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For the week: -7.10%
Impact Silver Intersects 304g/t Silver And 4.51g/t Gold Across 5.0 Meters at Capire
May 24, 2011
http://www.impactmin.com/s/NewsReleases.asp?ReportID=459044&_Type=News-Releases&_Title=Impact-Silver-Intersects-304gt-Silver-And-4.51gt-Gold-Across-5.0-Meters-at-...
-3.76% is the scorecard for the week...
news as of 3/3/11
IMPACT Silver Announces Arrival Of Second Drill And Expanded Exploration Program At Zacualpan-Mamatla
http://www.impactmin.com/s/NewsReleases.asp?ReportID=445613&_Type=News-Releases&_Title=IMPACT-Silver-Announces-Arrival-Of-Second-Drill-And-Expanded-Exploration-Pr...
just found out about Impact tonite. i hold/own GPL from it's CEO interview on CNBC. he mentioned a cost of $7 or so per oz. does anyone know Impact's cost? hopefully they will email the answer as well. nice chart breakout
A massive gainer yesterday on bigtime volume!!!
My friends, for the week: +7%!!!
IMPACT Silver Reports Updated Mineral Resources at Capire in Preparation for Production
02/01/2011 [ACCESSWIRE]
http://www.baystreet.ca/users/newswire/viewarticle.aspx?id=391418
The next leg seems to be underway...
CPM Group Looks For Historically High Silver Prices For Next Decade
10 December 2010, 10:30 a.m.
By Kitco News
http://www.kitco.com/
http://www.kitco.com/reports/KitcoNews20101210AS_CPM.html
(Kitco News) - Silver prices are projected to remain at historically high levels over the next 10 years, concludes CPM Group in its 2010 edition of its “Silver Long-Term Outlook,” released Thursday by the New York commodities research and advisory firm.
The 224-page study is a comprehensive analysis of the key market fundamentals of silver that are expected to influence prices over a decade. The report contains projections for global mine production through 2019 on a mine-by-mine basis and also contains a new China section with an analysis of the silver supply and demand in a previously opaque market. CPM Group said the use of silver in China during 2009 was perhaps twice as much as had been believed.
The report also reviews uses for silver, including new fabrication demand such as solar panels, as well as investment. The report includes 10-year projections of supply, demand, and prices under a base case and two alternative scenarios.
“Strong investment demand, the single most important factor in influencing the price of the metal, is expected to keep silver prices at elevated levels during the projected period,” CPM Group said in a news release announcing the publication, which can be purchased. “Investors who view silver as a safe-haven asset are expected to continue buying large amounts of silver over the next couple of years as uncertainty regarding global economic growth, financial market instability, and volatility in major currency markets persist. As these concerns recede later in the decade, investment demand is projected to decline. Silver prices are expected to weaken alongside the decline in investment demand as the decade progresses.”
CPM Group said fabrication demand for silver is forecast to rise over the projected period, providing additional support to prices.
“Even in present economic conditions, there is strong demand for some of the products in which silver is used, including various electronic components used in a full range of consumer and industrial equipment,” CPM Group said. “Fabrication demand for silver is expected to rise further over the next few years, due to an anticipated improvement in global economic activity coupled with increased use of silver in some of its new and relatively new uses, such as solar panels, silver-zinc batteries.”
Primary silver mine production is expected to increase due to high silver prices and the relatively low cash and total operating costs, CPM Group said. Also, since much silver is produced as a byproduct of gold, copper, lead, and zinc, favorable market fundamentals and rising prices for these metals are expected to mean higher output and thus more silver as a by-product during the initial years covered by the CPM Group report. However, during the second half of the forecast period, net additions to silver mine supply are expected to decline, which CPM Group forecast to support silver prices during that time.
Meanwhile, CPM Group said silver use in China is estimated to have risen around three and a half times over the last decade, from 40.8 million ounces in 2000 to 139.2 million ounces in 2009, twice as large as many Western commentators have previously suggested. “Chinese silver fabrication demand is projected to account for nearly a fifth of global silver fabrication demand this year,” CPM Group said.
Previously, a lack of reliable statistics on silver fabrication demand and secondary recovery prevented China’s inclusion in international statistics. However, CPM said it has developed what it feels are sufficiently reliable statistics on silver fabrication demand by major industrial category and scrap recovery, relying on a network of industry associations and industrial participants in these markets.
By Allen Sykora of Kitco News; asykora@kitco.com
Interview With Theodore Butler
By: James Cook & Theodore Butler
Posted 24 November, 2010
Cook: For the past ten years you have been claiming that silver was the best thing people could own. How do you feel now with silver around $25 an ounce?
Butler: I have a sense of relief that I could not possibly have hurt anyone who followed my advice. I also feel intellectually vindicated about the way things are turning out. Lastly, I feel amazed how good silver still looks for further gains.
Cook: How high could it climb?
Butler: Real high, but by now you should know I shy away from specific price targets.
Cook: A lot has been going on with silver lately. Most of the things you’ve written about are starting to happen. What do you think about the recent spate of lawsuits against JPMorgan and HSBC?
Butler: It’s a big deal. The main thing is not the outcome of this case, but rather the fact that they were filed.
Cook: How many lawsuits were filed?
Butler: The latest tally is 25, I’ve been told.
Cook: Why do you think these lawsuits are important?
Butler: It is another confirmation of the growing recognition that silver has been manipulated in price.
Cook: They must be reading your newsletter because everything claimed in the first lawsuit originated with you. Do you agree?
Butler: Yes, I know that for a fact.
Cook: The basis of the lawsuit is that these big banks are short an inordinate amount of silver. How much to be exact?
Butler: It varies over time, but at the time referenced in the lawsuit, JPMorgan, either alone or with another U.S. bank, held short on the COMEX the equivalent of 25% of world annual mine production
Cook: How many ounces is that?
Butler: In most recent CFTC data, it is 150 million ounces, but within the past year it has been over 200 million ounces
Cook: You’re claiming that’s manipulative?
Butler: Absolutely. It would be impossible for such a concentrated short position not to be manipulative. It was this observation that led to the current CFTC silver investigation which, in turn, led to this lawsuit.
Cook: How many ounces are there held short in total?
Butler: The total net short position in COMEX futures is around 550 million ounces, but if you include everything, especially unbacked bank certificates and pool accounts, it grows to 2 or 3 billion ounces.
Cook: Who are these short sellers outside of the big one or two?
Butler: On the COMEX, there are about 8 commercial entities short over 300 million ounces, including the biggest.
Cook: They got squeezed pretty good when silver hit $29, didn’t they?
Butler: You bet.
Cook: How big have the losses been for the shorts?
Butler: In silver, the big 8 were out over $3 billion at the top, and more than $5 billion if you include all the shorts.
Cook: You pointed out that there had to be a lot of margin calls, when gold is included, what’s the total?
Butler: All in all, almost $15 billion.
Cook: They actually had to cough up $15 billion?
Butler: Absolutely. That’s a key component of the clearinghouse system.
Cook: Did anybody fail to make their margin calls?
Butler: It’s hard to tell.
Cook: I thought the price rise to $29 might have been because some folks couldn’t make margin calls and the brokerage firm bought back their position. No?
Butler: I’m certain there was a lot of that; they liquidate the contracts to satisfy the margin calls.
Cook: They don’t mess around do they?
Butler: This is basic commodity stuff. As a customer, if you don’t meet your margin calls your broker will liquidate your position. Otherwise the brokerage firm must eat the customer’s loss. Brokerage firms don’t allow customers a free ride. If a brokerage firm doesn’t meet its overall margin requirements to the clearinghouse, that’s a default, a real no-no.
Cook: It’s hard for me to believe that JPMorgan is sitting flatfooted waiting for the axe to fall. Don’t you think they’ve dug up a lot of silver to help reduce this short position?
Butler: I’m sure they’ve come up with as much silver as possible, but there are physical constraints to that. Their problem is not a money problem, but a physical material problem.
Cook: I see they raised margin requirements on silver. Why only silver?
Butler: Silver had moved the most and the margins should have been raised. The scandal was when they raised the margins. This is an issue of timing. They waited until prices made a downside reversal and then raised silver margins.
Cook: Is this fishy?
Butler: This is an example of why I refer to the CME Group (COMEX) as operating a criminal enterprise, as I’ve seen them pull this dirty trick numerous times in the past. The exchange times the margin increase so that it comes when it is least likely to hurt, and maybe help, its big constituent member short holders. That time is always best when the price makes a sudden reversal down after a big climb. This way, the margin increase actually hurts the longs and benefits the shorts. The reversal to the downside swings the financial tide against the longs temporarily.
Cook: What should they have done?
Butler: What they should have done is raised margins on the way up, but that would have hurt the shorts, something the exchange would never do. By timing the margin increase just after a price reversal to the downside, the exchange helps the shorts.
Cook: Are they above the law?
Butler: What’s particularly infuriating and illegal is that the exchange is designated under commodity law as a self-regulatory organization (SRO). That means the CME Group is supposed to do things on a fair and even-handed basis, not cater to the selfish interests of its most important members. The phrase that comes to mind when describing how the CME fulfills its regulatory obligations is letting the fox guard the henhouse.
Cook: How in the world did this come about?
Butler: The CFTC and Congress made a very big mistake when they turned over so much regulation to the exchanges years ago. There is a conflict of interest in what the exchange does in its regulatory role. That’s why the COMEX is fighting the CFTC tooth and nail over position limits and every other issue that may infringe on its own interests.
Cook: The Commodity Future Trading Commission has ruled that within 3 months or so they will put limits on how much one entity can be long or short. Will this break up the concentrated short position?
Butler: If they stick to the timeline dictated by the new law and if they impose legitimate limits and throw out the phony exemptions to those limits.
Cook: Won’t that set silver “free at last?”
Butler: Yes, “thank God Almighty.”
Cook: Will the COMEX back down?
Butler: I don’t think so. They know this is the one issue that can blow the lid off silver.
Cook: Silver could turn into a runaway train. Why don’t these short sellers get out of the way and cover now?
Butler: They desperately want to, but it’s easier said than done because their position is so large that they are trapped. Just covering the limited amount of shorts to date has already had a profound impact on price. Why do you think we’ve risen so much in the past few months?
Cook: One of the commissioners at the CFTC has made a number of statements criticizing the shorts and the Commodity Exchange itself. Sounds like the senior regulators have embraced your views. Do you agree?
Butler: It’s hard to reach any other conclusion.
Cook: If that’s true then position limits are inevitable would you say?
Butler: The new law has mandated position limits, so unless the law is repealed I would say they are inevitable. But more than that, it’s important to remember that position limits are of specific relevance for silver more than any other market.
Cook: What do you mean?
Butler: COMEX silver is the only market which must have position limits radically reduced from the current accountability level. In all other commodities, including gold, the level of position limits is not so important because the short position is not that large. In silver, it’s the core issue.
Cook: What kind of position limit level do we need to see in silver?
Butler: If we don’t see a new level of close to 1500 contracts, instead of the current 6000 contract level, then this market is more crooked than I have been alleging. And I would think those in the public who follow this issue closely will be outraged and demand an explanation from the regulators. I know I will be.
Cook: Is it safe to say that silver is a buy until the short position is covered?
Butler: At least until the concentrated short position is reduced.
Cook: The volume on the SLV, the exchange traded fund, went ballistic recently. How many shares were trading before this jump and what did it go to?
Butler: There was an average daily volume of close to 15 million shares a day and it jumped to ten times that on a recent trading day.
Cook: How much of that was day trading?
Butler: Close to 99%, same as in every other market.
Cook: OK, but how much silver do you think was purchased on balance and must be delivered to the SLV?
Butler: I had been guessing close to 20 million ounces, but much to BlackRock’s credit (they’re the new sponsor), the silver is being brought in much more quickly than when Barclays was the sponsor.
Cook: Where is the silver coming from?
Butler: No one knows for sure, but the hallmarks on many of the new bars being deposited were from Russia and China. I think that’s good, because as those two countries wake up to the silver manipulation, they should be unlikely to continue supplying material at artificially depressed prices.
Cook: I heard a big delivery came in to the SLV last week. True?
Butler: Yes, there was an extraordinary deposit of 11.3 million ounces into the SLV on Wednesday, November 10, the largest one day deposit in the ETF since 2006. This brings the deposits into the Trust to over 18 million ounces in little more than a week and a half, to a new record of over 344 million ounces.
Cook: Are you underestimating the amount of silver available? Seems like there is always more silver.
Butler: While it is certainly possible that I have underestimated the amount of silver bullion in the world, that is not yet evident to date. I have always estimated about one billion ounces and we haven’t grown above that amount yet. What has happened is that more silver is being transferred from unreported inventories to reported inventories. This does create the illusion that the supply of silver is endless. It is not.
Cook: How much is left in unreported inventories that can come into the market?
Butler: Unless you have Superman’s x-ray vision and can see all the world’s vaults simultaneously, there is no way to know how much is left in unreported inventories. And I guarantee that you will make yourself crazy if you persist in trying to figure out the amount remaining.
Cook: Are you still sane?
Butler: No one comes with a butterfly net.
Cook: How much is known or in the reported category?
Butler: Since 2006, more than 550 million ounces have been transferred from unreported silver into reported world inventories, including the SLV and all other similar programs. Currently there are more than 716 million ounces in total world visible silver bullion inventories. That’s a very big chunk of my long-time estimate of one billion ounces in total world inventories. The way to look at it is that there are 550 million ounces less that can be transferred in the future. The long-term rise in price would seem to confirm my thinking.
Cook: Could the big shorts be buying the SLV to cover their short position?
Butler: Sure, but not to excessive amounts, as that would require lying to the SEC on ownership disclosure regulations. That’s not likely.
Cook: How much silver do you think JPMorgan and one other bank are short?
Butler: As of this moment, I’m guessing JPM may now be below 25,000 contracts. That’s 125 million ounces. But we won’t know for sure until more CFTC data are released.
Cook: How about the big eight shorts?
Butler: My guess is they are down to 56,000 contracts. That’s 280 million ounces.
Cook: How about all the shorts combined?
Butler: In COMEX futures total, I’d guess a bit under 500 million.
Cook: How does that compare with other commodities?
Butler: Still way off the charts when comparing paper contracts to real world production and inventories.
Cook: Do you see this leading to a price explosion in silver soon?
Butler: It’s one of several things that will lead to an explosion.
Cook: How does the silver short position compare to gold?
Butler: The silver short position is much bigger than gold in every measurement, especially compared to world inventories. Silver’s relative short position is more than 100 times larger than gold’s.
Cook: Do you think silver will outperform gold?
Butler: Yes. Silver has yet to leave gold in the dust, although it has fully matched or exceeded gold’s price performance. That is actually an advantage to those gold investors who have yet to make the switch into silver. It’s not too late.
Cook: Are you suggesting a switch now?
Butler: Yes. The facts suggest silver will outperform gold in the future, the logical investment action would be to convert gold into silver. Not because gold is likely to go down necessarily, but because silver is likely to offer better investment bang for the same buck.
Cook: Have people begun to switch?
Butler: There has been a noticeable shift to physical silver investment demand, perhaps from gold investors, although I still believe it’s in the early stages. Additionally, U.S. Mint sales of Silver Eagles are particularly strong relative to Gold Eagle sales, further confirming what may be a growing investor preference for silver over gold. Given how little silver exists compared to gold, if this trend continues, the influence on silver prices should be profound.
Cook: What’s the gold-silver ratio now?
Butler: The gold/silver ratio narrowed to almost 52. This is the best relative reading for silver since the summer of 2008, just before the price of silver was manipulated lower by JPMorgan and other commercial crooks on the COMEX.
Cook: You’ve got big cahunas calling JPMorgan a crook over and over again. Ever hear from their lawyers?
Butler: Not a peep and I send every article I write in which I mention JPMorgan to Jamie Dimon, CEO of JPMorgan and to the top regulatory officials at the CME, in addition to the CFTC.
Cook: I wonder why they haven’t sued you. If someone was calling my company crooked I think I would at least have my lawyer send them a letter.
Butler: Look, I’m not looking to get sued, but I don’t know of any other way to flush these weasels out. I know that JPM and the CME are operating as a criminal enterprise when it comes to silver.
Cook: What about the COMEX? You’ve been calling them sleazy for years. Have you ever received an answer to the numerous letters you’ve sent them?
Butler: Up until a few years ago, they would respond from time to time, but more recently they’ve been hiding behind the CFTC’s skirt and letting the Commission do their dirty work.
Cook: Yes, but now I see the COMEX has been in bitter disagreement with the CFTC on position limits. Why are they so opposed?
Butler: It may indicate that the CFTC, under Gary Gensler, is sick of the exchange using the CFTC. The reason the CME is so opposed to position limits is because of silver, not any other commodity. Don’t be fooled into thinking this isn’t a silver-specific issue.
Cook: Why only silver?
Butler: This is an important point. There is no position limit problem in any other commodity apart from silver. Not in oil, or grains or gold. Just silver. It’s the dirty secret that’s about to be revealed.
Cook: How much money have the banks made over the years with this big short position in silver?
Butler: Cumulatively, it could be billions of dollars.
Cook: This gravy train has suppressed the price, right?
Butler: Yes. The concentrated short position makes it impossible for the price not to have been suppressed.
Cook: If the market gets free of the concentrated short position it should revert to the true market price. Any idea what that is?
Butler: I’ll let the market tell us, but much higher than we’ve been in silver.
Cook: Do you think it will overshoot?
Butler: I think it’s impossible for it not to overshoot.
Cook: You think that Chairman Gensler at the CFTC is a straight shooter, right?
Butler: I think he walks on water. I may be dead wrong, but I’m a pretty good judge of human character.
Cook: Will he cure the silver mess?
Butler: If he follows the law and what he knows to be right.
Cook: Is he more competent than prior chiefs?
Butler: Gensler is the smartest guy in any room. It would be an insult to compare him to any former chairman or chairwoman.
Cook: Do you still claim the CFTC has looked the other way?
Butler: They have in the past, but I sense that is changing.
Cook: I think they hate your guts. Nobody’s been in their face with solid accusations like you have. Are they still hostile?
Butler: Hard to tell. I’m not concerned with past feelings. I don’t see why they would still be hostile; I offer constructive solutions where nobody else does. If they are hostile to anyone it should be towards those responsible for the manipulation, like JPMorgan and CME.
Cook: You’ve been the pioneer of virtually every new revelation about silver for over a decade. Just about everything that you predicted has come to pass. You’ve been a great conceptual thinker on silver and the premier whistleblower. Do you think the CFTC will ever acknowledge this and give you the award you deserve?
Butler: I sure hope so, but you’d have to ask them.
Cook: Everybody and his brother is writing about silver now. Some of it is amateurish and the good stuff originated with you. However, most of these articles never give credit to you. Do you agree that this is dishonorable?
Butler: Yes.
Cook: These organizations and individuals are trying to elbow themselves into position to take credit for your work. I’ve never seen anything like it, have you?
Butler: No.
Cook: What do you make of it?
Butler: Those that plagiarize are stealing my stuff and then lying by pretending they thought up my ideas. I’d avoid such people with a ten-foot pole.
Cook: They need to at least mention you if you are the source of their information. Right?
Butler: I think so.
Cook: Let’s change directions. What about COMEX silver inventories? What’s going on with them?
Butler: Recently, COMEX warehouse inventories dropped to near four year lows, at just under 108 million ounces. This drop, importantly, was accompanied with great turnover (in and out movements); highly suggestive of tightness and that the inventory is held in strong hands.
Cook: What’s the historical perspective on this?
Butler: COMEX silver inventories are down 60% from the 280 million ounce peak in the mid-1990’s. In contrast, COMEX gold inventories are at a record high of over 11.3 million ounces, the highest in the 45 year history of the COMEX. This is an apples to apples comparison, as the COMEX is the dominant market for both gold and silver trading.
Cook: Are we in a shortage?
Butler: I think we are in the early stages of a silver shortage that is bound to grow more severe.
Cook: Won’t this cause a surge in mining production?
Butler: Sure, eventually. But any mining increase in response to higher silver prices will take many years to hit the market. It’s not like flipping a light switch.
Cook: You’ve mentioned three things that will drive up the price of silver. It looks like one of them, investment demand, is kicking in. Will it get bigger than this?
Butler: I think that’s a certainty, as more people are waking up to the silver story.
Cook: Your second bullish factor is industrial demand. Do you still expect industrial users to panic because of a shortage?
Butler: Ever see what’s left in a supermarket after a hurricane warning?
Cook: Where does the price of silver burn itself out if a buying panic occurs?
Butler: Use your imagination. Then double it.
Cook: Your final and biggest bullish factor is the end of the concentrated short position. What will this do?
Butler: Terminating the concentrated short position will end the decades-old manipulation itself. That will bring about an honest and free market.
Cook: How will they cover the short position?
Butler: By buying back the position, delivering against it or by defaulting on it.
Cook: What about going forward? What will no big short sellers mean for the future?
Butler: It will be a different world price-wise.
Cook: According to the CFTC, the deadline for position limits is just over 2 months. Is silver a ticking time bomb until then?
Butler: Silver is a ticking time bomb for many reasons and the coming open debate on position limits is one of them.
Cook: The shorts are going to have to buy back futures aren’t they?
Butler: At some point, the shorts buying back is the post plausible outcome, as the only other choices are to deliver metal or default.
Cook: How many more shorts other than JPMorgan will have to cover?
Butler: My guess is somewhere around 15 to 20 thousand, a 75 to 100 million ounce equivalent.
Cook: Am I missing something or is this a lock?
Butler: If you mean much higher prices, then it looks like a lock to me.
Cook: This is so compelling I have to ask why it hasn’t been discounted in the silver price? How come it’s not $100 already?
Butler: I think it’s a combination of a lack of homework and the initial disbelief of the whole silver premise which prevents an objective investigation.
Cook: I remember when we first met ten years ago. You were telling me silver was the best thing on earth to own. Meanwhile, a well known investment service was sending out mailings suggesting people short silver at $4.00. They said silver was more plentiful than cockroaches. I wonder what happened to them?
Butler: I hope they covered their shorts quickly.
Cook: I bring this up because a lot of people have disagreed or argued with you along the way. They’ve all been proven wrong. However, to this day there are naysayers. What do you say to a guy like Jeffrey Christian at CPM who says there’s no way that JPMorgan is short that much silver?
Butler: Generally it’s good that disagreement exists so that market participants can hear both sides of the silver story.
Cook: What about Jon Nadler who says if Ted Butler was right the price would already have gone up?
Butler: The price has gone up and will continue to do so, in my opinion.
Cook: Why exactly has silver made this big recent move?
Butler: Primarily because of a lack of additional commercial short selling on the COMEX. It was the absence of additional commercial short selling, particularly by the big concentrated shorts, like JPMorgan, that allowed the price to climb as much as it did. On the rally it became obvious that the shorts were experiencing great financial stress, being forced to deposit many billions of dollars in margin calls. This should be taken as further proof of the manipulative role that the big shorts exerted on the price of silver.
Cook: Why did it get whacked?
Butler: The problem for the big shorts was that not only were they experiencing financial stress due to the rising price, they were unable to reduce their short position. That circumstance threatened to result in financial ruin if permitted to continue. Faced with financial ruin and the growing awareness by many of the predicament the big shorts were in, they resorted to their only alternative to that ruin – create a large and dramatic sell-off. That was what we began to see on Tuesday, with the CME’s unethically timed silver margin increase and the collusive vicious sell-off on Friday, under the cover of general commodity weakness.
Cook: What’s next?
Butler: No one knows for sure. It comes down to how much additional long liquidation the big shorts can engineer. We are still above all the critical moving averages, so there does exist the possibility we could go lower to get the technical funds completely flushed out. For sure, if we do go lower, it will be because JPMorgan and the other COMEX crooks are successful in tricking the technical funds into forced selling and not for any other reason. But there has been significant liquidation already, so it is just as possible it could be done or nearly so. Certainly there is nothing in the real world of silver that would account for further selling.
Cook: What’s the status of the formal investigation of silver by the CFTC, Enforcement Division?
Butler: It has yet to be concluded. A new director was just named which should help resolve the investigation that was initiated because of my revelations in 2008 and which Commissioner Bart Chilton publicly referenced recently. No one is more anxious than me to see what the investigation concludes.
Cook: You’ve made a big thing about pool accounts at brokerage firms, international banks and private mints. What can go wrong?
Butler: Everything. It is not hard to imagine investors ending up with a total loss because the metal may not exist to back these programs. If someone is claiming to store 1000-ounce bars for you and you don’t have the serial numbers for the exact bars you paid for, you should run, not walk, to a storage program that allows you to get the specific bars. I’d be especially wary of metal purported to be stored out of the country.
Cook: Are you recommending people switch from gold to silver?
Butler: Most definitely. That still appears to be a switch, which will be greatly rewarding. It amazes me how so many commentaries predict that silver will outperform gold, yet won’t come out and say that you should sell gold in order to buy silver. It makes no sense not to sell gold in order to buy silver if you are convinced silver will outperform gold. I think many feel it’s heresy to sell gold for any reason. But if your goal is to get the best return on your investment dollar in the future, which it should be, switch to silver from gold.
Cook: The bottom line is that people who followed your advice have made a lot of money. What advice would you give to our clients now?
Butler: Well, the days of 4 or 5, 7 to 12 dollar silver are over and that’s too bad for new buyers. At least we spared no effort in urging folks to buy all along. I think in the future we will look back at current prices with much the same result, namely, large profits for those who bought. Although the price is much higher now than it was then and conditions have changed, in many ways today’s new conditions are better.
http://news.silverseek.com/SilverSeek/1290625106.php
How right you were in retrospect.
Energold currently has a portfolio of legacy holdings stemming from its beginnings as an exploration company. Its holdings including a controlling interest in a publicly listed silver producer, IMPACT Silver Corp., as well as interests in over a dozen projects in the Dominican Republic.
Energold is currently in the process of reevaluating its holdings in the attempts to increase their contribution to the company.
http://www.energold.com/s/Holdings.asp
Gold May Advance With Industrial Metals; Silver Is Near a 2 1/2-Year High
http://www.bloomberg.com/news/2010-09-06/gold-may-climb-as-dollar-near-two-week-low-spurs-alternative-asset-demand.html
By Nicholas Larkin and Sungwoo Park - Sep 6, 2010 11:46 AM ET
Five of the six main industrial metals on the London Metal Exchange rose, led by zinc, after a report last week showed U.S. employers added more jobs than estimated. The dollar dropped to a two-week low against the euro before rebounding. Gold, which usually moves inversely to the greenback, is trading 1.2 percent below a record.
Stronger prices for other metals are “spilling over into gold,” Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said today by phone. “A weaker dollar is usually a supportive factor for gold. It’s expected to be a quieter day for gold” because of a U.S. holiday, he said.
Immediate-delivery bullion added $2.80, or 0.2 percent, to $1,249.55 an ounce at 4:32 p.m. in London. Prices gained 0.7 percent last week. Gold for December delivery was little changed at $1,251.20 in electronic trading on the Comex in New York. Comex floor trading is closed today for the Labor Day holiday.
The metal was little changed at $1,249 an ounce in the afternoon “fixing” in London, used by some mining companies to sell output, from $1,249.50 at today’s morning fixing. Spot prices climbed the past five weeks, the longest winning streak since September last year.
Bullion has advanced 14 percent this year, reaching a record $1,265.30 an ounce on June 21. The price is set for a 10th annual gain as investors seek to protect their wealth against financial turmoil in Europe and the prospect of slowing economic growth.
‘Sentiment Remains Bullish’
U.S. private payrolls climbed 67,000 in August after a revised 107,000 increase in July, Labor Department figures showed Sept. 3. The median forecast of economists in a Bloomberg News survey was for 40,000 more positions. Gold’s losses were limited on Sept. 3 after a U.S. report showed service industries expanded in August at the weakest pace in seven months.
“Gold will continue trying to break the record,” said Hwang Il Doo, a senior trader at Korea Exchange Bank Futures Co. in Seoul. “Once it breaks it, bullion will shoot up. Sentiment remains bullish.”
An index measuring sentiment in the 16-nation euro region slid to 7.6 in September from 8.5 in August, according to a report from the Sentix research institute. Economists in a Bloomberg survey had forecast an increase to 9.0.
Assets in the SPDR Gold Trust, the biggest exchange-traded product backed by bullion, were little changed at 1,294.44 metric tons on Sept. 3, figures on the company’s website showed. Holdings touched a record 1,320.44 tons in June.
Jewelry Demand
“An anticipated pickup in gold demand for jewelry use in September and expectations for inflation may support” prices, Lee Suk Jin, a commodities analyst at Seoul-based Tong Yang Securities Inc., wrote in a report today. Households in India, the biggest gold user, typically increase jewelry purchases in the year’s final months to mark festivals and weddings.
Silver for immediate delivery in London was little changed at $19.9063 an ounce. The metal reached $19.9225 on Sept. 3, the highest price since March 2008. Platinum gained as much as 0.7 percent to $1,566.75 an ounce, the highest price since Aug. 9, and was last at $1,560.80. Palladium was little changed at $529.50 an ounce after rising as much as 0.7 percent to $533.25, the highest level since May 14.
Silver, platinum and palladium “reflect both an urge to own insurance and an urge to hedge in favor of further global economic growth,” said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter.
To contact the reporters on this story: Sungwoo Park in Seoul at spark47@bloomberg.net ; Nicholas Larkin in London at nlarkin1@bloomberg.net .
You are SOOOOO right... a real keeper here!!!
Unreal earnings!!!
http://www.impactsilver.com/s/NewsReleases.asp?ReportID=415847&_Type=News-Releases&_Title=IMPACT-Silver-Announces-Second-Quarter-Net-Earnings-Up-67-First-Half-Net-Ea...
IMPACT Silver Announces Second Quarter Net Earnings Up 67%, First Half Net Earnings Up 270%
Unreal results!!!
http://www.impactsilver.com/s/NewsReleases.asp?ReportID=415155&_Type=&_Title=Impact-Silver-Samples-4800-gt-Silver-Over-1.25-Meters-and-Commences-Drillin...
At this time, only the northern portion of Golondrinas is slated for drilling. Within this 600-meter by 200-meter area is a cluster of 13 northwest striking veins of variable thickness and because of this vein density, most of the drill holes should intersect multiple veins. Six of these veins returned samples better than 1,000 g/t silver, with the best results coming from the Golondrinas Vein underground workings (4,800 g/t silver over 1.25 meters).
No shorts reported here:
http://www.otcmarkets.com/stock/ISVLF/short-sales
US Trading symbol: ISVLF.PK
IMPACT Announces Positive Production Decision At Noche Buena
IMPACT Silver Corp. ("IMPACT") is pleased to announce a positive production decision at the Noche Buena Vein System located four kilometers southwest of IMPACT's Guadalupe processing plant in the prolific Royal Mines of Zacualpan Silver and Gold District of central Mexico.
Initial mining plans are now complete and IMPACT engineers are moving to fast track the Noche Buena Project toward commercial production in the first quarter of 2010, subject to the timely receipt of permits. Initial production is planned at 100 tonnes per day, to be increased incrementally. IMPACT's operating processing plant at Guadalupe, located a short hauling distance away, is being upgraded to accommodate the additional Noche Buena throughput.
The Noche Buena Project will be the third new mine that has been taken from discovery to production by the technical team since 2004. From the time first assays were received from the discovery drill hole (January 2009) to projected commercial production (Quarter 1, 2010), approximately 12 months will have elapsed. This ability to fast track new mines into production is a cornerstone of IMPACT's plan to rapidly grow silver production in the Zacualpan-Mamatla Districts.
To date, drilling has defined the zone over a strike length of 300 meters, to a depth of 100 meters and an average width of 3 meters. The zone remains open for expansion. Exploration on this northerly trending, west dipping Silver-Gold vein has consisted of holes drilled on a 50 meters by 50 meters drill pattern designed to systematically explore and build tonnage. Previous news releases included intersections of 204 g/t silver across 8.5 meters (see news release dated January 26, 2009), 280 g/t silver across 4.5 meters (see news release dated April 08, 2009) and 158 g/t silver across 13.5 meters (see news release dated July 21, 2009). A complete table of drill intersections announced to date is posted on the IMPACT website at www.IMPACTSilver.com <http://www.IMPACTSilver.com> . An additional seven drill holes have been completed on this northern extension. Assays are pending.
George Gorzynski, P.Eng., a Qualified Person under the meaning of Canadian National Instrument 43 101, is responsible for the technical content of this news release.
IMPACT Silver Corp. is a profitable silver-focused mining and exploration company operating in Mexico with a producing silver operation at the Royal Mines of Zacualpan, the adjacent 200 square kilometers advanced Mamatla Mineral District and a portfolio of projects with an option on a producing mill at Zacatecas.
On behalf of the directors of IMPACT Silver Corp.,
"Frederick W. Davidson"
President and CEO
The Silver Summit is kicking off tomorrow for two days. Impact will be there. There is an updated presentation on the site, from September 2009:
http://www.impactsilver.com/i/pdf/IPTSept2009PPT.pdf
This company is too damn good to have an orphaned board. This post will qualify me to ask to moderate it.
Impact seems stuck at a buck. I think it is just getting used to the new surroundings and taking a look around should be time to get going again soon...
Impact trading nicely today. Big gap at the open has been filled now, we have been cleared from the tower.
Impact Silver records big increase in Q2 silver output and revenues
Canadian junior and relatively small scale silver miner reports substantial rise in silver production and in revenues from its Royal Mines of Zacualpan operation in Mexico.
Author: Lawrence Williams
Posted: Friday , 28 Aug 2009
LONDON -
http://www.mineweb.com/mineweb/view/mineweb/en/page31?oid=88150&sn=Detail
Relatively small scale Mexican silver producer, Impact Silver (TSXV.IPT), has turned out strong Q2 figures with revenues up 94% despite being unable to sell two months worth of byproduct lead output because of a strike at a major customer and being unwilling to sell much of its zinc concentrate last year because of low prices. With zinc prices having recovered reasonably, Impact reckons to sell its remaining inventories in the second half which should give a further boost to revenue.
The main reason for the big revenue increase is a sharp rise in silver production which was up 80% year on year to 217,690 ounces which has come about largely because of the good grades at its relatively new and expanding Chivo mine which provided 90% of mill throughput during the quarter - as against 60% a year ago. The second lower adit being driven into the Chivo mine, which will open up additional areas in this relatively higher grade part of the operation, reached the main vein in the fourth quarter of 2008 and has now been connected to the first level. The first full production stope from the lower level came on stream during the second quarter of 2009. Chivo will continue to supply a significant amount of higher grade material to the mill.
Impact has a huge land position taking in the historic Royal Mines of Zacualpan and surrounding areas and while the old miners may have taken out much of the highest grade material, a considerable amount was left behind and new veins are being discovered all the time. Some of these have reasonable gold grades as well.
Because of the number of mining areas available, Impact can mine relatively selectively depending on the prices of the various metals it produces - and this also is carried through to blending and stockpiling at the concentrator. Mining makes use of much used and refurbished equipment and great efforts are made to keep costs down.
With the good revenue increase the company ended the half year with net working capital of $6.5 million including cash and cash equivalents of $4.0 million, despite spending $2.2 million on infrastructure and exploration over the period. Impact's working capital position is expected to remain strong through the second half of the year as cash flow from mining operations is forecast to be sufficient to fund ongoing exploration and development programs.
Mill enhancements are also under way and a new cone crusher was installed in June to help improve throughput and this will have had some small adverse impact on throughput in the second quarter.
If Impact can maintain grades and keep costs down current prices should enable it remain profitable while continuing its exploration activities in new areas which are seen as highly prospective. The flexibility of its operations is important in this respect although higher prices may tempt it to mine some lower grade material and thus dilute the overall tenor of the ore being milled, but it does help protect it against dramatic price falls like those we saw last year.
IMPACT SILVER ANNOUNCES Q2 RESULTS; SILVER PRODUCTION UP 80%, OPERATING EARNINGS UP 151%, VERSUS Q2, 2008
11:19 EDT Thursday, August 27, 2009
(via Thenewswire.ca)
IMPACT Silver Corp. ("IMPACT") is pleased to announce its financial and operational results for the quarter ended June 30, 2009 which include the results of the high grade, Royal Mines of Zacualpan District in Mexico. The second quarter continued the Company's trend of increasing production, revenue and cash flow while remaining profitable.
Revenues in the second quarter exceeded $3.4 million, up 94% from $1.8 million in the second quarter of 2008. Revenues in the first six months of 2009 were $4.9 million, up 9% from $4.4 million in the same period of 2008. As a result of the recent two month strike at the Company's main customer, approximately 39% of second quarter lead concentrate production was not sold. With a rebound in the price of zinc, the Company resumed shipping zinc concentrate which it had been stockpiling since the fourth quarter of 2008. Only 13% of the zinc concentrate produced between Q4 2008 and the end of the Q2 2009 has been sold. The remaining inventories are expected to be sold by the end of the year.
Three Months Ended June 30 2009 2008 % Change
Revenue $3,404,000 $1,756,000 94
Mine Operating Earnings $1,113,000 $444,000 151
Net Income $191,000 $305,000 (38)
Mine operating earnings as a percentage of revenue 33% 25%
After investing $2.2 Million in infrastructure and exploration in the first half of the year, the company ended the quarter with net working capital of $6.5 million including cash and cash equivalents of $4.0 million. IMPACT's working capital position is expected to remain strong through the second half of the year as cash flow from mining operations is forecasted to be sufficient to fund ongoing exploration and development programs.
Quarterly silver production increased to 217,690 oz., up 80% from 120,660 oz. in the second quarter of 2008. Silver production in the first six months of 2009 increased to a record 447,400 oz., up 77 % from 252,519 oz. in the same period of 2008.
Three Months Ended June 30 2009 2008 % Change
Total tonnes produced 27,618 24,090 15
Silver production (ounces) 217,690 120,660 80
Lead production (tonnes) 258 132 96
Zinc production (tonnes) 292 167 75
Chivo Mine
During the second quarter of 2009, Chivo provided 92% (Q2 2008 - 60%) of mill feed. A second adit approximately 60 meters vertically lower on the structure reached the main vein in the fourth quarter of 2008 and has been connected to the first level. The first full production stope from the lower level came on stream during the second quarter of 2009. The Chivo Mine will continue to supply a significant amount of higher grade material to the mill.
San Ramon Mine
During the second quarter of 2009, San Ramon provided 8% (Q2 2008 - 0%) of mill feed from the mining of high grade mineral. After redesigning the mining plan, the Company recommenced mining at San Ramon in early 2008 on a selective basis. Mining continues to expand at San Ramon as the Company also develops underground access to a parallel structure, the Chaparrita Vein.
Processing Plant
At the processing plant, the ongoing program of upgrades designed to enhance recoveries and improve throughput is continuing. One of the secondary crushers was replaced by a new more efficient crusher to improve the overall throughput of the crushing circuit. Mill throughput in June was affected by this, while the new cone crusher was installed. Further plans have been approved to expand the flotation circuit capacity as well as increase the thickener capacity.
IMPACT Silver Corp. is a silver focused mining and exploration company operating in Mexico with a producing silver operation at Zacualpan, the 200-square-kilometer advanced Mamatla Silver District and an advanced project with a producing mill at Zacatecas. Energold Drilling Corp. (EGD: TSX.V) who was the contractor for the drill program, owns 6.65 million shares of IMPACT.
On behalf of the Directors of IMPACT Silver Corp.,
"Frederick W. Davidson" For further information, please contact:
President and Chief Executive Officer Darrell Rader, Corporate Development
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
1100 - 543 Granville St. Telephone 604 681 9501
Vancouver, BC V6C 1X Facsimile 604 681 6813
www.energold.com info@energold.com
Copyright (c) 2009 Thenewswire.ca - All rights reserved.
http://www.mineweb.com/mineweb/view/mineweb/en/page66?oid=72544&sn=Detail
Making a silver Impact in Mexico
A look at Impact Silver Corporation which controls a huge mineral concession area in Central Mexico, has small-scale profitable mining operations and a major ongoing exploration programme in one of Mexico’s most beautiful historic mining districts.
Author: Lawrence Williams
Posted: Thursday , 06 Nov 2008
LONDON -
With a refreshing approach to its operations at Zacualpan, 3 hours drive southwest of Mexico City, TSX-V quoted Impact Silver (ticker IPT) is running a profitable silver mining operation with enormous exploration potential in the 272 square kilometres of concessions in this historic mining area.
Currently mining operations are based on four small old mines relatively close to the company's concentrator, built by Penoles as a former operator. The main property, the Guadalupe mine, is located adjacent to the concentrator while Gallega is a few hundred metres away. The other operations currently are at El Chivo and San Ramon, a few kilometres away, but probably half an hour's trucking time via some windy roads through the hilly and very attractive countryside.
The huge area controlled by Impact takes in the old Royal Mines of Zacualpan - an area which has been mined since the days of the Conquistadores in the 16th Century. The concession areas are dotted with old mines - Impact reckons to have found over 1,000 of these and is still discovering more in a continuing observational soil sampling programme followed up by extensive diamond drilling. Drilling is helped by Impact's biggest shareholder being Energold Drilling which specialises in portable thinwall diamond drill rigs capable of drilling down to 1,000 metres - the portability being essential in this beautiful area of extremely hilly terrain.
Mineweb recently visited Impact's operations viewing two of its underground mining operations - Guadalupe and El Chivo - the concentrator and exploration drilling operations and with access to corporate management and the geologists conducting the exploration activities.
CEO Fred Davidson runs the business to make money - he won't authorise mining anything that is not immediately profitable - and the vein system and multiple mine operations enables the company to control and blend its output to ensure this actually happens. Mine development and processing has been implemented at low cost by using pre-owned equipment for the most part. The 500 tonne/day mill was built by Penoles in 1986 and updated regularly since then. The sight of brand new equipment is a rarity!
The metal deposits are vein type structures, of which there are many systems. In general the old miners only worked high grade material (20 ounces per ton or more of silver) down to the water table, which is at a relatively shallow 200m, so modern mining and processing techniques mean there's plenty of potential in relation to the material left behind, not to mention new veins that the old miners did not find.
While the ore being mined at present is for silver, lead and zinc, as is typical of these Mexican epithermal deposits the silver/lead/zinc sections tend to be underlain by more copper and gold rich bodies and the area - particularly Mamatla to the south of the old Zacualpan workings, has great potential in this respect too.
While mining is at a relatively small scale, it is gradually being built up to run 400 tonnes a day through the plant, with the full plant capacity of 500 tonnes a day in prospect by April next year according to Darrell Rader, the company's head of Corporate Development presenting at yesterday's Silver Summit in London.
The company has also just issued a news release announcing the commencement of a 5,000 m first phase drill programme for the Noche Buena-Carlos Pacheco Mining Camp, located within the company's concession areas. A variety of both silver and gold-copper targets consisting of old mine workings, past drill intersections and outcropping veins are being tested in order to determine which targets warrant further drilling for mine planning purposes. Currently thirty to fifty holes are planned, which will take the remainder of 2008 to complete. Over one hundred different vein intersections have been targeted as multiple vein intersections are anticipated in most of the drill holes.
The Noche Buena-Carlos Pacheco Mining Camp is one of several dozen ancient mining centres located within the company's extensive claim holdings and approximately four kilometres southwest of Impact's Guadalupe processing plant. Old records suggest mining efforts in the camp began during the time of the Spanish in 1746. Larger scale mining commenced around 1900 only to be largely shut down by the Mexican revolution of 1910, with sporadic efforts thereafter.
Over the past year the company's field crews have systematically located, documented and sampled 114 old mine and exploration workings in the camp consisting of prospect pits, mine shafts and tunnels. Included in this program was detailed geological mapping of the veins and the collection of 563 rock samples for assay and analyses. Numerous rock samples contained values greater than 100 g/t silver, attaining a high of 775 g/t in the San Jose 3 Tunnel, and 47 other samples contained greater than 1.0 g/t gold, attaining a high of 39.9 g/t (1.16 opt) in the Carlos Pacheco Main Tunnel. Base metals can also contain significant values as individual samples attained the following assays 8.39% copper, 11.95% lead and 14.80% zinc.
In the first six months of the year, Impact produced 252,000 ounces of silver, 647,000 lbs of lead and 974,000 lbs of zinc generating revenues of $91.91 per tonne mined as against direct costs of $47.24 a tonne. Six-month operating profit was $1.7 million.
Admittedly the company is a small one, but its ground holdings have huge potential which is only just being looked at. It has only been operating a few years in the Zacualpan area and has tied up its huge land positions and implemented profitable mining operations in a very short space of time. With profitable output and cash reserves of some $8 million it is in a great position to continue its exploration programme and if it keeps to its small scale principles can continue to grow without seriously depleting its cash. To develop a large scale mining operation, for which the area has huge potential, would require a rethink of company structure - or require a partner, or partners, to be brought in, but in the meantime it can continue operating as a profitable miner, while building up its overall knowledge of the areas it controls.
Impact also operates, and has options to buy, a 200 tonne/day mill, in the Zacatecas area, which custom processes ore, and has land holdings there too in the heart of one of Mexico's biggest mining districts. But the potential in its flagship Zacualpan area means it is concentrating its exploration activities there.
As long as the company remains true to its principles, and there isn't a further collapse in the value of its products, it has the financial strength to come through the current devastating downturn in the junior sector profitably, while building its inventory of knowledge on a fascinating, and highly prospective, mining region.
Press Release Source: IMPACT Silver Corp.
Impact Drills 11,463g/t (334 oz/ton) Silver Over 0.6m (2ft) at Chivo Mine and Expands Strike Length by 40%
Tuesday August 12, 4:35 pm ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 12, 2008) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT - News) is pleased to announce that drilling on extensions of the Chivo Zone has both intersected high grade mineralization, as well as increased the strike length of the Zone by 40% to over 300 meters.
The Chivo Mine at the Royal Mines of Zacualpan Silver Project in Mexico achieved commercial production in early 2008 based on successful exploration over the past two years. This news release reports on drilling conducted to establish the southern limits of the Chivo Zone. These results, along with those announced on August 6, 2008 for the northern extensions, indicate that the high-grade Chivo Zone remains open for further expansion.
Assays from the new holes drilled on the southern extension of the Chivo Zone are as follows:
--------------------------------------------------------------------------
CHIVO DRILL HOLES (MAIN VEIN - SOUTH EXTENSION)
--------------------------------------------------------------------------
TOP OF ESTIMATED
DRILL INTERCEPT TRUE WIDTH SILVER SILVER GOLD ZINC LEAD
HOLE No. (m) (m) (g/t) (oz/ton) (g/t) (%) (%)
--------------------------------------------------------------------------
SECTION 850N (Drill holes listed from west to east)
--------------------------------------------------------------------------
Z08-13 49.4 1.9 3,902 114 1.34 3.96 2.16
------------------------------------------------------------
Including: 0.6 11,463 334 3.46 10.25 5.02
--------------------------------------------------------------------------
Z08-14 65.4 0.7 601 18 0.22 1.74 1.56
--------------------------------------------------------------------------
SECTION 875N (Drill holes listed from west to east)
--------------------------------------------------------------------------
Z08-25 45.6 3.2 865 25 0.41 3.73 3.90
------------------------------------------------------------
Including: 1.6 1,765 51 0.81 6.42 7.56
--------------------------------------------------------------------------
Z08-11 58.4 3.2 793 23 0.21 4.23 3.27
------------------------------------------------------------
Including: 1.1 1,792 52 0.46 8.73 7.25
--------------------------------------------------------------------------
Z08-12 71.3 1.7 91 3 0.86 2.03 2.65
--------------------------------------------------------------------------
SECTION 900N (Drill holes listed from west to east)
--------------------------------------------------------------------------
Z08-16 57.7 1.6 664 19 0.79 3.23 1.79
--------------------------------------------------------------------------
Z08-23 76.6 3.0 501 15 0.51 8.51 4.96
------------------------------------------------------------
Including: 1.8 810 24 0.80 12.75 6.91
--------------------------------------------------------------------------
Z08-24 88.0 1.3 73 2 0.66 10.96 2.81
--------------------------------------------------------------------------
Z08-27 114.5 3.7 89 3 0.22 6.91 2.81
------------------------------------------------------------
Including: 1.1 175 5 0.60 14.95 6.91
--------------------------------------------------------------------------
These intersections were drilled on an approximate 25 meters (horizontal) by 30 meters (vertical) grid pattern. Five other holes drilled further south intersected low grade mineralization. This newly discovered mineralization will be accessible by the lower Chivo Mine adit now being excavated and expected to reach the Chivo Vein in the fourth quarter of 2008.
During the past year, the objective of the drill program at Chivo was to define the northern and southern limits of the Chivo high grade mineralization, as well as down dip extensions. This work continues. Currently, the Chivo Zone has been defined over a length of 300 meters and a vertical depth of 250 meters by 46 drill holes, as well as several hundred meters of underground workings. Mining widths at Chivo are 3 meters plus. This is up from a length of 200 meters and vertical depth of 220 meters reported earlier (see IMPACT news release dated June 17, 2008). A recently completed computer model of the Chivo Zone indicates two high grade shoots within the Chivo Zone separated by a medium grade central zone. Within the plane of the vein, the high grade mineralization rakes to the north and remains open, indicating the potential for additional high-grade mineralization. Future drilling from both surface and underground is planned to expand this zone on all sides.
Chivo was discovered in 2005 when IMPACT crews found high-grade veins in old mine workings (see IMPACT news release dated September 7, 2005). Samples from the veins included assays of 1,095 g/t silver and 0.38 g/t gold across 1.25 meters true width. Subsequent drill programs returned significant grades, including 937 g/t silver, 0.35 g/t gold, 1.88% zinc and 0.75% lead across 2.7 meters true width (see IMPACT news release dated October 12, 2006). Continued exploration success lead to a production decision and in January 2008, only 28 months from first discovery, the Chivo Mine achieved commercial production.
Fred Davidson, President and CEO of IMPACT Silver, states, "Chivo has become the new cornerstone of our Royal Mines of Zacualpan silver operations. We are actively mining our best grades here and drilling continues to expand the zone and deliver high grade results. We have recently begun excavation of a new lower mine adit which should reach the main vein later this year and access the high grade zones reported here."
George Gorzynski, P. Eng. and Nigel Hulme, P. Geo., Qualified Persons under the meaning of Canadian National Instrument 43-101, are responsible for the technical content of this news release. Drill core was NTW size (5.71 cm diameter). Half core samples were collected with a rock saw and tagged for identification. All samples were securely stored at the IMPACT base camp until shipment. A total of 5% assay standards and 5% blanks were inserted into every sample shipment as a quality control measure. All samples were shipped to the ALS Chemex preparation laboratory in Guadalajara, Mexico, where they were fine crushed (70% passing a 2 mm screen), pulverized (85% passing a 75 micron screen) and pulp split separated for assay by a riffle splitter. These pulps were shipped to the ALS Chemex laboratory in North Vancouver, Canada, where a 30 gram split of each was assayed for gold and silver by standard fire assay and a 10 gram split was analyzed for an additional 30 elements by ICP spectrometry.
IMPACT Silver Corp. is a profitable silver focused mining and exploration company operating in Mexico with a producing silver operation at the Royal Mines of Zacualpan, the 200-square-kilometer advanced Mamatla Silver District and a portfolio of projects with an option on a producing mill at Zacatecas.
On behalf of the Directors of IMPACT Silver Corp.
Frederick W. Davidson, President, CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Contact:
Darrell Rader
IMPACT Silver Corp.
Corporate Development
(604) 681-9501
(604) 681-6813 (FAX)
Email: inquiries@IMPACTSilver.com
Website: www.IMPACTSilver.com
--------------------------------------------------------------------------------
Source: IMPACT Silver Corp.
Press Release Source: IMPACT Silver Corp.
IMPACT Announces Sale of San Sabino Concession in Zacatecas
Thursday July 3, 2:25 pm ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 3, 2008) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT - News) announces that it has sold its 35% interest in the San Sabino concession in Zacatecas to Apex Silver Mines Limited ("Apex") for US$325,000 plus a retained 1% Net Smelter Return Royalty purchasable by Apex for US$1 million. San Sabino was not considered to be a core holding for IMPACT. IMPACT will retain a future benefit in the concession through its retained NSR royalty interest.
ADVERTISEMENT
The San Sabino concession is located in the northwest part of the Zacatecas District. IMPACT optioned the concession to Yale Resources (see IMPACT news release dated October 18, 2006) and earlier this year Yale completed its earn in of 65%. IMPACT holds 16 other concessions in the Zacatecas Silver District and has an option to purchase a producing 200 tonne per day processing plant in the middle of the district.
IMPACT Silver Corp. is a silver focused mining and exploration company operating in Mexico with a producing silver operation at the 125 square kilometer Royal Mines of Zacualpan, the 200 square kilometer advanced Mamatla Silver District and a portfolio of projects with a producing mill at Zacatecas. Energold Drilling Corp. (TSX VENTURE:EGD - News) who is the contractor for the ongoing drill program, owns 6.6 million shares of IMPACT.
On behalf of the Directors of IMPACT Silver Corp.
Frederick W. Davidson, President, CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Contact:
Darrell Rader
IMPACT Silver Corp.
Corporate Development
(604) 681-9501
(604) 681-6813 (FAX)
Email: inquiries@IMPACTSilver.com
Website: www.IMPACTSilver.com
--------------------------------------------------------------------------------
Source: IMPACT Silver Corp.
IMPACT Silver Updates Production and Samples 657 g/t Silver Over 2.85 m at the Chivo Mine
VANCOUVER, BRITISH COLUMBIA, Jun 17, 2008 (Marketwire via COMTEX News Network) --
IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT) is pleased to provide an update on production with information on its new mines, Chivo and San Ramon, in the central part of the Royal Mines of Zacualpan Silver District as well as significant equipment purchases.
CHIVO MINE
The Chivo Mine started commercial production in January, one month ahead of schedule, at 60 tonnes per day (see IMPACT news release dated September 20, 2007). Underground access is via a 92-metre long crosscut adit. With good grades and good metallurgy from the Chivo Zone, mining has now been ramped up to 150 tonnes per day.
The first production stope was developed over a length of 60 meters in 10-meter raises. Samples from this initial 60-meter long mining stope averaged 269 g/t silver, 0.74 g/t gold, 3.01% zinc and 1.08% lead across a true width of 3.3 meters ranging to a high of 657 g/t silver, 0.60 g/t gold, 1.13% zinc and 0.18% lead across a true width of 2.85 meters. At the point where the access adit intersected the vein, the rock section above the vein contained a series of additional sheeted veins which, when combined with the main vein, averaged 220 g/t silver across 20.1 meters including one sheeted vein which assayed 392 g/t silver across a true width of 5.2 meters. The full extent of this wide bulk mineable section will be further investigated as mining and underground exploration proceed. The 60-meter section now being mined is only a small portion of the Chivo Zone, which has now been defined by surface drilling to be at least 200 meters in length and 220 meters down dip. Drilling is continuing to expand the zone in all directions and a second production stope north of the access adit has been brought into production.
Last week, work began on a second adit to access the Chivo Zone 60 meters below the first adit. The second adit and more working faces are scheduled to be in place by the end of the year, and will serve to further increase production.
Chivo was discovered in 2005 when IMPACT crews found high grade veins in old mine workings (see IMPACT news release dated September 7, 2005). Samples from the veins assayed 1,095 g/t silver and 0.38 g/t gold across 1.25 meters true width in the workings and 2,640 g/t silver and 1.36 g/t gold across 0.85 meters on surface. Subsequent drill programs consisting of 21 holes returned highlights of 937 g/t silver, 0.35 g/t gold, 1.88% zinc and 0.75% lead across 2.7 meters true width (Drill hole Z-06-10) and 378 g/t silver, 0.30 g/t gold, 4.25% zinc and 1.76% lead across 4.7 meters true width (Drill hole Z07-03) (see IMPACT news releases dated October 12, 2006 and July 12, 2007).
PRODUCTION PLANS
Presently the Royal Mines of Zacualpan operations are producing at 300 tonnes per day. Plans are to expand production to 500 tonnes per day over the next 12 months mainly sourcing additional high grade mineral from the Chivo Mine supplemented by redevelopment in the Guadalupe Mine to source mineral from the Kena Vein area and production from the Gallega and San Ramon Mines. To facilitate this significant increase in production, IMPACT has budgeted $2 million towards underground mine development, new equipment, plant upgrades and expansion of the tailings dam. Two new scoop trams have already been received and put into operation. These upgrades will be completed over the next eight months and will allow IMPACT to meet its production forecasts.
George Gorzynski, P. Eng., a Qualified Person under the meaning of Canadian National Instrument 43-101, is responsible for the technical content of this news release. Channel samples were collected from cleaned rock faces in mine workings over a continuous representative interval using a moil and hammer. All samples were securely stored at the IMPACT base camp until shipment. A total of 5% assay standards and 5% blanks were inserted into the sample shipment as a quality control measure. All samples were shipped to the ALS Chemex preparation laboratory in Guadalajara, Mexico, where they were fine crushed (70% passing a 2mm screen), pulverized (85% passing a 75 micron screen) and pulp split separated for assay by a riffle splitter. These pulps were shipped to the ALS Chemex laboratory in North Vancouver, Canada, where a 30 gram split of each was assayed for gold and silver by standard fire assay and a 10 gram split was analyzed for an additional 30 elements by ICP spectrometry.
IMPACT Silver Corp. is a silver focused mining and exploration company operating in Mexico with a producing silver operation at the Royal Mines of Zacualpan, the 200-square-kilometer advanced Mamatla Silver District and a portfolio of projects with a producing mill at Zacatecas.
On behalf of the Directors of IMPACT Silver Corp.,
Frederick W. Davidson, President, CEO
SOURCE: IMPACT Silver Corp.
Press Release Source: IMPACT Silver Corp.
IMPACT Silver Announces Record First Quarter Earnings and Silver Production
Monday May 26, 5:37 pm ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 26, 2008) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT - News) is pleased to announce record financial and operational results for the quarter ended March 31, 2008. The Company's consolidated financial statements include the results of Royal Mines of Zacualpan Project ("Zacualpan") in Mexico. Gross Revenues for the first quarter exceeded $2.6 Million and net income for the quarter was $845,000 ($0.02 per share). Mine operating earnings for the quarter were $1.3 million. IMPACT ended the quarter with cash and cash equivalents of $8.9 million.
----------------------------------------------------------------
Three Months Ended March 31 2008 2007 % Change
----------------------------------------------------------------
Revenue $2,687,000 $1,859,000 +44
----------------------------------------------------------------
Net Income $ 845,000 $ 267,000 +216
----------------------------------------------------------------
Earnings Per Share $ 0.02 $ 0.01
----------------------------------------------------------------
Quarterly silver production reached a record of 131,859 ounces, a 54% growth over the same quarter of last year. The Company also produced record quantities of lead, zinc and gold. The addition of high-grade silver production from the commencement of mining activities at the Chivo Mine at the end of the fourth quarter and the subsequent re-activation of operations at the San Ramon mine in the first quarter enabled IMPACT to substantially increase its head grade, margins and silver production. Despite higher hauling costs from the Chivo and San Ramon Mines, direct costs per tonne decreased to $50.63 from $50.97 a year ago. The much higher silver grades led to a higher contribution margin per tonne processed.
----------------------------------------------------------------
Three Months Ended March 31 2008 2007 % Change
----------------------------------------------------------------
Total tonnes (t) Produced 24,247 22,843 +6
----------------------------------------------------------------
Tonnes Produced per Day 266 253 +5
----------------------------------------------------------------
Silver Production (Oz) 131,859 85,606 +54
----------------------------------------------------------------
Lead (t) 162 136 +19
----------------------------------------------------------------
Zinc (t) 275 244 +13
----------------------------------------------------------------
Direct costs per tonne $ 50.63 $ 50.97 -1
----------------------------------------------------------------
Mine expansion at the new mines led to an increase in daily throughput at the Zacualpan mill of 266 tonnes per day. The Company continues with its aggressive plan to modernize operations and increase production.
Guadalupe Mine
As in 2007, the majority of the mill feed for the first quarter was from mining of lower grade material at the Guadalupe Mine. Planning is underway to improve track access to a new area: the Kena-Dolores zone. It and a number of smaller veins could be providing feed late this year. Material from the Guadalupe Mine remains the lowest cost producer for the mines supplying the mill because of its close proximity.
San Ramon Mine
The Company recommenced mining at the San Ramon during the first quarter of 2008 on a selective basis after redesigning the mining plan.
Chivo
During the quarter, the Company continued to drift along the vein while opening up two stopes for mining. The Chivo Vein itself has higher grades of lead and zinc towards the north and more silver towards the south. Material presently mined from Chivo is predominantly from the silver-rich southern portion as well as development muck; however, as larger production stopes are opened up, the lower grade ore from development will represent a smaller percentage from Chivo and average grades will rise. Mineral from Chivo continues to be the principal reason that silver production reached a record for the quarter. A second adit approximately 60 meters vertically lower on the structure is currently being planned.
Exploration drilling results from Chivo and the Kena-Dolores zone of the Guadalupe Mine strongly indicate at least two zones of future development, which have the potential to substantially increase mined tonnages and grades allowing the Company to reach its production target of 500 tonnes per day within a year and, as importantly, be able to maintain it in the future.
IMPACT Silver Corp. is a silver focused mining and exploration company operating in Mexico with a producing silver operation at Zacualpan, the 200-square-kilometer advanced Mamatla Silver District and an advanced project with a producing mill at Zacatecas. Energold Drilling Corp. (TSX VENTURE:EGD - News) who was the contractor for the drill program, owns 6.6 million shares of IMPACT.
On behalf of the Directors of IMPACT Silver Corp.
Frederick W. Davidson, President, CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Contact:
Darrell Rader
IMPACT Silver Corp.
Corporate Development
(604) 681-9501
(604) 681-6813 (FAX)
Email: info@energold.com
Website: www.energold.com
--------------------------------------------------------------------------------
Source: IMPACT Silver Corp.
Like shootin' fish in a barrel. Gotta love it! Nice to see the company putting out news more regularly...
Press Release Source: IMPACT Silver Corp.
IMPACT Silver Announces New Discovery at the Royal Mines of Zacualpan
Tuesday April 29, 2:45 pm ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 29, 2008) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT - News) is pleased to announce a new discovery, the Los Reyes Zone, within the Royal Mines of Zacualpan Silver District in Mexico. Recent drilling of this new discovery returned wide, mineralized drill intercepts within close proximity to the operating Chivo Silver Mine.
LOS REYES ZONE
Discovered through the ongoing regional surface and underground sampling program at Zacualpan, the Los Reyes Zone is located 4.5 kilometers southeast of the Zacualpan processing plant and 600 meters east of the Chivo Silver Mine. It is a thick vein system that trends parallel to the silver-rich Chivo Vein. On surface, Los Reyes is marked by a series of old mine workings. Highlights from the eleven-hole drill program include the following:
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TOP ESTIMATED
DRILL OF TRUE
HOLE INTERCEPT WIDTH ZINC LEAD SILVER GOLD
No. (m) (m) (%) (%) (g/t) (g/t)
--------------------------------------------------------------------------
SECTION 1N (Sections listed from south to north, drill holes listed from
west to east)
--------------------------------------------------------------------------
Z07-42 111.2 4.5 2.05 0.64 262 0.09
-------------------------------------------------------------
Including: 2.2 2.05 0.64 496 0.15
-------------------------------------------------------------
Including: 1.1 1.67 0.44 717 0.27
--------------------------------------------------------------------------
Z06-33 115.1 5.2 1.64 0.50 17 0.18
--------------------------------------------------------------------------
SECTION 2N
--------------------------------------------------------------------------
Z07-35 194.9 1.1 4.35 1.28 25 2.21
--------------------------------------------------------------------------
SECTION 3N
--------------------------------------------------------------------------
Z07-37 191.1 4.1 4.46 1.07 46 0.34
-------------------------------------------------------------
Including: 0.6 17.80 4.62 135 1.24
--------------------------------------------------------------------------
SECTION 4N
--------------------------------------------------------------------------
Z07-38 202.4 5.9 1.99 0.53 22 0.18
--------------------------------------------------------------------------
The other holes in this program intersected lower grades. The holes were drilled on a 35 x 50-meter grid over a length of 200 meters. The zone is open for expansion to the northwest, southeast and down dip.
Several splay veins branching off the main Los Reyes Vein returned significant assays from the drill program as follows:
--------------------------------------------------------------------------
LOS REYES DRILL HOLES (SPLAY VEINS)
--------------------------------------------------------------------------
TOP ESTIMATED
DRILL OF TRUE
HOLE INTERCEPT WIDTH ZINC LEAD SILVER GOLD
No. (m) (m) (%) (%) (g/t) (g/t)
--------------------------------------------------------------------------
SECTION 1N
--------------------------------------------------------------------------
Z07-42 26.7 1.0 0.35 0.14 260 0.07
-------------------------------------------------------------
and: 94.0 0.5 10.05 2.09 338 0.05
--------------------------------------------------------------------------
SECTION 3N
--------------------------------------------------------------------------
Z07-40 44.5 2.5 0.17 0.09 187 0.03
--------------------------------------------------------------------------
--------------------------------------------------------------------------
37 Splay1 147.6 1.5 2.51 2.41 52 0.19
--------------------------------------------------------------------------
SECTION 4N
--------------------------------------------------------------------------
Z07-38 90.4 1.0 4.35 1.05 139 0.07
--------------------------------------------------------------------------
Z07-39 99.5 1.2 4.48 2.14 57 0.06
--------------------------------------------------------------------------
With its close proximity to the operating Chivo Silver Mine, Los Reyes Zone could readily be accessed underground from existing mine workings. IMPACT's mine staff will evaluate the Los Reyes Zone for possible integration into the Chivo Mine plans.
George Gorzynski, P. Eng. and Nigel Hulme, P. Geo., Qualified Persons under the meaning of Canadian National Instrument 43-101, are responsible for the technical content of this news release. Drill core was NTW size (5.71 cm diameter) and BTW size (4.20 cm diameter). Half core samples were collected with a rock saw and tagged for identification. All samples were securely stored at the IMPACT base camp until shipment. A total of 5% assay standards and 5% blanks were inserted into every sample shipment as a quality control measure. All samples were shipped to the ALS Chemex preparation laboratory in Guadalajara, Mexico, where they were fine crushed (70% passing a 2 mm screen), pulverized (85% passing a 75 micron screen) and pulp split separated for assay by a riffle splitter. These pulps were shipped to the ALS Chemex laboratory in North Vancouver, Canada, where a 30-gram split of each was assayed for gold and silver by standard fire assay and a 10-gram split was analyzed for an additional 30 elements by ICP spectrometry.
IMPACT Silver Corp. is a silver focused mining and exploration company operating in Mexico with a producing silver operation at Zacualpan, the 200-square-kilometer advanced Mamatla Silver District and an advanced project with a producing mill at Zacatecas. Energold Drilling Corp. (TSX VENTURE:EGD - News) who was the contractor for the drill program, owns 6.6 million shares of IMPACT.
On behalf of the Directors of IMPACT Silver Corp.,
Frederick W. Davidson, President, CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Contact:
Darrell Rader
IMPACT Silver Corp.
Corporate Development
(604) 681-9501
(604) 681-6813 (FAX)
Email: inquiries@IMPACTSilver.com
Website: www.IMPACTSilver.com
--------------------------------------------------------------------------------
Source: IMPACT Silver Corp.
Press Release Source: IMPACT Silver Corp.
IMPACT Silver Extends Strike Length of Chivo Mine; Drills 12.3 Meters of 6% Zinc and 2% Lead
Thursday April 24, 4:37 pm ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 24, 2008) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT - News) is pleased to announce that continued drilling on extensions of the Chivo Mine has significantly extended the trend northward and has intersected strong mineralization.
The Chivo Mine, located in the Royal Mines of Zacualpan Silver District in Mexico, achieved commercial production in early 2008 based on successful exploration over the past two years. The mine was put into production based on 21 drill holes and sampling of old workings. This news release reports on an additional five holes drilled on the northern extension of the Chivo Zone. Beyond these results, there have been a further 20 holes completed on both the northern and southern extensions of the Chivo Zone. Assays are pending. The main Chivo Zone remains open in all directions for further expansion.
Highlights of the additional holes drilled on the northern extension of the Chivo Zone are as follows:
--------------------------------------------------------------------------
CHIVO NORTH EXTENSION DRILL HOLES (MAIN VEIN)
--------------------------------------------------------------------------
ESTIMATED
TRUE
TOP OF WIDTH
DRILL HOLE INTERCEPT ("TW") ZINC LEAD SILVER GOLD
No. (m) (m) (%) (%) (g/t) (g/t)
--------------------------------------------------------------------------
SECTION 1060N (Sections are listed from south to north, drill holes are
listed from west to east.)
--------------------------------------------------------------------------
Z07-49 157.5 8.8 5.62 1.64 62 0.14
-----------------------------------------------------------
Including: 1.0 14.94 3.52 57 0.33
-----------------------------------------------------------
Including: 0.2 29.50 5.83 70 1.13
--------------------------------------------------------------------------
SECTION 1090N
--------------------------------------------------------------------------
Z07-45 97.7 0.2 5.35 1.27 1,080 0.34
--------------------------------------------------------------------------
Z07-46 127.7 3.0 8.40 3.56 274 0.26
-----------------------------------------------------------
Including: 1.3 15.20 6.20 139 0.17
--------------------------------------------------------------------------
Z07-47 124.4 12.3 6.03 2.05 105 0.14
-----------------------------------------------------------
Including: 7.4 8.73 3.01 150 0.21
-----------------------------------------------------------
Including: 1.8 15.59 5.85 369 0.34
--------------------------------------------------------------------------
The deepest holes on both these sections were the widest and highest grade intersections leaving the zone open for expansion to depth and to the north. Drill hole Z08-49 was drilled at depth on the same section as drill hole Z07-08-11 (see IMPACT news release dated July 12, 2007) and extended the zone of mineralization an additional 50 meters down dip. Drill holes Z08-45 through Z08-48 were drilled on a new section 30 meters north of any previous drilling.
On a deposit scale, the Chivo Zone is showing itself to be increasingly zinc and lead-rich to the north where these holes were drilled and silver-rich to the south where IMPACT has recently completed additional drill holes (assays pending).
Chivo was discovered in 2005 when IMPACT crews found high-grade veins in old mine workings (see IMPACT news release dated September 7, 2005). Samples from the veins assayed 1,095 g/t silver and 0.38 g/t gold across 1.25 meters TW in the workings and 2,640 g/t silver and 1.36 g/t gold across 0.85 meters on surface. Subsequent drill programs consisting of 21 holes returned highlights of 937 g/t silver, 0.35 g/t gold, 1.88% zinc and 0.75% lead across 2.7 meters TW (Drill hole Z-06-10) and 378 g/t silver, 0.30 g/t gold, 4.25% zinc and 1.76% lead across 4.7 meters TW (Drill hole Z07-03) (see IMPACT news releases dated October 12, 2006 and July 12, 2007). To date, 41 drill holes have been completed on the zone (assays pending for 15 holes) and additional drilling is planned to begin in May 2008.
Fred Davidson, President of IMPACT Silver, states, "Chivo continues to deliver wide zones of high grade mineralization with each step out in the drill grid. This drilling success is rapidly growing this zone and nearby zones to where we are now looking at the Chivo area as a second major mining hub in the district. With the huge land package we control and the exploration successes we are having throughout the area, we envision a future with multiple mining and processing centres spread over the entire district."
George Gorzynski, P. Eng. and Nigel Hulme, P. Geo., Qualified Persons under the meaning of Canadian National Instrument 43-101, are responsible for the technical content of this news release. Drill core was NTW size (5.71 cm diameter). Half core samples were collected with a rock saw and tagged for identification. Chip and channel samples were collected from cleaned rock faces in old mine workings and from bedrock outcrops over a continuous representative interval using a moil and hammer. All samples were securely stored at the IMPACT base camp until shipment. A total of 5% assay standards and 5% blanks were inserted into every sample shipment as a quality control measure. All samples were shipped to the ALS Chemex preparation laboratory in Guadalajara, Mexico, where they were fine crushed (70% passing a 2 mm screen), pulverized (85% passing a 75 micron screen) and pulp split separated for assay by a riffle splitter. These pulps were shipped to the ALS Chemex laboratory in North Vancouver, Canada, where a 30-gram split of each was assayed for gold and silver by standard fire assay and a 10-gram split was analyzed for an additional 30 elements by ICP spectrometry.
IMPACT Silver Corp. is a silver focused mining and exploration company operating in Mexico with a producing silver operation at the Royal Mines of Zacualpan, the 200-square-kilometer advanced Mamatla Silver District and a portfolio of projects with a producing mill at Zacatecas.
On behalf of the Directors of IMPACT Silver Corp.
Frederick W. Davidson, President, CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Contact:
Darrell Rader
IMPACT Silver Corp.
Corporate Development
(604) 681-9501
(604) 681-6813 (FAX)
Email: inquiries@IMPACTSilver.com
Website: www.IMPACTSilver.com
--------------------------------------------------------------------------------
Source: IMPACT Silver Corp.
Impact Silver Looks to Build on Success South of the Border
By Andrew K. Burger
20 Apr 2008 at 04:01 PM GMT-04:00
http://www.resourceinvestor.com/pebble.asp?relid=42082
EILAT, Israel (ResourceInvestor.com) -- Just two years in the making, Impact Silver Corp.’s [TSX.V:IPT] efforts to revive historic silver mines in Mexico is bearing more fruit. The company reported operating earnings of C$2.07 million for fiscal 2007, having ramped up silver, lead and zinc mining 47%, to 99,918 tonnes, at three producing mines in central Mexico’s Zacualpan silver district, part of its Royal Mines of Zacualpan Project.
Management anticipates further gains in 2008, shooting for a goal of producing 1 million ounces silver equivalent. They aim to process 500 tonnes of ore per day within 12 months, proceeds from which will be used to purchase additional mining equipment and for expanding underground mining, Impact’s Sunny Pannu told Resource Investor. A 200-tonne per day semi-portable mill has been purchased at a cost of US$700,000 and is being dismantled and transported to the Zacualpan site. The semi-portable mill will enable company engineers to more flexibly and efficiently follow up on drilling results as they come in, Pannu explained.
Impact also plans to step up exploration in 2008. Its exploration budget for this year has more than doubled and should come in between C$3-$4 million, as management looks to accelerate work to build inventories and move potential production to a faster track. There are plenty of targets. More than 700 known prospects have been identified on the Zacualpan and recently acquired Mamatla properties and more than 15,000 metres of surface and underground drilling is planned.
While the near-term focus is to be in the vicinity of active mine workings at Zacualpan’s Guadelupe, Gallega and Chivo Mines, the company is also hatching plans to explore prospects on the 200 square-kilometre Mamatla prospect southwest of Zacualpan, as well continuing exploration work at Nueva Grande and Asturiana, two of its concessions in the Zacatecas silver district.
Zacualpan: Increasing Production & Mill Throughput
With three mines producing more silver, lead and zinc ore at Zacualpan, throughput at Impact’s on-site mill rose to 274 tonnes per day in 2007 as compared to 196 tpd in 2006 and 145 tpd when Impact acquired the mine two years ago, a 189% increase.
Zinc and lead production increased while silver production fell year-over-year - to 976 tonnes, 601 tonnes and 348,949 ounces, respectively - as management decided to maximize zinc production in light of record-high summer prices by extracting previously marginal ore while preparing higher-grade silver mines for production, according to the company media release.
Having become the main source of high-grade silver ore, Zacualpan’s Chivo Mine looks like the focal point for engineering and production activity this year. An access adit was completed in Q4 and drifting began along the ore vein in December, resulting in 100 tpd of ore being processed at the company’s 500 tpd mill. A second adit is being planned some 60 metres below the first.
Ore grades at the Zacualpan mines range from 200 to 450 g/t silver equivalent, Pannu elaborated. Production costs decreased to C$44.15 last year, or about C$5 per ounce silver equivalent, compared to C$59.55 in 2006. Management expects them to rise slightly this year due to continuing development of the Chivo Mine, but higher silver grades should more than offset them.
Impact is looking to reach its 500 tpd ore processing target by utilizing the extra capacity of its existing mill and bringing the 200 tpd semi-portable mill into operation. Mining itself is conducted using a continuously operated underground drill with samples analyzed at the company’s on-site lab.
Management “is bullish on commodity prices in the long-term, feeling that metal demand will continue to be driven by huge infrastructure development in Asia,” Pannu commented. “The effects of the credit crunch and economic slowdown in the U.S. have not affected the company too much. The only effect is that of the U.S. dollar as our smelter contracts are in US dollars. However, the company has and is doing well despite the slowdown in the U.S.,” he added.
A Wealth of Exploration Opportunities
In addition to silver, lead and zinc, Impact has made new gold and copper discoveries at the Royal Mines of Zacualpan Project’s Pacheco Prospect. Initial drilling results included 14.6 g/t gold and 0.46% copper across 2.7 metres true width and point to “the potential for a copper gold district lying at depth below the silver district,” according to management.
Impact also began drilling to explore an initial two targets on the Mamatla property late last year, a 200 sq. km. prospect that the company acquired in a government auction that took place last February. Historic exploration work was most advanced at Mamatla’s Capire and Aurora 1 VMS deposits.
Best estimates thus far - described in the Mexican government’s public auction document by the Mexican Geological Survey - are that the Capire deposit holds an indicated resource of 1,154,500 tonnes grading 0.22g/t gold, 73g/t silver, 0.45% lead and 1.13% zinc in a near surface zone with potential for open pit mining and open for expansion. The same document says that the Aurora 1 Deposit contains an indicated resource of 194,000 tonnes grading 1.28g/t gold, 180g/t silver, 2.13% lead and 4.45% zinc.
The recent acquisition of historical data is helping management further refine its exploration plans. On Feb. 14, the company announced that it would purchase a large amount of historic technical data – including extensive geological, geochemical and geophysical information – produced in the 1990s related to exploration of volcanogenic massive sulphide deposits in the area.
A total of 50,000 Impact shares will be paid out to Valgold Resources Ltd. [TSX.V:VA] in two equal installments within seven days of TSX Venture Exchange approval of the transaction and receipt of the data.
North in Zacatecas
With estimated past production of 1.2 billion ounces, central Mexico’s Zacatecas Silver District is one of the world’s most prolific historic silver districts. Yale Resources [TSX.V:YLL] is working to earn 80% interests in four of them.
Impact is pursuing aggressive expansion plans in Zacatecas, having to date acquired 100% interests in 17 mineral concessions and looking for additional acquisitions and joint ventures. Due diligence, exploration and engineering work to assess the production potential of its properties and the feasibility of a processing plant are under way.
“In 2007, we focused on the Nueva Granada and Asturiana concessions, which cover veins branching off the Veta Grande Vein System, the major silver producer in the district,” Pannu explained. “Old plans indicated the veins were mined over a length of 700 metres and depth of about 150-200 metres so we plan to define that.”
Field work has focused on the San Jose and Armado veins. The former crosses the concessions over a distance of 800 metres. Assay results of six channel samples averaged 239 g/t silver over 0.74 metres true width, with the highest coming in at 444 g/t silver over 1.10 metres true width. Trending west and running parallel the San Jose Vein has been traced over 500 metres. Assay results from channel samples reported 237 g/t silver over 1.92 metres and 1,320 g/t over 0.3 metres. Samples from surface dumps at the Cristian Mine returned 310 g/t silver, 24.2% lead and 8.0% zinc.
Impact management sees the ore that may eventually be mined at these concessions as sources of feedstock for a 200 tpd mill located in the Veta Grande area of Zacatecas. Impact holds a 25% Net Profit Interest in the mill, which is currently operating on a toll basis.
“We still have the option on the 200 tpd processing plant which is operating intermittently custom milling for local miners, however, Impact engineers are assessing the plant for a final decision on the purchase. When we trigger the purchase of the mill that is when decisions will be made on where we go with Zacatecas. The option to purchase the mill extends another 2 years but we will likely do something sooner,” Pannu commented.
http://biz.yahoo.com/ccn/080415/200804150455077001.html?.v=1
Press Release Source: IMPACT Silver Corp.
IMPACT Reports $2.1 Million in Operating Earnings for 2007
Tuesday April 15, 12:01 pm ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 15, 2008) - IMPACT Silver Corp. (TSX VENTURE:IPT - News; "IMPACT" or "the Company") is pleased to announce its results for the year ended December 31, 2007. The Company's consolidated financial statements include results from the Royal Mines of Zacualpan Project ("Zacualpan") which was purchased on January 16, 2006. For the year 2007, the Company's net earnings per share (EPS) were $0.01.
FULL YEAR RESULTS
------------------------------------------------------------------------
2007 Restated 2006
Canadian $ Canadian $
------------------------------------------------------------------------
Revenue 7,250,000 7,006,000
------------------------------------------------------------------------
Mine Operating Earnings(i) 2,071,000 2,407,000
------------------------------------------------------------------------
Income before Taxes 635,000 838,000
------------------------------------------------------------------------
Net Income & comprehensive income 287,000 506,000
------------------------------------------------------------------------
Earnings per Share - basic 0.01 0.01
- diluted 0.01 0.01
------------------------------------------------------------------------
(i) Includes amortization and depletion of $768,000 in 2007 and $539,000
in 2006.
Average mill throughput during the year was 274 tonnes per day. Revenues for the year ended December 31, 2007 were $7,250,077. Mine operating earnings for the year were $2,070,931. Total tonnes mined for the year-end period are 99,918 tonnes or 31,745 tonnes (47%) more than previous year's production. On site operating costs were $44.15 per tonne, a decrease over the prior year of 26%. Production exceeded the prior year by a significant amount in most categories except silver, with mill throughput increasing over 40 per cent to 274 tonnes per day compared to 196 tonnes per day in 2006. This represents an 89% increase over production levels of 145 tonnes per day when the Company acquired the mine two years ago. With record high zinc prices during the summer months, IMPACT's management made the strategic decision to maximize zinc production by exploiting previously marginal zinc ore while preparing the higher grade silver mines for production. As zinc prices began to retreat, silver production was once again increased.
FULL YEAR RESULTS
------------------------------------------------------------
2007 2006
------------------------------------------------------------
Total Tonnes Produced 99,918 68,173
------------------------------------------------------------
Tonnes Produced per Day 274 196
------------------------------------------------------------
Silver Production (ounces) 348,949 465,673
------------------------------------------------------------
Lead (tonnes) 601.03 375.43
------------------------------------------------------------
Zinc (tonnes) 976.07 725.20
------------------------------------------------------------
CAD$ direct costs per ton $44.15 59.55
------------------------------------------------------------
2007 was another exciting year of positive growth generated by successful exploration and development efforts, resulting in IMPACT ending the year in Mexico with three producing mines and control over two large mineral districts, Zacualpan and Mamatla, and a key presence in a third district, Zacatecas; all highlighted by extensive exploration, increased production and lower direct operating costs.
During 2007, the majority of the mill feed was from mining of lower grade mineral at the Guadalupe Mine, where an intensive program of remapping and exploration is continuing underground. The Guadalupe Mine remains the lowest-cost producer in the Zacualpan district.
Chivo is the new high grade producing mine at Zacualpan. During the fourth quarter, construction of the Chivo Mine access adit was completed; drifting commenced along the vein and in December; the first mill feed from stope mining was achieved, resulting in production levels of approximately 100 tonnes per day. A second adit approximately 60 meters vertically below the first is currently being planned. It is anticipated Chivo will provide a significant volume of higher grade silver feed to the Zacualpan mill in 2008 onward.
The Gallega Mine, located just 500 meters from the Zacualpan processing plant, supplements production from the Guadalupe operation. Mining began on the high-grade Salvadora stopes and then expanded to the Lipton Vein and the recently-discovered San David Vein. In 2006, the San Ramon Mine, near Chivo, generated the majority of the high-grade feed for the Zacualpan mill. Operating costs increased and ore delineation became increasingly more complex, and mining stopped here in 2006. The Company will recommence mining at the San Ramon on a more selective basis in 2008.
Importantly, the two mineral districts the Company controls in Central Mexico, the 125-square-kilometer Zacualpan silver district and the newly-acquired 200-square-kilometer Mamatla mineral district southwest of Zacualpan, have great exploration potential. This potential is being unlocked by IMPACT's exceptional technical team who took the Chivo mine from a raw prospect to production in less than two years. In 2008, IMPACT is continuing an aggressive exploration program with over 15,000 meters of surface and underground drilling budgeted, including a number of targets in both districts.
In aggregate, the Company is well-positioned for 2008 with cash and term deposits of in excess of $10 million, which is in addition to funds generated by the current mining. IMPACT recently announced the purchase of a semi-portable 200-tonne-per-day mill, including all major equipment for US$700,000 which, once relocated, will give the mining group increased production capacity to 700 tonnes per day. The Company looks forward to growing by continuing to expand production through aggressive exploration and rapid mine development. The exploration budget for 2008 has been more than doubled in order to put some of the 700 plus known prospects at Zacualpan and Mamatla on a faster track to potential production and build mineral inventories for mining.
Frederick W. Davidson, President, CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Contact:
Darrell Rader
IMPACT Silver Corp.
Corporate Development
(604) 681-9501
(604) 681-6813 (FAX)
Email: inquiries@IMPACTSilver.com
Website: www.IMPACTSilver.com
--------------------------------------------------------------------------------
Source: IMPACT Silver Corp.
Up over 8% today. Take a look at the chart, a very nice ascending triangle can be seen which I think will soon be broken and a nice launch upward will ensue. People are starting to realize that gold and silver are not going to correct, and its time to buy up those juniors!
Press Release Source: IMPACT Silver Corp.
IMPACT Silver Announces Acquisition of Third Mill
Tuesday January 29, 4:58 pm ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 29, 2008) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT - News) is pleased to announce the acquisition of its third mill. The semi-portable mill is located in central Mexico and has a capacity of 200 tonnes per day. It will be dismantled and transported to IMPACT's Royal Mines of Zacualpan Silver District for impending production increases. Presently the central operating mill at Zacualpan is rated at 500 tonnes per day. The addition of this mill will increase IMPACT's production capacity in the district to 700 tonnes per day.
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The mill has been acquired through a simple purchase agreement at a price of US$700,000. A payment of US$50,000 was made on signing with the balance of US$650,000 to follow within 60 days. Due diligence conducted by IMPACT engineers on the mill determined that all major pieces of machinery are in excellent condition. The mill was originally built in 1988 from predominantly new pieces of equipment. It operated intermittently in central Mexico for six years and processed only 150,000 tonnes before production was suspended. With the shortage of available mining and processing equipment today and the continuing need for equipment to fuel IMPACT's expanding production profile, management moved quickly to acquire this mill at a favourable price when it became available.
IMPACT controls 325km2 of mineral concessions at the Royal Mines of Zacualpan and Mamatla Districts. Given its large land position, IMPACT is planning to operate in the district through a series of processing plants each serving a portion of the district. The purchase of this mill is the first step toward this goal. The semi-portable mill's destination in the district will be determined by the results from ongoing drilling. Currently, the Royal Mines of Zacualpan Silver District has three mines feeding a central wholly owned mill. In the Zacatecas Silver District, IMPACT has an option to purchase an operating 200 tonne per day mill.
Fred Davidson, President of IMPACT, stated, "The acquisition of this additional milling capacity will ensure that we will be able to continue our production expansion plans unhindered by shortages of processing equipment as new mines are brought online. Our technical team has demonstrated that they can bring new discoveries through drilling, engineering and into production in under 24 months and it is management's job to ensure they are not hindered by lack of resources. This mill acquisition goes a long way to fulfilling that commitment."
IMPACT Silver Corp. is a silver focused mining and exploration company operating in Mexico with a producing silver operation at the Royal Mines of Zacualpan, the 200km2 advanced Mamatla Silver District and a portfolio of projects with a producing mill at Zacatecas. Energold Drilling Corp. (TSX VENTURE:EGD - News) who is the contractor for the ongoing drill program, owns 6.6 million shares of IMPACT.
On behalf of the Directors of IMPACT Silver Corp.
Frederick W. Davidson, President, CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Contact:
Darrell Rader
IMPACT Silver Corp.
Corporate Development
(604) 681-9501
(604) 681-6813 (FAX)
Email: inquiries@IMPACTSilver.com
Website: www.IMPACTSilver.com
--------------------------------------------------------------------------------
Source: IMPACT Silver Corp.
EBAY, yes I once held Great Panther and it did well for a while. After one year, I was at breakeven and then sold. Used the proceeds to buy Impact and OK.V This has worked out very well for me. I may revisit Great Panther after I contact the company.
Read the PR he posted -- with all these exploration targets IPT has much more potential upsoide, not that there is anything wrong with Great Panther.
LC
Hello sumisu.....RE: GREAT PANTHER Resources........
.....Hi sumisu....noticed you used to post messages at the GREAT PANTHER message board and have not for awhile......hoping to see re-ignited spark in the GREAT PANTHER message board and the stock.....Impact Silver appears to be a worthy speculation, but I wonder when you weigh out all the factors....does it have the upside that GREAT PANTHER may have.....if you or any here have any interest in GREAT PANTHER Resources....please stop by the GREAT PANTHER message board and express your outlook........I believe that GOLD is headed towards $1777 and SILVER towards $33 over the next years......what do you think?
IMPACT Silver Exploration Summary
Thursday January 10, 7:18 pm ET
http://biz.yahoo.com/ccn/080110/200801100435654001.html?.v=1
silver,
My neighbor gave me Impact and OK.V on a hunch.
I always listen to her now.
sumi
Nice!
Impact continues to deliver. It's sad that so many silver producers cannot produce a profit at these prices. But Impact not only does that but makes great discoveries as well! Happy to be a shareholder.
And the fact that so many others can't make a profit at current levels means that silver is certainly headed higher from here and Impact will outperform as a result.
Impact Silver Announces New Silver Discoveries at Mamatla
Tuesday December 4, 5:33 pm ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 4, 2007) - IMPACT Silver Corp. (TSX VENTURE:IPT - News; "IMPACT") is pleased to announce the discovery of several new silver prospects in the Mamatla District. The wholly-owned 200 square-kilometer Mamatla District is located southwest of and immediately adjacent to the Royal Mines of Zacualpan. Mamatla is host to both epithermal veins and volcanogenic massive sulphide deposits. Field work has demonstrated that some of the veins exploited within the Royal Mines of Zacualpan project extend onto the eastern portion of the Mamatla District. Most of the prospects described below are within trucking distance from the operating mill at Zacualpan.
Field crews began prospecting and sampling at Mamatla immediately after IMPACT won the project in a government auction earlier this year. Much like at Zacualpan, the majority of the targets have historical workings that stopped due to groundwater. These targets will be advanced towards drilling in 2008.
SAN CARLOS AREA PROSPECTS
The ruins of the large historic San Carlos processing plant are located 13 kilometers southwest of IMPACT's operating Zacualpan processing plant. The San Carlos plant appears to have served as a central facility for processing minerals from local mines. At the site, IMPACT crews found seven piles of mineralized rocks varying from 20 - 500 tonnes in size. Samples from these rock piles assayed between 0.06 - 2.12% copper, 0.1 - 17.55% zinc, 0.1 - 11.45% lead, 46 - 836g/t silver and 0.2 - 8.65g/t gold. With the belief that these piles represent mineral collected from various nearby old mines, IMPACT crews began prospecting the surrounding countryside and discovered numerous old mine workings. Samples from some of the first workings discovered are reported below.
PIRUL PROSPECT
The Pirul Prospect is comprised of old mine shafts and adits located 1 kilometer north of the San Carlos plant. Samples from the workings returned the following values:
[summary in following link]
http://biz.yahoo.com/ccn/071204/200712040429682001.html?.v=1
OT: Sumisu, I don't have the membership to allow me to reply privately on your board, so I have to express my thanks for your PM here. I always appreciate knowing someone is enjoying the fruits of my labour.
If you want to read way too many mining-related PRs and articles, check out this board of mine -- http://siliconinvestor.advfn.com/subject.aspx?subjectid=57070
LC
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IMPACT Silver Corp. is a silver producer with an extensive portfolio of advanced silver projects in Mexico. The Company currently produces silver from multiple mines and a 500 tonnes per day processing plant at the Royal Mines of Zacualpan. With mining operations having been profitable from the first day of production and continuing to be profitable even at lower metal prices, IMPACT has distinguished itself as a respected precious metals producer.
IMPACT plans to grow into a premier producer of silver through internal growth and now controls over 623 km2 in the Zacualpan Districts realizing its goal of consolidation in the surround areas. The Company owns the 272km2 Royal Mines of Zacualpan Silver District, the 200km2 Mamatla District and the Zacatecas Silver Project as well as the most recent 150 km2 Southeast Mineral Concessions to its project portfolio through additional external acquisitions.
On November 17th 2009, the Company announced it's first 43-101 resource definition in the Mamatla Silver District, outlining the combined Capire and Aurora 1 Measured and Indicated Mineral Resources estimates at 7.2 million ounces silver, 94.3 million pounds zinc and 38.8 million pounds lead This mineral estimate only covers %0.1 (0.2 sq km) of the 200 sq km Mamatla Silver District (see November 17th 2009 news release or go to Mamatla District under the Projects tab for more information). An updated NI 43-101 Mineral Resource Estimate is currently being prepared.
VISION AND OBJECTIVES VISION: To aggressively build IMPACT into a premier producer of silver. | ||
Click here for: PDF Brochure |
Directors & OfficersIMPACT's management is a diverse team of experienced, entrepreneurial professionals with a strong background in mineral exploration, mine development, international business, financing and management. Fred Davidson, C.A. - President, CEO OfficesHead Office Legal CounselBoughton Law Corporation AuditorsPricewaterhouseCoopers LLP Transfer AgentComputershare Investor Services |
http://www.impactmin.com/s/StockInfo.asp | http://www.impactmin.com/s/NewsReleases.asp |
http://www.impactmin.com/s/ContactUs.asp | http://www.impactmin.com/i/pdf/CorporatePresentation.pdf |
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