Impact Minerals Welcomes IGO to Broken Hill

THE BOURSE WHISPERER: Impact Minerals (ASX: IPT) has welcomed as a farm-in partner to the company’s Broken Hill nickel-copper-platinum group metals (PGM) project in New South Wales.

Impact Minerals will be dealing with IGO subsidiary company IGO Newsearch on just two tenements, EL7390 and EL8234, of Impact’s extensive tenement holdings at Broken Hill.

Impact considers the remaining tenements, which it owns 100 per cent, to be one of the most under-explored parts of Australia given the long history of mining at the nearby Broken Hill deposit itself.

Under the deal, IGO can spend $18 million over eight years to earn a 75 per cent interest in EL7390 and EL8234 in two stages: $6 million to earn a 51 per cent interest and a further $12 million to earn a further 24 per cent interest.

The farm-in and Joint Venture at Broken Hill will allow Impact to further increase its focus on its Western Australian projects, Arkun and in particular Doonia.

“We are extremely pleased to announce this joint venture with IGO, one of Australia’s most outstanding exploration and mining companies,” Impact Minerals managing director Dr Mike Jones said in the company’s ASX announcement.

“We had a number of approaches from major companies for a joint venture after our last major drill campaign at Broken Hill but chose IGO because of their technical capacity, in particular their deep penetrating EM systems capability and experience, and also the way they have approached our negotiations.

“We have established that a large amount of deep drilling will be required to further explore the exciting prospects we have generated at the project and it is appropriate that a well-funded partner with excellent credentials is brought in to help fund what could be quite significant expenditures going forward.

“The joint venture will also allow us to further increase our focus on our Western Australian projects where we have now secured a drill rig for our Doonia gold project and hope to be up and running by early December.

“In addition, we are increasingly excited about the lithium, rare earth and nickel-copper-PGM targets we identified recently at our Arkun project which is rapidly becoming a very significant project for Impact in a very under-explored part of Western Australia.”