IMPACT Silver 2011 Exploration
Review and 2012 Outlook
IMPACT Silver Corp. ("IMPACT") is pleased to provide a summary of its
2011 exploration program at the Royal Mines of Zacualpan Silver District
("Zacualpan") and the adjacent Mamatla Mineral District
("Mamatla") in Mexico. IMPACT has over five years of consistently
profitable operations, with 2011 being a record breaking year for revenues and
earnings.
Exploration in 2011 focused on the open-pit Capire Silver Mine Development
Project, the Huatecosco Gold-Silver Project and multiple high-grade silver
zones in Zacualpan including the Oscar Silver Vein Corridor, the Chontalpan
Silver Project and the Golondrinas Silver Project. IMPACT's continued success
of significantly expanding its mining operations and its exceptional discovery
rate of four new mines in the past five years is attributed to a systematic and
persistent approach to mining exploration.
IMPACT controls two large adjacent mineral districts in Mexico, Zacualpan and
Mamatla, which comprise 623 square kilometers and include three operating
silver mines, the 500 tonnes-per-day ('tpd') Guadalupe Processing Plant and the
new open-pit Capire Mine Development Project.
2011 Exploration Review
IMPACT's exploration increased significantly in 2011 as a result of an
expansive program focused on both surface and underground drilling. Total
drilling for 2011 surpassed the proposed 25,000 meters to 29,481 meters, up 68%
from 17,520 meters drilled in 2010. Underground drilling totaled 3,010 meters,
a 37% jump from 2,197 meters in 2010, and surface and resource drilling grew to
26,471 meters, up 73% from 15,323 meters in 2010.
IMPACT explored multiple targets in 2011 including the Oscar, Huatecosco,
Capire, Chontalpan, Golondrinas, Cerro Cuates, San Pablo Norte and Condesa
areas. Field work included extensive geological mapping, trenching, soil
sampling, prospecting, the re-opening of many old mine workings and their
systematic sampling. Surface drilling was conducted on a number of project
areas, as detailed in the following summary.
Oscar Vein Corridor Drilling Highlights
The Oscar Vein Corridor ("Oscar"), located 2.5 kilometers east of the
Guadalupe Processing Plant, is a series of high-grade silver veins linking the
past producing Cuchara Silver mine and the Santa Lucia Silver Zone. The 2011
Oscar drill program was conceived to test a series of sub parallel high-grade
silver veins that represent the faulted extension to the Santa Lucia veins.
Earlier drill results for the Santa Lucia included 466 g/t silver across 3.2
meters (see IMPACT News Release dated December 16,
2009). Previous
drilling at the Oscar returned values of 2,820 g/t silver, 7.83 g/t gold,
3.48% lead and 7.83% zinc over 0.30 meters (see IMPACT News Release dated January 25,
2007). The drill
results from the 2011 Oscar program include many high-grade silver
intersections, as indicated in the table below:
2011 Oscar Project Drill Results
|
Drill
Hole
|
Drill
Section
|
From
(m)
|
To
(m)
|
Intersection
(m)
|
Silver
(g/t)
|
Gold
(g/t)
|
Lead
(%)
|
Zinc
(%)
|
|
Z11-35
|
18+50N
|
79.88
|
81.20
|
1.32
|
156
|
0.00
|
0.0
|
0.2
|
|
And
|
|
145.90
|
146.25
|
0.35
|
2,860
|
0.35
|
1.6
|
4.6
|
|
Z11-36
|
18+50N
|
203.30
|
205.63
|
2.33
|
109
|
0.11
|
1.0
|
1.6
|
|
Z11-37
|
18+50N
|
183.95
|
189.20
|
5.25
|
108
|
0.19
|
0.2
|
0.4
|
|
Including
|
|
183.95
|
186.08
|
2.13
|
178
|
0.40
|
0.4
|
0.8
|
|
Z11-38
|
18+50N
|
97.72
|
103.70
|
5.98
|
197
|
0.02
|
0.2
|
0.5
|
|
Including
|
|
100.47
|
100.92
|
0.45
|
1,310
|
0.11
|
1.3
|
4.0
|
|
Z11-39
|
19+00N
|
62.15
|
63.70
|
1.55
|
285
|
0.01
|
0.2
|
0.3
|
|
Z11-40
|
19+00N
|
59.45
|
61.45
|
2.00
|
165
|
0.01
|
0.1
|
0.4
|
|
And
|
|
120.25
|
124.75
|
4.50
|
136
|
0.08
|
0.3
|
0.9
|
|
Including
|
|
120.25
|
120.80
|
0.55
|
414
|
0.16
|
0.4
|
1.8
|
|
Z11-41
|
19+00N
|
72.35
|
74.05
|
1.70
|
64
|
0.00
|
0.1
|
0.6
|
|
Including
|
|
72.35
|
72.55
|
0.20
|
246
|
0.02
|
0.3
|
3.4
|
|
Z11-42
|
19+50N
|
32.40
|
39.90
|
7.50
|
76
|
0.09
|
0.2
|
0.6
|
|
Including
|
|
32.40
|
34.55
|
2.15
|
162
|
0.28
|
0.6
|
1.5
|
|
Z11-43
|
19+50N
|
5.05
|
6.18
|
1.13
|
69
|
0.01
|
0.1
|
0.2
|
|
Z11-44
|
19+50N
|
51.80
|
82.45
|
30.65
|
291
|
0.01
|
0.1
|
0.4
|
|
Including
|
|
51.80
|
59.25
|
7.45
|
780
|
0.02
|
0.4
|
1.1
|
|
Including
|
|
51.80
|
52.10
|
0.30
|
6,730
|
0.20
|
1.5
|
8.0
|
|
Including
|
|
55.50
|
55.95
|
0.45
|
4,240
|
0.06
|
2.1
|
6.8
|
|
Including
|
|
64.60
|
70.40
|
5.80
|
398
|
0.03
|
0.2
|
0.4
|
|
Including
|
|
68.25
|
68.95
|
0.70
|
1,290
|
0.06
|
0.2
|
1.3
|
|
And
|
|
139.45
|
146.80
|
7.35
|
244
|
0.07
|
0.5
|
0.9
|
|
Including
|
|
140.45
|
144.45
|
4.00
|
380
|
0.08
|
0.7
|
1.3
|
|
Z11-45
|
18+00N
|
118.30
|
118.60
|
0.30
|
530
|
0.02
|
0.2
|
0.2
|
|
And
|
|
130.20
|
132.50
|
2.30
|
119
|
0.00
|
0.1
|
0.4
|
|
Including
|
|
130.20
|
130.80
|
0.60
|
362
|
0.01
|
0.4
|
1.2
|
|
Z11-46
|
17+50N
|
92.10
|
97.75
|
5.65
|
1,007
|
0.07
|
0.5
|
1.1
|
|
Including
|
|
96.70
|
97.75
|
1.05
|
4,580
|
0.26
|
1.7
|
4.0
|
|
And
|
|
108.95
|
111.70
|
2.75
|
1,128
|
0.51
|
0.9
|
1.4
|
|
Including
|
|
109.70
|
110.80
|
1.10
|
2,630
|
0.40
|
0.8
|
2.2
|
|
And
|
|
135.65
|
137.60
|
1.95
|
111
|
0.01
|
0.1
|
0.5
|
|
Including
|
|
135.65
|
135.95
|
0.30
|
537
|
0.05
|
0.5
|
3.1
|
|
Z11-47
|
17+50N
|
116.60
|
122.40
|
5.80
|
122
|
0.01
|
0.1
|
0.2
|
The final phase of the drilling program is currently underway at Oscar, which
will determine the orientation and continuity of silver grades in the veins.
Upon receiving and interpreting the final drill results, the IMPACT mine
development team will determine the feasibility of mine production in the
combined Oscar-Santa Lucia area utilizing the existing mining infrastructure at
the adjacent historic Cuchara Mine.
Huatecosco Gold-Silver Project
In 2011, IMPACT commenced drilling on the Huatecosco Gold-Silver Project
("Huatecosco") located 9.5 kilometers south of the Guadalupe
Processing Plant. The Huatecosco vein is one of the dominant veins in the
Zacualpan Silver-Gold District. It is a large northwest trending structure with
an inferred strike length of 16 kilometers. This vein, along with a number of
others located in the southern and western portions of the Zacualpan District,
contains elevated gold values in addition to the silver mineralization that is
characteristic of the District. The 2011 Huatecosco drill program was designed
to test a series of gold-silver-lead-zinc-copper soil anomalies located in the
extreme southeast portion of this structure.
The first anomaly drilled was the Huatecosco Central Zone, which contained a
collection of old mine workings and returned significant drill results, as
indicated in the table below:
2011 Huatecosco Central Zone Drill Results
|
Drill
Hole
|
Drill
Section
|
From
(m)
|
To
(m)
|
Intersection
(m)
|
Gold
(g/t)
|
Silver
(g/t)
|
Lead
(%)
|
Zinc
(%)
|
|
Z11-15
|
26+50 SE
|
92.55
|
98.00
|
5.45
|
1.19
|
59
|
1.42
|
1.95
|
|
including
|
|
92.55
|
94.05
|
1.50
|
3.82
|
149
|
4.10
|
3.80
|
|
Z11-16
|
26+50 SE
|
156.95
|
159.20
|
2.25
|
0.98
|
83
|
0.14
|
0.26
|
|
Z11-17
|
27+00 SE
|
54.51
|
59.25
|
4.74
|
3.44
|
118
|
0.59
|
0.81
|
|
including
|
|
55.08
|
57.40
|
2.32
|
2.29
|
217
|
0.97
|
1.19
|
|
Z11-18
|
27+00 SE
|
91.05
|
96.17
|
5.12
|
0.72
|
53
|
0.81
|
0.71
|
|
Z11-19
|
26+00 SE
|
110.55
|
117.40
|
6.85
|
1.60
|
159
|
0.22
|
0.30
|
|
including
|
|
114.65
|
117.40
|
2.75
|
3.53
|
321
|
0.43
|
0.57
|
|
Z11-20
|
26+00 SE
|
167.90
|
178.20
|
10.30
|
3.97
|
49
|
1.69
|
2.62
|
|
including
|
|
167.90
|
172.50
|
4.60
|
6.96
|
84
|
2.89
|
5.11
|
|
Z11-23
|
26+50 SE
|
344.90
|
347.23
|
3.15
|
0.96
|
26
|
0.28
|
1.52
|
The Huatecosco Pedro Zone, located 300 meters northwest of the Huatecosco
Central Zone, is marked by a second gold-silver-lead-zinc-copper soil anomaly,
and is also host to an abundance of old mine workings. Recently completed soil
sampling two kilometers further northwest on the structure indicated the
presence of two stronger soil anomalies, which are scheduled for drilling in
2012. Initial drill results from the Huatecosco Pedro Zone returned a number of
significant assays, as listed in the table below:
2011 Huatecosco Pedro Zone Drill Results
|
Drill
Hole
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Gold
(g/t)
|
Silver
(g/t)
|
Lead
(%)
|
Zinc
(%)
|
|
Z11-33
|
183.55
|
192.6
|
9.05
|
0.48
|
62.96
|
0.62
|
2.02
|
|
Including
|
186.35
|
187.8
|
1.45
|
1.4
|
61.69
|
1.4
|
4.75
|
|
Z11-34
|
228.25
|
233.05
|
4.8
|
0.15
|
50.66
|
1.55
|
6.39
|
|
Including
|
231.95
|
232.4
|
0.45
|
0.16
|
123
|
4.01
|
23.6
|
|
Z11-48
|
351.7
|
355.8
|
4.1
|
5.22
|
30.1
|
0.69
|
1.78
|
|
Including
|
353.75
|
354.5
|
0.75
|
25
|
50.1
|
0.49
|
1.59
|
|
Z11-50
|
197.8
|
201.3
|
3.5
|
0.45
|
108.13
|
1.85
|
2.7
|
|
Including
|
200.45
|
201.3
|
0.85
|
1.25
|
220
|
3.58
|
6.45
|
Definition drilling is continuing at both the Huatecosco Central and Huatecosco
Pedro Zones to fully delineate these zones. When the drilling results have been
received and interpreted, IMPACT's mine planning team will determine the
feasibility of mine production at the Huatecosco Gold-Silver Project.
Capire Silver Mine Project
The open-pit Capire Silver Project represents a new production center in a new
mining district and an opportunity that, upon successful completion of the
proposed exploration and development program, would propel IMPACT to become a
multimillion ounce silver producer.
The Capire Project, located in the Mamatla District, is 16 kilometers southwest
of IMPACT's active mining operations in Zacualpan. In February 2011, the
updated NI 43-101 compliant Measured and Indicated Mineral Resources was
announced and totaled 7.2 million ounces silver, 30,446 ounces gold, 95.6
million lbs zinc and 37.2 million lbs lead (see IMPACT News Release dated February 1, 2011). IMPACT recently announced the
construction of the Capire Mine and pilot plant had commenced, with first
concentrate shipments scheduled for late 2012 (see IMPACT News Release dated January 11, 2012).
Subsequent to the mineral resource announcement, IMPACT completed 6,698 meters
of drilling to expand the Capire zone to the north, east and southeast (see
IMPACT News Releases dated May 24, 2011 and August 17, 2011). Highlights from this expansion drilling
are included in the table below:
2011 Capire Project Drill Results
|
DRILL
HOLE
|
FROM
(m)
|
TO
(m)
|
INTERVAL
(m)
|
SILVER
(g/t)
|
GOLD
(g/t)
|
LEAD
(%)
|
ZINC
(%)
|
COPPER
(%)
|
|
C11-24
|
58.50
|
63.50
|
5.00
|
304
|
4.51
|
1.52
|
3.05
|
0.49
|
|
Including
|
59.50
|
61.50
|
2.00
|
661
|
10.83
|
3.06
|
6.05
|
1.06
|
|
C11-26
|
96.05
|
102.65
|
6.60
|
212
|
0.37
|
1.24
|
2.79
|
0.22
|
|
Including
|
100.65
|
102.65
|
2.00
|
496
|
0.77
|
2.34
|
4.99
|
0.48
|
|
C11-27
|
61.00
|
75.00
|
14.00
|
49
|
0.20
|
0.57
|
1.44
|
0.09
|
|
Including
|
65.00
|
69.00
|
4.00
|
93
|
0.33
|
1.07
|
2.27
|
0.12
|
|
C11-28
|
58.00
|
60.00
|
2.00
|
240
|
0.34
|
1.54
|
4.99
|
0.20
|
|
C11-29
|
78.25
|
82.35
|
4.10
|
122
|
0.52
|
0.79
|
2.04
|
0.18
|
|
C11-30
|
54.90
|
56.90
|
2.00
|
136
|
0.17
|
0.43
|
1.04
|
0.07
|
|
C11-36
|
74.70
|
83.50
|
8.80
|
83
|
0.18
|
0.50
|
1.25
|
0.11
|
|
Including
|
82.00
|
83.50
|
1.50
|
298
|
0.54
|
1.61
|
3.48
|
0.32
|
|
C11-38
|
95.50
|
103.00
|
7.50
|
53
|
0.14
|
0.45
|
1.13
|
0.09
|
|
Including
|
97.00
|
98.00
|
1.00
|
166
|
0.48
|
1.53
|
3.02
|
0.31
|
|
C11-39
|
54.50
|
56.00
|
1.50
|
206
|
0.77
|
1.14
|
2.14
|
0.17
|
|
C11-41
|
119.40
|
122.00
|
2.60
|
99
|
0.21
|
0.97
|
2.38
|
0.12
|
|
Including
|
119.40
|
120.45
|
1.05
|
152
|
0.31
|
1.29
|
3.34
|
0.19
|
|
C11-42
|
111.80
|
112.30
|
0.50
|
1,160
|
3.74
|
3.86
|
8.83
|
0.65
|
|
C11-50
|
21.35
|
24.40
|
3.05
|
139
|
2.95
|
0.52
|
1.02
|
0.26
|
|
Including
|
22.85
|
24.40
|
1.55
|
256
|
5.62
|
0.97
|
1.82
|
0.49
|
The Capire Zone remains open for further expansion, with additional drilling
planned for 2012.
Chontalpan Silver Project
The IMPACT exploration team drilled an additional ten holes as they embarked on
the second phase of the Chontalpan drill program in 2011. The second phase of
the drill program was designed to further delineate two zones of silver
mineralization on trend with the historic Chontalpan Mine, located five
kilometers southeast of the Guadalupe Processing Plant. Significant drill
results included 4.38 meters grading 116.5 g/t silver (see IMPACT News
Release dated June 7, 2011). Previous
drill results include 2.14 meters of 402.6 g/t silver (see IMPACT New
Release dated September 15,
2010). Drilling
is now complete and IMPACT's mine planning team is currently studying the
feasibility of developing these zones into small producing mines that may
augment production from IMPACT's principle mining operations in the Zacualpan
District.
Golondrinas Silver Project
In 2011, IMPACT added four exploration holes at the Golondrinas Project,
located three kilometers southeast the Guadalupe Plant. Drill results included 2.84
meters grading 132.3 g/t silver (see IMPACT News Release dated June 7, 2011). Previous
drill results from 2010 included 1.03 meters of 1,045 g/t silver (see
IMPACT News Release dated October 19,
2010).
Additional drilling is planned for the northern portion of the Golondrinas area
where a number of high-grade silver intersections were discovered in 2010 (see
IMPACT News Release dated November 10,
2010).
Zacatecas Silver Project
In 2010, IMPACT completed the purchase of a 200 tpd processing plant in the
Zacatecas Silver District, in addition to the previously purchased 10 mineral
concessions with no underlying royalties (see IMPACT News Release dated March 23, 2010). In 2011,
IMPACT optioned its Zacatecas assets to Defiance Silver Corp. (DEF: TSX.V) in
return for cash and a major share position (see IMPACT News Release dated September 12,
2011). Defiance
Silver plans to refurbish the plant and commence commercial production with
mineral feed from the IMPACT concessions and the past producing San Acacio
mine, which is presently under option.
Early Stage Exploration
IMPACT employs highly qualified field crews who are dedicated to early stage
exploration in the two mineral districts. During 2011, the soil sampling team
collected over 15,000 samples on the Coronas Grid in Zacualpan at 25 meter
intervals on lines spaced 100 meters apart. This soil grid connects the Noche
Buena mine area with the Huatecosco and Cerro Cuates areas. Examination and
evaluation of a multitude of prominent anomalies continues with geological mapping,
prospecting and the opening of old mine workings. The IMPACT exploration team
is currently conducting a comprehensive vein interpretation for the entire
Coronas Grid area to identify future drilling targets.
Soil sampling and prospecting has also commenced north of the Oscar-Cuchara
area, and geological mapping, rock sampling and opening of old mine workings is
ongoing in the San Pablo Norte and Santa Efigenia areas in Zacualpan.
Data Compilation
Since 2004, IMPACT has been constructing a state-of-the-art computerized
Geographic Information System (GIS) database. At the core of this database is
information pertaining to over 2,500 old mine workings and prospects
representing almost 500 years of mining history in the Zacualpan and Mamatla
Districts. For several years the GIS database has been the main engine for
generating and prioritizing new drill targets. In 2010, the GIS database
reached a critical mass of data that lead to the use of enhanced methods for
in-depth data analysis and the modeling of geology and exploration targets.
2012 Outlook
Exploration continued at a high level into 2012, and initial plans are to
rapidly move the Capire Silver Project into production, assess possible
production at Oscar for 2013 and continue aggressive drilling and field work on
priority targets among the approximately 2,500 compiled prospects in the
Zacualpan and Mamatla Districts.
IMPACT's next mine planned to come on-stream is the open-pit Capire Silver
Project, scheduled for pilot plant production in late 2012. IMPACT announced
the commencement of construction at Capire upon successfully receiving the
final permits necessary to begin mining activities in early 2012 (see IMPACT
News Release dated January 11,
2012).
Construction activities currently underway include site preparation work,
pre-stripping and tailings pond development, and installation of the 200 tpd
pilot plant. Arrangements for the initial silver-lead-zinc concentrate
shipments to the smelter are organized for late 2012.
After successful drilling at the Oscar Silver Project in 2011, additional
drilling is continuing to complete definition of the zones in 2012, after which
the silver-rich Oscar-Santa Lucia zones will be given to the IMPACT mine development
team for feasibility and mine planning with an aim for potential production in
2013.
The IMPACT exploration team drilled two significant targets in the gold-rich
Huatecosco trend in 2011, which will be assessed for potential mine development
in this new gold-copper-silver camp. 2012 will see the IMPACT team continue to
aggressively explore this emerging zone.
With a track record of successful exploration, rapid mine development and more
than 2,500 old mine workings in the GIS database, IMPACT's long term growth
strategy is to become a mid-tier multimillion ounce silver producer with
multiple production centers each fed by multiple mines. The construction of a
second production center at Capire in 2012 is the next important step to
fulfilling this vision. IMPACT's strong cash position and consistently positive
cash flow allows for accelerated growth through aggressive exploration and
potential accretive acquisitions.
George Gorzynski, P.Eng, Vice President and Director of IMPACT Silver, and
Brian V. Hall, P.Geo., both Qualified Persons under the meaning of Canadian
National Instrument 43 101, are responsible for the technical information in
this news release. The Capire mineral resource estimates in this news release
were taken from a technical report (posted on www.sedar.com ) by Claus G. Wiese, P.Eng, I-Cubed LLC, an
independent professional engineer.
IMPACT Silver Corp. is a silver focused mining and exploration company
operating in Mexico with a producing silver operation at the 423 square
kilometer Royal Mines of Zacualpan Silver District, the adjacent 200 square
kilometer advanced Mamatla Silver District including the Capire Mine
Development Project, and an option agreement for a major share position in
Defiance Silver Corp. (DEF: TSX-V) in return for IMPACT's 200 tpd mill and
mineral concessions in the Zacatecas Silver District. Additional information
including maps of IMPACT's projects can be found on the company website at www.IMPACTSilver.com.
On behalf of the Directors of IMPACT Silver Corp.,
"Frederick W. Davidson"
President & CEO