=======================================================================
Impact Silver Announces Record First Quarter Earnings And Silver
Production
=======================================================================
IMPACT Silver Corp. ("IMPACT") 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.
----------------------------------------------------------------
Three Months Ended March 31 2008 2007 % Change
----------------------------------------------------------------
Revenue $2,687,000 $1,859,000 +44
----------------------------------------------------------------
Net Income $ 845,000 $ 267,000 +216
----------------------------------------------------------------
Earnings Per Share $ 0.02 $ 0.01
----------------------------------------------------------------
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.
----------------------------------------------------------------
Three Months Ended March 31 2008 2007 % Change
----------------------------------------------------------------
Total tonnes (t) Produced 24,247 22,843 +6
----------------------------------------------------------------
Tonnes Produced per Day 266 253 +5
----------------------------------------------------------------
Silver Production (Oz) 131,859 85,606 +54
----------------------------------------------------------------
Lead (t) 162 136 +19
----------------------------------------------------------------
Zinc (t) 275 244 +13
----------------------------------------------------------------
Direct costs per tonne $ 50.63 $ 50.97 -1
----------------------------------------------------------------
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.
(EGD:TSX.V) 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
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.
=======================================================================
Copyright (c) 2008 IMPACT SILVER CORP. (IPT) All rights reserved. For
more information visit our website at http://www.impactsilver.com/ or
send mailto:inquiries@impactsilver.com
=======================================================================
.
![]()