonnes in weight, much larger than the 1 tonne samples taken in the Phase 1 sampling programme (ASX Release October 3rd 2018). This will help further quantify the “nugget effect” and optimal sample size required at Blackridge, critical factors in exploration and resource definition for this style of deposit. Impact has shown that the nugget effect was an important factor in previous exploration drilling at Blackridge leading to a probable underestimation of grade (ASX Release May 29th 2018). The Phase 1 work demonstrated that the project contains large volumes of mineralised free-digging conglomerate that was easily processed using simple water-based gravity separation equipment. Accordingly in order to expedite the results of the new sampling programme, a second hand small mobile water processing plant capable of processing up to 50 tonnes of material per day has been purchased by Impact (Figure 1). Figure 1. Commissioning of Mobile Wet Processing Plant for Gold 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 The plant has already been commissioned using the three samples that were not processed from the Phase 1 bulk sample programme because of high clay content (ASX Release October 23rd 2018). These three samples will be sent for assay with the samples from the Phase 2 programme. The plant is now being moved to site to test the strike potential at Foxes Lead on ML2386 by taking 50m spaced bulk samples along the unconformity to assess the grade distribution and determine the potential for any further high grade “runs” (Figure 2). A compilation of previous production data from Government records indicated the grade within these runs was commonly more than one ounce per tonne (ASX Release October 23rd 2018). In addition further samples will be taken in trenches at the Harveys and Smiths prospects (Figure 2) which previously returned one high grade result of up to 592 g/m3 (approximately 297 g/t) from much smaller samples (ASX Release October 23rd 2018). There is significant potential at these two prospects to define a previously undiscovered high grade “run” at surface within the target conglomerate unit. The results of this work will be used as a basis to determine if an Exploration Target can be calculated for the gold mineralisation at Blackridge. If such a Target can be calculated this will be used as a basis for a Scoping Study for a potential mining operation at the project. ABOUT THE BLACKRIDGE PROJECT Impact’s project covers 91 square kilometres and comprises one 100% owned Exploration Permit (EPM26806) and one Exploration Permit (EPM26066) and four Mining Lease applications (ML 100158, 59, 60 and 61) for which Impact has an option to buy 95% from Rock Solid Holdings Pty Limited (Figures 2 and 3; ASX Release May 29th 2018). Figure 2. Gold production data and Phase 1 bulk sample results at Blackridge. In addition, Impact has also purchased Mining Lease ML2386 which lies in the centre of the project area (ASX Release August 31st 2018). The Mining Lease, which is fully granted, was acquired from a local prospector for a cash payment of $30,000 and replacement of environmental bonds of approximately $7,000. Mining can commence on this lease subject only to the submission of a Plan of Operations to the Queensland Department of Mines. The gold produced at Blackridge was mostly hosted in basal conglomerates of Permian-aged sedimentary basins which include the mined coal measures that unconformably overlie the Anakie metamorphic rocks of Middle Ordovician age and older (Figures 3 and 4). Figure 3. Tenure and geology of the Blackridge Project. The unconformity is present at surface over about 1,500 metres of trend at Blackridge. Much of the lease is covered by loose gravel with only a few outcrops of conglomerate and schist in places. This cover, within which small gold nuggets have been found by prospectors over many years, has hindered previous exploration and there has been no recent systematic exploration in the area. Progress has also been made on the grant of the four MLA’s under option from Rock Solid Holdings Pty Ltd as well as the Compensation Agreement with the landowner. Native Title negotiations are also underway. Figure 4. Location of the Blackridge and Clermont/Retro Projects in central Queensland. COMPLIANCE STATEMENT This announcement contains no new Exploration Results. Further details about the project and the JORC Table were given in the ASX release dated October 23rd 2018. The Company confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcement. 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). Dr 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. Impact Minerals confirms that it is not aware of any new information or data that materially affects the information included in the previous market announcements referred to and in the case of mineral resource estimates, that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.