Broken Hill Back on the Map for Impact Minerals

Key Concepts

• Broken Hill Deposit: A world-class sulfide mineralization deposit in Australia, historically producing approximately 500 million tons over 142 years.
• Impact Minerals: A company with a long-standing relationship with the Broken Hill area, actively exploring for various commodities.
• Platinum Group Elements (PGEs): Precious metals including platinum and palladium, a focus of Impact Minerals' exploration.
• Silver-Lead-Zinc Mineralization: A style of mineralization similar to that found at Broken Hill, also targeted by Impact Minerals.
• BHP Explore Program: A globally significant program in 2023 where Impact Minerals was selected to search for new copper models in Broken Hill.
• Ground Magnetoics Survey (MT Survey): A geophysical survey used to detect subsurface anomalies, employed by Impact Minerals at Broken Hill.
• Lake Hope Project: Impact Minerals' flagship project, focused on high-purity alumina (HPA) and potash as a byproduct.
• High-Purity Alumina (HPA): A specialized form of alumina used in various high-tech applications.
• CRCP Program: A federal government grant program supporting research and development, under which Impact Minerals is developing a pilot plant for Lake Hope.
• Aluminus: An investment company where Impact Minerals has a stake, also developing an HPA pilot plant.

Impact Minerals' Exploration and Development Strategy

Broken Hill Focus

Impact Minerals has a significant and long-standing presence in the Broken Hill region, an area renowned for its world-class sulfide mineralization. The Broken Hill deposit itself has yielded approximately 500 million tons of mineralization over an uninterrupted mining history of about 142 years. While discoveries outside of this main deposit have been limited, Impact Minerals has been actively exploring for high-grade platinum and palladium, as well as silver-lead-zinc mineralization, mirroring the style found at Broken Hill.

Key Activities and Developments at Broken Hill:

• BHP Explore Program Participation (2023): Impact Minerals was one of the initial seven companies selected for this globally recognized program, focusing on identifying new copper exploration models within the Broken Hill area.
• Ground Acquisition: Following the BHP program, Impact Minerals has significantly expanded its landholding in Broken Hill, now holding one of the largest contiguous ground packages, virtually surrounding the original Broken Hill mine. This expansion is driven by new ideas generated from the explore program.
• Corporate Activity in the Region: The Broken Hill mining area has seen recent corporate shifts. The original ownership by Japanese and Chinese entities has evolved. The Japanese stake was acquired by what is now Broken Hill Metals (ASX code BHM), which has successfully recommenced operations, with projections for the mine to operate for at least another century. South 32 has also been actively involved through a private joint venture.
• Emerging Targets: Impact Minerals has accumulated new targets and ideas for copper exploration, leveraging the insights from the BHP program. A recently completed ground magnetics survey is expected to reveal exciting anomalies within the next 3-4 weeks, which will serve as immediate drill targets.

Other Exploration Projects

While Broken Hill is a major focus, Impact Minerals also maintains interests in other projects:

• Platinum Springs Project: This project features very high-grade nickel, copper, and platinum group elements (PGEs). Significant breakthroughs in PGE exploration methodologies were achieved approximately four to five years ago, with substantial follow-up work, including drilling, planned.
• Dora East Project: Ten years ago, extensive drilling was conducted at Dora East for high-grade silver, revealing interesting targets that warrant further investigation.

Lake Hope Project: Flagship Development

The Lake Hope project remains Impact Minerals' flagship, with a current focus on developing a pilot plant for high-purity alumina (HPA) production, supported by a federal government grant under the CRCP program with Edith Cowan University.

Progress and Strategy for Lake Hope:

• Process Development: The company has successfully addressed the first half of its process, which yields potash as a valuable byproduct. The current efforts are concentrated on the HPA component of the process.
• Pilot Plant Status: The pilot plant is nearing completion, with approximately 90-95% commissioned. Final adjustments are being made.
• Timeline for Production: By the end of the year, the pilot plant is anticipated to be in semi-continuous operation, enabling the provision of samples to potential clients.
• Financial Context: The expenditure on HPA-related work is relatively modest, in the range of a few million dollars per year. This financial flexibility allows for continued exploration and drilling activities.

Investment in Aluminus

Impact Minerals also holds an investment in Aluminus, another company developing an HPA pilot plant. This pilot plant is also nearing operational readiness, with final commissioning steps underway.

Strategic Rationale for Dual Focus

The company addresses shareholder queries regarding the return to Broken Hill exploration while Lake Hope is the flagship. Impact Minerals was established with the objective of discovering world-class ore bodies. The current strategy allows for the pursuit of this objective at Broken Hill, where at least one or two drill-worthy targets are anticipated. This dual focus is financially feasible due to the relatively low cost of the HPA development work.

Upcoming Updates

The next few weeks are expected to be news-rich for Impact Minerals:

• Broken Hill MT Survey Results: The results of the magnetics survey at Broken Hill will be released.
• Lake Hope Project Update: An update on the progress of the Lake Hope project will be provided.
• Aluminus Investment Update: Information regarding the investment in Aluminus will be shared.

These updates are anticipated in the lead-up to the Christmas holiday period, with approximately four to five weeks remaining.