Press Release Source: IMPACT Silver Corp.
IMPACT Announces Continuing Improvement in Operations
Wednesday May 30, 4:58 pm ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 30, 2007) - IMPACT Silver Corp. (TSX VENTURE:IPT - News; "IMPACT" or "the Company") is pleased to announce its results for the quarter ended March 31, 2007. The Company's consolidated financial statements include the results of Royal Mines of Zacualpan Project ("Zacualpan") that was purchased on January 16, 2006 and resumed production on January 18, 2006. For the 2007 first quarter, the Company's net revenues were $1,859,000 (2006 - $1,146,000) and net profit was $266,000 (2006 - $178,000).
The comparative results for the first quarter of 2006 have been restated in accordance with the recommendations contained in CICA handbook 1506.42, as more fully described in Note 15 to the March 31, 2007 Financial Statements. There was no significant impact on net income for the quarter as a result of this restatement of the comparative 2006 first quarter earnings.
In the first quarter of 2007, the Company achieved higher levels of throughput at the Zacualpan mine, averaging 253 tonnes-per-day ("tpd"). While the amount of silver produced in the quarter was 13% lower, production in lead increased 95% and zinc by 74% over the comparable quarter in 2006. The number of total tonnes processed also increased by 75%.
Quarterly Comparison (t equals tonnes)
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Q1 2007 Q1 2006
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Total mill throughput (t) 22,845 13,069
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Average daily mine production (t) 253 145
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Silver Production (oz) 85,606 98,950
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Lead (t) 135.68 69.55
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Zinc (t) 243.58 139.86
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Cdn. $ direct costs (t) $50.97 $49.76
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During the first quarter, mining of medium grade mineral at the Guadalupe Mine continued principally on the 195m Level exploiting the Lipton, Lipton del Bajo Paulina, Intermediate and Liptonia Veins, as well as exploiting the Liptonia Vein on the 140m level.
Success in exploration drilling in 2006 led to the commencement of mining in late 2006 from La Gallega (Salvadora) Mine. Mining began on the high grade Salvadora stopes and in the first quarter also commenced on the Lipton Vein and the recently-discovered San David Vein. Material is transported by truck from La Gallega approximately 500 meters to the mill and is forming an increasingly important source of mill feed.
Fred Davidson, President, stated, "We are pleased to report another profitable quarter while continuing an aggressive exploration and development program as part of our plan to ramp up production at Zacualpan to the current capacity of the mill of 500tpd. In this quarter we were able to not only increase tonnage processed, but also lay the foundation for further production growth."
During the quarter the Company acquired through a Government auction, a 100% interest in the mineral exploration rights to the 200km2 Mamatla mining district, which lies immediately adjacent to the Zacualpan mining district. The acquisition of these exploration rights adds significantly to the overall growth potential and future prospects of the Company.
IMPACT Silver Corp. is a Tier 1 silver-focused mining and exploration company with two producing silver mines at Zacualpan, Mexico; exploration rights to two Mexican mining districts, an advanced-stage silver project at Zacatecas, Mexico; and, other projects in the Dominican Republic. Energold Drilling Corp. (TSX VENTURE:EGD - News) 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
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Source: IMPACT Silver Corp.
