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.
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Three Months Ended March 31 2008 2007 % Change
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Revenue $2,687,000 $1,859,000 +44
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Net Income $ 845,000 $ 267,000 +216
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Earnings Per Share $ 0.02 $ 0.01
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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.
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Three Months Ended March 31 2008 2007 % Change
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Total tonnes (t) Produced 24,247 22,843 +6
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Tonnes Produced per Day 266 253 +5
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Silver Production (Oz) 131,859 85,606 +54
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Lead (t) 162 136 +19
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Zinc (t) 275 244 +13
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Direct costs per tonne $ 50.63 $ 50.97 -1
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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
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Source: IMPACT Silver Corp.
