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Impact Announces Continuing Improvement In Operations
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IMPACT Silver Corp. (IPT: TSX.V) ("IMPACT" or "the Company") is pleased
to announce its results for the quarter ended March 31, 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. For the
2007 first quarter, the Company's net revenues were $1,859,000 (2006 --
$1,146,000) and net profit was $266,000 (2006 -- $178,000).
The comparative results for the first quarter of 2006 have been
restated in accordance with the recommendations contained in CICA
handbook 1506.42, as more fully described in Note 15 to the March 31,
2007 Financial Statements. There was no significant impact on net
income for the quarter as a result of this restatement of the
comparative 2006 first quarter earnings.
In the first quarter of 2007, the Company achieved higher levels of
throughput at the Zacualpan mine, averaging 253 tonnes-per-day ("tpd").
While the amount of silver produced in the quarter was 13% lower,
production in lead increased 95% and zinc by 74% over the comparable
quarter in 2006. The number of total tonnes processed also increased by
75%.
Quarterly Comparison (t=tonnes)
Q1 2007 Q1 2006
Total mill throughput (t) 22,845 13,069
Average daily mine production (t) 253 145
Silver Production (oz) 85,606 98,950
Lead (t) 135.68 69.55
Zinc (t) 243.58 139.86
Cdn. $ direct costs (t) $50.97 $49.76
During the first quarter, mining of medium grade mineral at the
Guadalupe Mine continued principally on the 195m Level exploiting the
Lipton, Lipton del Bajo Paulina, Intermediate and Liptonia Veins, as
well as exploiting the Liptonia Vein on the 140m level.
Success in exploration drilling in 2006 led to the commencement of
mining in late 2006 from La Gallega (Salvadora) Mine. 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 La Gallega approximately 500 meters to the
mill and is forming an increasingly important source of mill feed.
Fred Davidson, President stated, "We are pleased to report another
profitable quarter while continuing an aggressive exploration and
development program as part of our plan to ramp up production at
Zacualpan to the current capacity of the mill of 500tpd. In this
quarter we were able to not only increase tonnage processed, but also
lay the foundation for further production growth."
During the quarter the Company acquired through a Government auction, a
100% interest in the mineral exploration rights to the 200km2 Mamatla
mining district, which lies immediately adjacent to the Zacualpan
mining district. The acquisition of these exploration rights adds
significantly to the overall growth potential and future prospects of
the Company.
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
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