Impact Minerals Limited: Exploration Update on Broken Hill Project

Perth - Further encouraging results for high grade deposits of nickel-copper-platinum group metals (PGM)-cobalt have been identified in newly received Induced Polarisation data from a helicopter-borne VTEM survey over the Little Darling Creek Prospect and Rockwell to Little Broken Hill Trend within Impact Minerals Ltd.'s (ASX:IPT) 100% owned Broken Hill Project in New South Wales, (see Figure 1 in the link below).

- Further areas for follow up work for nickel-copper-PGM identified in IP data from VTEM Survey.

- At Little Darling Creek, target area coincident with rock chip samples up to 4.5 g/t platinum and 5 g/t palladium.

- Along the Rockwell-Little Broken Hill Trend, IP features in part coincident with EM anomalies.

These areas are in addition to the electromagnetic (EM) anomalies recently identified along the Rockwell- Little Broken Hill Trend (see announcement 3 May 2017).

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.

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 stand-out results of 5 g/t palladium and 4.5 g/t platinum (see Figure 2 in the link below).

The IP anomaly may represent disseminated sulphides within ultramafic rocks hidden below surface.

A ground IP survey is now required to identify specific drill targets.

Rockwell-Little Broken Hill Trend

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 (see Figure 3 in the link below).

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 for follow up work already identified in EM data from the VTEM survey along the Trend and this is encouraging for the definition of targets for both massive sulphide and disseminated sulphide (see Figure 3 in the link below and see announcement 3 May 2017).

The IP and EM responses present in the data 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 (see Figure 1 in the link below).

At Red Hill Prospect exceptional grades have been returned from Impact's drilling including a stand out intercept of 1.2 metres at 75.4 g/t (2.4 ounces) platinum equivalent comprising 10.4 g/t platinum, 10.9 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 announcement 23 October 2015).

The Rockwell-Little Broken Hill Trend has been very poorly explored due to extensive shallow alluvial cover. 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 (see Figure 2 in the link below).

In the Little Broken Hill area only 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 1 (see the link below) also shows the geology of the 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-PGM-cobalt deposit in this area.

A third area to the north, the Moorkai Trend (see Figure 1 in the link below), was not flown because of landowner concerns with stock animals and will be flown later in the year.

NEXT STEPS

Further interpretation and modelling of the VTEM data is in progress and follow up ground work will commence once completed. This work will include field checking, surface geochemical sampling and ground geophysical surveys where required to identify targets for drilling. Any targets identified will be drill tested together with follow up drilling at Red Hill.

The VTEM survey along the Moorkai Trend will be completed later in the year.

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About Impact Minerals Limited:

Impact Minerals Ltd. (ASX:IPT) is an exploration company listed on the ASX in November 2006. The Company manages extensive tenement holdings (>2,000 km2) 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 evaluation with a view towards profitable mining operations. Impact Minerals intends to build wealth for its shareholders through a vigorous campaign of project generation and evaluation with a view towards profitable mining operations.



Contact:

Dr Michael G Jones Managing Director
Impact Minerals Ltd.
T: +61-8-6454-6666
E: info@impactminerals.com.au