Impala Strategic Alliance
In October 2008, the company commenced a Strategic Alliance to explore for and develop deposits containing platinum group elements (PGE's) with Impala Platinum Limited, the world's second largest platinum producer. Impala Platinum has major interests in and operates six platinum mines together with a wholly-owned smelting and refining business near Johannesburg, South Africa. Impala's annual share of production is more than 1.0 million ounces of platinum, 0.8 million ounces of palladium, rhodium, ruthenium, iridium and gold (combined), and 7,000 t of nickel, with by-product copper and cobalt.
The Alliance will operate for a minimum period of two years and Impala Platinum will fund project generation work by Impact up to US$800,000. In return, Impact will have the first right to earn equity in any projects identified. Projects in which Impala Platinum elects to earn an interest will require a minimum expenditure by Impala of US$1 million before withdrawal and further expenditure of US$1 million to earn 50 per cent. Any projects generated by the Alliance which Impala Platinum does not elect to progress can be retained 100% by Impact.
Impala Platinum's recognition of Impact's technical skills in both project generation and exploration is a rewarding endorsement of, and a key part of, Impact's strategy in Africa. The Impala Platinum - Impact Minerals PGE Alliance will operate in a number of countries including Botswana, Madagascar, Malawi, Mozambique, Namibia, and Zambia.
The Alliance is managed by Mr. John Blaine, Impact's Chief Operating Officer in Africa. Mr. Blaine was Managing Director of Falconbridge Group Companies in Africa, and has led teams responsible for important discoveries of gold and diamonds, and projects with potential for nickel, copper, zinc and platinum.
During the first year of the Alliance major compilations of Government data and previous exploration data in several countries was completed together with the development of a database of known PGE (nickel-copper) deposits. Reconnaissance field programs commenced in June 2009 and data compilation is ongoing. A large number of rock samples were collected and are being assayed and studied for their geological characteristics.
Future work will focus on identifying projects for acquisition and more detailed exploration work, as well as on-going generative work.