As part of the Sub11 podcast series, I recently spoke with Dr. Mike Jones, Managing Director of Impact Minerals. Dr. Jones provided a comprehensive overview of the company's journey, their strategic focus, and the promising developments surrounding their flagship project, Lake Hope.
The Genesis of Impact Minerals
Impact Minerals, listed on the ASX in 2006, was Co-founded by Dr. Mike Jones. Prior to establishing Impact Minerals, Dr. Jones had an extensive career as a consulting exploration geologist, working with both junior and major mining companies. He recounted his decision to create Impact Minerals, driven by the belief that they could explore just as effectively as other juniors and aim for significant discoveries. This conviction was rooted in his early career at Western Mining Corporation, where he was exposed to strategies for finding world-class ore bodies.
Strategic Focus on World-Class Discoveries
From its inception, Impact Minerals set out with the ambitious goal of discovering a world-class ore body. Dr. Jones emphasised the importance of aiming high, as smaller producers rarely achieve substantial success. Despite the long and challenging journey, Impact Minerals has remained committed to this principle.
The Lake Hope High Purity Alumina Project
One of the most exciting developments for Impact Minerals is their Lake Hope High Purity Alumina (HPA) project. Discovered in a dry salt lake bed, this unique deposit offers several advantages, including minimal mining and transport costs. The project aims to produce HPA, a specialist material, at a significantly lower cost compared to global competitors. Impact Minerals will secure an 80% ownership of the project, contingent on completing a pre-feasibility study, which is currently on track for completion by the end of the year.
Recent Milestones and Developments
Dr. Jones highlighted several key milestones and ongoing developments at Lake Hope. The project has shown promising economics, with a net present value estimated at around $1.3 billion. The variability in the price of HPA, ranging from $20,000 to over $30,000 per tonne, plays a significant role in this valuation. Impact Minerals has also successfully raised funds to support the completion of the pre-feasibility study, demonstrating strong backing from both large and small shareholders.
Future Prospects and Technological Challenges
Looking ahead, Impact Minerals is focused on completing the definitive feasibility study and progressing towards production. The company plans to lodge its first mining lease soon and has been working on securing a suitable location for the processing plant. Dr. Jones also touched on the broader challenges and opportunities posed by technological advancements, particularly in material science, which could disrupt traditional mining practices.
Diversified Portfolio and Capital Allocation
While the Lake Hope project is the primary focus, Impact Minerals continues to manage a diversified portfolio of other projects. These include gold and copper assets in the Lachlan Fold Belt, extensive ground holdings at Broken Hill, and the Arkun project in Western Australia. The company is actively seeking joint venture partners to further develop these assets while maintaining a strategic focus on high-potential discoveries.
Conclusion
My conversation with Dr. Mike Jones underscored the strategic vision driving Impact Minerals. From its early days to the present focus on the Lake Hope project, the company's journey reflects a pursuit of world-class discoveries. As they navigate the challenges and opportunities ahead, I look forward to following the progress of Impact Minerals.
Listen to the Podcast here:
ASX Code: IPT
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