Impact Minerals Limited Annual Report 2020

Impact Minerals Ltd Annual Report 2020 33 Directors’ Report Your Directors present their report on the consolidated entity consisting of Impact Minerals Limited (“the Company”) and its subsidiaries (“the Group” or “the Consolidated Entity”) and its subsidiaries at the end of the year ended 30 June 2020. DIRECTORS The following persons were Directors of Impact Minerals Limited during the whole of the financial year and up to the date of this report unless noted otherwise: – Peter Unsworth, Non-Executive Chairman – Michael Jones, Managing Director – Paul Ingram, Non-Executive Director – Markus Elsasser, Non-Executive Director – Eamon Hannon, Non-Executive Director (resigned 10 September 2019) PRINCIPAL ACTIVITIES The principal activity of the Group during the financial year was exploration for deposits of nickel, gold, copper and platinum group elements. FINANCIAL RESULTS The consolidated loss of the Group after providing for income tax for the year ended 30 June 2020 was $1,685,165 (2019: $7,293,169). DIVIDENDS No dividends have been paid or declared since the start of the financial year. No recommendation for the payment of a dividend has been made by the Directors. OPERATIONS AND FINANCIAL REVIEW During the year Impact has expanded and progressed exploration across its portfolio of five projects. At the 903 km 2 Commonwealth Project in the prolific copper-gold province of the Lachlan Fold Belt in NSW, the significant exploration potential for large intrusive-related copper-gold deposits was confirmed and enhanced following the discovery of the Boda-Kaiser copper-gold deposit by Alkane Resources Limited (ASX:ALK). Boda lies 3 km along trend from Impact’s tenements. Impact has identified five priority prospects for similar mineralisation with rock chip samples from all five returning encouraging results. Work is now focussed on identifying specific drill targets on the priority Apsley target. In addition, an increase in resources at the Commonwealth gold-silver-zinc-lead deposit and a maiden resource for the nearby Silica Hill deposit were also released. These deposits are now being reviewed for further exploration as they are open at depth below high grade drill intercepts. A review of the 816 km 2 Broken Hill nickel-copper-platinum group metal project in the light of record palladium prices and significant increases in the prices of all precious metals highlighted the potential for high grade massive sulphide deposits at three targets. Drilling is now in progress at all three areas. At the Blackridge gold project in central Queensland Impact has increased its ground holding to establish itself as the largest ground holder in the historic Micelere-Blackridge gold field. Discussions are in progress to attempt trial mining at the project which is characterised by nuggetty gold that is difficult to effectively drill out. At the nearby Clermont gold project, a review of previous high grade drill intercepts has identified a 2 km long target area that requires follow up drilling. A new 100% owned project, Arkun, located 120 km east of Perth was secured during the year. The project covers 1,900 km 2 of the along trend extension of deformed equivalents of the host rocks at the Julimar nickel-copper-PGE discovery of Chalice Gold Mines Limited (ASX:CHN). Anglo American plc, one of the world’s top 10 mining companies, staked a vast ground holding of about 10,000 km 2 around the Arkun project on the day of Impact’s first announcement on Arkun. It is evident that this part of WA is an emerging exploration hotspot and Impact now controls a significant ground holding there. The tenements are due for grant in late 2020 and on-ground work will commence immediately afterwards.