Impact teams-up with Castillo, Squadron to drive Broken Hill exploration
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Special Report: Impact has formed an alliance with Squadron Resources and Castillo Copper that could maximise the potential of its Broken Hill tenements.
While focused primarily on the palladium-platinum group metal (PGM) potential of its Broken Hill tenements in New South Wales, Impact Minerals’ (ASX:IPT) ground also holds substantial potential for other metals.
To maximise the potential of its ground, the company has reached a non-binding memorandum of understanding with Castillo Copper (ASX:CCZ) and Andrew Forrest’s Squadron Resources, which is also a major shareholder of Impact.
Under the agreement, Impact will contribute the rights to Broken Hill-style silver-lead-zinc mineralisation to the alliance while retaining the rights to the PGMs as well as associated nickel-copper and other precious metals.
During the initial six-month term, Castillo will market the contributed rights and ground holdings on behalf of the alliance to potential strategic partners.
Should a suitable partner be found, the alliance will form a special purpose vehicle that will acquire the relevant tenements and metal rights from the three companies in return for equal shareholdings in the new company.
Impact, which recently raised $2.1m through an oversubscribed placement, is preparing to carry new drilling for PGM mineralisation at the Red Hill, Platinum Springs and Little Broken Hill targets within its Broken Hill project.
Previous drilling on these targets had returned some very high-grade results including a top intersection of 1.2m at 254 grams per tonne (g/t) — or about 9.5 ounces per tonne — palladium, 10.4g/t platinum, 10.9g/t gold, 7.4 per cent nickel, 1.8 per cent copper, 4.6g/t rhodium, 7.2g/t iridium, 5.6g/t osmium and 3.1g/t ruthenium at Red Hill.
“As we move towards the follow-up drill campaign it is important that we focus our exploration funds on the platinum group metals and therefore we are delighted to have signed this MOU with Castillo Copper and our major shareholder Squadron Resources Limited who also have tenements in the area, to search for a strategic partner for the non-PGM and associated metal rights on our ground holding,” managing director Dr Mike Jones said.
“The Broken Hill region is highly prospective for silver-lead-zinc mineralisation and it is only appropriate that we look for partners to help maximise the potential of our large strategic ground holding there. We look forward to working with the alliance to achieve this goal.”