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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 including the 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. By allowing limited mining to continue, IMPACT significantly lowered its option costs. The agreements are subject to Toronto 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. The total historical production at Zacualpan is not known, but sporadic reports indicate very high grade shipments (3,000 to 6,000g/t Ag) were made from oxide ores in the early years of production. In 1990, grades were reported to be 348g/t Ag, 2.72% Zn and 1.09% Pb. Recently, production volumes and grades have decreased due to lack of funding for exploration, underground development, maintenance and modernization. In 2002, 111,887 tonnes were mined at a reported average grade of 141g/t Ag, 1.17g/t Au, 2.89% Zn and 1.70% Pb.
MINERALIZATION
The Zacualpan is a typical Mexican epithermal silver district with an abundance of veins that have seen historic production. 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 is typically oxidized and often highly enriched (up to 6,000g/t Ag). Most of that 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 typically vary from 3 to 5 meters in width. Individual mineralized shoots are reported to be 50 to 150 metres long, typically steeply dipping and have been mined to depths of 275 metres. Cut off grade is about 230g/t Ag equivalent but very high grades are known in some upper level zones. For example, recent development on the Los Compadres Vein has exposed an old mine stope with grades 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.
SUMMARY AND FUTURE EXPLORATION PLANS
George Gorzynski, P.GEO, IMPACT's Vice President of Exploration states, "The acquisition of Zacualpan gives IMPACT a flagship project and provides the company with several great opportunities. We have an option to purchase significant production and we have a large-scale exploration play over a historic silver district that has shown the potential for much higher grades than are currently being mined. There are a lot of veins and exploration targets on this property that we plan to drill over the next few years."
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.
Vancouver-based IMPACT Minerals International Inc. is 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 - President or Darrell Rader - Corporate Development
The TSX Venture Exchange has neither approved nor disapproved this news release.
