Nickel Projects

Junction South Project

The Junction South Project is located 45 kilometres south east of the major gold and nickel mining camp of Kambalda in Western Australia. The tenements are in joint venture with Liontown Resources Ltd, who have the right to earn 60% of the mineral rights.

The area comprises 16 square kilometres of tenements wholly owned by Impact. The geological setting and potential host rocks and structures are analogous to those that host the major nickel and gold deposits in the Kambalda region.

Exploration by previous companies has focussed on gold, and has returned broad intersects of low grade gold mineralisation in silica-chlorite-pyrite altered dolerites similar to the host rocks to ore at the St Ives Mining Centre, that has produced more than 10 million ounces of gold. Intersects include 12 m at 0.8 g/t gold and 17 m at 0.4 g/t gold. In addition intersects of 4 m at 7.5 g/t and 4 m at 4.6 g/t (from 40 m and 50 m depth respectively) warrant follow up. There are four large areas with anomalous gold-in soil and gold in RAB and RC drill holes that have not been followed up.

The ultramafic rocks in the tenements are interpreted to be structural repetitions of the rock units that host the nickel deposits at the Schmitz and Lanfranchi Mines about 15 kilometres to the north west, within north west trending structures. Previous exploration at Junction South in the 1990's identified numerous ground electromagnetic (EM) anomalies that are coincident with nickel-cobalt soil geochemistry anomalies and with possible host structures evident in the interpretation of the magnetic data. In early 2006 Equinox carried out a detailed ground EM survey using more sophisticated equipment compared to that which was available in the 1990's. This survey has identifi ed a major EM anomaly that is about 2,000 m long and that is parallel to major north west trending structures in the bedrock.

Such an anomaly is of a magnitude equivalent to several of the very large nickel orebodies that have been mined at Kambalda. It is planned to drill this anomaly in mid 2007.