Impact Minerals Set for Phase 2 Drilling at Commonwealth Gold-Silver Project

Impact Minerals (ASX: IPT) is set to benefit from a new phase of diamond drilling at its Commonwealth-Silica Hill gold-silver project in central New South Wales, where joint venture partner Kuniko (ASX: KNI) has mobilised a rig to site.

The initial Phase 2 program will comprise approximately 1,340 metres across six holes targeting extensions to the high-grade mineralisation identified during the successful first campaign.

Impact retains a 30% interest in the project, free-carried to a decision to mine, while Kuniko can earn up to 70% by spending $3 million on exploration over four years.

The new drilling will also support an upgraded mineral resource estimate planned for the fourth quarter of 2026.

Silica Hill Targeted

Phase 2 will focus strongly on the new Silica Hill discovery, located approximately 100m beyond the existing resource envelope and open in all directions.

The first campaign intersected a broad 84m zone grading 2.6 grams per tonne gold equivalent, including 3.4m at 50g/t gold equivalent and a bonanza-grade 0.5m vein grading 347g/t gold equivalent, comprising 27g/t gold and 20,603g/t silver.

Impact considers the discovery an important step-out beneath the existing deposit that could materially expand the known mineralised footprint.

The program will also test down-plunge and down-dip extensions at the Commonwealth Main Shaft and Commonwealth South zones.

Phase 1 returned 8m at 8.6g/t gold equivalent from the Main Shaft area including 3.8m at 17.4g/t gold equivalent, while Commonwealth South produced 7.1m at 9.7g/t gold equivalent including a higher-grade core of 3.1m at 21.6g/t gold equivalent.

All six holes completed during the first campaign intersected mineralisation, confirming extensions across the three principal target areas.

Regional Upside Emerging

Impact’s exposure extends beyond the existing Commonwealth and Silica Hill deposits, with a regional targeting review examining a 4km conductive corridor around the project.

Independent consultants Resource Potentials are integrating MobileMT geophysics with historical geological, gravity and geochemical datasets to refine existing prospects and identify additional targets.

The review includes areas around the historical Walls and Stringers shafts, both located within 1km of the main project.

Walls has returned historical results of up to 2.9g/t gold and 144g/t silver from shallow drilling, while Stringers contains old mine workings but has never been drill tested.

Resource Upgrade Planned

Impact has previously defined inferred mineral resources at both Commonwealth and Silica Hill, which sit approximately 200m apart within the broader mineral system.

Results from Phase 2 will be incorporated into a planned resource update expected in the December quarter, followed by planning for a third drilling phase.

Kuniko can earn an initial 51% project interest by spending $1.5m within two years and increase that interest to 70% through a further $1.5m expenditure over the following two years.

Impact will retain its remaining 30% interest on a free-carried basis through to a decision to mine, at which stage Impact may elect to contribute to development expenditure or dilute to a 10% interest and receive a 2% net smelter return royalty.

Considerably Larger System

Managing director Dr Michael Jones said the second campaign would test Impact’s long-held view that Commonwealth and Silica Hill form part of a considerably larger mineralised system.

“We are pleased to see Kuniko accelerating exploration drilling at Commonwealth following the successful Phase 1 program that identified significant step-outs to mineralisation, particularly at Silica Hill,” Dr Jones said.

“The very high-grade vein discovered there has opened a new area for drilling below the existing deposit, and is a key target for the Phase 2 program commencing early July.”

“With Impact holding a 30% free-carried interest to a Decision to Mine, there is significant upside for shareholders.”

“This validates our strategy of unlocking value in our exploration assets as we advance the Lake Hope high purity alumina (HPA) project and our investment in the Alluminous HPA processing technology."