Impact Minerals Ltd Annual Report 2022 23 Impact has one of the largest ground holdings surrounding the world class Broken Hill mine in New South Wales (Figure 6.1) During the year Impact announced that IGO Newsearch Pty Ltd, a 100% owned subsidiary of IGO Limited (ASX:IGO) had agreed to farm into the Company’s Broken Hill nickelcopper-platinum group metals (PGM) prospects in New South Wales. Previous work by Impact had established that a large amount of deep drilling will be required to further explore the exciting nickelcopper-PGM prospects generated at Broken Hill and therefore it was appropriate that a well-funded partner with excellent credentials was brought in to help fund what could be quite significant expenditures going forward. Impact is pleased to have the joint venture with IGO, one of Australia’s most outstanding exploration and mining companies. The principal terms of the deal, which applies only to EL7390 and EL8234, two of the 11 tenements that comprise Impact’s holdings around Broken Hill (Figure 6.1) are: 1. I GO can spend $6 million over four years to earn a 51% interest in the project (Stage 1 earn in). An unincorporated joint venture between IGO and Impact will be formed at this time. 2. I GO can spend a further $12 million over a further four years to earn a 75% interest in the project (Stage 2 earn in). 3. A fter Stage 2 is complete, the parties can elect to contribute pro-rata or dilute. If one party’s interest dilutes to less than 10% then its interest will convert to a 1% Net Smelter Royalty. 4. I f, after completing Stage 1, IGO elects not to proceed to Stage 2 or, during Stage 2 does not meet its expenditure requirements, IGO will revert to a 49% interest in the project giving Impact a majority 51% interest. 5. A minimum expenditure of $500,000 in the first year is required. IGO can withdraw prior to the minimum expenditure being reached by paying the lesser amount of either the balance of unspent minimum expenditure or $200,000. IGO have completed a detailed ground electromagnetic (EM) geophysical survey using a deep penetrating SQUID system over the entire joint venture area including the Moorkai Trend and the Little Broken Hill Gabbro (Figure 6.1 and 6.2). The Moorkai Trend is a nine kilometre long ultramafic to mafic dyke and chonolith complex that is very poorly explored. Drilling by Impact at the southern end of the Trend has returned high grades of nickel-copper-PGM’s in the Platinum Springs area in a channel-like structure at the base of the ultramafic unit (ASX Release Figure 6.1: Impact’s ground holdings around Broken Hill. EL7390 (blue) and EL8234 (green) are highlighted. 6. BROKEN HILL PROJECT Review of Operations continued
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