ANNUAL REPORT 2022 ABN 52 119 062 261
Corporate Directory BOARD OF DIRECTORS Peter Unsworth Non-Executive Chairman Michael Jones Managing Director Paul Ingram Non-Executive Director Frank Bierlein Non-Executive Director COMPANY SECRETARY Bernard Crawford REGISTERED OFFICE & PRINCIPAL PLACE OF BUSINESS 26 Richardson Street West Perth, WA 6005 Telephone: +61 (8) 6454 6666 Facsimile: +61 (8) 6314 6670 Email: email@example.com Web: www.impactminerals.com.au AUDITORS Hall Chadwick WA Audit Pty Ltd 283 Rokeby Road Subiaco, WA 6008 SHARE REGISTRY Computershare Investor Services Pty Ltd Level 11, 172 St Georges Terrace Perth, WA 6000 Telephone: +61 (8) 9323 2000 Facsimile: +61 (8) 9323 2033 SECURITIES EXCHANGE LISTING The Company is listed on the Australian Securities Exchange Ltd (“ASX”) Home Exchange: Perth, Western Australia ASX Code: IPT, IPTOB
Impact Minerals Ltd Annual Report 2022 1 Impact Minerals Limited Contents 2 Chairman’s Letter 3 Overview: A Year of Transition 4 Review of Operations 33 Directors’ Report 44 Auditor’s Independence Declaration 45 Consolidated Statement of Profit or Loss and Other Comprehensive Income 46 Consolidated Statement of Financial Position 47 Consolidated Statement of Changes in Equity 48 Consolidated Statement of Cash Flows 49 Notes to the Consolidated Financial Statements 72 Directors’ Declaration 73 Independent Auditor’s Report 79 Shareholder Information 82 Tenement Schedule Impact Minerals Limited is an exploration company listed on the ASX in November 2006. The Company manages extensive tenement holdings of nearly 4,000 square kilometres 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 discovery of major mineral deposits to move towards profitable mining operations.
2 Impact Minerals Ltd Annual Report 2022 Chairman’s Letter The year to 30th June 2022 saw a significant strategic change in focus for your company from its long standing projects in eastern Australia to a new and significant portfolio of battery, precious and strategic metals projects in the emerging mineral province of south west Western Australia. Exploration during the year has focussed on this new portfolio and in particular on the flagship Arkun-Beau project centred about 200 km south east of Perth and first staked in 2020 following the discovery of the world class Julimar platinum group metal discovery in the region. First pass reconnaissance soil geochemistry surveys at Arkun-Beau have already returned a significant number of anomalies for a range of deposit styles including nickel-copper-PGM hosted by mafic rocks, lithium pegmatites as well as rare earth elements and rubidium. Follow up work will be a prime focus in the coming year and will involve negotiating numerous land access agreements with land owners. Impact also acquired three further 100% owned projects and entered into four joint ventures on very attractive terms during the year bringing the company’s total land position in Western Australia to about 4,000 sq km. Preliminary soil geochemistry traverses on all of the new projects have all returned significant anomalies for the same range of metals as Arkun and this is very encouraging. These projects will also be a focus of work in 2023. First pass drill programmes were also completed at the Hopetoun joint venture located near the mining centre of Ravensthorpe and also the previously acquired Doonia joint venture located 80 km east of Kambalda. Data including assays from these drill programmes are still being interpreted with a view to determining next steps. An integral part of the change in strategic focus has been the rationalisation of Impact’s projects in eastern Australia. As part of this process during the year Impact completed the sale of two tenements which were part of the Commonwealth project to ASX listed company Orange Minerals Limited and agreed to the sale of the Blackridge gold project in Queensland. Subsequent to the year end Impact also agreed to sell 75% of the Commonwealth Project to unlisted company Burrendong Resources Pty Ltd, subject to Burrendong listing on the ASX by mid 2023. Impact was also pleased to announce that IGO Limited, one of Australia’s leading mining and exploration companies, agreed to farm into two tenements which form a small part of the company’s significant Broken Hill project in NSW. IGO can spend up to $18 million over 8 years to earn a 75% interest in the tenements. A significant deep seated EM conductor has been identified and IGO have indicated that this will be drill tested by the end of 2022 if possible. More details on the Company’s activities and projects are set out in the Review of Operations. We are looking forward to an exciting 2023 with maiden drill programmes on a number of our new projects. Peter Unsworth Chairman
Impact Minerals Ltd Annual Report 2022 3 Overview: A Year of Transition During the Year Impact completed a strategic transition in its exploration programme from eastern Australia to Western Australia and assembled a portfolio of 10 projects covering about 4,000 square kilometres (Figure 1). All 10 projects are very poorly explored and yet have significant potential for the discovery of a wide range of battery, strategic and precious metals. Of the ten projects, five are 100% owned (Beau, Arkun, Mineral Hill, Martup Hills and Dinninup) and five are joint ventures with private groups (Jumbo, Narryer, Dalgaranga and Hopetoun which were commenced during the year, and Doonia). All contain untested geophysical and geochemical targets in emerging prospective terranes across Western Australia. Figure 1: Location of Impact’s projects in Western Australia As part of strategic transition, a rationalisation of Impact’s project portfolio in eastern Australia was continued during the year. The company sold two tenements that were part of the Commonwealth Project (EL8632 and part of EL8505) to Orange Minerals NL for $180,000 cash and 250,000 shares in Orange (ASX Release 4th February 2021). Orange listed on the Australian Stock Exchange in December 2021 (ASX:OMX) with the shares currently trading at about $0.16 per share. Impact’s shares are escrowed until October 2022. In addition Impact still holds 1,000,000 shares in Australasian Metals Limited (ASX:A8G) which it received for the sale of the Clermont gold project in Queensland at a nominal 10 cents per share. The shares, which are escrowed until April, are currently trading at about $0.30 per share. Impact also agreed to the sale of its Blackridge gold project in Queensland to an unlisted private company. The project comprises one small mining lease and three exploration licences covering about 142 sq kilometres. The terms of the sale are: 1. $30,000 cash for the outright sale of ML2386 (completed). 2. $50,000 cash as a nonrefundable option fee to purchase Impact’s 100% owned subsidiary company Blackridge Exploration Pty Ltd within two years for a further $350,000. Blackridge holds three exploration licences: EPM26806, EPM27410 and EPM27571 (completed). 3. A 1% NSR royalty for all gold produced after the first 5,000 ounces of production. In August 2022 Impact reached an agreement to sell 75% interest in the entire Commonwealth project to unrelated company Burrendong Resources Pty Ltd. Burrendong is aiming to conduct an IPO in 2023.
4 Impact Minerals Ltd Annual Report 2022 Review of Operations The Arkun Project, which covers about 1,900 square kilometres, is centred between York and Corrigin 130 km east of Perth and was staked following the significant PGM discovery at Julimar just 75 km north east of Perth by Chalice Mining Ltd (ASX:CHN) (ASX Release 29th May 2020). Impact is one of the larger ground holders in the region (Figure 1.1). During the year, 17 first pass targets for nickel-copper-PEMgold and lithium were identified by a proprietary geophysical method owned by Southern Sky Energy Pty Ltd, with input from the interpretation of regional magnetic data, surface geology maps and reconnaissance field checking and rock chip samples. This work has shown that: 1. It is likely that mafic and ultramafic rocks are more widespread than shown on the regional Geological Survey maps. 2. The mafic and ultramafic rocks contain low levels of PGE up to 25 to 30 ppb platinum+palladium+gold in rock chip samples in many places. This is encouraging as it suggests elevated background levels of these metals are widespread across the project area. 3. Most of the project area is covered by residual soils and ferricrete with limited transported cover meaning that quick assessments of target areas can be made with conventional soil geochemistry techniques. Beau Figure 1.1: Location of priority targets for follow up on Impact’s tenements. 1. ARKUN PROJECT, WA (IPT 100%) Fifteen of these targets were covered by a single line soil geochemistry traverse, each up to several kilometres long along gazetted roads and tracks with soil samples taken at 100 metre spacings along the traverses. Each traverse was long enough to extend well away from the target area into areas of “background” in order to establish the relative anomalism of the various metals in the target above background. A significant number of high priority targets for nickel-copper-platinum group metals-gold (PGM) and, for the first time, lithium-caesiumtantalum pegmatites, rare earth elements (REE) and rubidium were defined by the soil geochemistry. The overall results of the soil geochemistry survey are described below and presented as additive Z scores in the following Figures. Further details on some of the priority targets identified and the sampling and analytical techniques used can be found in ASX Release 21st September 2021 and 27th October 2021.
Impact Minerals Ltd Annual Report 2022 5 Review of Operations continued N1 N2 N3 N4 Figure 1.2: Additive Z scores for Ni-Cu-Pd-Pt-Au across the main Arkun project area. Note the large areas of anomalism in the central part of the project area. Four priority areas for follow up work are highlighted. Other areas of elevated response are also evident including the Beau target to the north. 1.1 NICKEL-COPPERPALLADIUM-PLATINUMGOLD RESULTS The results for nickel-copperpalladium-platinum and gold are shown as additive Z scores in Figure 1.2. Gold has been included because it shows a strong mathematical correlation with the other metals. It is evident that the central part of the Arkun project area stands out as being strongly anomalous in all five metals and six high priority targets and five medium priority targets have been identified as warranting follow up work. Of note is that the targets are commonly anomalous in all five metals and in particular palladium and gold (Figure 1.2). This suggests a potential relationship to sulphide mineralisation rather than being the result of elevated backgrounds of only nickel and copper related to areas of mafic rocks. This is an exceptional result and supports Impact’s original contention that the Arkun area is highly prospective for nickel-copperPGM mineralisation. The drill results are presented as additive Z score indices. Z scores are a standard statistical calculation of the number of standard deviations a raw data (assay) value is from the mean of the data. For example a Z score of 2 indicates a value 2 standard deviations above the mean. The higher the Z score, the more anomalous the data point is with respect to the dataset. Z scores are a standard method of normalising data so that statistically meaningful associations between datasets can be made. In this case the Z scores for individual metals that occur within assemblages specific to the alteration zones around a nickel-copper-PGM deposits are simply added together in order to amplify the association.
6 Impact Minerals Ltd Annual Report 2022 N2 N1 N3 N4 Figure 1.3: Priority Targets for Ni-Cu-PGM-Au shown on images of regional gravity data and regional magnetic data (bottom right). Top left: Target N1. Strongly elevated soil geochemistry responses extend over an area of at least 600 metres by 300 metres and occurring close to a significant gravity high (warmer colours). Top right: Target N2. Multiple moderate to strongly elevated soil geochemistry responses extend over several line kilometres with about six areas of interest within the one target identified and all coincident with a broad gravity high. Bottom Left: Target N3. Moderate soil responses over about 1,000 metres are coincident with a moderate gravity high. Bottom Right: Target N4. Moderate soil responses coincident with the western edge of a magnetic low (cooler colours). The magnetic low may represent a mafic intrusion with elevated nickel-copper-PGM at its base on the western side. Review of Operations continued Four priority areas, N1 to N4 were described in the ASX Release dated 21st September 2021 and are shown in (Figure 1.3). The soil anomalies all cover extensive areas and are coincident with either gravity highs or magnetic lows which together may represent mafic-ultramafic intrusions that are potential hosts for nickel-copper-PGM sulphide mineralisation.
Impact Minerals Ltd Annual Report 2022 7 Beau L1 L2 L3 Figure 1.4: Additive Z scores for Li-Cs-Ta across the main Arkun project area. Note the large areas with very elevated Z scores in the central east part of the project area and at Beau to the north. Six priority areas for follow up work are highlighted. Other areas of elevated response are also evident. Review of Operations continued 1.2 LITHIUM-CAESIUM-TANTALUM RESULTS The results for lithium-caesium-tantalum are shown as additive Z scores in Figure 1.4. The coincidence of the three metals together suggests the potential for the source of the anomalies to be lithium-caesium-tantalum (LCT) pegmatites, a key source of hard rock lithium for the emerging battery metals industry. It is evident that numerous areas across the Arkun project stand out as being strongly anomalous in all three metals and six high priority targets and at least five medium priority targets have been identified as warranting follow up work (Figure 1.4). One of the standout areas is the Beau target, the northern most priority area identified. This target was purchased by Impact in 2020 for its nickel-copper-PGM potential and modest soil responses for those metals were returned (Figure 1.2). However, there are numerous strong LCT responses in the area as well.
8 Impact Minerals Ltd Annual Report 2022 Review of Operations continued Three priority areas, L1 to L3 were described in the ASX Release dated 21st September 2021 (Figure 1.5). There has been no previous exploration for lithium at Arkun. Figure 1.5: Priority Targets for Li-Cs-Ta shown on images of regional magnetic data and regional gravity data (lower image). Top Left: Target L1. Strongly elevated soil geochemistry responses extend over many hundreds of metres of extent along the traverses. The prominent magnetic NW trending magnetic unit is a banded iron formation suggesting much of the area may be a deformed and metamorphosed greenstone belt which are hosts to major lithium deposits in Western Australia. Top Right: Target L2. Moderate soil geochemistry responses occur over several hundred metres in about four places along the traverse. The responses are centred over an ovoid feature in the magnetic data interpreted as a granite intrusion that may represent a parent intrusion to LCT pegmatites. Lower Image: Target L3. Moderate soil responses over a prominent gravity low. The low may be caused by a granite intrusion. Note this is the same traverse as Target N4 (Figure 4).
Impact Minerals Ltd Annual Report 2022 9 Review of Operations continued 1.3 RARE EARTH ELEMENT RESULTS The results for all 15 of the REE are shown as an additive Z scores in Figure 1.6. The REE comprise: lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, and lutetium. It is evident that the central part of the Arkun project area stands out as being strongly anomalous in the REE and six high priority targets and have been identified as warranting follow up work. Numerous other areas of anomalism are also present. Of note is that the targets are generally anomalous in both the light and the more valuable heavy REE (ASX Release 27th October 2021). This is a very exciting outcome for Impact and, also supports the Company’s original contention that the Arkun area is a highly prospective part of the Yilgarn Craton. Three priority areas, R1 to R3 are shown in more detail in Figure 1.8. The soil anomalies all cover extensive areas and occur within larger magnetic granites. Figure 1.6: Additive Z scores for REE across the Arkun project. Note the large areas of anomalism in the central part of the project area. Seven priority areas for follow up work are highlighted. Other areas of elevated response are also evident. R1 R2 R3
10 Impact Minerals Ltd Annual Report 2022 1.4 RUBIDIUM RESULTS The results for rubidium are shown in Figure 1.7. Numerous areas stand out as being strongly anomalous and four high priority targets have been identified for follow up work. Two of these areas, Rb1 and Rb2, are shown in more detail in Figure 1.9. Numerous other areas with anomalous rubidium results are also evident (Figure 1.7). Figure 1.7: Ionic leach results for rubidium. Four priority areas for follow up work are highlighted. Other areas of elevated response are also evident. Note that the low absolute levels of rubidium are a function of the very dilute nature of the chemical digest used in the Ionic Leach assay method. Rb1 Rb2 Review of Operations continued
Impact Minerals Ltd Annual Report 2022 11 1.5 DISCUSSION AND NEXT STEPS The results of Impact’s first ever soil geochemistry programme at Arkun have outlined a significant number of areas for follow up work for a wide range of commodities: nickel-copper-PGM; lithium LCT pegmatites; REE and rubidium. Follow-up field checking and sampling will continue with the aim of prioritising areas for more detailed soil geochemistry and ground geophysical surveys that will extend away from the roads and into the surrounding paddocks. In order to explore in the paddocks, land access agreements will be required with the relevant land owners and this process has commenced. Agreements with about 30 landholders have been signed or are in progress. Figure 1.8: Priority Targets for REE shown on images of regional magnetic data. Strongly elevated soil geochemistry responses extend over distances of many hundreds of metres and are mainly associated with the magnetic units with larger granite bodies. Review of Operations continued R1 R2 R3 R2 R1
12 Impact Minerals Ltd Annual Report 2022 Figure 1.9: Priority Targets for rubidium shown on images of regional magnetic data. Numerous areas of strongly elevated values for rubidium above background are evident. An airborne EM survey was also completed during the year over 7 priority areas in the Arkun-Beau project area at a broad line spacing of 400 metres between survey lines. Six of these areas were previously identified in proprietary geophysical data and returned strong soil geochemical responses (N1 to N6) (ASX Release 21st September 2021). One further area with a strong geophysical response but limited soil geochemistry response was also surveyed. Processing of the data will commence shortly with final data expected in late 2023. Follow up soil geochemistry surveys have also been completed on five priority areas including the Beau area. Samples were taken on a nominal 400 m by 400 m or 200 m grid spacing. Results are expected by late 2022. Rb1 Rb2 Review of Operations continued
Impact Minerals Ltd Annual Report 2022 13 The Jumbo joint venture project comprises one tenement (E70/5852) covering 360 km2 and is adjacent to Impact’s Arkun project centred about 150 km south east of Perth. The project contains many of the same geological features and extensions of the similar structures as those considered prospective at Arkun and is therefore a natural addition to Impact’s large strategic ground holding in this very under explored part of Western Australia. During the year significant high priority targets for a wide range of battery and strategic metals were identified in new soil geochemistry results from Jumbo. The soil geochemistry survey was limited to one major access road across the project area and samples were taken mostly at about 100 metre spacings at the side of the road over a distance of about 30 kilometres (Figures 2.1 to 2.4). The traverse was designed to get as close as possible to first pass geophysical anomalies identified by Impact’s joint venture partner, Southern Sky Energy Pty Ltd, using its proprietary EPR technology. The results of the soil geochemistry survey (combined with the Arkun soil results) are presented as additive Z scores in Figures 2.1 to 2.4. Figure 2.1: Additive Z scores for Ni-Cu-Pd-Pt-Au across the Jumbo-Arkun project area. Nine priority areas for follow-up work are highlighted including three new ones at Jumbo. Other areas of elevated response are also evident including the Beau target to the north. 2. JUMBO JOINT VENTURE PROJECT (IMPACT 80%) Figure 2.2: Additive Z scores for Li-Cs-Ta across the Jumbo-Arkun project area. Eight priority areas for follow up work are highlighted including two new areas at Jumbo. Other areas of elevated response are also evident throughout the project area which will also require follow-up work. Review of Operations continued
14 Impact Minerals Ltd Annual Report 2022 Figure 2.3: Additive Z scores for all REE across the Jumbo-Arkun project area. Seven priority areas for follow up work are highlighted including three new areas at Jumbo. Note that there several other areas with strong responses within the Jumbo project which will also require follow-up work. Figure 2.4: Rubidium assay values across the Jumbo-Arkun project area. The Jumbo project stands out as a very elevated area for rubidium compared to most of the Arkun project. This may reflect a higher background for rubidium in this area and therefore may be more prospective for this valuable alkali metal. New targets have been identified at Jumbo as follows: Nickel-copper-Platinum Group Elements-Gold (Figure 2.1): three new priority targets identified. The eastern most target has a significant gold-dominant response, and which covers an area of several hundred metres across trend. Lithium-caesium-tantalum (Figure 2.2): two new priority targets identified with several lower priority areas also warranting follow up. The two priority targets are at least a few hundred metres wide. Rare Earth Elements (Figure 2.3): three new priority targets identified with numerous other lower priority areas also warranting follow up. Rubidium (Figure 2.4): the entire soil geochemistry traverse stands out as being elevated in rubidium, in particular in comparison with Arkun. The large area covered by elevated REE and rubidium results suggests that the Jumbo area may be underlain by extensive areas of granitoid and pegmatite rocks that are enriched in these metals compared to Arkun. This is encouraging for future exploration. First pass follow-up field checking, and sampling will start in 2023 with the aim of prioritising areas for more detailed soil geochemistry and ground geophysics. Land access agreements will be required with relevant landowners and this process will also be commenced. Review of Operations continued
Impact Minerals Ltd Annual Report 2022 15 Figure 3.1: Geology of (left) and magnetic data (right) of the Dinninup Project showing major structures and the location of the soil geochemistry traverses. Review of Operations continued The Dinninup project comprises 4 exploration licences covering about 485 square kilometres located about 350km south west of Perth (Overview Figure; E70/5842, E70/6111, E70/6112 and E70/6113) (ASX Release 22nd April 2022). The project was brought to Impact’s attention by an unrelated private group Fiddler’s Creek Mining Company Pty Ltd. As consideration for a 100% interest in the project, Impact paid $20,000 cash to the vendor, and issued 3 million unlisted options exercisable at 2.4 cents expiring on 31 October 2025. The area is underlain by a variety of Archaean-aged granites and highgrade metamorphic rocks including gneisses that are cross-cut by numerous, mostly northwest trending faults and shear zones, as well as younger west-northwest trending Proterozoic dykes (Figure 3.1). A number of areas of interest for follow up were identified by Southern Sky Energy Pty Ltd using their proprietary EPR technology and which were close to a major access road that traverses the project area. A reconnaissance soil geochemistry survey was completed along the main access road with samples taken mostly at about 100 metre spacings at the side of the road over a distance of about 20 kilometres (Figure 3.1). 3. DINNINUP PROJECT
16 Impact Minerals Ltd Annual Report 2022 Review of Operations continued Soil Geochemistry Results The results of the soil geochemistry survey are presented as additive Z scores in Figures 3.2, 3.3 and 3.4. Further details about the soil survey and the calculation of Z Scores can be found in the ASX Release dated 22nd April 2022. Nine new targets have been identified at Dinninup as follows: Nickel-copper-Platinum Group Elements-Gold (Figure 3.2): three new priority targets identified. The easternmost target has a significant response, and which covers an area of several hundred metres across trend. This anomaly is coincident with a series of Proterozoic dykes which may be a potential host for this style of mineralisation. Lithium-caesium-tantalum (Figure 3.3): two new priority targets identified with one area covering at least several hundred metres. Rare Earth Elements (Figure 3.4): four new priority targets identified with numerous other lower priority areas also warranting follow-up. Figure 3.2: Additive Z scores for Ni-Cu-Pd-Pt-Au across the Dinninup project area. Three priority areas for follow-up work are highlighted Figure 3.3: Additive Z scores for Li-Cs-Ta across the Dinninup project area. Two priority areas for follow up work are highlighted. Ni-Cu-Pd-Pt-Au
Impact Minerals Ltd Annual Report 2022 17 Figure 3.4: Additive Z scores for all REE across the Dinninup project area. Four priority areas for follow up work are highlighted. Note that there are several other areas with strong responses which will also require follow-up work. Review of Operations continued NEXT STEPS The results of Impact’s first ever soil geochemistry programme at Dinninup, as at the Company’s other projects in the region, Arkun, Beau and Jumbo, have outlined a number of areas for follow-up work for nickel-copper-PGM mineralisation, LCT pegmatites and REE. These results further confirm the prospectivity of this poorly explored part of the emerging mineral province of south west Western Australia. First pass follow-up field checking, and sampling will commence in 2023, with the aim of prioritising areas for more detailed soil geochemistry and ground geophysics that will extend away from the roads and into the surrounding paddocks. This work will dovetail with continuing on-ground follow-up work at Arkun and Jumbo. In order to explore in the paddocks, land access agreements will be required with the relevant landowners and this process has been initiated.
18 Impact Minerals Ltd Annual Report 2022 The Hopetoun project comprises two tenements (E74/563 and E74/679) covering 75 km2 and is located just north of the town of Hopetoun, close to the Ravensthorpe mining centre (Figure 4.1). The project covers part of the Albany Fraser Mobile Belt which is considered prospective for a variety of mineral deposits. The project contains six drill ready targets for base and precious metals of which two were fully permitted for drilling. The targets were identified by Impact’s joint venture partner using the proprietary EPR technology owned by Southern Sky Energy Pty Ltd and associated soil geochemistry anomalies in limited sampling. During the year drilling programmes were completed at the Top Knotch (RC and diamond drilling) and Silverstar (diamond drilling) prospects. The Hopetoun area has received very little exploration because of a perception that much of the area is underlain by barren Proterozoic gneisses. In addition, there is extensive younger cover which has hindered previous explorers. However, a review of the regional airborne magnetic data over the area suggests that much of the gneiss terrane may be an extension of the Ravensthorpe greenstone belt to the north which contains numerous mines and deposits of lithium (Mt Cattlin mine, Allkem Limited, ASX:AKE), nickel sulphide (the dormant RAV 8 mine and associated deposits), copper-gold (including the Kundip historic mining centre, Medallion Metals Ltd ASX:MM8), zinc-lead-copper (Trilogy deposit, ASX:MM8) as well as nickel laterite (First Quantum Minerals Limited, TSX:FM). Accordingly, Impact on behalf of the joint venture has applied for a new Figure 4.1: Image of airborne magnetic data over the Ravensthorpe-Hopetoun area showing the interpreted extension of the Ravensthorpe greenstone belt south of the Jerdacuttup Fault together with the licences in the Hopetoun Joint Venture. The new licence is EL74/730. 4. HOPETOUN (Impact earning 80%) exploration licence that is underlain by the Munglinup Greiss, as well as an extension of the Ravensthorpe greenstone belt and associated Jerdacuttup Fault. This will also form part of the Hopetoun Joint Venture (Figure 4.1) At the Top Knotch copper-gold Prospect the drilling intersected a sequence of felsic gneisses and granodiorites interlayered with gabbroic to doleritic units interpreted as sills. These mafic rocks are anomalous in copper (Figure 4.2) No significant intercepts were recorded and the source of the geophysical and geochemical anomalies is unknown. A follow up detailed soil geochemistry survey was completed over the area to better refine the target and results are awaited. Review of Operations continued
Impact Minerals Ltd Annual Report 2022 19 Figure 4.2: Cross section from the Top Knotch Prospect showing the soil geochemistry responses and highlighting the sub-horizontal zones of alteration and copper which are increasing in intensity down hole. The location of the one off completed diamond drill holes is also shown. Review of Operations continued
20 Impact Minerals Ltd Annual Report 2022 At Silverstar, a 25 metre thick (true width) shear zone containing high-temperature alteration minerals with extensive potassium and silica alteration was intersected and which includes a zone up to 20 cm thick with minor disseminated chalcopyrite-pyrrhotite mineralisation in places. In addition, one narrow zone of deformed quartz veins about 25 cm thick was intersected at 190 metres down hole which contains up to 5% molybdenite together with anomalous bismuth values. (Figure 4.3). Figure 4.3: Large “slugs” of grey-blue molybdenite in a zone of fractured quartz veins with associated biotite (dark brown) and chlorite (green). Review of Operations continued The Company emphasises that these estimates are based on visual observations only and that chemical assays will be required to determine the absolute amounts of any metals present. Final assays were being interpreted at the time of this report. All of this is encouraging and follow work including drilling may be required. Soil geochemistry surveys over several other targets was also completed. The results of this work are awaited.
Impact Minerals Ltd Annual Report 2022 21 Impact’s 80% owned Doonia gold project lies 75 kilometres east of the world class St Ives gold mining centre in Western Australia and comprises one Exploration Licence E15/1790 (Figure 5.1). The Doonia project was identified during a review of the Eastern Goldfields for intrusion-hosted gold deposits in light of the recent major Hemi discovery in the Pilbara (De Grey Mining Ltd ASX:DEG). The project has been further enhanced by the recent discovery of significant gold-copper-magnetite mineralisation hosted by a magnetic porphyry intrusion at the Burns project located just 20 km west of Doonia (Lefroy Exploration Ltd (ASX:LEX)) (Figure 5.1 and ASX Release 4th March 2021). Figure 5.1: Location of the Doonia Project in the Eastern Goldfields of Western Australia. 5. DOONIA PROJECT, WA (IPT 80%) Review of Operations continued Of note, the Doonia and Burns prospects were both first identified in the same regional exploration programme by WMC Resources Limited in the 1990’s with modest gold anomalism found in both areas in broad spaced aircore drilling. However, neither area was followed up at the time. Impact has identified a previously unrecognised distinct and coherent zoned soil geochemical anomaly centred over the small magnetic anomalies which comprises a core area of gold+bismuth that is 2,500 metres long and up to 1,000 metres wide (Figure 5.2). The core area is also characterised by anomalous copper-nickel and zinc and is partly surrounded by a larger halo of arsenic+antimony. These results are interpreted to be potentially related to a gold-bismuth mineralised system associated with a differentiated mafic to felsic intrusion. The system covers a large area and is a priority drill target. The mineralisation at Burns is also characterised by a metal association of copper-gold-bismuth-arsenic (with molybdenum-silver-tellurium which were not assayed at Doonia). This is a compelling similarity. During the year a maiden reverse circulation drill programme was completed to test several soil geochemistry and geophysical targets.
22 Impact Minerals Ltd Annual Report 2022 Figure 5.2: Image of regional magnetic data over the Doonia project with warmer colours indicating more magnetic units. A large oval deepseated anomaly is centred directly under the project area above which a cluster of near surface anomalies is present and interpreted as possible magnetic intrusions. These smaller anomalies are coincident with a gold-bismuth soil geochemistry anomaly (ASX Release 17th November 2020). Review of Operations continued Logistical issues and poor ground conditions significantly impaired the drill programme and only six holes out of a planned 12 holes were completed. The results of the drill programme were being interpreted at year end. One drill hole intersected a pocket of abiogenic gas of unknown thickness and composition at about 100 metres down hole. Abiogenic gas is a common but not widely known phenomenon close to and within many gold and nickel mines as well as along major faults in the Goldfields of Western Australia. Impact is currently undertaking an assessment of the composition of the gas with respect to potential safety issues as well as the possible areal extent of the pocket and its significance.
Impact Minerals Ltd Annual Report 2022 23 Impact has one of the largest ground holdings surrounding the world class Broken Hill mine in New South Wales (Figure 6.1) During the year Impact announced that IGO Newsearch Pty Ltd, a 100% owned subsidiary of IGO Limited (ASX:IGO) had agreed to farm into the Company’s Broken Hill nickelcopper-platinum group metals (PGM) prospects in New South Wales. Previous work by Impact had established that a large amount of deep drilling will be required to further explore the exciting nickelcopper-PGM prospects generated at Broken Hill and therefore it was appropriate that a well-funded partner with excellent credentials was brought in to help fund what could be quite significant expenditures going forward. Impact is pleased to have the joint venture with IGO, one of Australia’s most outstanding exploration and mining companies. The principal terms of the deal, which applies only to EL7390 and EL8234, two of the 11 tenements that comprise Impact’s holdings around Broken Hill (Figure 6.1) are: 1. I GO can spend $6 million over four years to earn a 51% interest in the project (Stage 1 earn in). An unincorporated joint venture between IGO and Impact will be formed at this time. 2. I GO can spend a further $12 million over a further four years to earn a 75% interest in the project (Stage 2 earn in). 3. A fter Stage 2 is complete, the parties can elect to contribute pro-rata or dilute. If one party’s interest dilutes to less than 10% then its interest will convert to a 1% Net Smelter Royalty. 4. I f, after completing Stage 1, IGO elects not to proceed to Stage 2 or, during Stage 2 does not meet its expenditure requirements, IGO will revert to a 49% interest in the project giving Impact a majority 51% interest. 5. A minimum expenditure of $500,000 in the first year is required. IGO can withdraw prior to the minimum expenditure being reached by paying the lesser amount of either the balance of unspent minimum expenditure or $200,000. IGO have completed a detailed ground electromagnetic (EM) geophysical survey using a deep penetrating SQUID system over the entire joint venture area including the Moorkai Trend and the Little Broken Hill Gabbro (Figure 6.1 and 6.2). The Moorkai Trend is a nine kilometre long ultramafic to mafic dyke and chonolith complex that is very poorly explored. Drilling by Impact at the southern end of the Trend has returned high grades of nickel-copper-PGM’s in the Platinum Springs area in a channel-like structure at the base of the ultramafic unit (ASX Release Figure 6.1: Impact’s ground holdings around Broken Hill. EL7390 (blue) and EL8234 (green) are highlighted. 6. BROKEN HILL PROJECT Review of Operations continued
24 Impact Minerals Ltd Annual Report 2022 9th March 2021). There has been no drilling of significance along the rest of the Trend. At the Little Broken Hill Gabbro, Impact completed the first ever drill programme across the seven-kilometre-long intrusion and identified numerous areas of highly anomalous nickel, copper and/or PGM’s in the basal unit to the intrusion over several kilometres of trend (ASX Release 15th April 2021). Extensive further deep drilling is required at both prospects and the initial work by IGO was aimed at identifying specific and large EM targets that may represent targets for high grade massive sulphide deposits. Figure 6.2: Location of newly identified EM plate in relation to the 9 km long Moorkai Trend with previous rock chip and drill results (pre-Impact work). The farm-in applies only to two tenements, EL7390 and EL8234, of Impact’s extensive tenement holdings at Broken Hill (Figure 6.1). The remaining tenements, which are all 100% owned by Impact, are considered by Impact to be one of the most under explored parts of Australia given the long history of mining at the nearby Broken Hill deposit itself. There has been limited exploration for the best part of 30 years in the area and there is significant potential on this ground for the discovery of major deposits of silver-leadzinc and in particular copper. The company is considering its options for progressing exploration on these tenements. Results of the EM Survey One significant electromagnetic (EM) conductor has been identified by IGO at the southern end of the Moorkai Trend (Figure 6.2). The new EM conductor has been modelled to have a high conductance of about 8,000 siemens and with the top edge of the modelled EM plate centred at a depth of about 350 metres below surface. It has a length of about 420 metres and extends for at least 85 metres down dip moderately to the south. The conductor is considered prospective for massive sulphide mineralisation based on its discrete dimensions and modelled high conductance. It is a priority target for follow-up work and IGO plan to drill the conductor by the end of 2022. Review of Operations continued
Impact Minerals Ltd Annual Report 2022 25 Figure 6.4: 1VD mag image showing location of new EM plate in relation to the Moorkai intrusive trend with interpreted feeder zone. Figure 6.3: High grade massive sulphide from PSD02. The sulphide has a conductance in excess of 5,000 siemens and similar to that modelled for the new conductor. Review of Operations continued The EM plate is located approximately 1,000 metres southeast along strike from the main Platinum Springs Prospect where previous drilling by Impact returned a narrow intercept of high-grade massive sulphide mineralisation in PSD002 (Figure 6.1 and ASX Release 23rd February 2016) that returned: 0.6 metres at 11.5 g/t platinum, 25.6 g/t palladium, 1.4 g/t gold, 7.6% copper, 7.4% nickel, 44.3 g/t silver, 0.16% cobalt, 1.3 g/t rhodium, 1.7 g/t iridium, 2.0 g/t osmium and 0.8 g/t ruthenium from 57.1 metres down hole (Figure 6.2). A down hole EM survey of PSD002 indicated the massive sulphide had a high conductance greater than 5,000 siemens and similar to that modelled for the new conductor (Figure 6.3). 6.2 ABOUT THE PLATINUM SPRINGS PROSPECT AND MOORKAI TREND The Platinum Springs Prospect lies at the southern end of the Moorkai Trend, a nine kilometre long ultramafic to mafic dyke and chonolith complex that is very poorly explored (Figures 6.1 and 6.2). Although high grade rock chips occur along the entire Trend, only the southern end has been explored in detail but with limited success prior to Impact’s work in the area. This is because the mineralisation appeared to be discontinuous and erratic and the controls on its distribution were poorly understood. Work by Impact, including extensive drilling, identified high grades of nickel-copper-PGM’s in a channel-like structure at the base of the ultramafic unit and which has yet to be followed up (ASX Release 9th March 2021). The channel-like structure was identified in close-spaced drilling using Impact’s proprietary ratio for PGM mineralisation and was the first coherent zone of mineralisation defined in the area in over 30 years of exploration. This work has led to a new geological framework within which to understand the Moorkai Trend (ASX Release 9th March 2021). The EM conductor is located within a major structure to the southeast of the main outcrops of the Moorkai intrusive complex (Figures 6.2 and 6.4). It is possible that the Moorkai Trend formed in a large (now folded) perpendicular structure between two major shear zone structures which bound the intrusive complex (Figure 6.2 and 6.4). These shear zones may be feeder zones to the Moorkai Trend and also raise the possibility that the Trend continues to the south to southeast where similar strongly magnetic rocks occur under thin cover (Figure 6.4).
26 Impact Minerals Ltd Annual Report 2022 6.3 THE IMPORTANCE OF FEEDER ZONES Recently published scientific work, and by the CSIRO in particular, has shown that many chonoliths and other steeply dipping mafic-ultramafic intrusions that host significant massive sulphide deposits, commonly have mineralisation within conduits that act as feeder zones to the entire intrusive complex. These feeder zones are priority target areas because the research work has also shown that within intrusions with strong vertical magma flow, massive sulphides are often deposited as the magma slows its ascent and drains back down into the main conduit. This “back flow” can cause deposition of massive sulphides in the feeder zone as proposed in a very elegant model for chonolith development developed by Professor Steve Barnes and co-workers at CSIRO (Figure 6.5). Impact has been using this model to help drive its exploration programme at Broken Hill (ASX Release 21st January 2021). Accordingly, the Company views the new conductor identified by IGO as a compelling target. Review of Operations continued Figure 6.5: Model for the formation of nickel-copper-PGM deposits within evolving magma conduits including chonoliths. Note the massive sulphide within the feeder zones/conduit necks (from Barnes, S.J. et al. Ore Geology Reviews Volume 76, July 2016, Pages 296-316)
Impact Minerals Ltd Annual Report 2022 27 Review of Operations continued During the year a programme of 17 reverse circulation drill holes were completed at the Apsley porphyry copper-gold prospect, part of the Company’s 100% owned Commonwealth project in the Lachlan copper-gold province in New South Wales (ASX Release 23rd August 2021 and Figure 7.1). The prospect lies about 15 km south of the recent significant Boda-Kaiser porphy copper discovery (Alkane Resources Ltd ASX:ALK). The drill holes, which are the first ever holes to be drilled at Apsley, tested a number of specific coincident IP geophysical and soil geochemistry anomalies at widely spaced reconnaissance intervals (ASX Releases 10th August 2020, 16th February 2021, 12th March 2021, 16th April 2021 and 23rd August 2021). A very large halo of copper was defined which is interpreted to possibly be part of the outer zone of a large alteration system around an alkaline porphyry copper-gold deposit similar to the Ridgeway deposit (155 Mt at 0.73 g/t gold and 0.38% copper Newcrest Mining Limited (ASX: NCM)) 100 km south of Apsley and hosted by rocks of the same age and geochemistry as at Apsley. The halo is defined by copper values of more than 100 ppm copper in continuous zones up to nearly 250 metres thick and potentially extending over an area of at least 1,000 metres by 1,000 metres in size (Figure 7.2). There are numerous thinner zones up to about 80 metres thick that contain between 200 ppm and 250 ppm copper and these include one to four metre thick zones of higher grades of up to 4,700 ppm copper related to zones of narrow quartz-sulphide veins. The halo also contains widespread low-level molybdenum (Figure 7.2). Figure 7.1: Location and geology of Impacts Commonwealth Project in NSW. 7. COMMONWEALTH PROJECT, NSW (IPT 100%) The halo constitutes a significant inventory of copper and very recently published scientific work about the Ridgeway deposit has shown that similar grades of copper up to 200 ppm define a halo that extends only 200 metres to 300 metres away from the high grade core of the deposit (Figure 7.3). From a presentation by Prof. D Cooke, Centre for Ore Deposit and Earth Science (“CODES”) at UTAS at geohug.rocks The size of the halo is also very significant given the reconnaissance nature of the drill programme which was done at very broad spacings
28 Impact Minerals Ltd Annual Report 2022 Figure 7.2: View looking South of the copper halo (red bubbles >100 ppm copper, green bubbles >200 ppm copper) with an associated molybdenum halo (>2 ppm molybdenum). Thick intercepts of low to modest grade copper occur over an area of at least about one square kilometre. Figure 7.3: Summary of the geology and copper values around the Ridgeway deposit located near Orange in NSW. Note the very low levels of copper present in so called “unremarkable” altered rocks even as close as 200 metres to 300 metres away from the high grade core (RHS of Figure). Distinctive alteration halos only occur within 10’s of metres thick around high grade zones. The cross section shows a deposit would be easily missed unless the drill spacing was about 200 metres between holes. of many hundreds of metres between most drill holes (Figure 7.2). The Ridgeway deposit, which lies 400 metres below surface, was not discovered until the drill density was at a spacing of 200 metres by 200 metres between drill holes (Figure 7.3). Accordingly there is plenty of scope to find a Ridgeway sized deposit within the copper halo at Apsley. Three Areas For Follow Up Work Identified Within the large copper halo three broad areas for follow up work (T1, T2 and T3: Figure 7.4) have been identified based on zonation patterns in pathfinder and commodity metal assemblages which are being increasingly used as vectors towards ore in exploration for porphyry copper-gold deposits (ASX Release 10th August 2020). Review of Operations continued
Impact Minerals Ltd Annual Report 2022 29 Figure 7.4: Maps showing the down hole traces of drill holes showing metal assemblages for copper-gold (Cu-Au core) and molybdenum-tungsten-tin (Mo-W-Sn upper phyllic zone) at Apsley. Three target areas for follow up work have been identified (T1, T2 and T3). At Apsley, metal assemblages typical of the core (Cu-Au) and the so-called upper phyllic zone (W, Sn, Bi) which lies directly above the core of many porphyry copper-gold deposits, can be readily identified in the drilling data and help define the areas for follow up work. Follow up area T1, is a zone of overlap between the core assemblage and the upper phyllic zone assemblage in the north west of the halo. Area T2 is a large zone defined mainly by the upper phyllic zone and strong alteration present in Hole APIPT001 in the centre of the halo. Area T3 may represent a target at depth in the south east corner of the halo (Figure 7.4). However, the widespread nature of the drilling and also the low levels of copper and in particular gold reported are insufficient at this stage to provide more definitive vectors to ore. This interpretation of the zonation at Apsley is based on a widely used model for the levels of metals present around porphyry copper-gold deposits NEXT STEPS The Apsley target was drilled because of the strong combined geophysical and geochemical anomalies. The results, whilst very encouraging are not as definitive as required for immediate follow up drilling. Further drilling is required, possibly to some depth, in several areas. However, further studies on the nature and composition of the alteration minerals are required first in order to determine further vectors to ore. During the year Impact received several unsolicited approaches to evaluate the Commonwealth project. In August 2022 Impact reached an agreement to sell a 75% interest in the project to unrelated company Burrendong Resources Pty Ltd. Burrendong is aiming to conduct an IPO in 2023. Review of Operations continued
30 Impact Minerals Ltd Annual Report 2022 At Apsley, metal assemblages typical of the core (Cu-Au) and the so-called upper phyllic zone (W, Sn, Bi) which lies directly above the core of many porphyry copper-gold deposits, can be readily identified in the drilling data and help define the areas for follow up work. Follow up area T1, is a zone of overlap between the core assemblage and the upper phyllic zone assemblage in the north west of the halo. Area T2 is a large zone defined mainly by the upper phyllic zone and strong alteration present in Hole APIPT001 in the centre of the halo. Area T3 may represent a target at depth in the south east corner of the halo (Figure 7.4). However, the widespread nature of the drilling and also the low levels of copper and in particular gold reported are insufficient at this stage to provide more definitive vectors to ore. This interpretation of the zonation at Apsley is based on a widely used model for the levels of metals present around porphyry copper-gold deposits NEXT STEPS The Apsley target was drilled because of the strong combined geophysical and geochemical anomalies. The results, whilst very encouraging are not as definitive as required for immediate follow up drilling. Further drilling is required, possibly to some depth, in several areas. However, further studies on the nature and composition of the alteration minerals are required first in order to determine further vectors to ore. During the year Impact received several unsolicited approaches to evaluate the Commonwealth project. In August 2022 Impact reached an agreement to sell a 75% interest in the project to unrelated company Burrendong Resources Pty Ltd. Burrendong is aiming to conduct an IPO in 2023. COMMONWEALTH AND SILICA HILL DEPOSITS The focus on porphyry copper exploration during the year lead to no work being done at the Commonwealth and Silica Hill deposits where Mineral Resources containing 88,800 ounces of gold and 3.3 million ounces of silver have been defined (ASX Release August 22nd 2019). The Mineral Resources were prepared in accordance with the JORC 2012 Code by independent resource consultants Optiro and are stated in the tables below. The Inferred Resource for the Commonwealth deposit at a cut-off of 0.5 g/t gold is: COMMONWEALTH (MAIN SHAFT TO COMMONWEALTH SOUTH) Resource Classification Cut-off 0.5 g/t gold Tonnes Gold (g/t) Contained gold (oz) Silver (g/t) Contained silver (oz) Zinc (%) Lead (%) Copper (%) 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 a high grade massive sulphide lens at Main Shaft alone to demonstrate the high grade nature of such deposits which are the principal target for Impact’s exploration programme. The Main Shaft Inferred Resource is: MAIN SHAFT MASSSIVE SULPHIDE LENS Resource Classification Cut-off 0.5 g/t gold Tonnes Gold (g/t) Contained gold (oz) Silver (g/t) Contained silver (oz) Zinc (%) Lead (%) Copper (%) Inferred 142,000 4.5 20,600 161 737,500 4.6 1.7 0.2 Review of Operations continued