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Impact Minerals’ December 2024 Quarterly Report: Progress and Potential in High Purity Alumina and Other Key Projects

Impact Minerals’ December 2024 Quarterly Report: Progress and Potential in High Purity Alumina and Other Key Projects

Impact Minerals (ASX: IPT) (“Impact” or “Impact Minerals” or “the Company”) has kicked off the new year with notable progress across its key projects. From securing crucial resources to driving forward high-value ventures, the December 2024 quarter saw the Company make impressive strides. At the forefront of these developments are the Lake Hope High Purity Alumina (HPA) Project and the Arkun-Beau Nickel-Copper-PGM-REE Project, which are poised to deliver significant returns. Let’s dive into what these updates mean for Impact’s future.

Lake Hope High Purity Alumina (HPA) Project – A Game Changer in the Making

Impact’s Lake Hope HPA Project, situated 500 km east of Perth, Western Australia, continues to shine with solid advancements. Here’s a quick look at what the December quarter brought to the table:

  • Maiden Measured Resource: Impact declared a new resource of 730,000 tonnes at 25.8% alumina, translating into 189,000 tonnes of contained alumina. This resource will underpin a 15-year mine life, with potential for much longer based on broader exploration results.
  • Strong Economics: The project’s Scoping Study revealed an after-tax Net Present Value (NPV8) of A$1.3 billion, with operating costs that place it among the lowest globally. The economic viability is clear, and it’s only expected to improve.
  • Logistics and Community Engagement: The team is making significant headway with logistical planning and land access negotiations. Discussions with the Ngadju Aboriginal people are in progress to ensure smooth project development, with surveys underway for environmental and heritage assessments.

Key Milestones for Lake Hope:

  • Mining Lease Application: The Company has submitted an application for the mining lease (MLA63/684), putting them one step closer to securing the necessary land rights.
  • Heritage and Environmental Studies: Flora, fauna, and heritage surveys are set to kick off soon, ensuring that all regulatory and environmental considerations are thoroughly addressed.

Figure 1: Location of the Lake Hope Project

Developing the HPA Processing Plant: Sustainability Meets Efficiency

The Kwinana-based processing plant is another major highlight. This plant will be responsible for processing alumina into high-purity HPA, which is used in industries such as lithium-ion batteries, LEDs, and semiconductors. Here’s where things stand:

  • Engineering Progress: CPC Engineering is leading the plant’s design, focusing on refining the acid regeneration system to reduce chemical consumption. This aligns with Impact’s goal to lower production costs and enhance overall sustainability.
  • Pilot Plant Funding: A substantial win for the project came when Impact secured a $2.87 million CRC-P Grant from the Federal Government. This grant will support the construction of a pilot plant to produce HPA samples for customer qualification, setting the stage for future off-take agreements.

Sustainability Focus:

  • Membrane Selective Technology (MST): The integration of MST aims for zero-liquid discharge, improving environmental sustainability and making the production process more efficient.

Securing Market Position: A Step Towards Global Growth

With HPA being a critical mineral in high-tech industries, Impact is strategically positioning itself to capitalise on this rapidly growing market. Here’s how they’re making their move:

  • Market Leadership: Impact recently appointed Joseph Casella, former Tianqi Lithium executive, as Marketing Manager. Casella’s expertise will be invaluable in engaging potential customers and off-take partners, which will drive the project’s commercial success.
  • Growing Demand: The global HPA market is expanding rapidly, growing at a rate of 15-20% annually. Impact is well-positioned to tap into this burgeoning market, providing a solid foundation for future growth and profitability.

Arkun-Beau Nickel-Copper-PGM-REE Project – A Hotbed of Potential

While the Lake Hope Project dominates the spotlight, Impact is also making significant strides at the Arkun-Beau Project in WA. Here’s what’s happening:

  • New Discoveries: The team collected 311 new soil samples during the quarter, focusing on the Caligula copper target and mobile MT anomalies. These results are pending, but early signs point to exciting potential.
  • Funding Support: Impact has secured $180,000 in EIS funding for drill testing at the Caligula copper target. This funding will enable them to drill deeper and uncover further mineralisation, pushing the project towards new heights.

Figure 2: A magnetic map displaying Mobile MT anomalies (marked in red) at the Caligula and New Target areas, with previously assayed soil samples indicated by black points and newly collected soil sample locations shown as white points.

The Bigger Picture:

  • The Arkun-Beau Project has enormous potential for nickel, copper, platinum group metals (PGM), and rare earth elements (REE). This diverse mineralisation could make it a major asset in Impact’s portfolio as demand for these critical resources continues to rise.

Figure 3: Location of the Arkun-Beau Nickel-Copper-PGM-REE Project

Commonwealth Project Update – A Step Closer to Unlocking Value

Impact’s involvement with the Commonwealth Project, located in New South Wales, continues to yield positive results. The project is advancing under partner Burrendong Minerals, which has launched an Initial Public Offering (IPO) to raise funds for exploration and development. This move will help unlock significant value in the project.

What’s on the Horizon:

  • Exploration Focus: Burrendong plans an aggressive drill program to extend known resources at the Commonwealth Mine and explore other target areas, such as Silica Hill and Galwadgere.
  • Shareholder Opportunity: Impact shareholders will have priority access to the IPO, giving them an opportunity to further capitalise on the project’s future growth.

Corporate Financial Commentary – Strong Support for Project Advancement

During the December 2024 quarter, Impact Minerals bolstered its financial position with a significant rebate from the Research and Development (R&D) Tax Incentive scheme. Key highlights include:

  • R&D Tax Incentive Rebate: $512,000 before costs received for the financial year ending June 2024.
  • Use of Funds:
    • Continuation of the Pre-Feasibility Study (PFS) for the Lake Hope High Purity Alumina (HPA) Project, scheduled for completion in Q1 2025.
    • Support for the pilot plant development in collaboration with CPC Engineering and Edith Cowan University.
    • Aiding the newly secured $2.87 million CRC-P grant under the Federal Government’s programme.

The Quarterly Cashflow Report for the period outlined the following:

  • Directors and Associates Payments: $118,000, including salaries, directors’ fees, and superannuation.
  • Cash Position: $1.20 million as of December 31st, 2024.

These financial milestones ensure the company has the resources to continue progressing its key projects and strategic objectives into 2025.

Future Outlook

The December 2024 quarterly has been a highly successful one for Impact Minerals, marked by key milestones in both the Lake Hope HPA Project and the Arkun-Beau Project. The Company is well on its way to establishing itself as a leader in the critical minerals space, with significant growth potential ahead. With strong fundamentals, sustainable practices, and a forward-thinking approach to market engagement, Impact is setting itself up for a prosperous future in 2025 and beyond.

Investors’ Outlook

Impact Minerals (ASX: IPT) currently trades at AUD 0.011, with a 52-week range of AUD 0.010 to AUD 0.026 (as of January 30th, 2025). Over the past month, the stock has gained 4.76%, and year-to-date in 2025, it has risen by 10.00%, outperforming its sector, which saw a 2.20% increase over the past year. With a market capitalisation of AUD 33.65 million and 3.06 billion shares issued, the Company is well-positioned for future growth, driven by its promising projects in High Purity Alumina and critical minerals exploration. Investors may find potential in the Company’s ongoing progress and developments, particularly with the Lake Hope HPA Project and its strategy to meet rising global demand for critical minerals.

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