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
). 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
). 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
). 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
).
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
and
). 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 |
