Lone Clone
3 months ago
IMPACT Silver Announces Q2 2024 Results with Strong Revenue Growth of 40% on Increasing Plomosas Production
https://www.newsfilecorp.com/release/220576
August 20, 2024 1:39 PM EDT | Source: IMPACT Silver Corp.
Vancouver, British Columbia--(Newsfile Corp. - August 20, 2024) - IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") announces its financial and operating results for the second quarter ended June 30, 2024.
Overall revenue in Q2 2024 was $7.7 million, representing a significant 40% increase over Q2 2023 revenue of $5.5 million. Revenue in Q2 2024 includes $1.8 million from the Plomosas high-grade zinc mine up from $1.0 million in Q1 2024. The Plomosas high-grade zinc mine (acquired in April 2023) was brought online in late 2023 and therefore, year-over-year comparisons do not include any revenue or operating costs recorded in Q2 2023. Meanwhile, revenue at the Zacualpan silver-lead-zinc project increased to $5.9 million in Q2 2024 from $5.4 in Q2 2023 despite lower production on a year-over-year basis, owing mostly to stronger silver prices.
The mine operating loss (before amortization and depletion) in Q2 2024 was $0.2 million compared to income of $0.9 million Q2 2023 which did not include any start-up and operating costs from Plomosas. The Company continued to experience cost pressures at its mine sites, certain one-time costs associated with bringing the Plomosas mine online, and the negative effects of a strong Mexican Peso. The net loss in Q2 2024 was $2.6 million compared to a net loss of $0.9 million in Q2 2023.
Q2 2024 Consolidated Financial Overview
Revenue in Q2 2024 was $7.7 million, up from $5.5 million in Q2 2023.
Mine operating loss before amortization and depletion[1] in Q2 2024 was $0.22 million, compared to income of $0.9 million in Q2 2023.
The net loss in Q2 2024 was $2.6 million after foreign exchange expense and deferred income taxes totalling $0.6 million compared to net loss of $0.9 million in Q2 2023.
After investing $1.6 million in exploration expenditures and mining assets during the quarter, the cash position remained strong at quarter-end with $9.9 million and working capital of $8.8 million.
During the quarter, the Company closed a non-brokered "LIFE" and private placement of $8.6 million.
The Company has no long-term debt.
Q2 2024 Zacualpan Mine Production Overview
Mill throughput in Q2 2024 was 35,062 tonnes compared to 35,753 tonnes in Q2 2023.
Silver production during the period decreased by 2% to 152,152 oz compared to 155,744 oz in Q2 2023 while lead and gold production decreased on a year-over-year basis by 36% and 69%, respectively.
Revenue per tonne sold was $168.17 in Q2 2024, representing an increase of 8% compared to $155.67 in the same period of 2023.
Direct costs per production tonne were $153.26 in Q2 2024, representing an increase of 17% over Q2 2023 costs of $130.67 per tonne. Much of this increase is due to foreign exchange, a retroactive union labour settlement including associated bonuses, with the balance coming from inflation-related pressures in Mexico. On a Mexican Peso basis, costs for the first six months of 2024 were the same as the first six months of 2023.
Zacualpan Silver District Review
The Company's overall average mill head grade of 161 g/t during the period was down 1% year-over-year from 163 g/t in Q2 2023. Gold production during the period was temporarily reduced compared to the same period in 2023 as the Company adjusted mining efficiencies and improved recoveries from its gold-rich Alacran mine. The Company is continuing to focus on exploration and development of the mining district in Q2 2024, having drilled 5,243 meters over the last six months.
Stronger metal prices on a year-over-year basis are due to increased confidence of pending looser monetary policy in 2024 as well as geopolitical uncertainties emanating from Eastern Europe and the Middle East. A flight to safety has increased the flow of funds into commodities in general, and the mining sector in particular as investors seek protection from ongoing inflationary pressures. Notwithstanding, ongoing cost inflation continues to impact costs throughout the supply chain and labour network, despite a softening of these trends since late 2023. Moreover, the overall negative effect of a strong Mexican Peso continues to hamper the Company's profit margins. The rate of cost increases at Zacualpan may start to subside further in 2H 2024 as new labour contracts have provided some cost certainty while the Company works to improve throughput grade.
Q2 2024 Plomosas Mine Production Overview
The Plomosas high-grade zinc mine (acquired in April 2023) was brought online in late 2023 and production continues to ramp up
Mill throughput in Q2 2024 was 9,256 tonnes, up 157% from 3,594 tonnes in Q1 2024.
Since the start of 2024, the average zinc grade was 14%, lead was 8.7% and silver was 43.7 g/t.
Over the last six months, the Company drilled 14,377 meters to support ongoing and future production.
Production at the start of Q2 2024 was approximately 100 tpd (tonnes per day), compared to no production in the same period last year.
Costs at Plomosas stabilized over the first six months of 2024 despite ongoing costs related to site improvements and mine development, resulting in a $0.2 million cost decrease in Q2 2024 compared to Q1 2024.
Plomosas High-Grade Zinc Mine Review
Following the acquisition of the Plomosas high grade zinc (lead-silver) mine in April 2023, the Company was focused on rehabilitating the mine, plant and equipment, and commenced limited start-up operations in late 2023 while initiating an extensive exploration program. During Q2 2024, the Company accelerated the production ramp-up at Plomosas and expects continued growth in production levels, reaching 150-170 tpd by the end of Q3 2024 and eventually design capacity levels by late 2024/early 2025 of 225 tpd.
This production ramp up is reflected in the current financial results and should continue to play a larger role over the balance of 2024 and into 2025. As the operation reaches design capacity, investors should anticipate higher overall revenue from the project and an ongoing decrease in per tonne operating costs, as was the case in Q2 2024 compared to Q1 2024.
Fred Davidson, President & CEO of IMPACT, stated, "During the second quarter, our team at Plomosas successfully met its objective of increasing production throughput following a substantive but continuing mine rehabilitation program. As we approach design capacity levels over the coming quarters, we expect to expand the mine's development and increase high-grade production activity at site. Meanwhile, our silver operations at Zacualpan are adapting to higher cost profiles by improving efficiencies in terms of grade and recoveries, which we expect to bear fruit in 2025. Our new discovery of the Keno vein is exciting and potentially the start of a trend of new higher grade production results beginning later this year."
Outlook - Grade Improvement at Zacualpan & Production Increasing at Plomosas
The Company's strong balance sheet provides it with a solid footing to continue to improve efficiencies at the Zacualpan silver-lead-zinc operation while allowing for ongoing production increases at the Plomosas high-grade zinc mine.
Through year-end 2024, management expects the production mix at Zacualpan to reflect higher grade mine development on the back of recently encouraging exploration results. The operation can be nimble as it seeks higher grade production mixes from its various legacy mines and new discoveries. Meanwhile at Plomosas, exploration activity is ongoing with up to two drill rigs working to develop the resource. These efforts should lead to ongoing improvement in Company-wide overall revenues while management expects cost pressures to continue to abate heading into 2025.
The Company's recent exploration success at Zacualpan and production increases at Plomosas reflects its position as one of just a handful of intermediate miners offering investors exposure to three distinct verticals within the mining sector, including exploration, production, and overall growth.
A recorded conference call reviewing the financial and production results of the quarter ended June 30, 2024 will be available on the Company website on August 21st, 2024 at https://impactsilver.com/media/conference-calls/.
The information in this news release should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis, available on the Company website at www.impactsilver.com and on SEDAR at www.sedarplus.ca. All amounts are stated in Canadian dollars unless otherwise specified.
ABOUT IMPACT SILVER
IMPACT Silver Corp. (TSXV: IPT) is a successful intermediate mineral producer and explorer with three mining projects in Mexico.
Royal Mines of Zacualpan Silver-Gold District: IMPACT owns 100% of the 211 km2 Zacualpan project in central Mexico where four underground silver mines and one open pit mine feed the central 500 tpd Guadalupe processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an NI?43-101 inferred mineral resource of over 4.5?million oz silver, 48 million lbs zinc and 21 million lbs lead (see IMPACT news release dated January 18, 2016, for details and QP statement). Company engineers are reviewing Capire for a potential restart of operations to leverage improving commodity prices. Over the past 18 years, IMPACT has developed multiple exploration zones into commercial production and has produced over 12 million ounces of silver, generating revenue more than $271 million, with no long-term debt.
Plomosas Zinc-Lead-Silver District: Plomosas is a high-grade zinc producer in northern Mexico with exceptional exploration upside potential. The Company recently restarted mining operations and is expected to reach design capacity production levels over the next six months. Exploration potential at Plomosas is exceptional where only 600m of the 6 km-long structure have seen modern exploration. This is in addition to other exploration targets on the 3,019-hectare property including untested copper-gold targets with indications of high-grade material from surface. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits in the world.
Additional information about IMPACT and its operations can be found on the Company website at www.impactsilver.com. Follow us on Twitter @IMPACT_Silver and LinkedIn at https://www.linkedin.com/company/impactsilver
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Eng., VP Exploration and a Director of IMPACT, is a "Qualified Person" within the meaning of NI 43-101 and has approved the technical information contained in this news release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or inquiries@impactsilver.com
(778) 887 6489 Direct
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements with respect to continued ramp-up of operations, and improved operating revenues and decreasing costs.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, criminal activity, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, pandemics, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statements, except as required by law.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
303-543 Granville Street
Telephone 604 664-7707
Vancouver, BC, Canada V6C 1X8
www.impactsilver.com
X (Twitter)
LinkedIn
[1] Mine operating earnings before amortization and depletion is a non-IFRS measure which the Company believes provides meaningful information about the Company's financial performance. See "Non-IFRS MEASURES".
SOURCE: IMPACT Silver Corp.
Lone Clone
7 months ago
IMPACT Silver Announces C$6.2 Million Non-Brokered Private Placement Financing
https://www.newsfilecorp.com/release/207415
April 30, 2024 11:25 AM EDT | Source: IMPACT Silver Corp.
Vancouver, British Columbia--(Newsfile Corp. - April 30, 2024) - IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") is pleased to announce a non-brokered private placement financing (the "Offering"), pursuant to the listed issuer financing exemption (LIFE) of National Instrument 45-106 Prospectus Exemptions ("NI 45-106") and other private placement exemptions under NI 45-106. The LIFE portion of the Offering is referred to in this news release as the "LIFE Offering". The Company intends to raise gross proceeds of up to $3,200,000 from the sale of up to 11,428,572 units (the "LIFE Units") at a price of $0.28 per LIFE Unit, and up to $3,000,000 from the sale of up to 11,111,111 standard private placement units (the "Standard PP Units") at $0.27 per Standard PP Unit. Each LIFE Unit will consist of one common share of the Company and one half common share purchase warrant (each whole such warrant, a "Warrant"), with each Warrant entitling the holder thereof to acquire one common share of the Company (a "Warrant Share") at a price of $0.34 per Warrant Share for a period of 24 months from its date of issue. Each Standard PP Unit will consist of one common share of the Company and one full Warrant, with each Warrant entitling the holder thereof to acquire one Warrant Share at a price of $0.34 per Warrant Share for a period of 24 months from its date of issue.
The Company intends to use the proceeds from the Offering to accelerate exploration activity at its Plomosas high-grade zinc-lead-silver property located in Chihuahua, Mexico, further develop its prolific silver assets at its legacy Royal Mines of Zacualpan district, as well as invest in operational improvements to improve productivity and throughput as the price of silver nears 52-week highs. Exploration activities include sampling, target definition, and drilling with the intention of expanding the existing JORC mineral resource at Plomosas, where only 600m of the 6-kilometre-long structure has been tested. The region is known for hosting some of the largest carbonate replacement deposits in the world. As such, the Company intends to allocate a portion of the proceeds to continue development and grow production at the Plomosas high-grade zinc deposit as zinc prices continue to outperform on the back of forecasted supply deficits.
Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 - Prospectus Exemptions, the LIFE Offering is being made pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 (the "Listed Issuer Financing Exemption"). The securities offered under the Listed Issuer Financing Exemption will not be subject to a hold period in accordance with applicable Canadian securities laws. There is an offering document (the "Offering Document") related to the LIFE Offering that can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at impactsilver.com. Prospective investors should read this Offering Document before making an investment decision.
The Offering is scheduled to close on or about the week of May 15, 2024 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange (the "Exchange"). The Company may pay finder's fees or commissions on a portion of the Offering, subject to compliance with the policies of the Exchange and applicable securities legislation. All common shares and Warrants issued as part of the Standard PP Units will bear a hold period of four months and one day from the date of issuance.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or under any U.S. state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.
ABOUT IMPACT SILVER
IMPACT Silver Corp. (TSXV: IPT) is a successful producer-explorer with two mining projects in Mexico.
Plomosas Zinc-Lead-Silver District: Plomosas is a high-grade zinc producer in northern Mexico with exceptional exploration upside potential. The Company recently re-commenced operations and has plans for expansion in 2024. Exploration potential at Plomosas is exceptional with only 600m of the 6 km-long structure having been explored to date. This is in addition to other exploration targets on the 3,019-hectare property including untested copper-gold targets with indications of high-grade material from surface. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits in the world.
Royal Mines of Zacualpan Silver-Gold District: IMPACT owns 100% of the 211 km2 Zacualpan project in central Mexico where four underground silver mines and one open pit mine feed the central 500 tpd Guadalupe processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an NI?43-101 inferred mineral resource of over 4.5?million oz silver, 48 million lbs zinc and 21 million lbs lead (see IMPACT news release dated January 18, 2016, for details and QP statement). Company engineers are reviewing Capire for a potential restart of operations to leverage improving commodity prices. Over the past 17 years, IMPACT has developed multiple exploration zones into commercial production and has produced over 12 million ounces of silver, generating revenue more than $256 million.
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Eng., is a "Qualified Person" within the meaning of NI 43-101 and has approved the technical information contained in this news release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or inquiries@impactsilver.com
(778) 887 6489 Direct
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. All statements, other than statements of historical facts, included herein, including, without limitation, statements relating to future silver prices, interpretation of drill results, future work plans, the timing of closing of the Offering, proceeds received and use of funds, the potential of the Company's projects, and potential and plans for the Plomosas project, are forward looking statements. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. There is no assurance that (i) the Company will be able to complete the Offering on the terms set out above, or at all, or (ii) that the proceeds of the Offering will be expended as contemplated.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement, except as required by law.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
303-543 Granville Street
Vancouver, BC, Canada V6C 1X8
Telephone (604) 664-7707
www.impactsilver.com
Twitter
LinkedIn
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
SOURCE: IMPACT Silver Corp.
Lone Clone
10 months ago
IMPACT Silver Contracts Bell Internacional to Provide Tesla Battery Energy System with Solar at the Plomosas Mine
January 09, 2024 9:00 AM EST | Source: IMPACT Silver Corp.
https://www.newsfilecorp.com/release/193235
Vancouver, British Columbia--(Newsfile Corp. - January 9, 2024) - IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") is pleased to announce that its Plomosas high-grade zinc mine, located in the State of Chihuahua in northern Mexico, has entered into a managed services contract with Bell Internacional de Mexico/TTN Energia for the planning, design, construction, and operation of Tesla Corp.'s commercial battery with solar, energy efficiency platform, expected to meaningfully reduce its operating costs and eliminate nearly all carbon emissions associated with round-the-clock, diesel powered generators.
The platform will provide a sustainable and green energy efficiency solution, using off-grid, PV (solar) green electrical energy generation and AI-controlled battery storage systems, that will cut nearly 90% the annual 2,400 metric tons of carbon dioxide emissions from diesel fuel combustion, thereby dramatically reducing IMPACT's carbon footprint at Plomosas.
About the Tesla Battery System with Solar
Clean electricity from a 2,200 kW solar plant will be supplied to an intelligent software controlled microgrid, equipped with a Tesla Megapack 2 XL 4-hour, 960 kW battery energy storage system (BESS), and continuously delivered to the load centers of the Plomosas mine, for current and future power demand requirements. The system will offer substantial power and expansion capacity for a near doubling of production from current design capacity levels.
Existing diesel generators will be kept onsite and activated automatically for occasional power generation support on consecutive cloudy or rainy days, and emergency backup. Notwithstanding, the battery's charge, which will be "topped up" regularly throughout daylight hours year-round, will be able to provide non-stop, clean power for up to 24 hours per day under current mine operation capacity.
Financial Implications
Immediate cost savings will take effect as contract pricing is based on a percentage of savings linked to the reduction of annual diesel usage, with "minimum saving safeguards" established to protect IMPACT should the price of diesel decline below an agreed upon "baseline" price that would otherwise reduce the amount of diesel cost savings to the Company.
Along with labour, diesel fuel is one of the largest operating costs at the Plomosas mine. No material capex is required by the Company for this project and savings are expected to amount to approximately 30-45% of the Company's current annual diesel input costs at Plomosas once the system is fully operational.
The Company anticipates the project to be fully integrated across the operation, providing nearly all the required power requirements to the Plomosas mine and plant by mid-Q2/2024.
President and CEO, Fred Davidson said, "We are thrilled to partner with world class contractors including Bell Internacional and TTN Energia, backed by the world-leading innovators at Tesla as we become the first truly green mining project. Shareholders can look forward to substantial cost savings and improving profit margins, as we solidify our position as a high-grade, low-cost zinc producer. Our first mover advantage will allow IMPACT to meaningfully reduce its carbon emissions while attracting the attention of potential partners, including some the world's most significant mining companies as we focus on growing production and exploration activity in 2024."
ABOUT IMPACT SILVER
IMPACT Silver Corp. (TSXV: IPT) is a successful producer-explorer with two mining projects in Mexico.
Plomosas Zinc-Lead-Silver District: Plomosas is a high-grade zinc producer in northern Mexico with exceptional exploration upside potential. The Company re-commenced operations in late 2023 and has plans for expansion in 2024. Exploration potential at Plomosas is exceptional with only 600m of the 6 km-long structure having been explored to date. This is in addition to other exploration targets on the 3,019-hectare property including untested copper-gold targets with indications of high-grade material from surface. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits in the world.
Royal Mines of Zacualpan Silver-Gold District: IMPACT owns 100% of the 211 km2 Zacualpan project in central Mexico where four underground silver mines and one open pit mine feed the central 500 tpd Guadalupe processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an NI?43-101 inferred mineral resource of over 4.5?million oz silver, 48 million lbs zinc and 21 million lbs lead. (see IMPACT news release dated January 18, 2016, for details and QP statement). The Company's engineers are reviewing Capire for a potential restart of operations to leverage improving commodity prices. Over the past 17 years, IMPACT has developed multiple exploration zones into commercial production and has produced over 12 million ounces of silver, generating revenue more than $256 million.
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Eng., a Director and officer of IMPACT Silver Corp., is a "Qualified Person" within the meaning of NI 43-101, and has approved the technical information in this news release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or inquiries@impactsilver.com
(778) 887 6489 Direct
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. All statements, other than statements of historical facts, included herein, including, without limitation, statements relating to future silver prices, interpretation of drill results, future work plans, the potential of the Company's projects, and potential and plans for the Plomosas project, are forward looking statements. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement, except as required by law.
The Company's decision to place a mine into production, expand a mine, make other production related decisions, or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments, or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
303-543 Granville Street
Vancouver, BC, Canada V6C 1X8
Telephone (604) 664-7707
www.impactsilver.com
Twitter
LinkedIn
SOURCE: IMPACT Silver Corp.
Lone Clone
12 months ago
IMPACT Silver Announces Q3 2023 Results with Revenue Up 26% and Positive Operating Income
https://www.newsfilecorp.com/release/188228
Vancouver, British Columbia--(Newsfile Corp. - November 21, 2023) - IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) ("IMPACT" or the "Company") announces its financial and operating results for the third quarter and nine months ended September 30, 2023. The Company reports revenue of $4.8 million in Q3 2023, representing a 26% increase over revenue of $3.8 million in Q3 2022. The improvement in revenue is due to higher silver prices as well as increased gold and lead sales in the period compared to last year. Mine operating income (before amortization and depletion) in Q3 2023 was $0.01 million compared to a loss of $0.1 million in Q3 2022. The net loss in Q3 2023 was $1.5 million compared to a net loss of $1.2 million in Q3 2022 and includes significant G&A costs associated with the successful integration of the new Plomosas mine acquisition, which came online subsequent to quarter-end.
Q3 2023 and YTD Highlights:
The Company completed the final rehabilitation stages during the quarter to bring the Plomosas high-grade zinc mine back online subsequent to quarter-end.
After investing $3.8 million in exploration expenditures and mining assets during the quarter, the cash position remained strong at quarter-end at $8.9 million with working capital of $8.7 million.
YTD the Company has invested $7.3 million in exploration and mining assets of which $4.9 million was spent at Plomosas toward start up of operations.
The Company continues to have no long-term debt.
"Despite a challenging market, we are pleased with the performance of the Company in 2023. We have countered stagnant and declining commodity prices by substantially increasing our gold production while recently bringing online the transformative high-grade Plomosas zinc mine that will meaningfully diversify revenue and contribute to profitability as production continues to ramp up. With an eye on cost controls amidst a difficult inflationary environment coupled with a strong Mexican Peso, we continue to invest in exploration to improve silver grades at Zacualpan while aiming to grow our zinc resources and output at Plomosas," said Fred Davidson, President & CEO.
Zacualpan Silver District
The third quarter is typically a seasonally rainy period in the area leading to unpredictable production. In Q3 2023, mill throughput declined to 37,178 tonnes compared to 39,816 tonnes in Q3 2022. Despite this, revenue per tonne sold in Q3 2023 increased by 29% to $129.46 from $99.98 in Q3 2022. On a year-to-date basis, silver, lead and gold production have increased by 1%, 37% and 213%, respectively, while the average silver mill head grade was roughly flat at 160 g/t compared to 162 g/t in the same period of 2022.
The Company continued to focus on exploration and development of this mining district in Q3 2023 and spent $0.9 million on these programs.
Direct costs per tonne increased by 23% in Q3 2023 to $128.75 compared to $104.45 in the same period last year. Much of this increase is due to foreign exchange pressures stemming from the strength of the Mexican Peso, as well as ongoing inflation across the operation. Management has started to see some moderation of these negative effects late in the third quarter. As well, wetter than usual conditions during this rainy season led to higher transportation and processing costs.
Ongoing economic uncertainty and risk premiums have increased due to higher, sustained interest rates as well as growing geopolitical crises in Eastern Europe and the Middle East, resulting in a flight to safety to the US Dollar and selling pressure on commodities and other hard assets. While there are some expectations that interest rates have started to peak, investors remain risk-averse for the time being. Management has implemented strict cost controls but continues to invest in the operation, specifically through its ongoing exploration activities.
Plomosas High-Grade Zinc Mine
During the third quarter, the Company completed the finals steps to bring back online the 200 tpd Plomosas high-grade zinc mine in northern Mexico and subsequent to quarter-end, the mine successfully restarted production following a one-year hiatus (see IMPACT news release dated October 23, 2023). Plomosas adds significant and high-grade metal diversification through its zinc (-lead-silver) deposit as well as exciting exploration opportunities across the property's under explored area.
Exploration potential at Plomosas is exceptional with only 600m of the 6-kilometre-long structure assessed plus other exploration targets including untested copper-gold targets. Regionally, Plomosas lies in the same mineral belt as some of the largest CRD (carbon replacement deposits) in the world.
The Company currently has an offtake partner for material produced at Plomosas and has received several expressions of interest from other parties wishing to buy concentrate. As zinc prices continue to recover, management is considering expanding production beyond the current design capacity of 200 tpd.
Outlook
The Company's rehabilitation efforts at the Plomosas high-grade zinc mine, combined with the legacy silver producing assets at Zacualpan will provide substantial cash flow diversification and potential going forward. Management expects production to ramp up in early 2024 at Plomosas at a time when zinc prices have started to rebound due to reduced global supply levels stemming from the closure of higher cost, lower grade mines as well as other events impacting new supply. Meanwhile, some recent moderation in the Mexican Peso and indications of peaking inflation could bode well for margins going forward.
IMPACT maintains a strong balance sheet allowing for continued exploration at both mining districts. The Company has the potential to meaningfully add to production and resources at Plomosas which should lead to ongoing improvement in revenues and add shareholder value while management expects cost pressures to continue to abate heading into 2024.
The Company's growth is expected to reflect its strong position as one of just a handful of intermediate miners offering investors exposure to three distinct verticals across the silver and zinc mining sector, including exploration, production, and growth.
A recorded conference call reviewing the financial and production results of the quarter ended September 30, 2023 will be available on the Company website on November 23, 2023 at www.impactsilver.com/s/ConferenceCalls.asp.
The information in this news release should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis, available on the Company website at www.impactsilver.com and on SEDAR at www.sedarplus.ca. All amounts are stated in Canadian dollars unless otherwise specified.
ABOUT IMPACT SILVER
IMPACT Silver Corp. (TSXV: IPT) is a successful intermediate mineral producer and explorer with three mining projects in Mexico.
Royal Mines of Zacualpan Silver-Gold District: IMPACT owns 100% of the 211 km2 Zacualpan project in central Mexico where four underground silver mines and one open pit mine feed the central 500 tpd Guadalupe processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an NI?43-101 inferred mineral resource of over 4.5?million oz silver, 48 million lbs zinc and 21 million lbs lead. (see IMPACT news release dated January 18, 2016, for details and QP statement). Company engineers are reviewing Capire for a potential restart of operations to leverage improving commodity prices. Over the past 17 years, IMPACT has developed multiple exploration zones into commercial production and has produced over 12 million ounces of silver, generating revenue more than $256 million.
Plomosas Zinc-Lead-Silver District: Plomosas is a high-grade zinc producer in northern Mexico with exceptional exploration upside potential. The Company re-commenced operations and has plans for expansion in 2024. Exploration potential at Plomosas is exceptional with only 600m of the 6 km-long structure having been explored to date. This is in addition to other exploration targets on the 3,019-hectare property including untested copper-gold targets with indications of high-grade material from surface. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits in the world.
Additional information about IMPACT and its operations can be found on the Company website at http://www.impactsilver.com/. Follow us on Twitter @IMPACT_Silver and LinkedIn at https://www.linkedin.com/company/impactsilver.
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Eng., is a "Qualified Person" within the meaning of NI 43-101 and has approved the technical information contained in this news release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or inquiries@impactsilver.com
(778) 887 6489 Direct
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Footnotes:
1. Reference: Ristorcelli, S.J. & Gorzynski, G. (2016). Technical Report on Mineral Resources for the Capire Silver-Lead-Zinc Project, Pedro Ascencio Alquisiras Municipality, Guerrero, Mexico. Prepared for IMPACT Silver Corp. by Mine Development Associates, Reno, Nevada. 82 pages. Available on www.sedarplus.ca.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements regarding the potential for defining and extending the known mineralization at Plomosas, and plans for drilling and future operations at the Company's projects.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
Lone Clone
1 year ago
IMPACT Silver Announces Production Restart at the Recently Acquired Plomosas High-Grade Zinc Mine
https://www.newsfilecorp.com/release/184768
Vancouver, British Columbia--(Newsfile Corp. - October 23, 2023) - IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) ("IMPACT" or the "Company") is pleased to announce first production under the Company's ownership at the recently acquired high-grade Plomosas zinc deposit located in the State of Chihuahua in northern Mexico.
Following the acquisition of the Plomosas mine in April 2023 (see IMPACT news release dated April 3, 2023), the Company embarked on an extensive rehabilitation and upgrade program at the site, including inside the mine, at the mill and on all associated mobile equipment and infrastructure. As well, new technical and supervisory staff were added to restart production which had been halted since late 2022 under the previous owner.
Fred Davidson, President & CEO stated, "This is a tremendous milestone for our Company as we embark on our next phase of growth. When we bought the Plomosas mine earlier this year, we remained steadfast in our ability that we could bring the asset back into production on time and on budget. I would like to thank our exceptional technical team for a job well done. Our shareholders can now look forward to a diversified mix of high-grade zinc at Plomosas in addition to our legacy silver producing assets at the Royal Mines of Zacualpan, which are now in their 17th year of continuous production and revenue generation."
The Company has reached a significant milestone in shipping the first concentrate to the smelter after restarting production following an intensive effort initiated just five months ago. Mine planning and rehabilitation have been ongoing over the summer including replacing underground equipment and dewatering activities inside the mine. Scoop trams and underground trucks have been actively extracting material with volume increasing on a regular basis as initial processing levels have been achieved at the mill. Management will make modifications and adjustments as needed as it targets design processing capacity of approximately 200 tpd in H1/2024 with plans to then further expand production.
Images 1-2. - Mill Rehabilitation
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4729/184768_figure1.jpg
ABOUT IMPACT SILVER
IMPACT Silver Corp. is a successful intermediate mineral producer and explorer with three mining projects in Mexico.
Royal Mines of Zacualpan Silver-Gold District: IMPACT owns 100% of the 211 km2 Zacualpan project in central Mexico where four underground silver mines and one open pit mine feed the central 500 tpd Guadalupe processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an NI?43-101 inferred mineral resource of over 4.5?million oz silver, 48 million lbs zinc and 21 million lbs lead (see IMPACT news release dated January 18, 2016, for details). Company engineers are reviewing Capire for a potential restart of operations. Over the past 17 years, IMPACT has developed multiple exploration zones into commercial production and has produced over 12 million ounces of silver, generating revenue more than $241 million.
Plomosas Zinc-Lead-Silver District: Plomosas is a high-grade zinc-lead-silver producer in northern Mexico with exceptional exploration upside potential where only 600m of the 6 km-long structure has been explored to date. This is in addition to other exploration targets on the 3,019-hectare property including untested copper-gold targets with indications of high-grade material from surface. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits in the world.
Additional information about IMPACT and its operations can be found at www.impactsilver.com. X (Twitter) @IMPACT_Silver and LinkedIn https://www.linkedin.com/company/impactsilver
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Eng., is a "Qualified Person" within the meaning of NI 43-101 and has approved the technical information contained in this news release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or inquiries@impactsilver.com
(778) 887 6489 Direct
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements with respect to restart of operations at Capire , and exploration and production potential of the Company's projects.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement except as required by law.
Lone Clone
1 year ago
IMPACT Silver Commences Trading on the U.S. OTCQB Exchange Under the Symbol ISVLF
https://www.newsfilecorp.com/release/182487
Vancouver, British Columbia--(Newsfile Corp. - October 2, 2023) - IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) ("IMPACT" or the "Company") is pleased to announce that its shares are now trading in the USA on the OTCQB Market under the symbol "ISVLF". The Company's shares also continue to trade in Canada on the TSX Venture Exchange under the symbol "IPT".
The Company's upgrade to the OTCQB market along with ongoing eligibility for electronic clearing and settlement through The Depository Trust Company ("DTC"), is expected to provide investors with streamlined market standards and transparency in line with the Company's current obligations being listed on the TSX Venture Exchange. To qualify for the OTCQB, listed companies must meet stringent financial standards and provide top level corporate governance and compliance with applicable securities laws.
Fred Davidson, President & CEO stated: "The graduation of the Company's shares to the OTCQB not only points to the strong corporate profile of IMPACT Silver but is also timely as the Company embarks on the final steps of the transformational refurbishment of the recently acquired high-grade zinc mine at Plomosas, representing a significant growth step to complement our existing producing silver assets at the Royal Mines of Zacualpan."
The Company would like to thank Becky Popoff and B. Riley Financial for their sponsorship in this listing.
Investors can receive real-time quotes for the Company in the USA at www.otcmarkets.com.
ABOUT IMPACT SILVER
IMPACT Silver Corp. (TSXV: IPT) is a successful intermediate mineral producer and explorer with three mining projects in Mexico.
Royal Mines of Zacualpan Silver-Gold District: IMPACT owns 100% of the 211 km2 Zacualpan project where four underground silver mines and one open pit mine feed the central 500 tpd Guadalupe processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an NI?43-101 inferred mineral resource of over 4.5?million oz silver, 48 million lbs zinc and 21 million lbs lead. (see IMPACT news release dated January 18, 2016, for details and QP statement, and Footnote 1 below for technical report reference) Company engineers are reviewing Capire for a potential restart of operations to leverage improved commodity prices. Over the past 17 years, IMPACT has developed multiple exploration zones into commercial production and have produced over 12 million ounces of silver, generating revenue more than $241 million.
Plomosas Zinc-Lead-Silver District: Plomosas is a high-grade zinc-lead-silver producer with exceptional exploration upside potential. The Company aims to recommence operations in the near term followed by plans for expanding operations in 2024. Exploration potential at Plomosas is exceptional with only 600m of the 6 km-long structure having been explored to date. This is in addition to other exploration targets on the 3,019-hectare property including untested copper-gold targets with indications of high-grade material from surface. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits in the world.
Additional information about IMPACT and its operations can be found on the Company website at www.impactsilver.com. Follow us on Twitter @IMPACT_Silver and LinkedIn at https://www.linkedin.com/company/impactsilver.
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Eng., is a "Qualified Person" within the meaning of NI 43-101 and has approved the technical information contained in this news release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or inquiries@impactsilver.com
(778) 887 6489 Direct
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Footnotes:
1. Reference: Ristorcelli, S.J. & Gorzynski, G. (2016). Technical Report on Mineral Resources for the Capire Silver-Lead-Zinc Project, Pedro Ascencio Alquisiras Municipality, Guerrero, Mexico. Prepared for IMPACT Silver Corp. by Mine Development Associates, Reno, Nevada. 82 pages. Available on www.sedarplus.ca.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements regarding the potential for defining and extending the known mineralization at Plomosas, and plans for drilling and future operations at the Company's projects.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
Lone Clone
1 year ago
IMPACT Silver Announces Q2 2023 Results with Revenue up 57% and Strong Operating Income
https://www.newsfilecorp.com/release/178451
Vancouver, British Columbia--(Newsfile Corp. - August 28, 2023) - IMPACT Silver Corp. (TSXV: IPT) (OTC Pink: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") announces its financial and operating results for the second quarter ended June 30, 2023. The Company reports revenue of $5.5 million in Q2 2023, representing a 57% increase over revenue of $3.5 million in Q2 2022. Mine operating income (before amortization and depletion) in Q2 2023 was $0.90 million compared to $0.03 million Q2 2022. The overall improvement in revenue is due in part to increased gold and silver sales. The net loss in Q2 2023 was $0.9 million compared to a net loss of $0.8 million in Q2 2022. The net loss in the period includes $0.5 million for G&A costs related to the new Plomosas acquisition as well as one-time costs related to the marketing of the Company's recent non-brokered private placement.
The Company maintains a strong balance sheet with $13.7 million in cash and no long-term debt. During the period, the Company completed a $9.0 million, non-brokered private placement and ended the quarter with working capital of $13.3 million.
On April 3, 2023, the Company closed the acquisition of the Plomosas zinc-lead-silver mine for a total purchase price of US$6.0 million, consisting of US$3.0 million in cash and the balance in the form of IMPACT shares (a total of 11,441,647 shares were issued and are subject to certain restrictions). Post closing adjustments are being made based on changes in working capital.
Zacualpan Silver District
The Company's average mill head grade of 163 g/t during the period was up 2% on a year over year basis, with increased gold production and sales in Q2 2023 from the new Alacran Mine. Higher overall production levels across the Company including silver, lead and gold helped contribute to a 63% increase in revenue per tonne of $155.67 in Q2 2023 compared to $95.44 in Q2 2022.
The Company continued to focus on exploration and development of the Royal Mines of Zacualpan and the Plomosas mining districts in Q2 2023 and spent $2.8 million on these programs.
Uncertainty revolving around the state of global economies have contributed to continued demand for precious and base metals during the period as investors continued their flight to safety to combat inflation. Moreover, there are strong signs that softer monetary policy is on the horizon as the rate of interest rate increases has started to slow, adding further support to silver and gold prices during the period. While cost inflation pressures continue to persist throughout the supply chain and labour network, much of the year over year cost increases are owed to negative foreign exchange pressures from the strengthening Mexican peso. This contributed to an increase in direct costs per production tonne in Q2 2023 of $130.67 compared to $94.86 in Q2 2022. Costs may continue to increase in 2023, albeit there is evidence of a slowing trend in this regard.
Plomosas High-Grade Zinc Mine
During the second quarter, the Company closed on its transformative acquisition of the Plomosas high-grade zinc mine in northern Mexico. The acquisition provides the Company with a meaningful new chapter as it expands IMPACT's production profile from one to two producing operations. Plomosas adds significant and high-grade metal diversification through its high-grade zinc deposit as well as exciting exploration potential across the property's largely unexplored property area.
During the quarter, the Company began a major rehabilitation program at the mine to bring the asset back into production following a near one-year hiatus. As of June 30, 2023, the Company was approaching the later stages of its planned rehabilitation at Plomosas both on time and on budget, including improvements and upgrades at the mine, mill, plant and surrounding infrastructure.
Fred Davidson, President & CEO of IMPACT, stated, "During the second quarter, our team at Zacualpan continued to execute on a grade-improvement and cost reduction plan which began in 2022. These efforts have started to bear fruit as seen with the increase in average grade milled and specifically, the impressive increase in gold production on a year over year basis. While cost pressures continue to persist, improvements and efficiencies across the system have started to offset these trends. Meanwhile, our transformative new Plomosas mine is on the doorstep to restarting production. This top-quartile in zinc grade mine is in an established mining region and will soon start to generate significant revenue diversification for the Company as we consider further potential expansion of this new producer in 2024."
Q2 2023 Financial Overview
On April 3, 2023, the Company paid a total of US$6.0 million to acquire the Plomosas zinc-lead-silver mine, consisting of US$3.0 million in cash and the balance in the form of IMPACT shares (a total of 11,441,647 shares were issued and are subject to certain restrictions). Post closing adjustments are being made based on changes in working capital, as agreed to between the two parties.
Revenue in Q2 2023 was $5.5 million, up from $3.5 million in Q2 2022. No revenue in Q2 2023 is attributed to the new Plomosas mine acquisition.
Mine operating earnings before amortization and depletion in Q2 2023 was $0.90 million, compared to $0.03 million in Q2 2022.
The net loss in Q2 2023 was $0.9 million compared to net loss of $0.8 million in Q2 2022 The net loss in the period includes $0.5 million for G&A costs related to the new Plomosas acquisition as well as one-time costs related to the marketing of the Company's recent non-brokered private placement.
After investing $2.8 million in exploration expenditures and mining assets during the quarter, the cash position remained strong at quarter-end with $13.7 million with working capital of $13.3 million.
During the quarter, the Company closed an oversubscribed, non-brokered private placement for an additional $9.0 million.
The Company has no long-term debt.
Q2 2023 Production Overview
Mill throughput in Q2 2023 was 35,753 tonnes compared to 37,183 tonnes in Q2 2022.
Silver production during the period increased by 1% to 155,744 oz compared to 154,001 oz in Q2 2022 while contributions from lead and gold saw production increases on a year-over-year basis of 49% and 383%, respectively.
Revenue per tonne sold was $155.67 in Q2 2023, representing an increase of 63% over the same period in 2022 of $95.44.
Direct costs per production tonne were $130.67 in Q2 2023, representing an increase of 38% over Q2 2022 costs of $94.86 per tonne. Much of this increase is due to foreign exchange, with the balance coming from inflation-related pressures in Mexico.
Exploration Review
At the Royal Mines of Zacualpan, management continues to focus its drill program in areas where it has seen ongoing success, such as the San Ramon and the Guadalupe Mine. Meanwhile, management is especially encouraged with developments at the Alacran mine as its elevated gold values could continue to improve the overall grade for the Zacualpan district operations and as a result, revenue per tonne.
Outlook
With a strong balance sheet, exploration potential at both of the mining districts, encouraging gold potential as well as the upcoming start-up of the Plomosas high-grade zinc acquisition, management believes the next 18 months will be transformative for the Company and its investors. These factors should lead to ongoing improvement in revenues while management expects cost pressures to continue to slow heading into 2024.
The Company's growth is expected to reflect its strong position as one of just a handful of intermediate miners offering investors exposure to three distinct verticals across the mining sector, including exploration, production, and growth.
A recorded conference call reviewing the financial and production results of the quarter ended June 30, 2023 will be available on the Company website on August 28, 2023 at https://impactsilver.com/media/conference-calls/.
The information in this news release should be read in conjunction with the Company's Q2 2023 unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis, available on the Company website at www.impactsilver.com and on SEDAR at www.sedarplus.ca. All amounts are stated in Canadian dollars unless otherwise specified.
ABOUT IMPACT SILVER
IMPACT Silver Corp. (TSXV: IPT) is a successful intermediate mineral producer and explorer with three mining projects in Mexico.
Royal Mines of Zacualpan Silver-Gold District: IMPACT owns 100% of the 211 km2 Zacualpan project where four underground silver mines and one open pit mine feed the central 500 tpd Guadalupe processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an NI?43-101 inferred mineral resource of over 4.5?million oz silver, 48 million lbs zinc and 21 million lbs lead. (see IMPACT news release dated January 18, 2016, for details and QP statement, and Footnote 1 below for technical report reference) Company engineers are reviewing Capire for a potential restart of operations to leverage improved commodity prices. Over the past 17 years, IMPACT has developed multiple exploration zones into commercial production and have produced over 12 million ounces of silver, generating revenue more than $241 million.
Plomosas Zinc-Lead-Silver District: Plomosas is a high-grade zinc-lead-silver producer with exceptional exploration upside potential. The Company aims to recommence operations in the near term followed by plans for expanding operations in 2024. Exploration potential at Plomosas is exceptional with only 600m of the 6 km-long structure having been explored to date. This is in addition to other exploration targets on the 3,019-hectare property including untested copper-gold targets with indications of high-grade material from surface. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits in the world.
Additional information about IMPACT and its operations can be found on the Company website at www.impactsilver.com. Follow us on Twitter @IMPACT_Silver and LinkedIn at https://www.linkedin.com/company/impactsilver.
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Eng., is a "Qualified Person" within the meaning of NI 43-101 and has approved the technical information contained in this news release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or inquiries@impactsilver.com
(778) 887 6489 Direct
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Footnotes:
1. Reference: Ristorcelli, S.J. & Gorzynski, G. (2016). Technical Report on Mineral Resources for the Capire Silver-Lead-Zinc Project, Pedro Ascencio Alquisiras Municipality, Guerrero, Mexico. Prepared for IMPACT Silver Corp. by Mine Development Associates, Reno, Nevada. 82 pages. Available on www.sedarplus.ca.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements regarding the potential for defining and extending the known mineralization at Plomosas, and plans for drilling and future operations at the Company's projects.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
Lone Clone
1 year ago
IMPACT Silver Provides Construction Update at the High-Grade Zinc-Silver Plomosas Property, Mexico
https://www.newsfilecorp.com/release/175628
Vancouver, British Columbia--(Newsfile Corp. - August 1, 2023) - IMPACT Silver Corp. (TSXV: IPT) (OTC Pink: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") is pleased to provide an update from the recently acquired Plomosas high-grade zinc-silver mine in Chihuahua State, Mexico.
"Significant progress has been made at Plomosas as the team nears operational status at the mine. Since closing the acquisition of Plomosas, our experienced team is nearing a major milestone with all rehabilitation efforts in the final stages both on time and within budget. We are excited to bring the mine and plant back online after a near one year hiatus". said IMPACT Silver President & CEO Fred Davidson.
The Company expects the Plomosas mine to contribute to the Company's existing silver production located to the south, in Zacualpan, Mexico. By diversifying the Company to include a meaningful zinc component against the backdrop of strong medium and long term fundamentals, management is transforming IMPACT into a diversified and growing production company with significant exploration potential.
Rehabilitation Update
Plant: All necessary components of the mill have arrived on site or have been refurbished with assembly currently in the final stages. Testing and modification of the plant is expected to start in late summer, with ramp up to design capacity of nearly 200 tpd expected over the coming months. Construction is now approximately 85% complete.
Figure 1. Plant Rehabilitation
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Figure 2. Ball Mill & Flotation Cells
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Tailings Pond: The Company has applied for the expansion of the current tailings pond which is expected to add at least an additional two years capacity. Meanwhile, an additional tailings pond is in the planning stages to accommodate years of future production and growth.
Figure 3. Power Infrastructure Improvements
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Underground Mine: Refurbishments to ventilation, electrical and lighting systems are ongoing as activity increases underground. Mining has begun and is expected to ramp up as the Company deploys additional equipment to the mine including scoop trams and underground trucks. Underground drilling to better define and expand resources has begun and drill permits for surface brownfield and greenfield exploration targets have been received.
Figure 4. Underground Activity
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Mine Planning: The exploration team has initiated its first phase of the 2023-2024 mine plan. This includes extraction of high-grade material in line with previous grades in excess of 13% Zn.
Workforce & Personnel: There are currently 70 Company employees on site and another 25 contract workers. The Company is fortunate to have inherited a strong workforce after the acquisition closed and is adding positions in specific areas centred around engineering, exploration and day-to-day operations.
ESG: While generally remote, the Company engages with the nearest communities to ensure ongoing support and coordination. The State of Chihuahua provides the mine with a strong and experienced labour force from which to draw talent. The Company is currently studying proposals to reduce its reliance on fossil fuels with plans to be an industry leader in decarbonization in the mining sector.
Figure 5. Mill Feed Management
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ABOUT IMPACT SILVER
IMPACT Silver Corp. (TSXV: IPT) is a successful intermediate mineral producer and explorer with multiple mining projects in Mexico.
Royal Mines of Zacualpan Silver-Gold District: IMPACT owns 100% of the 211 km2 Zacualpan project where four underground silver mines and one open pit mine feed the central 500 tpd Guadalupe processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an NI?43-101 inferred mineral resource of over 4.5?million oz silver, 48 million lbs zinc and 21 million lbs lead. (see IMPACT news release dated January 18, 2016, for details and QP statement, and Footnote 2 for report reference). Company engineers are reviewing Capire for a potential restart of operations to leverage improving commodity prices. Over the past 17 years, IMPACT has developed multiple exploration zones into commercial production and has produced over 12 million ounces of silver, generating revenues of more than $241 million.
Plomosas Zinc-Lead-Silver District: Plomosas is a high-grade zinc-lead-silver producer with exceptional exploration upside potential. The Company is working to recommence operations in the near term followed by plans for expanding operations. Exploration potential at Plomosas is exceptional with only 600m of the 6 km-long structure having been explored to date. This is in addition to other exploration targets on the 3,019-hectare property including untested copper-gold targets with high-grade surface prospecting sampling1. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits in the world.
Additional information about IMPACT and its operations can be found on the Company website at www.impactsilver.com. Follow us on Twitter @IMPACT_Silver and LinkedIn at https://www.linkedin.com/company/impactsilver.
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Eng., a Director and officer of IMPACT Silver Corp., is a "Qualified Person" within the meaning of NI 43-101 and has approved the technical information contained in this news release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or inquiries@impactsilver.com
(778) 887 6489 Direct
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Footnotes:
Reference: Alexandri, A. Gonzalez, H., & Salas, H. (2022). Plomosas Project (CZL), Field Visit Report. IMPACT Silver Corp. private report on field visits and compilation of historic and recent data, 56 pages.
Reference: Ristorcelli, S.J. & Gorzynski, G. (2016). Technical Report on Mineral Resources for the Capire Silver-Lead-Zinc Project, Pedro Ascencio Alquisiras Municipality, Guerrero, Mexico. Prepared for IMPACT Silver Corp. by Mine Development Associates, Reno, Nevada. 82 pages. Available on www.sedar.com.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements regarding the potential for defining and extending the known mineralization at Plomosas and plans for drilling and future operations at the Company's projects.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
Lone Clone
1 year ago
IMPACT Silver Provides Update on the Recently Acquired Plomosas High-Grade Zinc Mine
https://www.newsfilecorp.com/release/170691
Vancouver, British Columbia--(Newsfile Corp. - June 20, 2023) - IMPACT Silver Corp. (TSXV: IPT) ("IMPACT" or the "Company") is pleased to provide a corporate update on the Company's recently acquired, high-grade Plomosas zinc-lead-silver mine located in Chihuahua State, Mexico.
Following the completion of the Plomosas mine acquisition (see IMPACT news release dated April 3rd 2023), the Company immediately commenced an extensive program at site to revitalize and upgrade operations and equipment, and bring on new technical and supervisory staff. Planned upgrades will allow for an expansion of production and an aggressive exploration program has been prepared to potentially grow the size of the existing resource.
Mine, Mill and Plant:
The Company expects to initially restart production in 2H/2023 at levels that allow management to consider further modifications and efficiencies, where required. More meaningful production levels approaching design capacity as well as associated revenue is expected in 1H/2024.
Mine planning and rehabilitation have been ongoing while the Company replaces and repairs underground equipment including scooptrams and underground trucks.
The Company is in the process of replacing mill foundations while upgrading the ball mill, conveyor and crushing systems, and flotation cells. Design capacity of the mill is 150 tpd with plans to expand.
Plans are in place to expand the existing tailings pond and concurrently, a new larger tailings pond is in the design and permitting stages. These efforts will provide some additional capacity to re-establish and grow output at the mill in the near-term, while providing the Company with substantial tailings capacity for future production increases.
Substantial cost saving options are potentially available to the Company as management considers alternate electric power options as well as various changes in mining methods and mineral processing technologies.
Exploration:
The Company is preparing stations for an underground drill program in the mine and drilling permits have been submitted for the upcoming surface program. One Company-owned surface drill rig has arrived on site, and a second (underground) rig is currently being manufactured and is expected to be delivered mid-summer.
In addition to the high-grade resource already established at Plomosas, substantial exploration potential exists across the 6km long structure on the property with just 600m having been explored to date. The current JORC mineral resource1 by the previous operator totals 215,000 tonnes grading 13.5% zinc, 6.3% lead and 34.0 g/t silver (indicated), and 772,000 tonnes grading 13.1% zinc, 3.0% lead and 19.0 g/t silver (inferred), at a 3% zinc cut-off at December 2021.
In recent years, a significant amount of the mill feed came from outside the known resource, providing encouragement that exploration drilling may substantially increase the Plomosas' resource over time.
The Company expects to deliver drill results later on in 2023 and early 2024 from its maiden exploration programs.
Other exploration targets on the property include untested intrusion-related gold-copper targets with historical high-grade grab samples from surface prospecting.
Photo 1. Ongoing Work at Plomosas Mill
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ABOUT IMPACT SILVER
IMPACT Silver Corp. (TSXV: IPT) is a successful intermediate mineral producer and explorer with multiple mining projects in Mexico.
Royal Mines of Zacualpan Silver-Gold District: IMPACT owns 100% of the 211 km2 Zacualpan project where four underground silver mines and one open pit mine feed the central 500 tpd Guadalupe processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an NI?43-101 inferred mineral resource of over 4.5?million oz silver, 48 million lbs zinc and 21 million lbs lead. (see IMPACT news release dated January 18, 2016, for details and QP statement below, and Footnote 3 for report reference). Company engineers are reviewing Capire for a potential restart of operations to leverage improving commodity prices. Over the past 17 years, IMPACT has developed multiple exploration zones into commercial production and has produced over 12 million ounces of silver, generating revenues of more than $241 million.
Plomosas Zinc-Lead-Silver District: Plomosas is a high-grade zinc-lead-silver producer with exceptional exploration upside potential. The Company aims to recommence operations in the near term followed by plans for expanding operations. Exploration potential at Plomosas is exceptional with only 600m of the 6 km-long structure having been explored to date. This is in addition to other exploration targets on the 3,019-hectare property including untested copper-gold targets with high-grade surface prospecting samples2. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits in the world.
Additional information about IMPACT and its operations can be found on the Company website at www.impactsilver.com. Follow us on Twitter @IMPACT_Silver and LinkedIn at https://www.linkedin.com/company/impactsilver
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Eng., a Director and officer of IMPACT Silver Corp., is a "Qualified Person" within the meaning of NI 43-101, and has approved the technical information contained in this news release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or inquiries@impactsilver.com
(778) 887 6489 Direct
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Footnotes:
1. Plomosas mineral resources were reported by the previous mine owner, Consolidated Zinc Ltd. (CZL:ASX), on their website (https://www.consolidatedzinc.com.au) under the Australian JORC (2012) Code as mineral resources "depleted as at December 2021". IMPACT's Qualified Person has reviewed but not verified in detail these current reported mineral resources and is only reporting them as material recent mineral resources reported by CZL and available in the public record. IMPACT believes the estimates are relevant and reliable, given they are reported to Australian JORC standards; however, IMPACT's Qualified Person has not done sufficient work to classify them as current Canadian NI 43-101 mineral resources.
2. Reference: Alexandri, A. Gonzalez, H., & Salas, H. (2022). Plomosas Project (CZL), Field Visit Report. IMPACT Silver Corp. private report on field visits and compilation of historic and recent data, 56 pages.
3. Reference: Ristorcelli, S.J. & Gorzynski, G. (2016). Technical Report on Mineral Resources for the Capire Silver-Lead-Zinc Project, Pedro Ascencio Alquisiras Municipality, Guerrero, Mexico. Prepared for IMPACT Silver Corp. by Mine Development Associates, Reno, Nevada. 82 pages. Available on www.sedar.com.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements regarding the potential for defining and extending the known mineralization at Plomosas, and plans for drilling and future operations at the Company's projects.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
Lone Clone
1 year ago
IMPACT Silver Announces Q1 2023 Results Including Improved Revenue of $5.1 Million from Increased Mill Throughput and Gold Production
https://www.newsfilecorp.com/release/167127
Vancouver, British Columbia--(Newsfile Corp. - May 23, 2023) - IMPACT Silver Corp. (TSXV: IPT) (OTC Pink: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") announces its financial and operating results for the first quarter ended March 31, 2023 from its Royal Mines of Zacualpan mine operations in central Mexico. The Company reports revenue of $5.1 million in Q1 2023, representing a 10.4% improvement over revenue of $4.6 million in Q1 2022. Mine operating earnings (before amortization and depletion) in Q1 2023 was $0.6 million. The net loss during the period was $0.3 million compared to a net loss of $0.06 million in the same period of 2022.
While the average silver grade in Q1 2023 was flat on a year-over-year basis at 162 g/t, a combination of higher overall production levels and additional gold production helped contribute to a 7% increase in revenue per tonne sold of $126.96 in the period compared to $118.34 in the same period of 2022.
Economic headwinds and global growth concerns have helped silver prices benefit recently from a flight to safety standpoint and as a hedge against inflation, however there is a growing consensus that the world's leading economies may escape a deep recession, thereby improving the industrial outlook for silver as well. The combination of all these factors have provided cautious optimism vis-à-vis silver pricing going forward. However, inflation across the value chain remains rampant, and while there is some indication that this trend is slowing, the quarterly direct costs per tonne increased to $111.79 in Q1 2023 compared to $90.01 in Q1 2022. Of this increase, 6% was due to inflation in Mexico and a further 18% was due to foreign exchange. Costs may continue to increase in 2023, albeit at a potentially slower rate.
During the quarter, the Company continued to focus on exploration and development of its mining district and spent $0.8 million on these programs. Working capital at March 31, 2023 was strong at $15.7 million while the Company continues to remain well funded with a cash position of $14.3 million at March 31, 2023. Subsequent to quarter-end, the Company closed an oversubscribed, non-brokered private placement for an additional $9.0 million. The Company has no long-term debt.
Fred Davidson, President & CEO of IMPACT, stated, "During the first quarter, we continued to deal with industry-wide inflation pressures within the supply chain as well as through our labour and support networks. Notwithstanding, our operations ran smoothly, and our team executed on improving production levels while also processing higher grade material which we expect will continue going forward. Our well-capitalized balance sheet will allow us to invest across the board, including in exploration, mine development and into our new high-grade Plomosas zinc-lead-silver mine, which we expect could potentially add significantly to revenue and earnings once up and running later this year and into 2024."
IMPACT continues to be one of the purest intermediate silver miners with more than 90%+ of Company revenue coming from silver. In the medium term, the Company's recent Plomosas acquisition should begin to provide it with commodity diversification, primarily from zinc and lead, as well as the potential for gold production down the road.
Q1 2023 Financial Overview
Revenue in Q1 2023 was $5.1 million, up from $4.6 million in Q1 2022 due to higher production levels and gold production.
Mine operating earnings before amortization and depletion in Q1 2023 was $0.6 million, compared to $1.1 million in Q1 2022.
Cash used in operations for the quarter was $0.6 million compared to $0.9 million in Q1 2022.
The net loss in Q1 2023 was $0.3 million compared to net loss of $0.06 million in Q1 2022.
After investing $0.8 million in exploration expenditures and mining assets during the quarter, the cash position remained strong at quarter-end with $14.3 million with working capital of $15.7 million.
Subsequent to quarter-end, the Company closed an oversubscribed, non-brokered private placement for an additional $9.0 million.
The Company has no long-term debt.
Q1 2023 Production Overview
Mill throughput in Q1 2023 was 38,688 tonnes compared to 36,143 tonnes in Q1 2022.
Silver production during the period increased by 10% to 167,050 oz compared to 151,645 oz in Q1 2022 while contributions from lead and gold saw production increases on a year-over-year basis of 19% and 154%, respectively.
Revenue per tonne sold was $126.96 in Q1 2023, representing an increase of 7% over the same period in 2022.
Direct costs per production tonne were $111.79 in Q1 2023, representing an increase of 24% over Q1 2022 costs of $90.01 per tonne. Most of this increase (18%) is due to foreign exchange, with the balance coming from inflation-related pressures in Mexico.
Exploration Review
Management has been running a focused drill program with success at the San Ramon silver vein system allowing for higher-grade silver feed while the Lipton silver vein systems at the Guadalupe Mine could provide for even further grade improvement at the processing level. The benefits of this exploration success are apparent in the most recent quarter. Notably, the Alacran mine appears to contain levels of gold mineralisation that could help improve the overall grade for the operation as the exploration team works through older workings at that location.
During the quarter, IMPACT announced greenfield drilling results from the San Antonio Zinc vein system including 2.30% Zn over 3.85 metres as well as 1.59 g/t Au and 1.04% Zn over 3.5 metres (see IMPACT news release dated January 4, 2023 for details).
The Company also drilled at the Aurora 2 zone, located 1.3 km northeast of the Capire processing plant and 16 km south of IMPACT's Guadalupe operations. Previous drilling at Aurora 2 included intersections of 625 g/t Ag over 1.88 metres and 420 g/t Ag over 2.50 metres (see IMPACT news release dated December 9, 2013). Recent step-out drilling included 128 g/t silver, 0.42 g/t gold, 0.76% lead and 1.84% zinc over 7.5 metres (see IMPACT news release dated February 16, 2023 for details). These results extend the Aurora 2 zone to the west. The zone has historically been grid drilled with 72 drill holes and remains open to the west and northeast.
Outlook
Management believes the Company is well-positioned as an intermediate miner offering investors exposure to three distinct verticals across the mining sector, including exploration, production, and growth.
IMPACT stands to benefit from several positive trends playing out within the Company and across the industry. Internally, the Company's production at its mill in Zacualpan is operating efficiently while grade is improving thanks to added gold production from the Alacran Mine. This trend is expected to continue throughout 2023 and into 2024.
Growth at Plomosas
Subsequent to the end of Q1 2023, the Company closed on the acquisition of a third mining district known as Plomosas. Plomosas is a high-grade zinc mine located in northern Mexico, just 150 km north of the city of Chihuahua. In April, the Company stopped milling operations temporarily to complete certain necessary upgrades with the objective of restarting production by late summer. Meanwhile, management sees considerable upside from exploration as it begins planned drilling at Plomosas in the coming weeks. The addition of production from Plomosas should impact the Company's financial profile in 2H 2023 and increase into 2024 as improvements are made to the mill and production is brought up to initial capacity levels.
A recorded conference call reviewing the financial and production results of the quarter ended March 31, 2023 will be available on the Company website on May 24, 2023 at www.impactsilver.com/media/conference-calls.
The information in this news release should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis, available on the Company website at www.impactsilver.com and on SEDAR at www.sedar.com. All amounts are stated in Canadian dollars unless otherwise specified.
ABOUT IMPACT SILVER
IMPACT Silver Corp. (TSXV: IPT) is a successful intermediate mineral producer and explorer with three mining projects in Mexico.
Royal Mines of Zacualpan Silver-Gold District: IMPACT owns 100% of the 211 km2 Zacualpan project where four underground silver mines and one open pit mine feed the central 500 tpd Guadalupe processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an NI?43-101 inferred mineral resource of over 4.5?million oz silver, 48 million lbs zinc and 21 million lbs lead. (see IMPACT news release dated January 18, 2016, for details and QP statement, and Footnote 1 below for report reference) Company engineers are reviewing Capire for a potential restart of operations to leverage improving commodity prices. Over the past 17 years, IMPACT has developed multiple exploration zones into commercial production and has produced over 12 million ounces of silver, generating revenue more than $241 million.
Plomosas Zinc-Lead-Silver District: Plomosas is a high-grade zinc-lead-silver producer with exceptional exploration upside potential. The Company aims to recommence operations in the near term followed by plans for expanding operations through the balance of 2023 and into 2024. Exploration potential at Plomosas is exceptional with only 600m of the 6 km-long structure having been explored to date. This is in addition to other exploration targets on the 3,019-hectare property including untested copper-gold targets with indications of high-grade material from surface. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits in the world.
Additional information about IMPACT and its operations can be found on the Company website at www.impactsilver.com. Follow us on Twitter @IMPACT_Silver and LinkedIn at https://www.linkedin.com/company/impactsilver
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Eng., is a "Qualified Person" within the meaning of NI 43-101 and has approved the technical information in this news release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or inquiries@impactsilver.com
(778) 887 6489 Direct
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements with respect to the expected use of proceeds of the Private Placement, future production potential of the Plomosas, Zacualpan and Capire projects.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement except as required by law.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
Footnote:
1. Reference: Ristorcelli, S.J. & Gorzynski, G. (2016). Technical Report on Mineral Resources for the Capire Silver-Lead-Zinc Project, Pedro Ascencio Alquisiras Municipality, Guerrero, Mexico. Prepared for IMPACT Silver Corp. by Mine Development Associates, Reno, Nevada. 82 pages. Available on www.sedar.com.
Lone Clone
2 years ago
IMPACT Silver Signs Binding Conditional Agreement to Purchase Plomosas Zinc-Lead-Silver Mine in Mexico
https://www.newsfilecorp.com/release/154322
Vancouver, British Columbia--(Newsfile Corp. - February 9, 2023) - IMPACT Silver Corp. (TSXV: IPT) (OTC Pink: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") is pleased to announce it has signed a Share Purchase and Sale Agreement (the "Sale Agreement") with Consolidated Zinc Limited (ASX: CZL) ("CZL") of Australia dated February 9, 2023 to purchase all of the outstanding shares of its subsidiary, Minera Latin America Zinc S.A.P.I de C.V. ("MLAZ"), which holds a 100% interest in the Plomosas zinc-lead-silver mine in the state of Chihuahua, northern Mexico.
HIGHLIGHTS
The acquisition will expand IMPACT's production profile from one to two producing operations – the Plomosas zinc-lead-silver district in northern Mexico and the Royal Mines of Zacualpan silver-lead-zinc(-gold) district in central Mexico.
The purchase price is US$6 million consisting of a minimum US$3 million cash and the balance in IMPACT shares plus a 12% net profit interest royalty to CZL. Completion of the transaction is anticipated on or before April 7, 2023.
CZL reported Plomosas JORC mineral resources1 of 215,000 tonnes grading 13.5% zinc, 6.3% lead and 34.0 g/t silver indicated, and 772,000 tonnes grading 13.1% zinc, 3.0% lead and 19.0 g/t silver inferred, at a 3% zinc cutoff at December 2021. IMPACT plans a drill program in 2023 to infill and test extensions of the known mineralization.
Plomosas is host to high grade mineralization. Historical mining is in the global upper quartile for zinc grade with approximately 2.5MT mined since 1943 grading 15-25% zinc, 2-7% lead and 40-60 g/t silver with low deleterious elements2.
CZL has been mining Plomosas since September 2018 except for some temporary short suspensions during Christmas. IMPACT plans to upgrade the mill and mine with the aim to continue mining followed by plans for expanding operations.
IMPACT's highly skilled operations team has 17 years of underground mining and flotation milling experience at Zacualpan which it will bring to advance the Plomosas operations.
Exploration potential at Plomosas is exceptional with only 600m of the 6 kilometre long structure assessed plus other exploration targets on the 3,019 hectare property including untested copper-gold targets. Regionally, Plomosas lies in the same mineral belt as some of the largest silver-lead-zinc carbonate replacement deposits ("CRD") in the world2.
CEO STATEMENT
Chairman and CEO Frederick Davidson commented, "We are truly pleased to acquire a second mining district after evaluating hundreds of projects over the years in an effort to grow IMPACT. Currently Plomosas is a relatively small mining operation on a large mineral system. Our goal is to upgrade and expand operations to optimize production from the large mineral system. Our Mexican technical team is exceptionally skilled in building and efficiently operating mines like this and we will bring our 17 years of underground operating experience at the Royal Mines of Zacualpan to hone and grow the Plomosas operations. The technical and management overlap with similarity of asset and operations provides great synergy for the transaction and represents near term growth of our production levels and value to shareholders."
PLOMOSAS PROJECT OVERVIEW
The Plomosas project is located 110 km by road from Chihuahua City, the state capital, which is a two-hour flight from Dallas, Texas, USA. The district was discovered in 1832 and has seen small scale mining since 1868. Historical mining is in the global upper quartile for zinc grade with approximately 2.5MT mined since 1943 grading 15-25% zinc, 2-7% lead and 40-60 g/t silver with low deleterious elements2.
The mine and mill are fully permitted, have an offtake smelter contract2 and have been in production by CZL since September 2018 except for some temporary short suspensions during Christmas. In 2021 CZL processed 31,695 tonnes producing 2,442 tonnes of zinc concentrate and 599 tonnes of lead concentrate. Mine access is by 3 portals reaching a depth of 250m below surface and an old shaft that can be refurbished2. Mineral is processed in a 200 tonne per day conventional flotation mill (recently operating under capacity) with plans to expand. IMPACT plans to upgrade the mill and mine with the aim to continue mining in the near term followed by plans for expanding operations. The Plomosas Property is subject to an underlying 1% Net Smelter Royalty.
The 3,019 hectare property covers extensive carbonate replacement deposit-type ("CRD") zinc-lead-silver mantos (beds) mainly hosted in carbonates (limestones, marbles). CZL reported Australian JORC mineral resources1 of 215,000 tonnes grading 13.5% zinc, 6.3% lead and 34.0 g/t silver indicated, and 772,000 tonnes grading 13.1% zinc, 3.0% lead and 19.0 g/t silver inferred, at a 3% zinc cutoff at December 2021. IMPACT plans a drill program in 2023 to infill and test extensions of the known mineralization.
Exploration potential at Plomosas is exceptional with only 600m of the 6 kilometre long structure assessed plus other exploration targets including untested copper-gold targets. Regionally Plomosas lies in the same mineral belt as some of the largest CRD deposits in the world (see Map 1)2. The historic Santa Eulalia Mine is the world's largest historic CRD deposit and is located 100km west of Plomosas (see Map 1). Historic production at Santa Eulalia was over 450Moz silver from 51MT averaging 350 g/t silver, 8.2% lead and 7.8% zinc and mined over 300 years. Reference to this nearby project is for information purposes only and there are no assurances that Plomosas will achieve similar results.
TERMS OF THE TRANSACTION
The material terms of the transaction are as follows.
IMPACT will pay the following consideration to CZL for a 100% interest in MLAZ, the Mexican subsidiary of CZL that owns a 100% interest in the Plomosas Project:
US$6 million consisting of a minimum US$3 million cash and the balance in IMPACT common shares (the "IMPACT Shares"). Closing adjustments based on working capital at closing are provided in the Sale Agreement;
Contractual restrictions on transfer will be applied to 75% of the IMPACT Shares, such that IMPACT Shares will be released from restriction in three equal tranches of 25% every 6 months over 18 months from closing. 25% of the IMPACT Shares will be immediately held by CZL (subject to a statutory 4 month hold period from the date of issuance of the IMPACT Shares); and
a 12% net profit interest ("NPI") royalty on production from the Plomosas project to CZL.
It is anticipated that upon closing and assuming US$3 million payment made in IMPACT Shares, CZL will hold approximately 6% of the issued capital in IMPACT. The deemed per share price will be determined in accordance with the Sale Agreement and will be the 20 day VWAP before the date of the Sale Agreement or an equivalent price to an IMPACT financing, should one be conducted before closing.
Completion of the Sale Agreement is subject to certain industry standard closing conditions for a transaction of this kind (the "Conditions") being satisfied or waived by March 31, 2023. Completion is expected to occur within 7 days of the Conditions being satisfied or waived. Conditions include, among others, TSX Venture Exchange approval of the purchase of MLAZ and the issuance of IMPACT Shares as partial consideration.
IMPACT has cash on hand to close the Sale Agreement, but may conduct a financing in the near-term for additional working capital.
ABOUT CONSOLIDATED ZINC LIMITED
Consolidated Zinc Limited is an Australian junior exploration company listed on the Australian Stock Exchange (ASX: CZL). It owns 100% interests in the Pilbara Lithium and Wandagee Projects, which comprise approximately 1,400km2 in 5 granted exploration licences (plus 1 EL Application), located in the Pilbara and Gascoyne regions of Western Australia. The Pilbara Projects are highly prospective for lithium and situated near two of the world's largest hard rock lithium deposits/mines (PLS – Pilgangoora & MIN – Wodgina) and other deposits and occurrences near Marble Bar (GL1's Archer Project). Consolidated Zinc also owns the Plomosas Mine (Mexico) where, as described in this news release, Consolidated Zinc has signed a binding conditional sale agreement with IMPACT Silver for the sale of the Plomosas project for US$6 million (cash and shares) plus a 12% NPI royalty.
Jett Capital Advisors, LLC are acting as advisor to Consolidated Zinc Limited.
ABOUT IMPACT SILVER
IMPACT Silver Corp. (TSXV: IPT) is a successful producer-explorer with two mining projects in Mexico.
Royal Mines of Zacualpan Silver-Gold District: IMPACT owns 100% of the 211 km2 Zacualpan project where three underground silver mines and one open pit mine feed the central 500 tpd Guadalupe processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an NI 43-101 inferred mineral resource of over 4.5 million oz silver, 48 million lbs zinc and 21 million lbs lead (see IMPACT news release dated January 18, 2016 for details and QP statement, and Footnote 3 below for report reference). Company engineers are reviewing Capire for a potential restart of operations. Over the past 17 years, IMPACT has placed multiple zones into commercial production and produced over 11.5 million ounces of silver, generating revenues over $230 million, with no long-term debt.
Plomosas Zinc-Lead-Silver District: IMPACT signed the sale agreement with Consolidated Zinc Limited (ASX: CZL) of Australia to purchase the 30 km2 Plomosas property and mining operations for US$6 million (cash and shares) plus a 12% net profits interest. Plomosas is a high grade zinc-lead-silver producer with exceptional exploration potential. Upon closing of the purchase / sale transaction, IMPACT plans to upgrade the mill and mine with the aim to recommence operations in the near term followed by plans for expanding operations. Exploration potential at Plomosas is exceptional with only 600m of the 6 kilometre long structure assessed plus other exploration targets including untested copper-gold targets. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits ("CRD") in the world.
Additional information about IMPACT and its operations can be found on the Company website at www.IMPACTSilver.com. Follow us on Twitter @IMPACT_Silver and LinkedIn at https://www.newsfilecorp.com/redirect/moaM0fp55n?r=aHR0cHM6Ly9jYS5maW5hbmNlLnlhaG9vLmNvbS8=.
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Eng., is a "qualified person" within the meaning of NI 43-101 and has approved the technical information contained in this news release. Mr. Gorzynski is Vice-President, Exploration and a director of IMPACT.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Jerry Huang
CFO | Investor Relations
O: (604) 681 0172 or inquiries@impactsilver.com
C: (778) 887 6489 Direct
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Footnotes:
1. Plomosas mineral resources are reported by Consolidated Zinc Ltd. (ASX: CZL) on their website (https://www.newsfilecorp.com/redirect/kzZM0TLKKx?r=aHR0cHM6Ly9jYS5maW5hbmNlLnlhaG9vLmNvbS8=) under the Australian JORC (2012) Code as mineral resources "depleted as at December 2021". IMPACT's Qualified Person has reviewed but not verified in detail these current reported mineral resources and is only reporting them as material recent mineral resources reported by CZL and available in the public record. IMPACT believes the estimates are relevant and reliable, given they are reported to Australian JORC standards; however, IMPACT's Qualified Person has not done sufficient work to classify them as current Canadian NI 43-101 mineral resources.
2. Reference: Alexandri, A. Gonzalez, H., & Salas, H. (2022). Plomosas Project (CZL), Field Visit Report. IMPACT Silver Corp. private report on field visits and compilation of historic and recent data, 56 pages.
3. Reference: Ristorcelli, S.J. & Gorzynski, G. (2016). Technical Report on Mineral Resources for the Capire Silver-Lead-Zinc Project, Pedro Ascencio Alquisiras Municipality, Guerrero, Mexico. Prepared for IMPACT Silver Corp. by Mine Development Associates, Reno, Nevada. 82 pages. Available on www.sedar.com.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements regarding completion of the Plomosas agreement and estimated timing thereof, the potential for defining and extending the known mineralization, and plans for drilling and future operations at the Company's projects or plans for financing.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitation, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, pandemics and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement or beliefs, opinions, projections or other factors, except as required by law.
At Zacualpan, the Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101, the Company is required to disclose that it has not based its Zacualpan production decisions on NI 43-101 mineral resources or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
303-543 Granville Street
Vancouver, BC, Canada V6C 1X8
Telephone 604 664-7707
www.impactsilver.com
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Figure 1: Location map of Plomosas Mine and nearby mines and infrastructure. References to nearby projects are for information purposes only and there are no assurances that Plomosas will achieve similar results.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4729/154322_e46adc43d447582c_001full.jpg
Figure 2: Schematic cross section of Plomosas Mine mineralization (from CZL website).
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4729/154322_e46adc43d447582c_002full.jpg
Lone Clone
3 years ago
SONORO SUBMITS FEDERAL ENVIRONMENTAL PERMIT APPLICATION FOR CERRO CALICHE
https://ca.finance.yahoo.com/news/sonoro-submits-federal-environmental-permit-130000136.html
Sonoro Gold Corp.
May 4, 2022·2 min read
VANCOUVER, Canada, May 04, 2022 (GLOBE NEWSWIRE) -- Sonoro Gold Corp. (TSXV: SGO | OTCQB: SMOFF | FRA: 23SP) (“Sonoro” or the “Company”) is pleased to announce it has filed an Environmental Impact Statement, or Manifestacion de Impacto Ambiental (“MIA”) for its Cerro Caliche gold project in Sonora, Mexico. Under Mexican law, mining construction and operation activities require an approved MIA, as well as a Change of Land Use permit, or Autorizacion en Cambio de Uso de Suelo (“ETJ”), from the Mexican federal permitting authority, Secretaria de Medio Ambiente y Recursos Naturales (“SEMARNAT”). The Company is currently completing the required documentation for the Change of Land Use application and anticipates filing with SEMARNAT in the near future.
“Completing the MIA provided us with an opportunity to work closely with various stakeholders and I would like to thank everyone who worked alongside us as we conducted multiple environmental baseline studies and socio-economic assessments,” stated VP of Operations, Jorge Diaz. “The filing of the MIA is an important step in the project’s development and we will continue to move the project forward during the permitting process.”
Kenneth MacLeod, Sonoro’s President and CEO commented, “The filing of the MIA follows the compilation of extensive technical and environmental studies conducted on the Cerro Caliche concession over the past four years and supports the Company’s objective to develop Sonoro's proposed heap leach mining operation.”
John Darch, Sonoro's Chairman added, "We are delighted to report to our shareholders the filing of the Environmental Impact Statement, as it is a key milestone in the development of our proposed heap leach mining operation."
The scope of the MIA includes open pits, waste dumps, crushing facilities, heap leach pad, leach solution ponds, gold recovery facilities, haul roads, building structures and infrastructure, as proposed in the Company’s Preliminary Economic Assessment dated October 29, 2021. The document also provides flexibility for the continual optimization of the mine plan to support operational growth and resource expansion.
During the MIA-ETJ permitting phase, the Company will continue to move the project forward as it initiates site preparation work and focuses on arranging project financing. Management will also update the project’s estimated resource to incorporate the results from its nearly completed Phase IV drilling program and assess the potential impact on the project’s mine life and economic viability.
About Sonoro Gold Corp.
Sonoro Gold Corp. is a publicly listed exploration and development Company holding the near-development-stage Cerro Caliche project and the exploration-stage San Marcial project in Sonora State, Mexico. The Company has highly experienced operational and management teams with proven track records for the discovery and development of natural resource deposits.
On behalf of the Board of SONORO GOLD CORP.
Per: “Kenneth MacLeod”
Kenneth MacLeod
President & CEO
For further information, please contact:
Sonoro Gold Corp. - Tel: (604) 632-1764
Email: info@sonorogold.com
Forward-Looking Statement Cautions:
This press release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the Cerro Caliche project, and future plans and objectives of the Company, constitute forward looking information that involve various risks and uncertainties, including statements regarding the amount of financing proposed to be raised, intended use of the financing proceeds, sufficiency of funds to complete certain project development steps, and outlook for the results of the contemplated drilling program. Although the Company believes that such statements are reasonable based on current circumstances, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective" and similar expressions, or that events or conditions "will", "would", "may", "can”, "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties, including the possibility of unfavorable exploration and test results, the lack of sufficient future financing to carry out exploration and development plans and unanticipated changes in the legal, regulatory and permitting requirements for the Company’s exploration and development programs. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law or the policies of the TSX Venture Exchange. Readers are encouraged to review the Company’s complete public disclosure record on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
Lone Clone
3 years ago
Orla Mining Announces Positive Initial Metallurgical Results on Camino Rojo Sulphide Project
https://www.newswire.ca/news-releases/orla-mining-announces-positive-initial-metallurgical-results-on-camino-rojo-sulphide-project-800533069.html
Orla Mining Ltd. May 09, 2022, 06:00 ET
Potential for Standalone Phased Processing Option
VANCOUVER, BC, May 8, 2022 /CNW/ - Orla Mining Ltd. (TSX: OLA) (NYSE: ORLA) ("Orla" or the "Company") is pleased to provide a summary of Phase 1 metallurgical test results on its Camino Rojo sulphide deposit (the "Sulphide Project" or "Camino Rojo Sulphides"), located in Zacatecas, Mexico.
The Phase 1 metallurgical program has greatly increased Orla's understanding of metallurgical characteristics of Camino Rojo Sulphides, and appears to open up multiple processing options for the Camino Rojo Sulphides relative to what was suggested by previous work. The Phase 1 metallurgical program included tests on grinding characteristics, amenability to cyanidation, selective flotation, and pressure oxidation. In addition to the Phase 1 tests, a geometallurgical model was developed using new and historical metallurgical test results. Geometallurgical modelling integrates geological, geochemical, mineralogical, and recovery data to characterize zones of metallurgical response. It supports mine planning, flowsheet design, and connects mine and process planning as part of the optimization of mine-to-mill production and economic analysis. Highlights of Phase 1 metallurgical program include the following:
The geometallurgical model recognized five, spatially distinct, physically continuous geometallurgical zones within the 7.3-million-ounce sulphide gold deposit (measured and indicated mineral resource estimate of 259 million tonnes at 0.88 g/t Au, 7.4 g/t Ag, 0.07% Pb,0 0.26% Zn)[1].
Two geometallurgical zones of the Camino Rojo Sulphide mineralization appear to be amenable to conventional carbon-in-leach ("CIL") processing.
Selective flotation may be used to produce a gold concentrate.
Selective flotation may be used to produce a concentrate that can be treated using pressure oxidation.
There is potential to produce a zinc concentrate.
These positive results confirm potential for a standalone processing option for the Camino Rojo Sulphides. The Company will continue to work towards determining the optimal development plan with the goal of generating the greatest value for stakeholders. The metallurgical recoveries and geometallurgical zones will be used to determine new cut-off grades for open pit and underground mine designs. The respective mine designs will be used to support an updated sulphide mineral resource estimate, which is currently in progress, and will form the basis of a Preliminary Economic Assessment (the "PEA") on the Sulphide Project targeted for end of year 2022.
"These metallurgical results provide options for processing the Camino Rojo Sulphides", said Jason Simpson, President and Chief Executive Officer of Orla. "We are furthering our understanding of the deposit, the potential development pathway, and the value it may generate for stakeholders."
____________________________________
1
See "Scientific and Technical Information" below for additional information.
METALLURGICAL RESULTS
In 2021, the Company completed a directional drill core program into the Camino Rojo Sulphides. The main objectives of the program were to generate additional geological and analytical information regarding the continuity and geometry of the higher-grade gold mineralization (>2 g/t Au), obtain geotechnical information required to evaluate potential underground mining scenarios, and provide new material for metallurgical studies. The drill program was successful, and the drill results confirmed the presence of wide, higher-grade gold zones within the sulphide mineral resource (please see August 3, 2021, News Release).
"The metallurgy of the Camino Rojo Sulphide Project required evaluation of all processing options," said Andrew Cormier, Orla's Chief Operating Officer. "Building a CIL plant first could be used to process transition and low carbon zones and at a later stage add a flotation circuit to process the remaining geometallurgical zones sequentially."
The Phase 1 directional drill program in combination with Orla's geological model and data from previous metallurgical evaluations were used to develop a geometallurgical model that identified five, spatially distinct, physically continuous zones: two zones show amenability to conventional CIL and three zones where selective flotation may be used to produce a gold concentrate. Work continues to establish the size of each geometallurgical zones as part of activities for the PEA.
While the CIL gold recovery varied across the deposit, it was observed that some of the samples were amenable to conventional cyanidation with gold recoveries over 80%. CIL tests that did not perform as well were identified as having elevated levels of arsenopyrite and organic carbon.
The flotation tests included selective gold flotation, arsenopyrite/pyrite separation, and carbon pre-flotation. Flotation tests results produced a combined gold/sulphide concentrate with gold recoveries between 80-85%. Preliminary pressure oxidation processing tests on the sulphide concentrate indicate potential for high gold recovery, and additional testing is ongoing. Zinc flotation tests were conducted, and it was determined that a zinc concentrate containing over 54% zinc and recoveries of greater than 65% are achievable.
CAMINO ROJO SULPHIDE PROJECT
The development scenarios being considered to potentially form the basis of a PEA currently include: (1) an underground mining option with phased processing at a to-be-constructed CIL and flotation facility at Camino Rojo, or (2) an open pit mining option with phased processing at a to-be-constructed CIL and flotation facility at Camino Rojo, or (3) an open pit mining option with processing at Newmont Corporation's ("Newmont") Peñasquito facility. Work planned in 2022 includes the following:
Completion of 8,250-metre, Phase 2 Sulphide Project drill program to reinforce the geologic model and to continue to confirm the continuity of wide zones of higher-grade gold mineralization. The program has commenced on the first of 15 diamond drill holes and results are expected in the second half of 2022.
Update of resource estimate for the Camino Rojo Sulphides.
Completion of Phase 1 metallurgical test program, finalize the process design criteria, and develop the financial model for the selected mining and processing options as part of the PEA.
Completion of PEA in the fourth quarter 2022.
Qualified Persons Statement
The scientific and technical information related to Camino Rojo in this news release was reviewed and approved by Mr. J. Andrew Cormier, P. Eng., Chief Operating Officer of the Company, and Mr. Sylvain Guerard, P Geo., SVP Exploration of the Company, each of whom is a Qualified Person as defined under NI 43-101 standards. In order to verify the information relating to the Phase 1 metallurgical program, both Mr. Cormier and Mr. Guerard visited the property in the past year. Mr. Guerard also oversaw the selection of metallurgical samples. Mr. Cormier discussed the selection of the metallurgical samples with Mr. Guerard and responsible staff, designed the test work program, and reviewed the test results with the metallurgical laboratory, Blue Coast Metallurgy & Research ("Blue Coast").
Scientific and Technical Information
The mineral resource estimate for the Sulphide Project at Camino Rojo consists of 74 koz of measured resource (3.358 million tonnnes at 0.69 g/t gold) and 7,221 koz of indicated resources (255.445 million tonnes at 0.88 g/t gold) and has an effective date of June 7, 2019. If the Sulphide Project is defined through a positive pre-feasibility study outlining one of the development scenarios A or B below, Newmont may, at its option, enter into a joint venture for the purpose of future exploration, advancement, construction, and exploitation of the Sulphide Project.
Scenario A: A Sulphide Project where material from the project is processed using the existing infrastructure of the Peñasquito mine, mill, and concentrator facilities. In such a circumstance, the sulphide project would be operated by Newmont, who would earn a 70% interest in the Sulphide Project, with Orla owning 30%.
Scenario B: A standalone Sulphide Project with a mine plan containing at least 500 million tonnes of proven and probable mineral reserves using standalone facilities not associated with the Peñasquito mine. Under this scenario, the Sulphide Project would be operated by Newmont, who would earn a 60% interest in the Sulphide Project, with Orla owning 40%.
Additional information can be found in the Camino Rojo Technical Report entitled "Unconstrained Feasibility Study NI 43-101 Technical Report on the Camino Rojo Gold Project – Municipality of Mazapil, Zacatecas, Mexico" and dated January 11, 2021.
The Phase 1 metallurgical program testing was completed by Blue Coast. Blue Coast is independent of the Company and employs an internal quality assurance-quality control program consistent with NI 43-101 and industry best practice.
About Orla Mining Ltd.
Orla is operating the Camino Rojo Oxide Gold Mine, a gold and silver open-pit and heap leach mine, located in Zacatecas State, Central Mexico. The property is 100% owned by Orla and covers over 160,000 hectares. The technical report for the 2021 Feasibility Study on the Camino Rojo oxide gold project entitled "Unconstrained Feasibility Study NI 43-101 Technical Report on the Camino Rojo Gold Project – Municipality of Mazapil, Zacatecas, Mexico" dated January 11, 2021, is available on SEDAR and EDGAR under the Company's profile at www.sedar.com and www.sec.gov, respectively. The technical report is also available on Orla's website at www.orlamining.com. Orla also owns 100% of Cerro Quema located in Panama which includes a near-term gold production scenario and various exploration targets. Cerro Quema is a proposed open pit mine and gold heap leach operation. The technical report for the Pre-Feasibility Study on the Cerro Quema oxide gold project entitled "Project Pre-Feasibility Updated NI 43-101 Technical Report on the Cerro Quema Project, Province of Los Santos, Panama" dated January 18, 2022, is available on SEDAR and EDGAR under the Company's profile at www.sedar.com and www.sec.gov, respectively. The technical report is also available on Orla's website at www.orlamining.com.
Forward-looking Statements
This news release contains certain "forward-looking information" and "`forward-looking statements" within the meaning of Canadian securities legislation and within the meaning of Section 27A of the United States Securities Act of 1933, as amended, Section 21E of the United States Exchange Act of 1934, as amended, the United States Private Securities Litigation Reform Act of 1995, or in releases made by the United States Securities and Exchange Commission, all as may be amended from time to time, including, without limitation, statements regarding the results of the Phase 1 metallurgical program and the potential benefits thereof, potential development scenarios for the Sulphide Project, and exploration and study work planned at the Sulphide Project for 2022. Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments that the Company expects to occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Certain material assumptions regarding such forward-looking statements were made, including without limitation, assumptions regarding metallurgical results; the price of gold, silver, and copper; the accuracy of mineral resource and mineral reserve estimations; that there will be no material adverse change affecting the Company or its properties; that all required approvals will be obtained, including concession renewals and permitting; that political and legal developments will be consistent with current expectations; that currency and exchange rates will be consistent with current levels; and that there will be no significant disruptions affecting the Company or its properties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements involve significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: uncertainty and variations in the estimation of mineral resources and mineral reserves, including risks that the interpreted drill results may not accurately represent the actual continuity of geology or grade of the deposit, bulk density measurements may not be representative, interpreted and modelled metallurgical domains may not be representative, and metallurgical recoveries may not be representative; the Company's reliance on Camino Rojo and risks associated with its start-up phase; financing risks and access to additional capital; risks related to natural disasters, terrorist acts, health crises and other disruptions and dislocations, including by the COVID-19 pandemic; risks related to the Company's indebtedness; success of exploration, development, and operation activities; foreign country and political risks, including risks relating to foreign operations and expropriation or nationalization of mining operations; concession risks; permitting risks; environmental and other regulatory requirements; delays in or failures to enter into a subsequent agreement with Fresnillo Plc with respect to accessing certain additional portions of the mineral resource at Camino Rojo and to obtain the necessary regulatory approvals related thereto; the mineral resource estimations for Camino Rojo being only estimates and relying on certain assumptions; the Layback Agreement with Fresnillo Plc remaining subject to the transfer of surface rights; delays in or failure to get access from surface rights owners; risks related to guidance estimates and uncertainties inherent in the preparation of feasibility and pre-feasibility studies, including but not limited to, assumptions underlying the production estimates not being realized, changes to the cost of production, variations in quantity of mineralized material, grade or recovery rates, geotechnical or hydrogeological considerations during mining differing from what has been assumed, failure of plant, equipment or processes, changes to availability of power or the power rates, ability to maintain social license, changes to exchange, interest or tax rates, cost of labour, supplies, fuel and equipment rising, changes in project parameters, delays, and costs inherent to consulting and accommodating rights of local communities; uncertainty in estimates of production, capital, and operating costs and potential production and cost overruns; the fluctuating price of gold, silver, and copper; global financial conditions; uninsured risks; competition from other companies and individuals; uncertainties related to title to mineral properties; conflicts of interest; risks related to compliance with anti-corruption laws; volatility in the market price of the Company's securities; assessments by taxation authorities in multiple jurisdictions; foreign currency fluctuations; the Company's limited operating history; risks related to the Company's history of negative operating cash flow; litigation risks; intervention by non-governmental organizations; outside contractor risks; risks related to historical data; unknown labilities in connection with acquisitions; the Company's ability to identify, complete, and successfully integrate acquisitions; dividend risks; risks related to the Company's foreign subsidiaries; risks related to the Company's accounting policies and internal controls; the Company's ability to satisfy the requirements of the Sarbanes-Oxley Act of 2002; enforcement of civil liabilities; the Company's status as a passive foreign investment company for U.S. federal income tax purposes; information and cyber security; gold industry concentration; shareholder activism; risks associated with executing the Company's objectives and strategies, as well as those risk factors discussed in the Company's most recently filed management's discussion and analysis, as well as its annual information form dated March 18, 2022, to be available on www.sedar.com and www.sec.gov. Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change.
Cautionary Note to U.S. Readers
This news release and the documents incorporated by reference herein, as applicable, have been prepared in accordance with Canadian standards for the reporting of mineral resource and mineral reserve estimates, which differ from the previous and current standards of the United States securities laws. In particular, and without limiting the generality of the foregoing, the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "inferred mineral resources,", "indicated mineral resources," "measured mineral resources" and "mineral resources" used or referenced herein and the documents incorporated by reference herein, as applicable, are Canadian mineral disclosure terms as defined in accordance with Canadian National Instrument 43-101 — Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") — CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Definition Standards").
For United States reporting purposes, the United States Securities and Exchange Commission (the "SEC") has adopted amendments to its disclosure rules (the "SEC Modernization Rules") to modernize the mining property disclosure requirements for issuers whose securities are registered with the SEC under the Exchange Act, which became effective February 25, 2019. The SEC Modernization Rules more closely align the SEC's disclosure requirements and policies for mining properties with current industry and global regulatory practices and standards, including NI 43-101, and replace the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7. Issuers were required to comply with the SEC Modernization Rules in their first fiscal year beginning on or after January 1, 2021. As a foreign private issuer that is eligible to file reports with the SEC pursuant to the multi-jurisdictional disclosure system, the Corporation is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and will continue to provide disclosure under NI 43-101 and the CIM Definition Standards. Accordingly, mineral reserve and mineral resource information contained or incorporated by reference herein may not be comparable to similar information disclosed by United States companies subject to the United States federal securities laws and the rules and regulations thereunder.
As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of "measured mineral resources", "indicated mineral resources" and "inferred mineral resources." In addition, the SEC has amended its definitions of "proven mineral reserves" and "probable mineral reserves" to be "substantially similar" to the corresponding CIM Definition Standards that are required under NI 43-101. While the SEC will now recognize "measured mineral resources", "indicated mineral resources" and "inferred mineral resources", U.S. investors should not assume that all or any part of the mineralization in these categories will be converted into a higher category of mineral resources or into mineral reserves without further work and analysis. Mineralization described using these terms has a greater amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, U.S. investors are cautioned not to assume that all or any measured mineral resources, indicated mineral resources, or inferred mineral resources that the Company reports are or will be economically or legally mineable without further work and analysis. Further, "inferred mineral resources" have a greater amount of uncertainty and as to whether they can be mined legally or economically. Therefore, U.S. investors are also cautioned not to assume that all or any part of inferred mineral resources will be upgraded to a higher category without further work and analysis. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies, except in rare cases. While the above terms are "substantially similar" to CIM Definitions, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules or under the prior standards of SEC Industry Guide 7.
SOURCE Orla Mining Ltd.
For further information: Jason Simpson, President & Chief Executive Officer; Andrew Bradbury, Vice President, Investor Relations & Corporate Development, www.orlamining.com, info@orlamining.com
Lone Clone
3 years ago
IMPACT Silver Announces Q1 2022 Results Revenue of $4.6 Million, EBITDA $0.4 Million
https://www.newsfilecorp.com/release/123153
Vancouver, British Columbia--(Newsfile Corp. - May 9, 2022) - IMPACT Silver Corp. (TSXV: IPT) (OTC Pink: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") announces its financial and operating results for the first quarter ended March 31, 2022.
The Company recorded $4.6 million in revenue for the first quarter of 2022 and EBITDA (earnings before interest, taxes, depreciation, & amortization) of $0.4 million. Mine operating earnings before amortization and depletion in Q1 2022 were $1.1 million. After non-cash costs - amortization, depreciation, and deferred income taxes - the Company incurred a net loss of $0.06 million compared to a loss of $0.3 million in Q1 2021.
During the quarter, the Company continued to focus on exploration and development of the district spending $1.3 million on these programs. Working capital at March 31, 2022, remained strong at $21.1 million compared to $21.5 million at March 31, 2021. The Company continues to remain well funded with cash of $19.1 million at March 31, 2022.
Fred Davidson, President & CEO of IMPACT, stated, "In Q1 2022, we saw the start of full pressure from the inflation built up over years of quantitative easing, the flare up of Ukraine-Russia war, coupled with start of steep rate hikes in North America, all of which have caused downward pressures on precious metal spot prices. The average price of silver fell to $23/oz but with cost efficiencies realized from lean operations our team was able to continue generate positive EBITDA and mine operating earnings.
"IMPACT continues to be one of the purest silver miners with a 90%+ revenue leverage to silver prices. It is our plan in 2022 that with ongoing production efficiency improvements and exploration plans, we will continue to shape IMPACT into the premier silver exploration and production play for investors. With a robust exploration program lined up in 2022 to follow up on successes in 2021, cash on hand, strong working capital, no long-term debt, and a belief in the potential for higher silver prices, IMPACT is well positioned."
Q1 2022 Financial Overview
Revenue for Q1 2022 was $4.6 million, down from $5.4 million same quarter 2021 in part due to lower silver prices. Sales in Q1 2021 included substantial inventory from December of the prior year.
EBITDA was $0.4 million for quarter (Q1 2021 $0.6 million).
Mine operating earnings for Q1 2022 were $1.1 million compared to $1.9 million in Q1 2021.
Net loss for the quarter was $0.06 million, improving from a loss of $0.3 million in 2021.
Net working capital for the Company at March 31, 2022 was $21.1 million with cash on hand of $19.1 million.
The Company continues to have no long-term debt.
Q1 2022 Production Overview
Throughput at the mill was 36,143 tonnes in Q1 2022 compared to 36,413 tonnes in 2021.
Q1 2022 silver sales were 162,869 ounces (2021 - 184,303 ounces), including December 31, 2020 inventoried concentrate. Silver production in Q1 2022 was 151,645 oz., only marginally lower than 156,889 oz in Q1 2021.
Revenue per tonne sold was $118.34 in Q1 2022, a drop of just 5% from same period 2021 despite a 13% drop in silver prices.
Direct costs per production tonne were $90.01 in Q1 2022, an increase from 2021's comparative period of $75.45, largely due to extensive underground drilling and development during the quarter. With its lower cost structure, the Company has expanded production from Guadalupe, upgraded the shaft and underground railroad infrastructure, and is upgrading other infrastructure in the mine to access additional veins for mining on the lower levels and expanding production.
Exploration and Development Plans
During the quarter, IMPACT announced drill results from the Veta Negra Mine area and extensions including 257 g/t silver over 19.8 metres and 487 g/t silver over 12.97 metres (see IMPACT news release dated February 7, 2022 for details).
Exploration targets are defined and prioritized using a very large computer database complied over many years from historical maps and other technical data on the project. During the quarter, fieldwork was highlighted by continued exploration on the north and south extensions of the Veta Negra Mine and the Noche Norte area southwest of Veta Negra.
In addition to continued Veta Negra drilling, exploration work is planned for San Ramon South extensions, the Alacran Vein area, the Manto America bulk tonnage gold target and the La Luce and Pachuqueno Veins.
A recorded conference call reviewing the financial and production results of the quarter ended March 30, 2022, will be available on the Company website on May 10, 2022, at www.impactsilver.com/media/conference-calls/.
The information in this news release should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis, available on the Company website at www.impactsilver.com and on SEDAR at www.sedar.com. All amounts are stated in Canadian dollars unless otherwise specified.
ABOUT IMPACT SILVER
IMPACT Silver Corp. is a successful silver-gold explorer-producer with two processing plants on adjacent districts within its 100% owned mineral concessions covering 211km2 in central Mexico with excellent infrastructure and labor force. Over the past 16 years, IMPACT has produced over 11.5 million ounces of silver, generating revenues over $230 million, with no long-term debt.
At the Royal Mines of Zacualpan Silver District, three underground silver mines and one open pit mine feed the central Guadalupe processing plant. To the south, in the Mamatla District, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with a mineral resource of over 4.5 million oz silver, 48 million lbs zinc and 21 million lbs lead (see IMPACT news release dated January 18, 2016 for details); Company engineers are reviewing Capire for potential restart of operations. With 15 years of exploration successes leading to production cash flows, IMPACT has shown the Zacualpan Silver-Gold District to be endowed with many high-grade silver-gold zones and has placed multiple zones into commercial production.
Additional information about IMPACT and its operations can be found on the Company website at www.impactsilver.com. Follow us on Twitter @IMPACT_Silver and LinkedIn at https://www.newsfilecorp.com/redirect/gxwgosKDK7
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Eng., is a "qualified person" within the meaning of NI 43-101 and has approved the technical information contained in this news release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or inquiries@impactsilver.com
(778) 887 6489 Direct
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements with respect to the expected use of proceeds of the Private Placement.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
303-543 Granville Street Telephone (604) 664-7707
Vancouver, BC, Canada V6C 1X8
www.impactsilver.com
Twitter
LinkedIn
Lone Clone
3 years ago
IMPACT Silver Announces Full Year 2021 Results
Revenue Increased 13% to $17.7 Million, EBITDA $1.5 Million
https://www.newsfilecorp.com/release/117741
Vancouver, British Columbia--(Newsfile Corp. - March 23, 2022) - IMPACT Silver Corp. (TSXV: IPT) (OTC Pink: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") announces its financial and operating results for the year ended December 31, 2021. The Company operates one of the purest silver producers at its Royal Mines of Zacualpan Silver District in Mexico.
The Company reported $17.7 million in revenue for full year 2021, a 13% increase year over year compared to revenues of $15.6 million in revenue in 2020. The better results were primarily due to increased silver prices during the year despite increases on direct costs due to inflation, development costs designed to increase tonnage long term, and exploration program. Mine operating earnings before amortization and depletion were $3.4 million for the year ended December 31, 2021 compared to $3.3 million in 2020 in spite of higher development costs and lower silver grades both of which continued to impact the operating results.
Fred Davidson, President & CEO of IMPACT, stated, "With the euphoric start of 2021 and retail shareholder interest in silver thanks to meme-stock mania, IMPACT demonstrated what a efficient miner can do when silver prices start to run. The world has seen unforeseen turmoil in recent days and once again gold and silver rose as safe haven for sovereign and investors globally. As one of the purest silver producers, we believe IMPACT is uniquely positioned as the silver metal attracts investor interest. Underpinned with global currency tightening and true inflationary pressure, we see precious metals catching up with most industrial metals and energy prices.
"In 2021, IMPACT capitalized on its operational successes and carried out the Company's largest exploration program in years. In addition to ongoing advancements on various mine sites, unlocking the value of our land package, and ongoing evaluation of a near-term restart of our Capire VMS mine using XRT technology, 2021 was a busy year for the team, ultimately setting up for exciting catalysts for growth in 2022.
"With over 11 million ounces of silver (no equivalents) produced since 2006 by IMPACT, generating over $225 million in revenue and investing over $65 million in CAPEX to date, we are proud of our 2021 achievements and look forward to an even better 2022 with potential growth catalysts such as restart of mining at Capire, drilling of high priority targets, and high silver prices."
2021 FINANCIAL OVERVIEW
Revenue was $17.7 million compared to $15.6 million in 2020, due to higher average silver prices.
Earnings before interest, taxes, depreciation, amortization2 ("EBITDA") was $1.5 million in 2021 (2020 - $2.5 million).
Cash flow from operations was $3.0 million up from $2.5 million in 2020.
Mine operating earnings before amortization and depletion1 YTD 2021 was $4.7 million (2020 $4.7 million).
After investing $3.6 million in exploration expenditures and mining assets during the year, the cash position remained strong at $21.1 million with working capital of $21.5 million, up from cash of $20.4 million and working capital of $20.3 million at December 31, 2020.
The Company has no long-term debt.
2021 PRODUCTION OVERVIEW
2021 full year silver production was 617,686 ounces (2020 - 646,534 ounces) dropping 4.6% year over year. Silver sales were largely flat at 633,952 ounces full year 2021 compared to 2020.
Average mill feed grade for silver was 172 grams per tonne (g/t) in Q4 2021 comparable to 166 in Q4 2020, an increase of 4%.
Throughput at the mill was 145,458 tonnes milled in 2021 compared to 140,069 tonnes in 2020 for an average of 399 tonnes per day for the year.
The goal at Guadalupe processing plant was to focus on lower cost, higher grade production. The lower but steady production tonnes allowed the Company to focus on mining higher margin areas in lower cost situations. Revenue per tonne sold was $119.04 in 2021 an increase of 3% from 2020 at $116.09.
Direct costs per production tonne were $97.79 in Q4 2021 an increase of 6% from $92.91 during the same period in 2020 due to inflationary pressures and cost increases as the Company stepped up exploration and development at the Guadalupe mine.
The mining activity is becoming more focused on the Guadalupe mine and areas accessed from that shaft, with tonnage reaching approximately 50% of total mill feed. A substantial underground development program at Guadalupe is largely complete which included refurbishment of the main production shaft, and rebuilding the extensive track system on the 195 level to access the Pachuqueno section of the mine. This will provide for higher capacity with lower associated hauling costs.
There were one time weather related costs in Q3 2021 which resulted in excessive haul costs and the mining at the Veta Negra open-pit halted; production at this mine recommenced in the fourth quarter providing 8% of the mill feed.
Work continued on a third tailings facility with a provisional life of nine years of operations at the Guadalupe mill complex.
EXPLORATION
During 2021, IMPACT has conducted an aggressive exploration program, including a diamond drill program that was in excess of 17,000 metres utilizing the Company-owned four surface and underground drill rigs. The program was focused on discovery and definition of additional high-grade silver and gold zones for near- and longer-term mining. With the current success combined with the operational efficiencies of owning its own drills, the Company plans a number of additional programs during 2022 that could approach 20,000 metres of drilling across the Company's extensive land package.
Select highlights from 2021 news releases:
Discovers new San Ramon South Zone including intersections of 1.93 meters of 1,443 g/t Silver and 3.65 meters of 568 g/t Silver (December 14, 2021).
691 g/t Silver Over 1.29 meters At Guadalupe Mine (Oct 5, 2021).
3.38 meters of 2,186 g/t Silver and 6.04 meters of 464 g/t Silver At Guadalupe Mine - Pachuqueno (Oct 19, 2021).
JOINT VENTURE ON PROPERTY
As an ongoing strategy to unlock value for IMPACT shareholders, management is selectively working with high quality junior explorers to assist with unlocking value in the large 211 km2 district owned by IMPACT. During Q4 2020, the Company optioned approximately 1,100 hectares of its Zacualpan S.E. concession to Pantera Silver Corp.
In Q1 2021, Pantera made a payment of $50,000 in cash, and issued the Company 200,000 treasury shares valued at $85,000. Pantera is required to make option payments of $300,000 in cash, issue the Company 3.5 million shares and complete a minimum of $1.4 million in work on the project over the next three years, to acquire 100% of the project. This agreement is subject to a 1% net smelter return in favour of IMPACT.
CAPIRE VMS OPEN PIT MINE
The Capire open pit silver mine and 200 tonne per day processing plant is a separate operating unit located 16 kilometers south of the Guadalupe processing plant. The Capire unit is currently on care and maintenance but the Company is carrying out studies toward bringing it back into production. Previous 43-101 mineral resource studies on the Capire deposit have been evaluated with an inhouse review using the experience of a small test mining open pit operation in 2014. Other studies are being conducted with regard to critical infrastructure to determine optimum plant size for Capire operations and a 1,400 kilogram sample from the Capire open pit was tested using state of the art X-Ray transmission ("XRT") pre-concentration processing technology with encouraging results. XRT technology is a process that recognizes and sorts rocks based on the specific atomic density of the material. XRT sorts ore grade material from waste reducing the amount of material to be processed during the milling process as well as tailings. The Company is currently evaluating the potential impact of XRT pre-concentration upon capital and operating costs, recoveries and the ultimate mineable size of the deposit and the current pilot plant.
A recorded conference call reviewing the financial and production results of the year ended December 31, 2021 will be available on the Company website on March 25, 2022 at www.impactsilver.com/media/conference-calls/.
The information in this news release should be read in conjunction with the Company's audited condensed consolidated Financial Statements and Management's Discussion and Analysis, available on the Company website at www.impactsilver.com and on SEDAR at www.sedar.com. All amounts are stated in Canadian dollars unless otherwise specified.
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Eng., is a "qualified person" within the meaning of NI 43-101 and has approved the technical information contained in this news release.
ABOUT IMPACT SILVER CORP.
IMPACT Silver Corp. is a successful silver-gold explorer-producer with two processing plants on adjacent districts within its 100% owned mineral concessions covering 211km2 in central Mexico with excellent infrastructure and labor force. Over the past 16 years, IMPACT has produced over 11 million ounces of silver, generating revenues over $225 million, with no long-term debt. At the Royal Mines of Zacualpan Silver District, three underground silver mines and one open pit mine feed the central Guadalupe processing plant. To the south, in the Mamatla District, the Capire processing pilot plant is adjacent to an open pit silver mine with a mineral resource of over 4.5 million oz silver, 48 million lbs zinc and 21 million lbs lead (see IMPACT news release dated January 18, 2016 for details); Company engineers are reviewing Capire for restart of operations in light of current elevated silver prices. With 16 years of exploration successes leading to production cash flows, IMPACT has shown the districts to be endowed with many high grade epithermal silver-gold zones and has placed multiple zones into commercial production.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or inquiries@impactsilver.com
(778) 887 6489 Direct
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements with respect to the expected use of proceeds of the Private Placement.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
303-543 Granville Street Telephone (604) 664-7707
Vancouver, BC, Canada V6C 1X8
www.impactsilver.com
Twitter
LinkedIn
1 Mine operating earnings before amortization and depletion is a non-IFRS measure which the Company believes provides meaningful information about the Company's financial performance.
2 EBITDA - Earnings before interest, taxes, depreciation, amortization and stock-based payments - is a non-IFRS measure which the Company believes provides meaningful information about the Company's financial performance.
Lone Clone
5 years ago
IMPACT Silver Announces Q1 2019 Financial and Production Results
https://www.newswire.ca/news-releases/impact-silver-announces-q1-2019-financial-and-production-results-896147993.html
IMPACT Silver Corp. May 27, 2019, 09:00 ET
Trading Symbol: "IPT: TSX.V"
VANCOUVER, May 27, 2019 /CNW/ - IMPACT Silver Corp. ("IMPACT" or the "Company") announces its financial and operating results for the quarter ending March 31, 2019.
The Company reported $3.0 million in revenue for the first quarter of 2019 compared to Q1 2018 at $3.9 million with improved grades helping to offset lower tonnage and silver prices. Mine operating earnings before amortization and depletion were breakeven for the first time since Q1 2018 as cost reductions and grade improvements are having a positive impact.
Fred Davidson, President & CEO of IMPACT, stated, "In Q1 2019, silver prices continued to be challenging with prices below $16 USD/ounce. In reaction to these persistent low metal prices, IMPACT has reduced tonnage and focused on higher grades which resulted in a 16% reduction in cost and a 23% decline in revenue during the quarter. Going forward given the current silver price environment, we aim to break even on existing production levels while metal prices remain depressed and explore selective high-grade targets which IMPACT may fast track to higher grade production."
IMPACT is increasingly shifting production to the Guadalupe Silver Mine located adjacent to the Guadalupe mill which saves significant hauling costs. Historic production from the Guadalupe Mine was first recorded in 1529 and more recently between 1967-1982 produced an estimated 9,000,000 ounces of silver. Benefiting from better silver grades, proximity to the mill, and existing low-cost shaft infrastructure (which was updated in 2019), in Q1 2019 the Guadalupe mine accounted for 27% of the total production feed and management expects this to continue to increase.
Production Overview
Silver production decreased to 163,575 ounces in Q1 2019 from 203,199 ounces in Q1 2018 due to planned lower tonnages produced.
Average mill feed grade for silver in the quarter increased to 167 g/t silver in Q1 2019, a 4% increase from Q1 2018 at 160 g/t silver.
Throughput at the mill decreased 23% to 35,788 tonnes milled in Q1 2019 from 46,602 in Q1 2018.
Financial Overview
Revenue for Q1 2019 was comparable to Q4 2018 at $3.0 million. However, revenue per tonne increased to $84.98 from Q4 2018 ($79.55) as the Company focused on improving head grade at the mill to combat lower silver prices.
Mine operating earnings before amortization and depletion were breakeven ($0.0) compared to $0.3 million in Q1 2018 as cost reductions and grade improvements started materializing.
Mine operating loss was $0.4 million for Q1 2019 compared to $0.1 million in Q1 2018.
Net loss for quarter was $0.9 million which includes $0.1 million of foreign exchange loss and non-cash expenses of $0.4 million for amortization, depletion, and deferred income taxes.
The Company had cash of $0.4 million and trade and other receivables of $1.6 million at March 31, 2019.
The Company has no long-term debt.
Silver prices for the first quarter of 2019 were range bound to $15 to $16 USD per ounce though some experts have forecasted higher prices on upcoming geopolitical uncertainties in the world, the historic high gold to silver ratio, and 2% decrease in worldwide silver production while investment demand has surged 20% year over year.
Cost control remains a high priority for IMPACT. In addition to increasing efficiency and grade at operations, cost reduction initiatives are well under way to ensure IMPACT can weather the markets. Direct cost per tonne at the mill was $82.47 in Q1 2019 compared to Q4 2018 of $91.50, a 10% reduction and showing progress on the Company's continued push on cost reductions. On the positive side, revenue per tonne sold for Q4 increased to $84.98 versus $79.55 in Q4 2018, a 7% increase from the previous quarter. IMPACT continues to focus on cost reductions and maximizing revenue per ounce sold.
Dense Media Separation Study at Capire
Subsequent to quarter end, IMPACT announced commissioning of an engineering study to test the viability of Dense Media Separation (DMS) processing at its Capire Production Centre. DMS is a low-cost method of pre-concentrating minerals to increase the grade of mineral feed into the processing plant and improve processing economics. Results of the DMS test are pending.
New Concentrate Sales Partnership
In late Q1 2019, IMPACT Silver entered into a new concentrate sales and refining partnership with Samsung C&T Corp. The Company believes the pricing is competitive with this new contract albeit with longer payment terms.
George Gorzynski, P.Eng., a Qualified Person under the meaning of Canadian National Instrument 43-101, approved the technical content regarding exploration work in this news release.
A recorded conference call reviewing the financial and production results for the first three months ending March 31, 2019 will be available on the Company website on May 27, 2019 at www.impactsilver.com/s/ConferenceCalls.asp.
The information in this news release should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis, available on the Company website at www.impactsilver.com and on SEDAR at www.sedar.com. All amounts are stated in Canadian dollars unless otherwise specified.
About IMPACT Silver:
IMPACT Silver Corp. is a successful silver-gold explorer-producer with two processing plants on adjacent districts within its 100% owned mineral concessions covering 357 km2 in central Mexico with excellent infrastructure and labor force. Over the past twelve years IMPACT has produced over 9.4 million ounces of silver, generating revenues over $175 million, with no long-term debt. At the Royal Mines of Zacualpan Silver District several underground silver mines feed the central Guadalupe processing plant. To the south, in the Mamatla District the Capire processing pilot plant is an expandable 200 tpd with a NI-43-101 compliant resource of silver-lead-zinc (see IMPACT news release dated January 18, 2016 for details) awaiting higher metal prices to be restarted. Given the challenging markets the last few years, IMPACT has focused its exploration efforts on gold and silver targets with quick to production profiles and proximity to the Guadalupe processing plant. Following a successful decade of exploration success to production cash flows, IMPACT has shown the Zacualpan District to be prolific in generating high grade epithermal silver-gold production feeds. With markets more perceptive to exploration results and the requirement for additional production feed, IMPACT continues to add emphasis to exploration work.
Additional information about IMPACT and its operations can be found on the Company website at www.IMPACTSilver.com.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but not limited to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI43-101 the Company is required to disclose that it has not based its production decisions on NI43-101-compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
SOURCE IMPACT Silver Corp.
For further information: Jerry Huang, CFO & Investor Relations, (604) 681 0172 or inquiries@impactsilver.com
Related Links www.impactsilver.com
Lone Clone
6 years ago
IMPACT Silver Announces the Start of Drilling on the El Canelo Vein System at Santa Teresa project
https://ca.finance.yahoo.com/news/impact-silver-announces-start-drilling-163700196.html
CNW GroupFebruary 19, 2019
Trading Symbol: "IPT: TSX.V"
VANCOUVER, Feb. 19, 2019 /CNW/ - IMPACT Silver Corp. ("IMPACT" or the "Company") is pleased to announce that diamond drilling has commenced on the El Canelo gold silver vein in the Santa Teresa area. Trench sampling along the strike of the vein at 10m intervals returned an average gold grade of 6.5 g/t over a true width of 1.66m and a length of 50m (News Release Dated 25 Sept. 2018). The initial six hole program will test the vein system along strike and to a down dip depth of 100m at 50m intervals.
"This small initial program follows our successful 2018 sampling program and allows IMPACT to test potential continuity of veins we first encountered over a decade ago at much lower gold prices. Given the proximity of the project to IMPACT's operation mills, potential large enough tonnage of gold and copper could warrant near-term production prospects."
The strong gold potential of the general area was first recognized by IMPACT geologists between 2008 and 2013 while drilling the Carlos Pacheco and San Juan areas 1.5km to the north which yielded high grade gold drilling values including 19.6 g/t gold across 2.9 meters and 3.84 g/t gold across 6.7 meters. It's plausible that Carlos Pacheco are probably northern extensions of the Santa Teresa mineralizing system. Detailed results can be viewed from previous reports by IMPACT dated December 4, 2008; July 11, 2012; October 30, 2013; January 7, 2014):
Exploration programs are ongoing in the San Ramon Sur area to the south of the San Ramon mine which on July 17, 2018, the IMPACT team announced a new zone discovery with drilling results of 2.04 meters of 661 g/t silver and 4.97 meters of 354 g/t silver. Lastly – exploration is ongoing also at Manto America area located about 4km to the south of Santa Teresa.
About IMPACT Silver:
IMPACT Silver Corp. is a successful silver explorer-producer with two processing plants on adjacent districts within its 100% owned mineral concessions covering 357km2 in central Mexico with excellent infrastructure and labor force. Over the past thirteen years over 8.5 Moz of Silver has been produced, generating revenues of $175 million, with no long-term debt. In the historic Royal Mines of Zacualpan Silver District three underground silver mines feed the central 535 TPD Guadalupe processing plant. To the south, in the Mamatla District the Capire processing plant is currently rated at 200 tpd, but is expandable. It is adjacent to an open pit silver mine with a National Instrument 43-101 ("NI 43-101") compliant resource of over 4.5 Moz Silver, 48 million lbs Zinc and 21 million lbs Lead (see IMPACT news release dated January 18, 2016) that is awaiting higher silver prices to be restarted. Since acquiring the project, IMPACT has compiled an exhaustive database with over 5,000 old mine workings, assayed over 34,000 rock samples and over 54,000 drill core samples, analysed over 50,000 soil samples, and put six mines into production. Additional information about IMPACT and its operations can be found on the Company website at www.IMPACTSilver.com.
Qualified Person and NI 43-101 Disclosure
Wojtek Jakubowski, P.Geo. is a "qualified person" within the meaning of NI 43-101 and has reviewed, verified and approved the technical information disclosure contained in this press release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements with respect to the expected use of proceeds of the Private Placement.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
SOURCE IMPACT Silver Corp.
View original content: http://www.newswire.ca/en/releases/archive/February2019/19/c7263.html
Lone Clone
6 years ago
IMPACT Silver: Technical Update: Exploration Strategies and New Silver Gold Targets of the Zacualpan Silver District
Consultant Jim Oliver PhD Undertakes Preliminary Structural Analysis and Geological Study of the Zacualpan Mineralized Systems
https://www.newswire.ca/news-releases/technical-update-exploration-strategies-and-new-silver-gold-targets-of-the-zacualpan-silver-district-835603133.html
IMPACT Silver Corp. Jan 24, 2019, 09:00 ET
Trading Symbol: "IPT: TSX.V"
VANCOUVER, Jan. 24, 2019 /CNW/ - IMPACT Silver Corp. ("IMPACT" or the "Company") is pleased to announce the results of a two week field review, undertaken by consulting geologist Dr. Jim Oliver, of the San Ramon, Guadalupe, Chivo, Alacran and Santa Teresa in the Zacualpan silver-gold district of central Mexico. Dr. Oliver is well respected in the industry and has broad global experience with numerous deposit types including extensive work on structurally controlled gold-silver mineralized systems. This technical review was undertaken to confirm exploration procedures, prioritize exploration targets and clarify models to guide future exploration on the property.
Fred Davidson, President & CEO, stated "We are encouraged that Dr. Oliver's work has advanced our internal geological model and understanding of a potential larger bulk tonnage gold system within our 357km land package. We have large areas of excellent ground to explore and are in production on less than 2% of the land package. We look forward to exploration results that will come from the work recommended by Dr. Oliver."
The technical review indicates:
Deformation zones which host the Zacualpan veins are robust and continuous over several kilometers of length. The continuity of the deformation zones is sometimes obscured by shallow sedimentary cover but the veins and the deformation zones have been shown to persist beneath the overlying sediments.
The historic alignment of pits, trenches and adits, coupled with geochemical, geological and geophysical data indicate that principle Zacualpan deformation zones are commonly silver-gold mineralized. Most of the Zacualpan mineralized deformation zones have offsets to the right and downslope in their movement history. Knowledge of the movement history of the deformation zones will permit the exploration teams to define and test dilatant mineralized sites, or sites of preferential mineralization within the broader deformation zones.
The mineralogy and textural characteristics of the veins suggest that the Zacualpan silver veins are of the deposit type known as intermediate sulphidation veins. Intermediate sulphidation vein systems are a common deposit type at many Mexican silver occurrences and deposits including major vein systems at Taxco, Pachuca, Zacatecas and Guanajuato.
The technical data suggests that the intermediate sulphidation veins of the Zacualpan area may be mineralized over vertical distances exceeding 400 m. In many cases, the surface expressions of the veins systems are occurring near the upper limits of the hydrothermal system, or the system is intact and has not been substantially eroded. Many of the historic occurrences in the Zacualpan district have either not been drill tested or tested only to very shallow depths.
The Zacualpan project area is strongly metal endowed and may include other deposit types in addition to silver dominant intermediate sulphidation veins. Occurrences in the Santa Terresa area have some of the characteristics of gold associated with intrusion related gold systems. Anomalous gold and copper values in surface and underground rock exposures are associated with numerous silica-hematite altered felsic intrusions which cut thick bedded, siliceous sediments. IMPACT technical teams are currently expanding the targeting of intrusion hosted gold occurrences in the Santa Teresa area and investigating the potential for bulk tonnage intrusion related gold systems.
Work is presently in progress in two principle areas including:
Defining onstrike extensions to the San Ramon silver vein system. Detailed soil geochemical sampling and geological work extended the deformation zone which hosts the flagship San Ramon mine.
Better characterizing the potential for bulk mineable, and potentially intrusion related gold systems in the Santa Teresa area. With additional geochemical and geological work, the Santa Teresa anomalous gold copper area is outlined over a large area with many anomalous samples in gold (see IMPACT news release dated September 25, 2018).
Based on these results, IMPACT Silver technical teams are advancing these and related targets to the drill stage.
Wojtek Jakubowski, P.Geo., a Qualified Person under the meaning of Canadian National Instrument 43-101, approved the technical content of this news release.
About IMPACT Silver:
IMPACT Silver Corp. is a successful silver explorer-producer with two processing plants on adjacent districts within its 100% owned mineral concessions covering 357km2 in central Mexico with excellent infrastructure and labor force. Over the past twelve years over 8.1 Moz of Silver has been produced, generating revenues of $168 million, with no long-term debt. In the historic Royal Mines of Zacualpan Silver District three underground silver mines feed the central 535 TPD Guadalupe processing plant. To the south, in the Mamatla District the Capire processing plant is currently rated at 200 tpd, but is expandable. It is adjacent to an open pit silver mine with a NI-43-101 compliant resource of over 4.5 Moz Silver, 48 million lbs Zinc and 21 million lbs Lead that is awaiting higher silver prices to be restarted. Additional information about IMPACT and its operations can be found on the Company website at www.IMPACTSilver.com.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but not limited to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI43-101 the Company is required to disclose that it has not based its production decisions on NI43-101-compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
SOURCE IMPACT Silver Corp.
For further information: Jerry Huang, CFO | Investor Relations, (604) 681 0172 or inquiries@impactsilver.com
Related Links www.impactsilver.com
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