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Re: News Release - Friday, November 23, 2007
IMPACT Announces Operating Earnings of $358,000
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IMPACT Silver Corp. (IPT: TSX.V) ("IMPACT" or "the Company") is pleased
to announce its results for the quarter ended September 30, 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.
Results for the quarter reflected slightly lower revenues, $1,603,907
compared to $1,676,896 in the prior quarter, due to third quarter
weakness in silver and zinc prices. The Company was able to further
reduce operating costs per tonne to $38.34 with the result that mine
operating earnings were $358,117 or only $14,749 lower than the second
quarter.
After recording foreign exchange adjustments of $394,086 and a
stock-based compensation expense of $140,986, the Company incurred a
small loss for the year to date of $68,344 compared to a profit of
$242,404 for 2006. The loss for the quarter was $287,322 ($0.01 per
share) after stock-based compensation expense of $140,986 and foreign
exchange losses totalling $175,608.
In the third quarter of 2007, IMPACT increased the throughput at the
Zacualpan mill averaging 296 tonnes per day ("tpd") for the quarter as
part of the program to bring production up to the current mill's
capacity of approximately 500 tpd. Programmed underground development
for the last nine months resulted in higher production of lead and
zinc, while silver grades generally have declined. Commencing in late
fall, development production from El Chivo and in early 2008 the San
Ramon mines are expected to improve silver throughput.
Quarterly Comparison (t equals tonnes)
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Three Months Ended Three Months Ended
September 30 2007 September 30 2006
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Total tonnes (t) Produced 27,273 18,705
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Tonnes Produced per Day 296 203
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Silver Production (ounces) 85,610 117,381
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Lead (t) 155.01 103.36
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Zinc (t) 229.69 194.21
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Cdn. $ direct costs per tonne 38.34 53.96
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Guadalupe Mine
During the first nine months of 2007, mining of lower grade mineral at
the Guadalupe Mine continued principally on the Lipton, Lipton del Bajo
Paulina, Intermediate and Liptonia Veins, as well as exploiting the
Liptonia Vein on the 140m Level. An intensive program of remapping and
exploration is continuing at the Guadalupe Mine. Material from the
Guadalupe Mine is brought to surface on a skip and transported
approximately 100m to the plant and it remains the lowest cost producer
for the mines supplying the mill.
La Gallega (Salvadora) Mine
Success in exploration drilling in 2006 led to the commencement of
mining in late 2006 from the Gallega adit. 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 Gallega approximately 500m to the mill and is
forming an increasingly important source of mill feed.
El Chivo Mine
During the quarter, construction of the new El Chivo Mine began. El
Chivo will be the third producing mine at the Royal Mines of Zacualpan
Silver Project and the second put into production by the IMPACT team.
El Chivo Mine is located in the central part of the district.
Underground access reached the main El Chivo Silver Shoot in late
October. On the vein the Company is developing multiple headings on
the mineralization, creating development muck that will be processed in
the mill. Production from stoping will commence in early 2008 and
should boost the Company's overall silver production.
Over the next six months, the Company anticipates that fluctuating mill
grades will continue due to dilution from development muck, as it
emphasizes an underground development program in order to increase
production. Moreover, because the value of Lead and Zinc have risen
dramatically since this time last year, increased emphasis has been put
on improving recoveries of the production areas including previously
mined stopes by redefining cut-off grades. The mine has also completed
negotiations for a new smelter contract and its ongoing union
contracts.
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. (EGD: TSX.V) owns 6.6
million shares of IMPACT.
On behalf of the Directors of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For further information, please contact:
Darrell Rader - Corporate Development
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this news release.
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Copyright (c) 2007 IMPACT SILVER CORP. (IPT) All rights reserved. For
more information visit our website at http://www.impactsilver.com/ or
send mailto:inquiries@impactsilver.com
Message sent on Fri Nov 23, 2007 at 1:05:49 PM Pacific Time
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