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Impact Silver Announces Second Quarter Earnings
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IMPACT Silver Corp. ("IMPACT" or "the Company") is pleased to announce
its financial and operational results for the quarter ended June 30,
2008, which include the results of the Royal Mines of Zacualpan Project
in Mexico. Gross Revenues for the second quarter exceeded $1.75
million and net income for the quarter was $305,000 ($0.01 per share).
Year-to-date cash flow from operations is $1,749,000, up $1,705,000
from $44,000 in 2007.
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Three Months Ended June 30 2008 2007 % Change
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Revenue $1,756,000 $1,677,000 +4.7%
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Net Income $305,000 ($48,000) +735%
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Earnings Per Share $0.01 ($0.01)
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After spending $1.4 million on infrastructure as well as $2.4 million
on exploration during the first six months of the year, IMPACT had net
working capital of $9.6 million, including cash and cash equivalents of
$8.3 million. IMPACT's working capital position is expected to remain
strong through the year as cash flow from mining operations should be
sufficient to fund the significant portion of the Company's 2008
ongoing exploration and development expenditures.
Exploration drilling results from Chivo and the Guadalupe Mine strongly
indicate the potential to substantially increase mined tonnages, which
should allow the Company to reach a production rate of 500 tonnes per
day at the existing mill in early 2009.
As a result of a continuing increase of silver grade percentage,
quarterly silver production reached 120,660 ounces, a 63% growth over
the same quarter of last year. Weather in central and southern Mexico
was abnormally wet in June, creating logistics problems as a number of
roads were flooded. Milling operations were curtailed in June for an
extended period due to power disruptions, thus negatively affecting our
second quarter results. Average mill throughput during the quarter was
265 tonnes per day, down 5% from 279 tonnes per day during the same
quarter in 2007. IMPACT took advantage of the downtime to make
significant upgrades to the processing plant. Mine operating cost per
tonne for the quarter was $43.84, only up 1% from $43.38 in the second
quarter of 2007, mainly reflecting increased costs associated with
expansion of operations at the new Chivo Mine.
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Three Months Ended June 30 2008 2007 % Change
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Total tonnes produced 24,090 25,451 -5%
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Tonnes produced per day 265 279 -5%
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Silver production (ounces) 120,660 73,890 +63%
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Lead production (pounds) 290,000 347,000 -16%
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Zinc production (pounds) 367,000 537,000 -32%
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Revenue per tonne $72.90 $65.81 +11%
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Direct costs per tonne $43.84 $43.38 +1%
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Chivo Mine
Through the first half of 2008, Chivo provided 50% of the ore and the
majority of the high silver grade feed. The Company continued to drift
along the vein while opening up two stopes for mining. A second adit
approximately 60 meters vertically lower on the structure has been
started and is expected to reach the main vein in the fourth quarter of
2008. Upon completion, the second adit will provide additional
development feed to the mill.
Guadalupe and Gallega Mines
Approximately 47% (2007 -- 100%) of the mill feed for the first half
was from mining of medium grade mineral at the Guadalupe and nearby
Gallega Mines. As a result of intensive underground exploration over
the last six months, the Guadalupe Mine is now undergoing redevelopment
with rebuilding of track access to new planned production areas in the
Kena-Dolores Zone and a number of nearby veins that could be providing
feed late this year.
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. Further plans
include the expansion of the flotation circuit capacity, increasing the
thickener capacity and rebuilding the zinc concentrate dryer in order
to reduce moisture in concentrates. Construction has commenced on a
$1.0 million expansion and upgrade of the tailings dam.
IMPACT will be reviewing its 2008 Second Quarter results via the
Internet at 4:00 pm ET, 1:00 pm PT, Monday, August 25, 2008. The
webcast (audio only) can be accessed at:
http://events.onlinebroadcasting.com/impact/082508/index.php and will
feature management discussing the Company's financial and operational
results followed by a question and answer period. Investors are
encouraged to forward any questions they may have to
inquiries@impactsilver.com.
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 an option on 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.
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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
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