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Impact Minerals Limited

ASX ANNOUNCEMENTDate: 22 September 2014
Number: 366/220914

BONANZA GOLD GRADES AT COMMONWEALTH SOUTH

New semi-massive sulphide lens in CMIPT017 at Commonwealth South returns:
7 m at 25.5 g/t gold, 62 g/t silver, 3.8% zinc, 1.6% lead and 0.1% copper from 88 m:
including: 4 m at 41.8 g/t (1.3 ounces per tonne) gold, 93 g/t silver, 5.5% zinc, 2.3% lead and
including: 1 m at 61 g/t (2 ounces per tonne) gold, 140 g/t silver, 5.9% zinc and 2.7% lead.

Further bulk mineable mineralisation with high grade gold in CMIPT014:
21 m at 2.9 g/t gold, 21.6 g/t silver, 1.2% zinc and 0.6% lead from 53 m
including 2 m at 6.7 g/t Au, 61.6 g/t Ag, 3.8% Zn, 3.2% Pb from 53 m; and also
including 4 m at 6.0 g/t Au, 25 g/t Ag, 1.4% Zn, 0.3% Pb from 72 m.

Mineralisation open to the south and up and down dip.

Follow up IP and soil surveys to commence next month.

Follow up drill programmes required.

More assays from Impact Minerals Limited (ASX:IPT) maiden drill programme at its100% owned Commonwealth Project located 90 km north of Orange in NSW have further extended the high-grade, near surface deposit at Commonwealth South (Figures 1, 2 and 3).

Reverse circulation (RC) drill hole CMIPT017 returned:

7 m at 25.5 g/t gold, 62 g/t silver, 3.8% zinc, 1.6% lead and 0.1% copper from 88 m down hole (about 50 m below surface):
including: 4 m at 41.8 g/t (1.3 ounces per tonne) gold, 93 g/t silver, 5.5% zinc, 2.3% lead from 90 m
& including: 1 m at 61 g/t (2 ounces per tonne) gold, 140 g/t silver, 5.9% zinc, 2.7% lead from 91 m.

This intercept, which is in fresh rock, lies above a previously reported intercept in CMIPT09 of 5 m at 5.3 g/t gold, 18 g/t silver, 0.8% zinc and 0.2% lead from 94 m and including 1 m at 16 g/t gold, 27 g/t silver, 0.6% lead and 1.3% zinc (see Figure 1, long section and Figure 2 cross section and announcement dated 2nd September 2014). This zone of mineralization occurs at the upper contact of the host rhyolite unit and is open at depth and along trend to the south.


Figure 1. Long Section between Main Shaft and Commonwealth South Prospects showing drill hole
locations, gold and silver mineralisation, IP anomalies and Impact's drill intercepts in yellow boxes.

Drilling by previous explorers at Commonwealth South also discovered a very high-grade gold intercept of 2 m at 77 g/t in drill hole PHC4 (Figure 1). Together with these new results, this is very encouraging for the discovery of further very high-grade shoots within the Commonwealth South deposit at shallow depths suitable for open pit mining.

A laboratory duplicate of the sample with 61 g/t gold returned a value of 59 g/t gold which is an acceptable repeat. Further re-assays and re-sampling of the interval are in progress.


Figure 2. Cross section on 6,392,590 mN showing the location of the new massive and semi-massive
sulphide layer at the top of the host rhyolite unit. Note that the massive sulphide includes extensive
pyrite as well as sphalerite, galena and lesser chalcopyrite.

In addition RC drill hole CMIPT014 has returned (Figure 1):
21 m at 2.9 g/t gold, 21.6 g/t silver, 1.2% zinc and 0.6% lead from 53 m
including 2 m at 6.7 g/t Au, 61.6 g/t Ag, 3.8% Zn, 3.2% Pb from 53 m; and also
including 4 m at 6.0 g/t Au, 25 g/t Ag, 1.4% Zn, 0.3% Pb from 72 m.

The two zones of higher-grade mineralisation occur at the upper and lower contacts of the host rhyolite unit.

Newly Discovered Semi-Massive and Massive Sulphide Lenses

Importantly, these new assays come from two separate semi-massive and massive sulphide layers, discovered by Impact for the first time at Commonwealth South where previously only disseminated and vein-hosted mineralisation was known.

Both these newly discovered sulphide zones are open at depth and along trend and it is possible that they are at the edge of much larger lenses of high-grade massive sulphide similar to that at the Main Shaft Prospect. Further drilling is required to test this.

The mineralisation at Commonwealth South was detected by the IP survey completed earlier in the year and this was an important exploration breakthrough made by Impact (Figure 1, and announcement dated 13th June 2014).

The results of Impact's maiden drill programme have further confirmed this correlation with all 7 drill holes completed within the IP anomaly at Commonwealth South returning significant sulphide mineralisation (Figure 1).

Accordingly further IP surveys (and soil geochemistry surveys) both along strike to the south (and north of Main Shaft) are required to help refine drill targets for the follow up drill programme (Figure 3).

These surveys will commence next month and will also cover the very prospective Doughnut porphyry copper-gold target identified by Impact in a soil geochemistry survey 2 km to the north. Here Impact has identified a large zoned elliptical zinc-lead-copper-gold-silver soil anomaly that is 1.2 km by 750 m in dimension similar to those associated with a number of major porphyry coppergold deposits around the world. This area has not been previously explored (see announcement dated 1st July 2014).

The results of Impact's drill programme and the IP survey suggest that there may be a sub-horizontal or shallow plunge to the mineralisation at Commonwealth. This is encouraging for the discovery of a shallow deposit that may be mined by open pit methods.

Other Results

Assays from two other drill holes at the edge and within the Commonwealth South deposit also identified thick intercepts of lower grade gold and other metals.

CMIPT016 returned 24 m at 0.8 g/t gold, 11 g/t silver and 0.4% zinc from 59 m including 3 m at 3.3 g/t gold.

CMIPT015 returned 22m at 0.6 g/t gold, 10 g/t silver and 0.3% zinc from 84 m including 6 m at 1.3g/t gold.

One hole was drilled at Coronation to test beneath a small pit that contained visible chalcopyrite. A mineralised structure was intersected that returned 8 m at 0.2% zinc. Further work, including a ground IP survey, is required before further drilling in this area.

Assays from three drill holes are awaited. Interpretation of other results including assays is in progress.

Managing Director Dr Mike Jones said:

"These significant gold results continue to be very encouraging for the discovery of a significant deposit at Commonwealth. This is the first systematic drill programme beneath the near surface highgrade mineralisation and our intention was to try to define the orientation of the mineralisation in order to allow further step out drilling at depth. This is being achieved."

"The first discovery of massive sulphide mineralisation at Commonwealth South is also very exciting for Impact with the potential for further extensions to the south and at depth" he said. "Further ground IP and soil geochemistry surveys will commence next month to help define the follow up drill targets. In addition our maiden drill programme has only tested a very small part of the 20 km long mineralised trend within Impact's licences and includes the recently recognised and undrilled Doughnut target 2 kilometres to the north. This area has strong copper-in-soil responses and is also a priority target for follow up work including the IP surveys".

"Whilst this work is in progress, we will also be preparing for our maiden drill programme at the Broken Hill nickel-copper-PGE project for which Impact was awarded this week a grant of $125,000 from the New South Wales Government. We have some exciting targets to test at Red Hill" Dr Jones said.

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.

For more information, please visit http://doc.irasia.com/listco/au/impactminerals/press/p140922.pdf.


Source: Impact Minerals Limited
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