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
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