Impact Minerals (ASX:IPT) has announced a significant expansion of its landholding in the Broken Hill region of New South Wales, acquiring a 675 sq km tenement package from New Frontier Minerals (ASX:NFM). This acquisition nearly surrounds the Broken Hill mine and positions Impact as one of the largest ground holders in the area, now controlling 1,770 sq km. The move builds upon research conducted during Impact’s participation in the BHP Xplor program, which focused on the region’s copper potential. Impact’s exploration model suggests a large copper deposit exists below the silver-lead-zinc mineralization that has historically dominated exploration efforts.
Impact’s interest in copper arose from discoveries at the Dora East prospect, where high-grade silver-lead-zinc mineralization was found alongside copper-silver. Research indicated a different origin for the copper, prompting a deeper investigation into the region’s copper potential. The BHP Xplor program facilitated detailed mapping and sampling of 99 gabbro sills, confirming the copper potential and identifying new exploration targets within the Broken Hill sequence.
The Xplor program results suggest that gabbro sills have played a significant role in the Broken Hill mineralization. Copper depletion at the top of the system could indicate that the copper may have concentrated deeper in the sequence below the Broken Hill deposit. Impact interprets the rock chip data and field evidence to indicate there is potential for a larger copper deposit in the region. Impact’s immediate focus remains on the Lake Hope High Purity Alumina project, but some funds from the current rights issue will be allocated to developing priority copper targets for drilling. Ground geophysics will be conducted over a newly identified sub-basin within the acquired ground to help identify drill targets.
The acquisition terms involve Impact purchasing BHA No 1 Pty Ltd, a subsidiary of NFM, for $275,000 in Impact shares, subject to a staged voluntary escrow over six months. This strategic move solidifies Impact’s position in a region experiencing renewed exploration interest, driven by increasing silver prices and demand for zinc and lead.
