FULL YEAR RESULTS
| 2007 Canadian $ | Restated 2006 Canadian $ | |
|---|---|---|
| Revenue | 7,250,000 | 7,006,000 |
| Mine Operating Earnings* | 2,071,000 | 2,407,000 |
| Income before Taxes | 635,000 | 838,000 |
| Net Income & comprehensive income | 287,000 | 506,000 |
| Earnings per Share - basic | 0.01 | 0.01 |
| - diluted | 0.01 | 0.01 |
Average mill throughput during the year was 274 tonnes per day. Revenues for the year ended December 31, 2007 were $7,250,077. Mine operating earnings for the year were $2,070,931. Total tonnes mined for the year-end period are 99,918 tonnes or 31,745 tonnes (47%) more than previous year's production. On site operating costs were $44.15 per tonne, a decrease over the prior year of 26%. Production exceeded the prior year by a significant amount in most categories except silver, with mill throughput increasing over 40 per cent to 274 tonnes per day compared to 196 tonnes per day in 2006. This represents an 89% increase over production levels of 145 tonnes per day when the Company acquired the mine two years ago. With record high zinc prices during the summer months, IMPACT's management made the strategic decision to maximize zinc production by exploiting previously marginal zinc ore while preparing the higher grade silver mines for production. As zinc prices began to retreat, silver production was once again increased.
FULL YEAR RESULTS
| 2007 | 2006 |
|---|---|---|
| Total Tonnes Produced | 99,918 | 68,173 |
| Tonnes Produced per Day | 274 | 196 |
| Silver Production (ounces) | 348,949 | 465,673 |
| Lead (tonnes) | 601.03 | 375.43 |
| Zinc (tonnes) | 976.07 | 725.20 |
| CAD$ direct costs per ton | $44.15 | 59.55 |
2007 was another exciting year of positive growth generated by successful exploration and development efforts, resulting in IMPACT ending the year in Mexico with three producing mines and control over two large mineral districts, Zacualpan and Mamatla, and a key presence in a third district, Zacatecas; all highlighted by extensive exploration, increased production and lower direct operating costs.
During 2007, the majority of the mill feed was from mining of lower grade mineral at the Guadalupe Mine, where an intensive program of remapping and exploration is continuing underground. The Guadalupe Mine remains the lowest-cost producer in the Zacualpan district.
Chivo is the new high grade producing mine at Zacualpan. During the fourth quarter, construction of the Chivo Mine access adit was completed; drifting commenced along the vein and in December; the first mill feed from stope mining was achieved, resulting in production levels of approximately 100 tonnes per day. A second adit approximately 60 meters vertically below the first is currently being planned. It is anticipated Chivo will provide a significant volume of higher grade silver feed to the Zacualpan mill in 2008 onward.
The Gallega Mine, located just 500 meters from the Zacualpan processing plant, supplements production from the Guadalupe operation. Mining began on the high-grade Salvadora stopes and then expanded to the Lipton Vein and the recently-discovered San David Vein. In 2006, the San Ramon Mine, near Chivo, generated the majority of the high-grade feed for the Zacualpan mill. Operating costs increased and ore delineation became increasingly more complex, and mining stopped here in 2006. The Company will recommence mining at the San Ramon on a more selective basis in 2008.
Importantly, the two mineral districts the Company controls in Central Mexico, the 125-square-kilometer Zacualpan silver district and the newly-acquired 200-square-kilometer Mamatla mineral district southwest of Zacualpan, have great exploration potential. This potential is being unlocked by IMPACT's exceptional technical team who took the Chivo mine from a raw prospect to production in less than two years. In 2008, IMPACT is continuing an aggressive exploration program with over 15,000 meters of surface and underground drilling budgeted, including a number of targets in both districts.
In aggregate, the Company is well-positioned for 2008 with cash and term deposits of in excess of $10 million, which is in addition to funds generated by the current mining. IMPACT recently announced the purchase of a semi-portable 200-tonne-per-day mill, including all major equipment for US$700,000 which, once relocated, will give the mining group increased production capacity to 700 tonnes per day. The Company looks forward to growing by continuing to expand production through aggressive exploration and rapid mine development. The exploration budget for 2008 has been more than doubled in order to put some of the 700 plus known prospects at Zacualpan and Mamatla on a faster track to potential production and build mineral inventories for mining.
"Frederick W. Davidson"
President, CEO
For further information, please contact:
Darrell Rader, Corporate Development
Telephone: 604-681-9501
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
