History
Zacualpan is one of the oldest mining districts in North America with mining activities dating back to at least 1527. In 1531, it was the first mining district in the Americas to be given the title of 'Royal Mines' of Zacualpan by proclamation under the Spanish Crown. It is located 100 km southwest of Mexico City and 25 km northwest of the well-known Taxco Silver Mine. Numerous veins in the district have seen historic production but statistics for the early centuries of production are sporadic. In modern times, recorded production between 1975 and 2009 was over 34 million ounces of silver equivalent.
Mine Production
Production currently comes from three operating mines; the Chivo (La Virgen Valley), San Ramon (La Virgen Valley) and the Noche Buena mine feed a central processing plant rated at 500 tonnes per day ("tpd"). Since 2006, IMPACT Silver has significantly increased production and generated consistent profits with an annual production target of over 1 million silver ounces for 2012 and onward.
Infrastructure
The Zacualpan District is the host to an excellent mining environment, with a modern power grid, abundant water supply and paved highway access that runs through the middle of the district. Infrastructure throughout the district includes gravel road networks, electric power and an experienced Mexican work force.
Please see below for a summary of the IMPACT Silver's production performance:
| Nine Months Ended | Sept 30th 2011 | Sept 30th 2010 | Fiscal Year Dec 31 2010 |
|---|---|---|---|
| Total tonnes (t) produced | 114,913 |
97,745 |
33,603 |
| Tonnes produced per day (tpd) | 422 |
359 |
365 |
| Revenue per production tonne sold ($CDN) | $207.70 |
$103.97 |
$168.39 |
| Direct costs per production tonne ($CDN) | $75.52 |
$54.79 |
$78.26 |
| Silver production (oz) | 663,853 |
547,000 |
203,259 |
| Lead production (t) | 589 |
560 |
174 |
| Zinc production (t) | 1,000 |
849 |
521 |
| Gold production (oz) | 513 |
455 |
|
| Silver sales (oz) | 625,154 |
538,997 |
249,632 |
| Lead sales (t) | 527 |
611 |
218 |
| Zinc sales (t) | 1,003 |
853 |
367 |
| Gold sales (oz) | 450 |
470 |
Exploration
IMPACT Silver controls 423 sq km of mineral concessions around the processing plant and has been aggressively exploring this large territory to develop mineral inventories for future production. Exploration has seen early success with developing mines from discovery hole to production within a time period of 12 to 24 months, with the discovery of the Chivo Mine as a primary example. Chivo was first drilled in 2006 and in less than two years, was brought into production as the largest and highest grade silver producer in the district. The rapid conversion of discovery to profitable production is a hallmark of IMPACT's technical team at Zacualpan.
For 2012, the exploration program remains aggressive and similar to 2011 and will be reviewed each quarter. A minimum 10,000 meter drilling program is planned for the Zacualpan District.
In 2006, the Company initiated a district wide compilation of the historical exploration and mining information on the total land package. The historical information is considerable, with maps occupying several rooms at the mine site. Although work on this GIS (Geographic Information System) database is ongoing, selected areas currently have a sufficient degree of completeness to direct modern exploration programs of prospecting, mapping, trenching, sampling, and drilling.
To date 2,500 historical workings have been located and entered into the GIS database with prospecting and researching old maps adding on average 10 to 15 more per week.
Development Outlook
The Company plans to significantly increase production through three main objectives:
- Increase throughput and reach maximum capacity of the 500 tpd processing plant in 2012 by expanding throughput from the three currently producing mines.
- Complete additional and continual improvements to the 500 tpd processing plant to increase recoveries and throughput.
- Put additional mines in to production by way of expanding the GIS database system and discover new mine targets.
Related News Releases
| August 29, 2011 | IMPACT Silver Announces Net Earnings and Record Revenues in Second Quarter 2011 | |
| May 30, 2011 | IMPACT Silver Announces Record Revenues & Silver Production in First Quarter 2011 | |
| April 13, 2011 | IMPACT Silver Announces Record Net Earnings Up 196% In 2010 | |
Maps & Images
