IMPACT Silver Updates Production At The Chivo Mine

VANCOUVER, BC - IMPACT Silver Corp. reported on production with information on its new mines, Chivo and San Ramon, in the central part of the Royal Mines of Zacualpan Silver District as well as significant equipment purchases.
The Chivo Mine started commercial production in January, one month ahead of schedule, at 60 tonnes per day. Underground access is via a 92-metre long crosscut adit. With good grades and good metallurgy from the Chivo Zone, mining has now been ramped up to 150 tonnes per day.
Work has began on a second adit to access the Chivo Zone 60 meters below the first adit. The second adit and more working faces are scheduled to be in place by the end of the year, and will serve to further increase production.
Chivo was discovered in 2005 when IMPACT crews found high grade veins in old mine workings (see IMPACT news release dated September 7, 2005). Samples from the veins assayed 1,095 g/t silver and 0.38 g/t gold across 1.25 meters true width in the workings and 2,640 g/t silver and 1.36 g/t gold across 0.85 meters on surface. Subsequent drill programs consisting of 21 holes returned highlights of 937 g/t silver, 0.35 g/t gold, 1.88% zinc and 0.75% lead across 2.7 meters true width (Drill hole Z-06-10) and 378 g/t silver, 0.30 g/t gold, 4.25% zinc and 1.76% lead across 4.7 meters true width (Drill hole Z07-03).
Presently the Royal Mines of Zacualpan operations are producing at 300 tonnes per day. Plans are to expand production to 500 tonnes per day over the next 12 months mainly sourcing additional high grade mineral from the Chivo Mine supplemented by redevelopment in the Guadalupe Mine to source mineral from the Kena Vein area and production from the Gallega and San Ramon Mines. To facilitate this significant increase in production, IMPACT has budgeted $2 million towards underground mine development, new equipment, plant upgrades and expansion of the tailings dam. Two new scoop trams have already been received and put into operation. These upgrades will be completed over the next eight months and will allow IMPACT to meet its production forecasts.
The company's address is Suite 900, 543 Granville Street, Vancouver, BC V6C 1X8, (604) 681-9501, fax: (604) 681-6813, email: [email protected].