Three Months Ended June 30 | 2008 | 2007 | % Change |
|---|---|---|---|
Revenue | $1,756,000 | $1,677,000 | +4.7% |
Net Income | $305,000 | ($48,000) | +735% |
Earnings Per Share | $0.01 | ($0.01) |
|
After spending $1.4 million on infrastructure as well as $2.4 million on exploration during the first six months of the year, IMPACT had net working capital of $9.6 million, including cash and cash equivalents of $8.3 million. IMPACT's working capital position is expected to remain strong through the year as cash flow from mining operations should be sufficient to fund the significant portion of the Company's 2008 ongoing exploration and development expenditures.
Exploration drilling results from Chivo and the Guadalupe Mine strongly indicate the potential to substantially increase mined tonnages, which should allow the Company to reach a production rate of 500 tonnes per day at the existing mill in early 2009.
As a result of a continuing increase of silver grade percentage, quarterly silver production reached 120,660 ounces, a 63% growth over the same quarter of last year. Weather in central and southern Mexico was abnormally wet in June, creating logistics problems as a number of roads were flooded. Milling operations were curtailed in June for an extended period due to power disruptions, thus negatively affecting our second quarter results. Average mill throughput during the quarter was 265 tonnes per day, down 5% from 279 tonnes per day during the same quarter in 2007. IMPACT took advantage of the downtime to make significant upgrades to the processing plant. Mine operating cost per tonne for the quarter was $43.84, only up 1% from $43.38 in the second quarter of 2007, mainly reflecting increased costs associated with expansion of operations at the new Chivo Mine.
Three Months Ended June 30 | 2008 | 2007 | % Change |
|---|---|---|---|
Total tonnes produced | 24,090 | 25,451 | -5% |
Tonnes produced per day | 265 | 279 | -5% |
Silver production (ounces) | 120,660 | 73,890 | +63% |
Lead production (pounds) | 290,000 | 347,000 | -16% |
Zinc production (pounds) | 367,000 | 537,000 | -32% |
Revenue per tonne | $72.90 | $65.81 | +11% |
Direct costs per tonne | $43.84 | $43.38 | +1% |
Chivo Mine
Through the first half of 2008, Chivo provided 50% of the ore and the majority of the high silver grade feed. The Company continued to drift along the vein while opening up two stopes for mining. A second adit approximately 60 meters vertically lower on the structure has been started and is expected to reach the main vein in the fourth quarter of 2008. Upon completion, the second adit will provide additional development feed to the mill.
Guadalupe and Gallega Mines
Approximately 47% (2007 - 100%) of the mill feed for the first half was from mining of medium grade mineral at the Guadalupe and nearby Gallega Mines. As a result of intensive underground exploration over the last six months, the Guadalupe Mine is now undergoing redevelopment with rebuilding of track access to new planned production areas in the Kena-Dolores Zone and a number of nearby veins that could be providing feed late this year.
Processing Plant
At the processing plant, the ongoing program of upgrades designed to enhance recoveries and improve throughput is continuing. One of the secondary crushers was replaced by a new more efficient crusher to improve the overall throughput of the crushing circuit. Further plans include the expansion of the flotation circuit capacity, increasing the thickener capacity and rebuilding the zinc concentrate dryer in order to reduce moisture in concentrates. Construction has commenced on a $1.0 million expansion and upgrade of the tailings dam.
IMPACT will be reviewing its 2008 Second Quarter results via the Internet at 4:00 pm ET, 1:00 pm PT, Monday, August 25, 2008. The webcast (audio only) can be accessed at: http://events.onlinebroadcasting.com/impact/082508/ index.php and will feature management discussing the Company's financial and operational results followed by a question and answer period. Investors are encouraged to forward any questions they may have to inquiries@impactsilver.com.
IMPACT Silver Corp. is a silver focused mining and exploration company operating in Mexico with a producing silver operation at Zacualpan, the 200-square-kilometer advanced Mamatla Silver District and an advanced project with an option on a producing mill at Zacatecas. Energold Drilling Corp. (EGD: TSX.V), who was the contractor for the drill program, 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.
