Worth Watching – Impact Minerals Ltd (ASX: IPT)
The company has 1,778 million shares on issue and a market cap of $39.1M at $0.022/share. The largest shareholders are a group of German investors with around 22% of the company, directors hold around 3%.
The directors are: Peter Unsworth, Chairman, Mike Jones, MD, Paul Ingram and Markus Elsasser. Mike and Paul are geologists, Peter has a background in corporate finance and stockbroking, and Marcus has a background in finance and investment and represents the German investors.
The company has around $1.5M in cash and no debt.
Impact has two principal projects, both in NSW; the Broken Hill Project and the Commonwealth Project. The company also holds two less advanced projects in WA; the Arkun Project and the Doonia Project. All four projects will be discussed below. The company also holds the Black Ridge gold project, which it is looking to JV or divest.
Broken Hill Project
Impact holds most of a mafic-ultramafic belt to the west of the Broken Hill Line of Lode. The belt is over 40-km long and is prospective for nickel-copper-gold and PGE’s. During the latter part of 2020 five prospects were drilled: Little Broken Hill Gabbro, Rockwell, Platinum Springs, Red Hill and Dora. Not all assays have been received. Read more about PGE’s here and here.
The ultramafic basal unit of the Little Broken Hill gabbro has been tested for the first time at Rockwell. All holes for which assays have been received intersected substantial widths of Ni, Cu and PGE, although of modest grade, such as 61m @0.4g/t 3PGE. But most intersections include narrow intervals of significant grade. The interval above includes 1m @ 2.3g/t 3PGE (platinum, palladium, gold), 0.4% Ni, 0.3% Cu.
Grades are improving to the south and at depth. There is an excellent opportunity to discover economic mineralisation.
Several channels hosting PGE’s have been discovered at Platinum Springs. Intervals are typically narrow but of significant grade. Two intersections are detailed in the table below. This table shows the in situ value of the intersections. They are very high and, subject to positive metallurgical and other testwork, could well be economic.
Red Hill is a mafic-ultramafic intrusion with a well-developed chilled margin. That is, the edge of the intrusion that cooled very quickly after emplacement. The margin is almost entirely mineralised with a best result of 138m @ 0.3g/t 3PGE, including 12m @ 1.5g/t 3PGE, 0.3% Ni, 0.2% Cu. This bodes extremely well for the potential for economic mineralisation at depth.
There are five priority copper-gold porphyry targets at the Commonwealth Project, located in the Lachlan Fold Belt of NSW. The project also hosts 3 small (<1mt) gold-silver +/- zinc, lead, copper deposits, all open at depth and along strike. These deposits are thought to be VMS style related to the upper parts of a porphyry system.
Of the porphyry targets the most advanced is Apsley. It has exceptional geological, geochemical and geophysical characteristics typical of large porphyry systems, as well as significant copper and silver values at surface.
It is a comparable setting to Alkane’s Boda deposit to the immediate north of Impact’s ground. The discovery hole at Boda was 502m @ 0.48g/t Au, 0.2% Cu from 211 metres, announced in September 2019.
Arkun & Doonia
The Arkun project is in a similar geological setting to Chalice’s Julimar project to the northeast of Perth. The discovery hole intersected 19m @ 8.4g/t Pd, 1.1g/t Pt, 2.6% Ni, 1.0% Cu, 0.14% Co in early 2020. The area is extensively pegged, and Impact is almost entirely surrounded by Anglo American. The Doonia project, east of Kambalda, has walk up gold drill targets that are expected to be drilled in Q3.
Impact has two high potential projects in Broken Hill and Commonwealth. Commonwealth will be drilled in the next few weeks and Broken Hill by around May. Meanwhile there are still results awaited from last year’s drilling.
Keep a watch on IPT as success at either Broken Hill or Commonwealth will see a substantial re-rating.
My “Worth Watching” series is a brief review of companies that appeal to me. The reviews are not based on in-depth research and are in no way a recommendation to buy or sell shares. The reader is advised to do their own research and/or consult with their broker. Market Capital Group holds shares in IPT.
In Situ Value of two Platinum Springs intersections (prices early February)
|Metal||Grade % and g/t||Grade % and g/t||Price/t & price/oz USD||Price USD/g||Value||Value|