IMPACT's first full day of production was January 18, 2006. Average mill throughput in the first half was 182 tpd. Preliminary results indicate on site operating costs were approximately Cdn. $50.00 per ton however we expect these to rise marginally with the inclusion of the costs of a number of the projects we have commenced.
During the first half, mining of medium grade mineral at the Guadalupe Mine continued on the 195m Level exploiting the Lipton, Lipton del Bajo and Liptonia Veins. More recently the mine has opened up additional workings on another parallel vein, the Paulina Vein. With the recent addition of a new Mine Geologist and Mine Surveyor, the Guadalupe Mine is being extensively remapped and explored. Several additional areas appear to represent possible additional production stopes and the mine's underground drill, after being refurbished has been assigned to the area. Material from the Guadalupe Mine is brought to surface on a skip and transported approximately only 300m to the plant.
Over the next six to nine months, the Company anticipates fluctuating mill grades as it emphasizes the underground program to develop more workings and to access some historic mining stopes.
Developments
Subsequent to the recent financing, IMPACT began upgrading the operations with the objective of increasing production and recoveries, and bringing the operations up to modern standards by the end of 2007. Mine management has also initiated safety and community relation programs, hiring specific personnel for these areas. In
February, the first independent review for mine water discharge for environmental purposes was completed at four of the Company's workings, with very satisfactory results. The previously announced program of rehabilitation and preventative maintenance for mobile equipment and the mill is underway, with the objective of improving recoveries and reducing equipment downtime.
Outlook
Now that IMPACT has consolidated its dominant land position in the district, future plans for the Royal Mines of Zacualpan Silver Project focus upgrading and expanding operations, and carrying out extensive exploration to build mineral inventories for mining. Toward these ends IMPACT has begun upgrading equipment in the mines and the processing plant which combined with engineering and metallurgical studies are improving metal recoveries and set the stage for expansion of production. IMPACT anticipates that its program of upgrades and expansion of production utilizing funds from the April financing will span to the end of 2007. In exploration IMPACT is carrying out an extensive program through 2006 that includes drill programs designed to expand the active mining areas and test high priority exploration targets for new zones of mineralization. Drilling is being done both from surface using a contractor and from underground using a drill owned by the mine.
IMPACT Silver Corp. is a silver focused mining and exploration company with projects in Mexico and the Dominican Republic.
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 has neither approved nor disapproved this news release.
