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
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Source: IMPACT Silver Corp.
