Impact Minerals - Exploration Update Highlights Potential for Large Discovery

• Dr. Mike Jones, the managing director of Impact Minerals, discussed the company's focus on discovering a world-class asset.
• To date, they've invested heavily but have yet to make the significant discovery they're aiming for.
• The company has shifted its strategy in recent years, pivoting back to Western Australia (WA) due to promising discoveries like Julimar. They continue to explore other key
• Impact Minerals is continuously on the lookout for new, promising projects. They've explored a variety of metals, including nickel, copper, and lithium, and aim to identify assets that can weather market cycles.
• The company is aware of the speculative nature of its industry, emphasizing that investments in Impact Minerals carry risk.
• They're exploring options to raise funds, monetize existing assets, and potentially secure new projects.

Impact Minerals is an Australian mineral exploration company searching for world-class deposits of metals like gold, nickel, copper and lithium. After 16 years, Impact has yet to make a major discovery but remains focused on high-risk, high-reward exploration.

Current Project Portfolio

Impact has pivoted exploration back to Western Australia over the past couple years, seeing better bang for buck compared to projects in NSW and Queensland. The flagship Balkan project in WA has generated anomalies for nickel, copper, PGMs, lithium and rare earths across a large area never before explored. Although early stage, this project holds potential for a major discovery.

Joint ventures allow Impact to advance projects while minimizing expenditure. At the Broken Hill JV in NSW, partner IGO has drilled some targets and assays are pending. Commonwealth in the Lachlan Fold Belt hosts an unusual gold-silver deposit that likely requires deeper, more expensive drilling. Impact is looking to spin this project out to focus on WA.

Funding Exploration

Like all juniors, Impact was hit hard in 2022’s weak market, with the share price falling significantly. Grassroots projects lacking drill results are difficult to market in this environment. However, a renounceable rights issue in May 2022 raised $3.5 million, providing funding for ongoing exploration.

Impact is open to monetizing non-core projects through joint ventures, spin-outs or sales in order to generate funds. The company will continue assessing new opportunities, although most available projects have inherent problems.

Strategy: Hunting Giants

Impact aims to discover world-class deposits in the +1 million ounce or +1% metal grade range. Smaller discoveries often fail to gain market interest and can take just as long to develop as large finds. Impact is prepared to kiss many frogs in pursuit of transformational discoveries leading to 10X returns.

This high-risk binary strategy requires patience from investors. Impact acknowledges its shares are speculative, with potential for large gains but also losses. The company will maintain this approach until shareholders demand a change.

Progress on New Opportunities

After 16 years without a major find, Impact is actively assessing external opportunities. One potential project is currently under due diligence and shaping up well. While hesitant to count chickens before they hatch, management is optimistic this could finally be the large discovery shareholders are waiting for.

Key Takeaways

• Portfolio focused on prospective WA ground, balancing risk and cost
• Funding exploration through capital raisings, JVs and asset sales
• Tenacious strategy targeting world-class Tier 1 deposits
• Advanced due diligence underway on potential near-term acquisition
• Setbacks to date but optimism remains high for the next big discovery

Impact Minerals aims to deliver high leverage to exploration success and remains committed to the search for company-making mineral discoveries in Australia. Management urges investors to maintain patience as it methodically works towards this goal.

Upside Potential - Impact's focus on discovering world-class deposits provides tremendous upside if successful. Even a 1-2 million ounce gold discovery could drive a 10x rise in market valuation. Major discoveries can create billions in shareholder value.

Leverage to Exploration Success - As a small-cap explorer, Impact offers high leverage to exploration success. Positive drill results have the potential to rapidly re-rate the stock. Investors get exposure to multiple prospective projects through a single investment.

Experienced Management - The Impact Minerals team has extensive exploration expertise to drive programs and evaluate opportunities. Their experience boosts the odds of eventually achieving success after many years of perseverance.

Undervalued Currently - With no major discoveries to date, Impact's market cap sits at just around A$20 million. Any significant discovery could dramatically re-rate the company. Investors can position early should exploration efforts pay off.

Portfolio Approach - Impact's portfolio of projects provides multiple shots at success and diversification across commodities and jurisdictions. This approach helps mitigate the substantial risk inherent in exploration.

However, it's critical to highlight that Impact Minerals is high-risk and speculative in nature. The company may never deliver a major discovery. Investors could lose their entire investment. But for those with sufficient risk tolerance, Impact offers leveraged exposure to potential exploration success in Australia.