Results for the quarter reflected slightly lower revenues, $1,603,907 compared to $1,676,896 in the prior quarter, due to third quarter weakness in silver and zinc prices. The Company was able to further reduce operating costs per tonne to $38.34 with the result that mine operating earnings were $358,117 or only $14,749 lower than the second quarter.
After recording foreign exchange adjustments of $394,086 and a stock-based compensation expense of $140,986, the Company incurred a small loss for the year to date of $68,344 compared to a profit of $242,404 for 2006. The loss for the quarter was $287,322 ($0.01 per share) after stock-based compensation expense of $140,986 and foreign exchange losses totalling $175,608.
In the third quarter of 2007, IMPACT increased the throughput at the Zacualpan mill averaging 296 tonnes per day ("tpd") for the quarter as part of the program to bring production up to the current mill's capacity of approximately 500 tpd. Programmed underground development for the last nine months resulted in higher production of lead and zinc, while silver grades generally have declined. Commencing in late fall, development production from El Chivo and in early 2008 the San Ramon mines are expected to improve silver throughput.
| Three Months Ended September 30 2007 | Three Months Ended September 30 2006 | |
|---|---|---|
| Total tonnes (t) Produced | 27,273 | 18,705 |
| Tonnes Produced per Day | 296 | 203 |
| Silver Production (ounces) | 85,610 | 117,381 |
| Lead (t) | 155.01 | 103.36 |
| Zinc (t) | 229.69 | 194.21 |
| Cdn. $ direct costs per tonne | 38.34 | 53.96 |
Guadalupe Mine
During the first nine months of 2007, mining of lower grade mineral at the Guadalupe Mine continued principally on the Lipton, Lipton del Bajo Paulina, Intermediate and Liptonia Veins, as well as exploiting the Liptonia Vein on the 140m Level. An intensive program of remapping and exploration is continuing at the Guadalupe Mine. Material from the Guadalupe Mine is brought to surface on a skip and transported approximately 100m to the plant and it remains the lowest cost producer for the mines supplying the mill.
La Gallega (Salvadora) Mine
Success in exploration drilling in 2006 led to the commencement of mining in late 2006 from the Gallega adit. Mining began on the high grade Salvadora stopes and in the first quarter also commenced on the Lipton Vein and the recently discovered San David Vein. Material is transported by truck from Gallega approximately 500m to the mill and is forming an increasingly important source of mill feed.
El Chivo Mine
During the quarter, construction of the new El Chivo Mine began. El Chivo will be the third producing mine at the Royal Mines of Zacualpan Silver Project and the second put into production by the IMPACT team. El Chivo Mine is located in the central part of the district. Underground access reached the main El Chivo Silver Shoot in late October. On the vein the Company is developing multiple headings on the mineralization, creating development muck that will be processed in the mill. Production from stoping will commence in early 2008 and should boost the Company's overall silver production.
Over the next six months, the Company anticipates that fluctuating mill grades will continue due to dilution from development muck, as it emphasizes an underground development program in order to increase production. Moreover, because the value of Lead and Zinc have risen dramatically since this time last year, increased emphasis has been put on improving recoveries of the production areas including previously mined stopes by redefining cut-off grades. The mine has also completed negotiations for a new smelter contract and its ongoing union contracts.
IMPACT Silver Corp. is a Tier 1 silver-focused mining and exploration company with two producing silver mines at Zacualpan, Mexico; exploration rights to two Mexican mining districts, an advanced-stage silver project at Zacatecas, Mexico; and, other projects in the Dominican Republic. Energold Drilling Corp. (EGD: TSX.V) owns 6.6 million shares of IMPACT.
On behalf of the Directors of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For further information, please contact:
Darrell Rader - Corporate Development
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
