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Production
The open-pit Capire Project is scheduled for production in late 2012, which is planned to increase silver production significantly in 2013 and onwards. Production plans at the Capire Project are currently underway, including the installation of the 200 tpd pilot plant (already purchased), which will be used to optimize mining and processing parameters toward planning for a larger operation in the future.
With the recent success receiving the final permits that are necessary to commence mining activities, IMPACT Silver's mine development team has begun construction at the Capire Project. Surface rights for all mining areas, tailings dam and processing plant have been secured. Condemnation drilling under the plant site, tailings dam and rock waste piles have also been completed and subsurface water monitoring wells are currently in place and collecting data. Arrangements have been finalized with the national electricity company (Comisión Federal de Electricidad) to construct a 30 km high voltage electric power line to the site, which will supply IMPACT Silver with the sufficient electrical capacity to accommodate plans for future production expansion at the Capire Project. Future development plans of a larger production operation at the Capire Project includes mill expansion of 800 to 1,500 tpd. The district was acquired in February 2007 in a government auction and the interest is subject to a 1% NSR royalty to the Mexican Geological Survey.
Capire Mine Development Project
In February, 2011, IMPACT Silver announced an updated NI 43-101 Measured and Indicated Mineral Resources Estimate at 7.2 million ounces silver, 95.6 million pounds zinc and 37.3 million pounds lead. Tonnes in the Measured Mineral Resource category increased by 18% and contained in-ground silver ounces increased by 9% over the 2009 study. This mineral estimate only covers 0.1% (0.2 sq km) of the 200 sq km Mamatla District; currently, the zones have expanded in the north and east of the deposit with several other silver vein targets in close proximity to be drilled in 2012.
NI 43-101 MINERAL RESOURCE ESTIMATE
| Metal Content for Capire + Aurora 1 | |||||
|---|---|---|---|---|---|
| Ag(oz) | Au(oz) | Cu(lbs) | Pb(lbs) | Zn(lbs) | |
| Measured | 3,529,969 | 14,146 | 3,389,275 | 18,234,678 | 46,140,820 |
| Indicated | 3,694,066 | 16,300 | 3,693,733 | 19,029,800 | 49,522,173 |
| Measured & Indicated | 7,224,035 | 30,446 | 7,083,007 | 37,264,478 | 95,662,993 |
| Inferred | 435,959 | 1,919 | 475,594 | 2,260,089 | 5,823,490 |
Combined Measured and Indicated, and separately Inferred, In Ground Metal Content are as follows:
| Summary Table Classified Mineral Resources - Measured + Indicated and Separate Inferred | |||||||
|---|---|---|---|---|---|---|---|
| Domain | Classification | Tonnes | Ag(g/t) | Au(g/t) | Cu(%) | Pb(%) | Zn(%) |
| Capire | Measured + Indicated | 3,104,944 | 46.46 | 0.19 | 0.06 | 0.33 | 0.93 |
| Aurora 1 | Measured + Indicated | 1,807,302 | 44.50 | 0.199 | 0.07 | 0.36 | 0.80 |
| Grand Total | Measured + Indicated | 4,912,246 | 45.74 | 0.193 | 0.06 | 0.34 | 0.88 |
| Grand Total | Total Inferred | 371,066 | 36.54 | 0.161 | 0.06 | 0.28 | 0.71 |
The mineral resources reported above are taken from a report entitled, Report on Mineral Resources of the Capire-Aurora 1 Project, Mamatla District, Mexico, by I-Cubed LLC; Principal Author and Qualified Person, Claus G. Wiese, P. Eng. A copy of the complete report is posted on www.sedar.com as well as the link provided below:
UPDATED NI 43-101 Report on Mineral Resources of the Capire-Aurora1 Project Mamatla Mineral District, Mexico: January 28, 2011. Click here to view full report
3D MODEL OF CAPIRE OPEN PIT MINE
The Capire Project is unlike most of the vein mineralization found through most of the district, these are volcanogenic massive sulphide (VMS) prospects. They lie in the same stratigraphy as the Campo Morado belt where Farrallon Resources Ltd. (FAN:TSX) recently commenced production on the G-9 VMA Deposit (5.57 million tonnes grading 7.3% zinc, 1.0% lead, 1.3% copper, 186g/t silver and 2.8g/t gold). The G-9 VMS deposit is along trend 45km southwest of Mamatla.
10,000 meters of drilling is planned for the Mamatla Mineral District to expand the zones of mineralization at Capire and discover new production targets throughout the rest of the district.
Below are highlights from the previous drill programs:
Exploration
IMPACT crews found two old mine workings at the historic Huatecosco Prospect located about ten kilometers southwest of the Zacualpan mill. The lower working is a mine adit that has collapsed, but a selected grab sample of vein material from the mine dump returned an assay of 409g/t silver, 5.41 g/t gold, 0.9% zinc and 0.5% lead. Crews were able to enter the upper inclined shaft which leads to a small underground working on the vein in oxidized material. Sampling of the exposed vein returned 1.88g/t gold and 40g/t silver across 8.7 meters. Elsewhere in this working, assays were highly variable ranging up to 189g/t gold across 1.5 meters. IMPACT's geologists conclude that this is a wide vein that has variable, locally very high gold grades in the near surface oxidized zone and more consistent silver and gold grades at depth. Plans include opening the lower adit and sampling the vein at this lower level in preparation for future drilling.
IMPACT Silver conducted additional drilling totalling 54 holes (3,756 meters) over an area of 350m x 150m on a 25 x 50-meter drill gri (see February 25th 2009 press release).
| DRILL HOLE No. |
TOP OF INTERCEPT (m) |
ESTIMATED TRUE WIDTH (m) |
SILVER (g/t) |
GOLD (g/t) |
COPPER (%) |
LEAD (%) |
ZINC (%) |
|---|---|---|---|---|---|---|---|
| M07-02 | 33.5 | 4.0 | 338 | 0.8 | 0.6 | 3.1 | 7.1 |
| including | 1.4 | 861 | 1.9 | 1.4 | 7.2 | 15.7 | |
| M08-29 | 6.1 | 2.2 | 185 | 0.8 | 0.3 | 1.4 | 4.6 |
| including | 1.2 | 219 | 0.6 | 0.3 | 1.7 | 5.9 | |
| M08-30 | 7.7 | 2.7 | 385 | 1.0 | 0.1 | 1.0 | 2.1 |
| including | 0.2 | 4,210 | 9.5 | 0.9 | 9.0 | 18.6 | |
| M08-41 | 22.5 | 3.5 | 127 | 0.2 | 0.2 | 1.3 | 3.5 |
| including | 0.7 | 302 | 0.4 | 0.3 | 2.6 | 5.7 | |
| M08-42 | 8.4 | 9.2 | 98 | 0.3 | 0.2 | 1.5 | 3.6 |
| M08-46 | 6.0 | 2.8 | 159 | 0.9 | 0.2 | 0.8 | 1.9 |
| including | 0.6 | 470 | 3.2 | 0.3 | 1.4 | 3.1 | |
| M08-48 | 33.6 | 2.6 | 168 | 0.3 | 0.2 | 0.9 | 2.2 |
| including | 1.7 | 230 | 0.3 | 0.2 | 1.0 | 2.7 | |
| M08-50 | 43.3 | 4.0 | 485 | 0.7 | 0.2 | 2.4 | 4.9 |
| including | 1.8 | 1,016 | 1.2 | 0.4 | 5.0 | 10.2 | |
| M08-52 | 58.1 | 11.7 | 136 | 1.1 | 0.1 | 0.7 | 1.9 |
| including | 1.1 | 141 | 0.3 | 0.2 | 2.4 | 5.0 | |
| M08-55 | 41.0 | 5.9 | 127 | 0.5 | 0.2 | 1.0 | 2.3 |
| including | 1.3 | 351 | 1.3 | 0.5 | 2.1 | 5.2 |
The Capire's shallow depth and the orientation of its mineralization, indicate that the zone has the potential for low cost open pit mining.
Aurora 1 Zone
IMPACT Silver conducted additional drilling totalling 1,324 meters at 24 holes (see January 19th 2009 press release). The holes were drilled over an area of 200m X 200m on a 25m X 50m drill grid. The zone remains open to the south and east for expansion. Highlights from the program include:
| DRILL HOLE No. |
TOP OF INTERCEPT (m) |
ESTIMATED TRUE WIDTH (m) |
SILVER (g/t) |
GOLD (g/t) |
COPPER (%) |
LEAD (%) |
ZINC (%) |
|---|---|---|---|---|---|---|---|
| M08-01 | 9.2 | 9.9 | 196 | 0.5 | 0.2 | 1.7 | 3.0 |
| including | 0.6 | 103 | 0.3 | 0.6 | 11.1 | 18.9 | |
| including | 0.6 | 789 | 0.2 | 0.4 | 0.9 | 1.5 | |
| including | 0.6 | 1,345 | 3.2 | 0.7 | 2.7 | 5.0 | |
| and | 48.6 | 2.4 | 303 | 2.1 | 0.4 | 1.4 | 2.7 |
| including | 1.1 | 420 | 0.5 | 0.6 | 2.4 | 4.8 | |
| M08-02 | 45.6 | 2.2 | 389 | 2.3 | 0.2 | 0.6 | 1.0 |
| including | 0.5 | 1,745 | 9.4 | 0.8 | 2.1 | 3.5 | |
| M08-07 | 8.6 | 9.2 | 125 | 0.5 | 0.2 | 1.6 | 3.0 |
| including | 0.4 | 770 | 5.9 | 0.7 | 2.8 | 5.6 | |
| including | 2.1 | 219 | 0.3 | 0.4 | 2.9 | 5.2 | |
| M08-08 | 8.2 | 6.9 | 317 | 1.1 | 0.1 | 0.3 | 0.7 |
| including | 1.5 | 1,164 | 3 | 0.1 | 0.6 | 1.2 | |
| including | 0.3 | 2,060 | 5.4 | 0.3 | 1.6 | 2.7 | |
| and | 60.7 | 2.3 | 136 | 1.6 | 0.4 | 1.9 | 4.7 |
| including | 0.3 | 612 | 4.1 | 1.0 | 6.1 | 11.2 | |
| M08-11 | 32.1 | 4.1 | 320 | 1.3 | 0.3 | 2.3 | 4.2 |
| including | 1.5 | 626 | 2.9 | 0.8 | 5.5 | 10.1 | |
| M08- 13 | 23.9 | 2.2 | 383 | 1.0 | 0.9 | 1.5 | 2.6 |
| including | 0.7 | 1,155 | 2.5 | 2.9 | 4.5 | 7.6 | |
| M08-24 | 27.6 | 4.6 | 214 | 0.6 | 0.3 | 1.7 | 3.9 |
| including | 0.5 | 683 | 1.9 | 0.9 | 2.7 | 5.6 | |
| including | 2.4 | 226 | 0.5 | 0.3 | 2.4 | 5.4 |
Huatecosco Prospect
IMPACT crews found two old mine workings at the historic Huatecosco Prospect located about ten kilometers southwest of the Zacualpan mill. The lower working is a mine adit that has collapsed, but a selected grab sample of vein material from the mine dump returned an assay of 409g/t silver, 5.41 g/t gold, 0.9% zinc and 0.5% lead. Crews were able to enter the upper inclined shaft which leads to a small underground working on the vein in oxidized material. Sampling of the exposed vein returned 1.88g/t gold and 40g/t silver across 8.7 meters. Elsewhere in this working, assays were highly variable ranging up to 189g/t gold across 1.5 meters. IMPACT's geologists conclude that this is a wide vein that has variable, locally very high gold grades in the near surface oxidized zone and more consistent silver and gold grades at depth. Plans include opening the lower adit and sampling the vein at this lower level in preparation for future drilling.
See below for highlights of most recent drill program:
| DRILL HOLE |
VEIN NAME |
DRILL SECTION |
FROM (m) |
TO (m) |
INTERVAL (m) |
TRUE WIDTH (m) |
GOLD (g/t) |
SILVER (g/t) |
LEAD (%) |
ZINC (%) |
|---|---|---|---|---|---|---|---|---|---|---|
| Z11-15 | HUATECOSCO | 26+50 SE | 92.55 | 98.00 | 5.45 | 4.00 | 1.19 | 58.5 | 1.42 | 1.95 |
| including | 92.55 | 94.05 | 1.50 | 0.75 | 3.82 | 149.0 | 4.10 | 3.80 | ||
| Z11-16 | HUATECOSCO | 26+50 SE | 156.95 | 159.20 | 2.25 | 1.95 | 0.98 | 82.6 | 0.14 | 0.26 |
| Z11-17 | HUATECOSCO | 27+00 SE | 54.51 | 59.25 | 4.74 | 3.23 | 3.44 | 117.6 | 0.59 | 0.81 |
| including | 55.08 | 57.40 | 2.32 | 1.64 | 2.29 | 217.2 | 0.97 | 1.19 | ||
| Z11-18 | HUATECOSCO | 27+00 SE | 91.05 | 96.17 | 5.12 | 2.55 | 0.72 | 53.3 | 0.81 | 0.71 |
| Z11-19 | HUATECOSCO | 26+00 SE | 110.55 | 117.4 | 6.85 | 4.41 | 1.60 | 159.2 | 0.22 | 0.30 |
| including | 114.65 | 117.4 | 2.75 | 1.76 | 3.53 | 320.8 | 0.43 | 0.57 | ||
| Z11-20 | HUATECOSCO | 26+00 SE | 167.90 | 178.20 | 10.30 | 9.48 | 3.97 | 48.7 | 1.69 | 2.62 |
| including | 167.90 | 172.50 | 4.60 | 4.24 | 6.96 | 84.3 | 2.89 | 5.11 | ||
| Z11-23 | HUATECOSCO | 26+50 SE | 344.90 | 347.23 | 3.15 | 2.72 | 0.96 | 25.7 | 0.28 | 1.52 |
Development Outlook
The Capire open pit mine will add significant silver production and tonnage in 2012 and onwards as a low cost producer. Initial plans are for the 200 tpd portable plant to be mobilized onsite by early 2012 and eventually mobilize a larger facility onsite. In addition, a 10,000 meter drilling program is ongoing to expand the existing zones and other surrounding targets for production. The Capire Project has the potential to host an 800 to 1,500 tpd processing plant.
Related News Releases
| January 11, 2012 | IMPACT Silver Corp. Announces Commencement of Construction at the Capire Open Pit Silver Mine | |
| October 12, 2011 | IMPACT Silver Corp. Drills 4.1m of 5.2g/t Gold at New Zone at Huatecosco Gold Project, Mexico | |
| August 17, 2011 | IMPACT Silver Expands Capire Deposit, Mexico | |
| June 02, 2011 | IMPACT Silver Intersects 6.96g/t Gold across 4.24m at Huatecosco Gold-Silver Prospect, Mexico | |
| March 03, 2011 | IMPACT Silver Announces Arrival Of Second Drill And Expanded Exploration Program At Zacualpan-Mamatla | |
