Ann: Half Yearly Report and Accounts, page-3

The principal activity of the Group during the financial year was exploration for deposits of nickel, gold, copper and platinum group elements.

Review of Operations
Commonwealth Gold-Silver-Base Metal Project, N.S.W. (Impact 100%)

The Commonwealth Project comprises three 100% owned exploration licences that cover about 315 km2 of the highly prospective Lachlan Fold Belt about 100 km north of Orange in NSW. The belt is host to many major gold-silver-copper mines including the Cadia-Ridgeway deposits that contain at least 25 million ounces of gold and 5 million tonnes of copper.

Impact’s drill programme has continued to test extensions to the gold-silver system at Silica Hill. Hole CMIPT56 has returned 15 metres at 4.0 g/t gold and 61 g/t silver including 3 metres at 10 g/t gold and 20 g/t silver, the highest gold assay to date at Silica Hill and there is significant potential for a continuation of higher grade veins at depth and along trend (refer ASX release dated 20 July 2017).
Interpreted edges of a base metal-rich “feeder” vein was identified in Hole CMIPT063 which returned 0.3 m at 6.2 g/t gold, 149 g/t silver, 8.4% zinc, 3.9% lead and 0.2% copper and there are continuing indications of an underlying porphyry copper-gold system (refer ASX release dated 21 September 2017).
Extensive zones of gold and silver-bearing veins have been encountered in the upper lower grade parts of the system.

Recent drill results from deeper in the system have intersected high grade gold and exceptionally high grade silver values within 150 metres of surface. Hole CMIPT077 returned 22 metres at 1.7 g/t gold and 276 g/t silver including 0.3 metres at 1.8 g/t gold and 4,200 g/t silver (132 ounces) and also 0.8 metres at 13.6 g/t gold and 40 g/t silver (refer ASX release dated 13 February 2018).
Drill hole CMIPT072 has intersected disseminated pyrite with silver-bearing veins in places 350 metres down dip from previous mineralisation within the Silica Hill rhyolite (refer ASX release dated 12 December 2017). Assays are pending. The style of mineralisation is similar to that seen close to high grade vein systems closer to surface and this is encouraging for the presence of mineralisation over 500 metres down dip.

Pilbara Gold Project W.A. (Impact 100%)
Nine new 100% owned exploration licences covering 1,300 km2 prospective for Witwatersrand-style conglomerate hosted gold have been applied for in the East Pilbara. The licences are adjacent to ground held by Novo Resources Corp. (TSX:NVO) including the Beatons Creek Deposit (>500,000 oz gold). The tenements are likely to be granted in Q2 2018.
More than 90 kilometers of prospective Fortescue Group conglomerates have been identified on Impact’s licence applications. The conglomerates are similar to those that occur in the Witwatersrand Basin of South Africa where the majority of the gold-bearing reefs are only 1 to 2 metres wide and easily missed.
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Impact Minerals Limited ABN 52 119 062 261
Directors’ Report
For the half-year ended 31 December 2017
Rock chip results of up to 11.2 g/t gold occur at the Glen Herring Prospect 10 km west of Marble Bar in a gold-pyrite conglomerate that extends for 25 kilometres. A single diamond hole at Shady Camp Well returned 0.9 metres at 0.6 g/t gold that has not been followed up. Other gold-bearing conglomerates have been identified on or adjacent to Impact’s licences.
Impact is conducting on-ground reconnaissance exploration to ascertain access conditions and to determine the best sampling approach for gold both in nugget form as well as finely disseminated gold, both of which occur in the East Pilbara.
Financial Performance and Financial Position
During the half-year the Group reported an operating loss after tax of $678,199 (half-year to 31 December 2016: loss of $115,782).
As at 31 December 2017 the Group had net assets of $17,676,270 (30 June 2017: $12,248,077) including $5,286,229 of cash and cash equivalents (30 June 2017: $1,917,206).
Auditor’s Declaration
Section 307C of the Corporations Act 2001 requires our auditors, Bentleys, to provide the directors of the company with an Independence Declaration in relation to the review of the half-year financial report. This Independence Declaration is set out on the following page and forms part of this directors’ report for the half-year ended 31 December 2017.
This report is signed in accordance with a resolution of the Board of Directors.