Impact Minerals : Near Surface Resource Upgrade at Commonwealth – Silica Hill

ASX ANNOUNCEMENT

Date: 22 August 2019

Number: 630/220819

NEAR-SURFACE RESOURCE UPGRADE AT THE COMMONWEALTH-SILICA HILL

GOLD-SILVER-BASE METAL PROSPECTS, NEW SOUTH WALES

• New and updated Inferred Resources return 88,800 ounces of contained gold, and 3,300,000 ounces of contained silver with significant zinc and lead credits, all within 250 metres of surface and with potential for bulk open pit mining.
• Updated Inferred Resource at Commonwealth (Main Shaft to Commonwealth South) of
  912,000 tonnes at 2.4 g/t gold, 44 g/t silver, 1.2% zinc and 0.5% lead including
  142,000 tonnes at 4.5 g/t gold, 161 g/t silver, 4.6% zinc and 1.7% lead in the high grade massive sulphide lens at Main Shaft.
• A maiden Inferred Resource at Silica Hill of 710,000 tonnes at 0.8 g/t gold and 88 g/t silver.
• All Resources are open at depth and along trend beyond exceptional drill results such as:

Main Shaft: 5.7 metres at 3.8 g/t gold, 347 g/t silver, 10.8% zinc and 3.7% lead including 0.5 metres at 4.9 g/t gold, 917 g/t silver, 10.2% zinc and 4.6% lead.

Commonwealth South: 8 metres at 5.1 g/t gold, 20 g/t silver, 1.3% zinc and 0.5% lead including 0.5 metres at 34.3 g/t gold, 40 g/t silver, 5.8% zinc and 2.3% lead; and

4 metres at 41.8 g/t gold (1.3 ounces per tonne), 93 g/t silver, 5.5% zinc and 2.3% lead.

Silica Hill: 22.5 metres at 1.7 g/t gold and 276 g/t silver;

including 0.3 metres at 1.8 g/t gold and 4,200 g/t (135 ounces or 0.42%) silver; and also including 0.8 metres at 13.6 g/t gold and 40 g/t silver.

• The Commonwealth-Silica Hill deposits have unique similarities to the world class Eskay Creek gold-silver rich volcanogenic massive sulphide (VMS) deposit in Canada.
• Options for funding of the next phase of work being considered whilst Impact is focussed on the near-term production potential of the Blackridge project in Queensland.

Impact Minerals Managing Director, Dr Mike Jones, said:

"This updated resource demonstrates the high grade nature and extensive near-surface mineralisation at Commonwealth and the overlapping Silica Hill prospects. The deposits are open along trend and at depth and further drilling should lead to further significant increases in resources, in particular with the discovery of further very high grade massive sulphide bodies like that at Main Shaft. In addition the silver-rich resource at our unique Silica Hill discovery confirms that the narrow very high grade silver-gold veins are part of a larger deposit also with the potential for bulk mining. "We are still very excited by the similarities of the entire area to the world class Eskay Creek Project in the Golden Triangle of British Columbia which is currently being revived" he said.

Impact Minerals Limited is pleased to announce a significant increase in resources at the Company's 100% owned Commonwealth gold-silver-zinc-lead-copper project 95 km north of Orange in New South Wales including a maiden resource for the silver-rich Silica Hill Prospect1 (Figure 1).

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 have been 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.

The updated Inferred Resource for the Commonwealth deposit at a cut-off of 0.5 g/t gold is (Figure 2):

COMMONWEALTH (MAIN SHAFT TO COMMONWEALTH SOUTH)

		Resource						Gold			Contained			Silver			Contained			Zinc			Lead			Copper
		Classification			Tonnes
						(g/t)			gold (oz)			(g/t)			silver (oz)			(%)			(%)			(%)
		Cut-off 0.5 g/t gold
		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						Gold			Contained			Silver			Contained			Zinc			Lead			Copper
		Classification			Tonnes
						(g/t)			gold (oz)			(g/t)			silver (oz)			(%)			(%)			(%)
		Cut-off 0.5 g/t gold
		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						Tonnes			Silver			Contained			Gold			Contained
		Classification			Lode
						(t)			(g/t)			silver (oz)			(g/t)			gold (oz)
		Cut-off 50 g/t silver
		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.

Figure 1. Location of the Commonwealth Project in the Lachlan Fold Belt of NSW, home to many significant

gold and copper mines.

400 m

Main

Shaft

Commonwealth

South

Figure 2. 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.

1. 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 3 and 4).

Hole CMIPT084 returned2:

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 returned6:

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 3. 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.

Hole CMIPT083 returned2:

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 4. 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 depth2 (Figures 3 and 5).

The second massive sulphide unit returned2:

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.