COMPADRES MINE
To date IMPACT's Mexican partners has advanced the new production ramp a total distance of 120m to a point 20m below the main adit level (see IMPACT's news release of October 22, 2004 for details and a map). The new ramp is designed to access the high grade Silver Shoot No. 1 at the Compadres Mine now under development. On a recent visit IMPACT geologists sampled a partial exposure of the Shoot on the lower level. Assays from these samples along with earlier samples from Silver Shoot No. 1 are in the following table.
Sampling to date appears to indicate good continuity of the high grades in Silver Shoot No. 1. This Shoot is scheduled to be drill tested in January.
RECONNAISSANCE SAMPLING
To date IMPACT geologists have catalogued over 100 silver prospects on the property. Sampling of some early stage prospects has returned significant values. At the Chaparita Prospect located 100m northeast of Compadres Silver Shoot No 1, a trench across a rusty fracture zone assayed 307g/t silver and 0.55g/t gold across 1.15m. This trench is now being extended to expose the full width of the mineralization. In the Perro Adit located 200m southeast of the Compadres Mine Portal, two samples five metres apart on a vein in the Compadres structure assayed 228g/t silver, 0.38g/t gold across 0.8m and 202g/t silver, 0.33g/t gold across 0.8m. The full width of the Compadres structure was not exposed in the adit.
Work is continuing on both advanced and early stage silver exploration targets on the large 125km2 property in
preparation for a drill program scheduled to begin in January. Significant results from this ongoing work will be reported as they are received and compiled.
PRODUCTION AND DEVELOPMENT
Under terms of IMPACT's option agreements, the Mexican companies may continue mining and processing material from the properties until IMPACT exercises its purchase options for the operations, contracts and properties. Mining is presently continuing at the Cuchara Mine and ending at the Alacran Mine. Material is trucked from the mines to the central processing plant. Development in preparation for mining was recently begun at the Compadres Mine and the Negra Mine with plans to shift the bulk of production in 2005 to these higher-grade zones. Mining and processing is often interrupted due to lack of capital, which results in production breakdowns and interruptions. Should IMPACT exercise its option to buy the operation, it intends to infuse the necessary capital to upgrade and modernize the operations. IMPACT geologists periodically visit and sample the active areas in these mines to keep directly informed of developments. Significant results from IMPACT's samples are reported as they are received and compiled.
BACKGROUND INFORMATION
Zacualpan is one of the oldest mining districts in North America with Spanish Colonial mining dating back to at least 1527. In 1531 it was the first mining district in the Americas bestowed the title of 'Royal Mines' of Zacualpan by proclamation under the Spanish Crown. The project is located 100km southwest of Mexico City and 25km northwest of the famous Taxco Silver Mine. Zacualpan is a classic Mexican epithermal silver district with an abundance of veins that have seen historic production. Statistics for the early centuries of production are sporadic but in modern times recorded production between 1975-2004 was about 17 million ounces of silver (26 million ounces silver equivalent with by-product gold, lead and zinc credits). Veins mined in modern times on the property typically vary from 2 to 5 metres in width. Individual production shoots are often 50 to 150 metres long and predominantly steeply dipping.
Nigel Hulme, P.Geo., a Qualified Person under the meaning of Canadian National Instrument 43-101, supervised the field work and approved the technical information in this news release. Chip and channel samples were collected from cleaned rock faces in old mine workings and from bedrock outcrops over a continuous representative interval using a moil and hammer. A total of 5% assay standards and blanks were inserted into every sample shipment as a quality control measure. All samples were shipped to the ALS Chemex preparation laboratory in Guadalajara (Mexico) where they were fine crushed (70% passing a 2mm screen), pulverized (85% passing a 75 micron screen) and a pulp split separated for assay by a riffle splitter. These pulps were shipped to the ALS Chemex laboratory in North Vancouver Canada where a 30 gram split of each was assayed for gold and silver by standard fire assay and a 10 gram split was analysed for an additional 30 elements by ICP spectrometry.
IMPACT Minerals International Inc. is a silver focused exploration and development company with projects in Mexico and the Dominican Republic. IMPACT is 39% owned by Energold Mining Ltd. (EGD:TSX.V)
On behalf of the Directors of IMPACT Minerals International Inc.
"Frederick W. Davidson"
President
For further information please contact:
Greg Werbowski, Investor Relations
Telephone: 604-516-9204
The TSX Venture Exchange has neither approved nor disapproved this news release.
