|October 26, 2006|
Test Milling At Zacatecas Processing Plant Commences
|IMPACT Silver Corp. ("IMPACT") is pleased to announce that the Veta Grande processing plant at Zacatecas has begun operations on a test and custom milling basis. During the first week, about 400 tonnes of ore were processed with the goal of achieving 200 tonnes-per-day (tpd) by late November. Currently, material is being processed on a custom milling basis where local small scale miners truck their ore to the plant and are charged a flat rate to process it. In the future, IMPACT plans to augment the custom milling ore with ore from its own properties. IMPACT's share of the net proceeds from the custom milling will be invested in upgrades to the processing plant.|
Custom milling serves to give IMPACT a first-hand introduction to local small scale miners and prospectors who deliver ores to the plant from their own mining concessions. IMPACT geologists are now busy examining projects from these miners and prospectors for potential acquisition.
IMPACT currently has a 25% interest in any Net Revenues earned from processing material through the plant. Day-to-day responsibilities for management and operations of the processing plant remain with the vendor until such time as IMPACT completes its obligations under the comprehensive option purchase agreement. (See News Release dated September 28, 2006.) Upon exercise and completion of its obligations under the option agreement, IMPACT will have earned a 100% interest in the processing plant and all related cash flows.
IMPACT Silver Corp. is a Tier 1 silver focused mining and exploration company with two producing silver mines at Zacualpan, Mexico; an advanced-stage silver project at Zacatecas, Mexico; and, other projects in the Dominican Republic. Energold Drilling Corp. (EGD:TSX.V) owns 6.6 million shares of IMPACT.
On behalf of the Directors of IMPACT Silver Corp.
"Frederick W. Davidson"
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.
900-543 Granville St.
Vancouver, BC Canada V6C 1X8
Telephone 604 681-9501
Facsimile 604 681-6813
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