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IMPACT has signed two option agreements with private Mexican companies for properties covering much of the Zacualpan Silver Mining District in central Mexico. The agreements include options on two operating mines and a processing plant. Energold Mining Ltd. (EGD:TSX.V) owns approximately 40% of IMPACT.
AGREEMENTS
The first option agreement is a three-year lease with option to purchase for mining leases and concessions covering 2.3 km2 that includes the producing Cuchara Mine and one area being prepared for production. Under terms of this agreement, IMPACT shall make lease payments of US$3,000 per month and 100,000 shares per year as well as incur work commitments totaling US$1,000,000 over three years covering the properties in both agreements. In return, IMPACT shall have the option at any time before the end of the third year to purchase 100% interest in the mining leases and concessions for US$1,000,000.
The second option is a three-year agreement for mining leases and concessions covering key parts of the Zacualpan Silver District. This agreement includes the small producing Alacran Mine and a 500-tonne-per-day processing plant with associated facilities. The plant is presently operating at about 300 tonnes per day on feed from the Cuchara and Alacran Mines. The assets in this second agreement are presently under lease by a private Mexican company, and IMPACT has an option to purchase all the Mexican company's lease rights to the assets for US$500,000. The lease rights expire in 2014, but may be extended.
Under these agreements, the Mexican companies may continue mining and processing material from the properties until IMPACT exercises its purchase options. The agreements are subject to TSX Venture Exchange approval and a 60 day legal due diligence period.
HISTORY
The Zacualpan Mining District is one of the oldest mining districts in North America with Spanish Colonial mining dating back to 1528. It is located in the Taxco Silver Region 100km southwest of Mexico City and 25km northwest of the well-known Taxco Silver Mine. Total historic production at Zacualpan is not known but sporadic reports in the files of Consejo de Recursos Minerales, a Mexican government agency, indicate some very high grade shipments (3,000 to 6,000g/t Ag) of Zacualpan oxide mineralization were delivered by mule train to the Taxco mill in the early years of production. In 1990 according to the files of the Mexican optionors, average grades from three mines now closed but included in the IMPACT agreements, were reported to be 348g/t Ag, 2.72%Zn and 1.09%Pb. In recent times production volumes and grades have decreased due to lack of funding for exploration, underground development, maintenance and modernization. In 2002 according to the records of the Mexican optionors, 111,887 tonnes were mined mainly from the Moro (probable extension of the Cuchara Vein), Cuchara and Alacran Mines at a reported average grade of 141g/t Ag, 1.17g/t Au, 2.89%Zn and 1.70%Pb.
MINERALIZATION
Zacualpan is a classic Mexican epithermal silver district with an abundance of veins that have seen historic production. The deepest historical mine in the district was the Guadalupe Mine (included in the second IMPACT agreement) which was mined to a depth of 275 metres. Based on Guadalupe and other historical producers in the district, mine staff have developed a geological model for mineralization in the district. In this model upper levels of individual mineralized zones are typically characterized by precious metal dominant (silver + gold) mineralization with lower levels characterized by base metal-rich (silver + gold + zinc + lead) mineralization. Near surface mineralization was typically oxidized and locally highly enriched (up to 6,000g/t Ag). Most of the known near surface high-grade material has been mined out but it remains a viable target for modern exploration in overburden covered areas. Veins presently being mined at the Cuchara and Alacran Mines typically vary from 3 to 5 metres in width. Individual mineralized shoots are reported by mine staff to be 50 to 150 metres long and are steeply dipping. Cut off grade is presently about 230g/t Ag equivalent but very high grades are known in some upper level zones. A case in point is the recent development on the Compadres Vein which has exposed an old mine stope with a median grade of 680g/t Ag and 0.3g/t Au over 0.90m ranging up to 1,128g/t Ag and 0.2g/t Au over 1.9m (values confirmed by IMPACT sampling). A recent single drill hole intersection 50m below this old stope by the Mexican owners is reported to have intersected 3.3m grading 1,463g/t Ag and 0.2g/t Au. This Compadres Vein will be one of the early targets for drill testing by IMPACT. Under terms of the first agreement, if the Mexican owner begins mining on the Compadres Vein such mining will be limited to a maximum of 1500 tonnes per month.
SUMMARY AND FUTURE EXPLORATION PLANS
The acquisition of Zacualpan gives IMPACT a flagship project and provides the company with several opportunities. Under the agreements IMPACT acquires options over a large area for exploration in a historic silver district. In addition IMPACT has the option to purchase lease rights to the operating processing plant should its exploration work prove successful.
IMPACT will immediately begin a program of data compilation, mapping and sampling at Zacualpan with the objective of starting an initial drill program to test some of the more obvious targets before the end of the year. It is IMPACT's plan to carry out exploration and engineering studies toward expanding and upgrading reserves and operations to re-establish Zacualpan as a modern profitable mining operation. Further details on mineralization, exploration potential and mining/processing operations will be reported as work proceeds.
The technical information in this news release was prepared by George Gorzynski, P.Eng., a Qualified Person under the meaning of Canadian National Instrument 43-101 and Vice President, Exploration of IMPACT Minerals International Inc. IMPACT sampling noted in this news release was personally carried out by Mr. Gorzynski. Chip and channel samples were collected from cleaned rock faces in old mine workings and from bedrock outcrops over a continuous representative interval using a moil and hammer. All samples were shipped to the ALS Chemex preparation laboratory in Guadalajara (Mexico) where they were fine crushed (70% passing a 2mm screen), pulverized (85% passing a 75 micron screen) and a pulp split separated for assay by a riffle splitter. These pulps were shipped to the ALS Chemex laboratory in North Vancouver Canada where a 30 gram split of each was assayed for gold and silver by standard fire assay with a gravimetric finish and a 10 gram split was analysed for an additional 30 elements by ICP spectrometry.
Vancouver-based IMPACT Minerals is a Canadian exploration company engaged in the exploration and development of precious and base metals projects in Mexico and the Dominican Republic.
On behalf of the Directors of Impact Minerals International Inc.
"Frederick W. Davidson" For further information, please contact:
President Fred Davidson or
Darrell Rader - Corporate Development
The TSX Venture Exchange has neither approved nor disapproved this news release.
