Drilling Resumes at Commonwealth: Can Impact Minerals Unlock Copper Potential?

Drilling Resumes at Commonwealth

Impact Minerals Limited (ASX – IPT) has announced the commencement of diamond drilling at its Commonwealth Gold-Silver Project in New South Wales. This marks a significant operational milestone under the joint venture agreement with Kuniko Limited (ASX – KNI), which has the option to earn up to a 70% stake in the project. The drilling program, led by Kuniko, aims to test extensions of the high-grade gold and silver mineralisation previously defined at Commonwealth Main, Silica Hill, and Commonwealth South.

Expanding the Exploration Footprint

The current Phase 1 drilling program plans to deliver approximately 1,200 metres of diamond core, targeting both down-plunge and along-strike extensions of known mineralisation. This follows a comprehensive MobileMT™ airborne geophysical survey and soil and rock chip geochemistry campaigns that have significantly expanded the exploration footprint. Notably, these surveys have identified a roughly 4-kilometre-long conductive corridor that extends well beyond the areas of existing resources, suggesting the potential for new discoveries.

Resource Base and Copper Potential

Impact Minerals previously reported JORC (2012) Inferred Mineral Resources at Commonwealth and Silica Hill totaling 88,800 ounces of gold and 3.3 million ounces of silver, with significant zinc and lead credits. These resources are relatively shallow, within about 250 metres of surface, and remain open at depth and along strike. Importantly, copper values have been observed to increase at depth in parts of the system, hinting at a deeper porphyry copper-gold source beneath the known high-sulphidation, gold-rich volcanic massive sulphide (VMS) mineralisation. This copper potential adds a compelling dimension to the project’s upside.

Strategic Location and Additional Targets

Impact’s Managing Director, Dr Mike Jones, highlighted the significance of the drilling program, noting the similarities between the Commonwealth system and the world-class Eskay Creek deposit in British Columbia’s Golden Triangle. The project sits within the highly prospective Lachlan copper-gold district, a region known for significant mineral endowment. Beyond the Commonwealth area, Kuniko has identified promising high-grade gold-silver targets at Gladstone West and Geenobby, which lie along trend from Alkane Resources’ Boda-Kaiser porphyry-copper gold deposit, containing over 10 million ounces of gold equivalent. These additional targets offer further exploration upside.

Joint Venture Terms and Future Outlook

Under the Earn-In and Joint Venture Agreement, Kuniko can earn a 51% interest by spending $1.5 million within two years, with the option to increase to 70% by spending an additional $1.5 million over the following two years. Impact retains a 30% free-carried interest until the Decision to Mine, providing substantial leverage to exploration success without immediate capital outlay. After this point, Impact can choose to contribute or dilute down to a 10% interest, converting to a 2% Net Smelter Royalty thereafter. This structure balances risk and reward for both parties as the project advances.

As drilling progresses, the market will be watching closely for assay results that could redefine the scale and quality of the Commonwealth resource base. The combination of shallow high-grade gold-silver mineralisation and deeper copper targets positions the project as a compelling prospect in a globally significant mineral district.