Impact Silver Announces Third Quarter Net Earning

 

VANCOUVER - IMPACT Silver Corp. reported financial and operational results for the quarter ended from the high grade silver Royal Mines of Zacualpan District in Mexico. IMPACT had a very active quarter of operations resulting in a significant increase in net income and cash flow from operations due to higher production and increased revenue from silver sales.

Revenues in the third quarter were $5.0 million, up 122% from $2.2 million in the third quarter of 2008. Revenues in the first nine months of 2009 were $9.8 million, up 47% from $6.7 million in the same period of 2008. Revenue per production tonne sold in the third quarter was $121.60, an increase of 55% over the same period of 2008, while direct costs per tonne produced only increased 5% to $62.05. A small portion of the increase in revenues was related to the third quarter sale of previously delayed shipments of lead and zinc concentrates.

Even with exploration expenditures and property acquisition costs in the third quarter totaling $1.1 million, IMPACT's financial position remained strong with $5.5 million in cash and cash equivalents and net working capital of $6.9 million.

The Chivo mine provided 79% of mill feed. High grade silver ore from Chivo is the principal reason that silver production increased in 2009 over 2008. A second adit approximately 60 meters vertically lower on the structure reached the main vein in the fourth quarter of 2008 and is now the main production adit for the Chivo Mine. The first full production stope from the lower level came on stream during the second quarter of 2009.

The San Ramon mine provided 21% of mill feed from the mining of high grade mineral. Mining continues to expand at San Ramon as the Company also develops underground access to a parallel structure, the Chaparrita Vein. During the third quarter of 2009, a new wide zone of silver-rich stockwork breccias mineralization was discovered on level 5.5 and is expected to increase production at San Ramon.

"We are pleased to see continued growth in production, revenues and earnings as we continue to maximize the Chivo and San Ramon Mines and move the Noche Buena Mine into production

IMPACT Silver Corp. is a mining and exploration company operating in Mexico with a producing silver operation at the Royal Mines of Zacualpan Silver District, the 200-square-kilometer advanced Mamatla Silver District and an advanced project with a producing mill at Zacatecas.

The companys address is Suite 1100, 543 Granville Street, Vancouver, BC V6C 1X8, (604) 681-0172, fax: (604) 681-6813, email: [email protected].