Announcement PDF Impact Minerals Limited ABN 52 119 062 261 Annual Report 2020 Corporate Directory BOARD OF DIRECTORS AUDITORS Peter Unsworth Dr Michael Jones Paul Ingram Dr Markus Elsasser Bentleys Audit and Corporate (WA) Pty Ltd London House Level 3, 216 St Georges Terrace Perth, WA 6000 Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director COMPANY SECRETARY SHARE REGISTRY Bernard Crawford Computershare Investor Services Pty Ltd Level 11, 172 St Georges Terrace Perth, WA 6000 REGISTERED OFFICE & PRINCIPAL PLACE OF BUSINESS 26 Richardson Street West Perth, WA 6005 Telephone: +61 (8) 6454 6666 Facsimile: +61 (8) 6314 6670 Email: info@impactminerals.com.au Web: www.impactminerals.com.a Perth HQ Telephone: +61 (8) 9323 2000 Facsimile: +61 (8) 9323 2033 SECURITIES EXCHANGE LISTING The Company is listed on the Australian Securities Exchange Ltd (“ASX”) Home Exchange: Perth, Western Australia ASX Code: IPT Broken Hill Commonwealth Impact Minerals Ltd Annual Report 2020 Impact Minerals Limited Impact Minerals Limited is an exploration company listed on the ASX in November 2006. The Company manages extensive tenement holdings of nearly 4,000 square kilometres within Australia featuring significant potential for high-grade mineral deposits of gold, silver, lead, zinc, copper, nickel and PGM’s. The Directors of the Company have extensive experience in mineral exploration and a strong history of exploration success, business development and corporate management. Impact Minerals intends to build wealth for its shareholders through a vigorous campaign of project generation and discovery of major mineral deposits to move towards profitable mining operations. Contents 2 Chairman’s Letter 3 Review of Operations 33 Directors’ Report 44 Auditor’s Independence Declaration 45 Consolidated Statement of Profit or Loss and Other Comprehensive Income 46 Consolidated Statement of Financial Position 47 Consolidated Statement of Changes in Equity 48 Consolidated Statement of Cash Flows 49 Notes to the Consolidated Financial Statements 70 Directors’ Declaration 71 Independent Auditor’s Report 76 Shareholder Information 78 Tenement Schedule 1 2 Impact Minerals Ltd Annual Report 2020 Chairman’s Letter Dear Fellow Shareholder, The year to 30th June 2020 has been an active and rewarding one for your Company. Before I mention the key highlights, which are presented in more detail in the Review of Operations, I would like to commend our Managing Director, Dr Mike Jones, for his tremendous untiring efforts in managing the Company’s activities. Earlier in the first half of the year, markets were under pressure for explorers and capital raising was difficult. Your Directors reluctantly resolved to reduce staff levels and remuneration, including for your Directors. The remaining Impact staff have responded positively and worked tirelessly to take the Company forward. Great progress has been made at our Commonwealth Project where we hold about 1,000 square kilometres in the Lachlan Fold Belt in NSW, prospective for massive sulphide deposits of gold, silver and base metals as well as porphyry copper-gold. In January Impact announced details of four priority undrilled prospects for porphyry coppergold identified near the Alkane Resources Limited Boda-Kaiser discovery. All four prospects have characteristics suggesting they are parts of large porphyry or other intrusive related copper-gold systems. In August of this year, Dr Jones announced that with the Aspley Prospect (one of the four prospects referred to above), near textbook examples of the zones of metal assemblages expected around major alkaline, porphyry copper-gold complexes had been defined over about 4 square kilometres. Exploration has been fast-tracked to identify specific drill targets. The announcement followed the raising of $3.25 million to bring the Company’s cash holding to in excess of $5 million. The raising is being directed to proposed drilling at Commonwealth and for another drill programme at Broken Hill which is now in progress. The Broken Hill programme is targeted at high grade palladium and other platinum group metals at Red Hill and other prospects. The Blackridge conglomerate-hosted gold project in Queensland proved to be frustrating. In November last year, for commercial reasons, Impact resolved to not exercise its option to purchase several mining lease applications. As a result, the planned trial mining operation did not proceed. However in July of this year, Impact made two new 100% owned applications for exploration permits at Blackridge, giving the Company 150 square kilometres or about 90% of the southern part of the large Miclere-Blackridge gold field that produced over 300,000 oz of gold. The new leases include ground previously held under the option to purchase that was not exercised. Currently further work is being undertaken on the Miclere-Blackridge ground for a potentially larger exploration/development play. More details on the Company’s activities and projects are set out in the Review of Operations. We are looking forward to an exciting few months ahead of us, despite problematic logistical issues caused by the Covid 19 virus, because of increasingly positive activity and results at Commonwealth and Broken Hill. During the year our Non-Executive Director, Eamon Hannon, resigned from the Board to concentrate on his role as Managing Director of Buxton Resources Limited. During his short period of tenure, Eamon’s professional input was greatly appreciated. Peter Unsworth Chairman Impact Minerals Ltd Annual Report 2020 Review of Operations Impact Minerals Limited is an Australian Exploration Company listed on the Australian Stock Exchange (ASX-IPT). The company is a project generator and developer and explores a portfolio of tenement holdings (~3,800 sq km) within major mining regions of Australia featuring significant potential for high-grade mineral deposits of gold, silver, lead, zinc, copper, cobalt, nickel and platinum group metals. The company has five active exploration projects, each containing multiple targets for high-grade mineral discoveries: COMMONWEALTH PROJECT: 903 sq km in the Lachlan Fold Belt in New South Wales prospective for volcanogenic massive sulphide deposits of gold, silver and base metals as well as porphyry copper-gold. BROKEN HILL PROJECT: 816 sq km in the Broken Hill region prospective for silver-lead-zinc, nickelcopper-platinum group metals and copper-cobalt-gold deposits. ARKUN PROJECT: 1,900 sq km centred between York and Corrigin 100 km east of Perth prospective for nickel-copper-platinum group metals and gold. BLACKRIDGE PROJECT: 150 sq km covering Permian sedimentary rocks near Clermont in central Queensland and prospective for conglomerate-hosted gold deposits. CLERMONT PROJECT: 70 sq km in the Anakie Inlier and also close to Clermont which is prospective for epithermal and quartz vein-hosted gold deposits. No work was done at Clermont during the year. 3 4 Impact Minerals Ltd Annual Report 2020 Review of Operations 1. COMMONWEALTH GOLD-SILVER-BASE METAL PROJECT (IPT 100%) The significant exploration potential for large porphyry copper-gold deposits at Impact Minerals Limited’s (ASX:IPT) 100% owned Commonwealth project in the Lachlan Fold Belt coppergold province in New South Wales was confirmed and enhanced by work completed during the year. Relevant ASX announcements by Impact were released on 22nd August 2019, 22nd November 2019, 23rd April 2020 and 23rd June 2020. Four prospects, Boda South, Apsley, Spicers Creek and Greenobbys were the focus of work and were identified from reconnaissance field checking, new rock chip assays and interpretation of regional magnetic data. This work was prompted by the recent discovery of significant porphyry copper-gold mineralisation at Boda by Alkane Resources Limited (ASX: ALK) (Figures 2 and 3). At Boda, which lies immediately along trend from Impact’s tenements, a significant drill intercept of 1,167 metres at 0.55 g/t gold and 0.25% copper including a higher grade “core” of 96.8 metres at 4 g/t gold and 1.5% copper was recently reported (ALK ASX Release 23rd March 2020). Figure 1: Location of Impact’s Commonwealth, Pine Hill and Day Dawn Projects covering about 900 km2 of the Lachlan Fold Belt of NSW, home to many significant gold and copper mines. The Boda deposit is currently about 400 metres wide (true width), shows strong zonation of metals and alteration minerals with higher grade copper-gold associated with magnetite in so called skarn-related alteration. The magnetite can be identified as an anomaly in regional magnetic data (ALK ASX Release 23rd March 2020). In addition, Alkane has shown that Boda is hosted by rocks of a specific high potassium alkaline geochemistry called shoshonites. Importantly these are of the same chemistry and age (Ordovician) as the host rocks at Cadia-Ridgeway and North Parkes (Figure 1) and are generally accepted as crucial components to the formation of giant porphyry copper-gold deposits globally. All four of Impact’s prospects have characteristics suggesting they are parts of large porphyry or other intrusive-related copper-gold systems including: 1. Significant copper and/or gold with associated pathfinder metals in recent rock chip assays. 2. Alteration minerals that suggest they lie within the outer (propylitic) to middleinner (potassic) zones of such intrusive-related systems, the prospective centres of which may lie only within a few hundred metres of the areas sampled, either at depth or along trend; and 3. A spatial association with unexplained magnetic anomalies and which, like Boda, could be a direct indication of significant copper-gold mineralisation. Impact Minerals Ltd Annual Report 2020 5 Review of Operations continued Furthermore, new rock chip data and maps from the Geological Survey of New South Wales confirm that there are extensive areas of copperrich shoshonite and related high potassium rocks of Ordovician age at the Apsley, Spicers Creek and Boda South prospects (Figure 3). In addition, standard element ratio plots show that the shoshonites are also part of an igneous differentiation trend in which the rocks become more potassic (K 2Obearing) and, very importantly, more copper-rich as they evolve towards shoshonite compositions (Figure 3). Furthermore, the prospects also have extensive areas of copper+/gold mineralisation as well as important pathfinder metal assemblages and alteration mineral assemblages typical of porphyry copper gold systems as described separately for each prospect below. These features constitute a major breakthrough for Impact as it indicates that many of the crucial fundamental components required to form a large porphyry coppergold deposit are present at these prospects. Figure 2: Priority prospects for follow up work and geology of the Commonwealth Project. Note the location of the Boda-Kaiser prospects (Alkane Resources) and the Lady Ilse prospect (Magmatic Resources Limited. 6 Impact Minerals Ltd Annual Report 2020 Review of Operations continued Key features identified at Apsley by Impact include: 1. Figure 3: Major element ratio plot for Boda South (triangles) together with Apsley (squares) and Spicers Creek (circles) with copper results coloured by grade. An igneous differentiation trend towards copper-bearing high potassium-shoshonite rocks is evident; this is common to major porphyry copper deposits in the Lachlan Fold Belt. Widespread and abundant copper oxides and fresh copper sulphides (malachite, azurite, chalcopyrite and bornite) which occur over at least a 2 square kilometre sized area with rock chip assays of up to 8.1% copper and 23 g/t silver with associated anomalous molybdenum, tellurium, tungsten and gold in places (Figure 4 and Figure 5). 2. The alteration mineral and pathfinder metal assemblages are mostly typical of the outer distal zones of porphyry copper systems (Figure 5: chloritealbite (propylitic) alteration with pathfinder metal assemblages of Tl-Li-Sb-As and Cu-Bi-Te-Se). Copper is widespread in the outer zones of many porphyry copper gold deposits, for example North Parkes. 1.1 APSLEY A highly prospective target zone of about 2 square kilometres in size that has not been previously drilled has now been identified at Apsley. The Apsley target is centred 8 km south of Wellington and covers a number of magnetic anomalies within Ordovician basalts and andesites (Figures 2 and 4). These are direct analogies to the magnetic response at Boda associated with the skarn mineralisation and parent porphyry intrusion (Figure 4). Impact’s work indicates that a major copper mineralised system is present at the prospect, potentially sourced from a buried porphyry intrusion with high grade copper-gold mineralisation that may lie within a few hundred metres from surface. Figure 4: Airborne magnetic image (RTP 2VD) of the Apsley Prospect with copper assay results, interpreted alteration zones and possible parent intrusion at depth. The anomalous copper samples are adjacent to the magnetic anomalies which may represent skarn mineralisation. Warmer colours on the image represent stronger magnetic responses. Impact Minerals Ltd Annual Report 2020 7 Review of Operations continued 3. Higher grade copper assays occur in focussed zones of more proximal sericite-potassic altered shoshonites and related highpotassium rocks. These zones are interpreted to lie along faults that have tapped a mineralised intrusion at depth (Figures 4 and 6). 4. The entire area of extensive copper mineralisation is associated with several significant magnetic anomalies which may represent skarn assemblages or parent porphyry intrusions directly associated with higher grade mineralisation at depth. Figure 5: Apsley Prospect: Sample AP01: volcanic rock with extensive bornite (purple) and chalcopyrite (yellow) as well as copper oxides and carbonates (green) within moderately magnetic volcanic rock. Figure 6: Industry-standard Feldspar-Sodium (Na)-Potassium (K) General Element Ratio plots showing alteration minerals (left) and the same samples coloured by copper results (right) for Apsley (squares) and Spicers Creek (circles). A clear trend of increasing copper towards more proximal inner alteration assemblages is very evident and consistent with being related to significant porphyry copper-gold systems (note the two prospects are many kilometres apart and thus two separate systems are present). GEOCHEMICAL EXPLORATION FOR PORPHYRY COPPER-GOLD DEPOSITS A key driver in the exploration for large porphyry copper-gold deposits is to develop an understanding of the nature and distribution of the distinct zones of commodity metals, pathfinder metals and associated alteration minerals that form around such deposits in order to provide vectors to the high grade cores. The zones, which are well understood in the scientific literature, vary from outer (distal) zones commonly characterised by chlorite-albite-epidote (propylitic) alteration and pathfinder metals such as antimony-arsenic-lithium-bismuthtellurium-silver; to middle-inner zones (proximal) characterised by sericite-K feldspar (potassic) alteration and the pathfinder metals molybdenum-gold-copper-tungsten-tin. These zones can be readily identified in industry-standard geochemical graphs such as potassium-aluminium-sodium molar ratio plots shown here (46 samples in total for Apsley and 23 samples from Spicers Creek). 8 Impact Minerals Ltd Annual Report 2020 Review of Operations continued 1.2 SPICERS CREEK The Spicers Creek target occurs in the north east of the Commonwealth project and comprises a number of intriguing magnetic anomalies within Ordovician and Devonian volcanic and intrusive rocks (Figures 2 and 7). A highly prospective target zone about 200 metres wide and at least 1,000 metres long has been identified at the south eastern part of the Spicers Creek prospect which is undrilled (Figure 7). Key features identified at Spicers Creek by Impact include: 1. Copper oxides and fresh copper sulphides (chalcopyrite, chalcocite, bornite, azurite, and malachite) occur intermittently over 700 metres of trend within a zone at least 1,000 metres long and up to 200 metres wide that contains smoky quartz veins within epidote-garnet skarn altered mafic schists with later cross-cutting porphyry dykes. One stand-out rock chip sample returned 6.8 g/t gold, 14.4% copper and 83 g/t silver with strongly elevated molybdenum (46 ppm), bismuth (185 ppm), tellurium (18 ppm) and tungsten (88 ppm). The other rock chip samples returned values of up to 132 ppb gold, 4.7 g/t silver and 0.7% copper. Figure 7: Image of magnetic data showing rock chip assay results, interpreted alteration zones and underlying geology at the Spicers Creek prospect. Warm colours in the magnetic image represent zones of stronger magnetic response. 2. The alteration mineral assemblages indicate strong moderate to strong sericite alteration of shoshonite and related rocks and this is associated with the strongest copper results (Figure 6). The pathfinder metal assemblages of moderately elevated Tl-Li-Sb-As, Bi-Te-Se and Cu-Au-Bi-Mo is a mix of both outer and inner assemblages. This suggests the alteration zones have been “telescoped” along a fault that may have tapped a mineralised intrusion at depth or along trend. 3. The magnetic data indicates the prospect area sampled is coincident with a broad weak linear magnetic anomaly about 1,000 metres long. Several other much stronger unexplained magnetic anomalies up to 1,000 metres long occur in the northwest of the prospect area and all of these are targets for skarn-related mineralisation (Figure 7). Further work along trend to the north west is required. Impact Minerals Ltd Annual Report 2020 9 Review of Operations continued 1.3 BODA SOUTH PROSPECT 1.4 GREENOBBYS The Boda South prospect, which is undrilled, covers the faulted southern contact of the Boda Intrusive Complex (BIC), host to the Boda-Kaiser mineralisation and which is Ordovician in age (Figures 2 and 8). As demonstrated at Apsley and Spicers Creek, Boda South also contains the fundamental characteristics required to potentially host a significant porphyry coppergold deposit: The Greenobbys prospect lies a few kilometres east of Boda South and covers the variably magnetic western margin of the very potassium-rich Wuuluman Granite which is of Carboniferous age (Figures 2 and 8). These rocks are much younger than the Boda Intrusive Complex and are in a different geological setting. 1. Copper-bearing Ordovician shoshonites with weak to moderate copper assays of up to 0.1% with copper increasing as the rocks become more potassium rich (shoshonitic Figure 2). 2. Metal assemblages of up to 40 ppm bismuth and 21 ppm tellurium as well as moderate epidote-chlorite alteration indicate the area may lie in the upper phyllic to outer (propylitic) zone of a porphyry copper-gold system. Typical values of both these pathfinders documented above known deposits are in the order of about 1 to 5 ppm. 3. An association with two subparallel magnetic anomalies within the BIC as evident in regional magnetic data (Figure 8). This is a similar position to the Boda deposit, located about 3,000 metres along trend to the north, where the high grade copper-gold mineralisation discovered by Alkane also occurs between two magnetic units of the BIC (Figure 2 and ALK: ASX Release 23rd March 2020). Given the prospective nature of the BIC, modelling of magnetic data is required to determine the depth to the intrusive complex at Boda South. Figure 8: Airborne magnetic image of the Boda South and Greenobbys Prospects with gold assay results and interpreted alteration zones. Warmer colours on the image represent stronger magnetic responses. Key features identified at Greenobbys include: 1. Several north west trending zones of rubbly outcrop of quartz and potassium feldspar (“K-feldspar”) veins that each extend over at least 500 metres of trend. These zones are parallel to faults noted on the government Geological Survey maps and also the controlling faults at the rich Bodangora Mine located 4 km to the west and which produced about 250,000 ounces of gold at greater than 20 g/t in similar quartz veins (owned by Magmatic Resources Limited; Figure 2). 2. The veins show a gradation from coarse K-feldspar with lesser quartz (pegmatite), to K-feldspar and grey quartz in equal proportions to creamy white quartz with little or no K-feldspar (Figure 9). 3. The quartz dominant veins are vuggy and contain boxwork gossan formed by the weathering of sulphides including pyrite (Figure 9). There are a number of shallow pits along the vein system. 10 Impact Minerals Ltd Annual Report 2020 Review of Operations continued Figure 9: Gradation of veins from K-feldspar dominant (left photo) to quartz-dominant (right photo) with increasing boxwork gossan (dark brown colour) from weathered sulphides. These veins contain up to 9.5g/t gold (six samples with more than 1 g/t gold) and 215 g/t silver (four samples with more than 1 ounce per tonne) (Figure 8). In addition, the veins contain a remarkable array of pathfinder metals that are anomalous on a regional scale compared to Impact’s other prospects in particular bismuth (up to 754 ppm), molybdenum (up to 519 ppm) and tellurium (up to 40 ppm). Telescoping refers to the significant overlap between proximal and distal metal and mineral assemblages and suggests the possible rapid collapse of the parent hydrothermal system. This is encouraging for the discovery of bonanza gold-silver veins. Other pathfinder metals present include selenium-thallium-antimonyarsenic-lead-barium and tungsten as well as the rare metals indium and rhenium. In addition, preliminary interpretation suggests the metals are associated with sericite-adularia alteration. 1.5 NEXT STEPS FOR INTRUSIVE RELATED GOLD DEPOSIT EXPLORATION All of these features are interpreted to indicate the veins are related to fluids released from a potassium rich granite, possibly the host Wuuluman Granite, and which may represent a “telescoped” epithermal system covering at least several hundred square metres. The veins are open along trend and at depth. There is no drilling recorded in the area. The scale and size of the vein and alteration system is very encouraging and further field checking and sampling is warranted. Impact’s work strongly supports the potential for the Commonwealth Project to host not only significant porphyry copper-gold deposits but also intrusion-related epithermal gold-silver deposits. Further work is now required to refine and rank these target areas for drilling. At present the Apsley target is ranked as the most prospective and a detailed soil geochemistry survey was completed in June 2000 and an interpretation of the results is in progress. In addition, a detailed airborne magnetic and radiometric survey covering Impact’s priority areas was also completed recently and a detailed interpretation is in progress. All of this new data will be interpreted and synthesised to help define follow up work programmes which will include drilling in 2020 and 2021. 1.6 COMMONWEALTH AND SILICA HILL DEPOSITS During the year Impact announced a significant increase in resources at the Commonwealth gold-silverzinc-lead-copper deposit including a maiden resource for the silver-rich Silica Hill prospect (Figure 9) (ASX Release August 22nd 2019). The new resource contains 88,800 ounces of gold and 3.3 million ounces of silver all of which occurs from surface to a depth of 250 metres and well within range of potential open pit mining. The Mineral Resources at Commonwealth and Silica Hill were prepared in accordance with the JORC 2012 Code by independent resource consultants Optiro and follows several drill programmes across the project area completed in late 2018. Impact Minerals Ltd Annual Report 2020 11 Review of Operations continued The updated Inferred Resource for the Commonwealth deposit at a cut-off of 0.5 g/t gold is (Figure 10): COMMONWEALTH (MAIN SHAFT TO COMMONWEALTH SOUTH) Resource Classification Cut-off 0.5 g/t gold Tonnes Gold (g/t) Contained gold (oz) Silver (g/t) Contained silver (oz) Zinc (%) Lead (%) Copper (%) Inferred 912,000 2.4 70,800 44 1,300,000 1.20% 0.50% 0.08 A separate Inferred Mineral Resource (included within the overall resource) has also been calculated for the massive sulphide lens at Main Shaft alone to demonstrate the high grade nature of such deposits that are the principal target for Impact’s exploration programme. The Main Shaft Inferred Resource is: MAIN SHAFT MASSSIVE SULPHIDE LENS Resource Classification Cut-off 0.5 g/t gold Tonnes Gold (g/t) Contained gold (oz) Silver (g/t) Contained silver (oz) Zinc (%) Lead (%) Copper (%) Inferred 142,000 4.5 20,600 161 737,500 4.6 1.7 0.2 At Silica Hill the maiden Inferred Resource at a 50 g/t silver cut-off is: SILICA HILL Resource Classification Cut-off 50 g/t silver Lode Tonnes (t) Silver (g/t) Contained silver (oz) Gold (g/t) Contained gold (oz) Inferred North 397,000 89 1,136,000 1 12,900 Inferred South 313,000 87 871,000 0.5 5,100 TOTAL 710,000 88 2,007,000 0.8 18,000 The resources are open along trend and at depth and extensive further resource definition and extensional drilling is required to follow up key intercepts at Main Shaft, Commonwealth South and Silica Hill as outlined below. The Company confirms that it is not aware of any new information or data that materially affects the resources reported above and in the relevant market announcements, and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply. Figure 10: Block model of the resource from Commonwealth South (left) to Main Shaft (right). The high grade blocks in red and pink show that the deposit is open along trend and at depth. 12 Impact Minerals Ltd Annual Report 2020 Review of Operations continued 1.7 FURTHER EXPLORATION AT MAIN SHAFT At Main Shaft the massive sulphide lens is still open at depth and along trend to the north and south east. For example the resource is open to the north down plunge from drill hole CMIPT084 and at depth below drill holes CMIPT021 and CMIPT082 (Figures 11 and 12). Hole CMIPT084 returned: 5.7 metres at 3.8 g/t gold, 347 g/t silver, 10.8% zinc and 3.7% lead from 52.1 metres down hole; including 0.7 metres at 15.6 g/t gold, 245 g/t silver, 8.6% zinc and 1.9% lead; and 0.5 metres at 4.9 g/t gold, 917 g/t silver, 10.2% zinc and 4.6% lead from 56.9 metres. Hole CMIPT021 returned: 8.1 metres at 6 g/t gold, 193 g/t silver, 5.9% zinc, 2.3% lead and 0.16% copper from 71 metres; including 2.9 metres at 9.3 g/t gold, 201 g/t silver, 11.6% zinc, 4.7% lead and 0.2% copper. Figure 11: Location of drill assays from the 2018 drill programme at Main Shaft and Silica Hill (yellow labels). The Main Shaft resource is labelled “Massive Sulphide Resource”. The Silica Hill Prospect is in the centre of the map. Impact Minerals Ltd Annual Report 2020 13 Review of Operations continued Hole CMIPT083 returned: 4 metres at 3.3 g/t gold 129 g/t silver, 7% zinc and 1.9% lead from 96.4 metres down hole; including 2.1 metres at 5.1 g/t gold, 239 g/t silver, 12.8% zinc and 3.5% lead. Figure 12: Long section through the upper zone of mineralisation along the Commonwealth deposit and showing significant areas that require drill testing. In addition Hole CMIPT083 at Main Shaft also intersected a narrow high grade massive sulphide unit about 30 metres below the Main Shaft unit and together with other drill holes confirms the discovery of a second massive sulphide unit that is at least 100 metres by 150 metres in dimension and is untested at depth (Figures 11 and 13). 14 Impact Minerals Ltd Annual Report 2020 Review of Operations continued The second massive sulphide unit returned: 1 metre at 3.1 g/t gold, 57 g/t silver, 9.4% zinc and 4.2% lead and 0.2% copper from 143 metres down hole; including 0.3 metres at 0.8 g/t gold, 150 g/t silver, 30.2% zinc and 13.5% lead. Figure 13: Second massive sulphide unit in Hole CMIPT083: massive and brecciated massive sphalerite (red-brown) with lesser galena. Up to 3% chalcopyrite (yellow) is present in places. 1.8 FURTHER EXPLORATION AT COMMONWEALTH SOUTH At Commonwealth South, at the southern end of the Commonwealth Resource, two diamond drill holes completed in late 2018 identified significant extensions to the nearsurface resource both along trend and at depth (Figures 12 and 14). Hole CMIPT086 returned: 8 metres at 5.0 g/t gold, 20 g/t silver, 1.3% zinc and 0.5% lead from 94 metres down hole; including 5 metres at 7.7 g/t gold, 25 g/t silver 2.1% zinc and 0.7% lead; which includes 0.5 metres at 34.3 g/t gold, 40 g/t silver, 5.8% zinc and 2.3% lead from 97.6 metres. Hole CMIPT087 returned: 6 metres at 1.5 g/t gold, 22 g/t silver, 0.8% zinc and 0.1% lead from 96.8 metres down hole; including 0.35 metres metres at 8.9 g/t gold, 21 g/t silver, 3.5% zinc and 0.6% lead. In addition follow up drilling is required immediately down plunge to the south of drill hole CMIPT017 (Figure 12) which returned: 7 metres at 25.5 g/t gold, 62 g/t silver, 3.8% zinc, 1.6% lead and 0.1% copper from 88 metres; including 4 metres at 41.8 g/t (1.3 ounces per tonne) gold, 93 g/t silver, 5.5% zinc, 2.3% lead from 90 metres. A second lower zone of mineralisation has also been intersected at Commonwealth South from about 115 metres down hole with increasing gold grades at depth. The best result is from Hole CMIPT087 and is the deepest intercept in the zone and which returned (Figure 14): 12.5 metres at 0.65 g/t gold, 3.7 g/t silver, 0.25% zinc from 116.5 metres down hole; including 5 metres at 1.2 g/t gold, 3.6 g/t silver and 0.2% zinc