VANCOUVER, BRITISH COLUMBIA, Aug 29, 2011 (MARKETWIRE via COMTEX News Network) --
IMPACTSilver Corp. (TSX VENTURE: IPT) ("the Company" or "IMPACT") is pleasedto announce the results for the second quarter ending June 30, 2011.
SECOND QUARTER 2011 HIGHLIGHTS
-- Revenues for the quarter reached a new company record of $8.0 million,
significantly up from $2.9 million in the second quarter of 2010.
-- Net earnings for the quarter reached $2.5 million, up 718% from
.3
million in second quarter 2010.
-- Earningspershare (EPS) reached
.04 for the quarter, up from
.01 in
the second quarter 2010 and
.08 for the first half of 2011.
-- Silver production for the quarter reached 224,361 oz., up 20% from
186,890 oz. in the second quarter of 2010 and 485,331 oz. for the first
half of 2011.
-- Silver sales for the quarter reached 249,851 oz., up 45% from 172,039
oz. in second quarter 2010.
-- Mine throughput for the quarter was near full capacity at 416 tpd
("tonnes-per-day"), up from 363 tpd in second quarter 2010.
-- Cash flow from operations was $2.9 million, up from 0.9 million from the
second quarter of 2010.
-- Cash and cash equivalents stand at $32.6 million with working capital at
$33.2 million, and no long term debt.
PRODUCTION
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Three months ended June 30, 2011 June 30, 2010 % Change
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Total tonnes (t) produced 37,899 33,033 +15
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Tonnes produced per day (tpd) 416 363 +15
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Revenue per production tonne sold ($CDN) $195.77 $96.21 +103
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Direct costs per production tonne ($CDN) $79.97 $53.60 +49
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Silver production (oz) 224,361 186,890 +20
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Lead production (t) 201 173 +17
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Zinc production (t) 316 249 +27
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Silver sales (oz) 249,851 172,039 +45
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Lead sales (t) 215 164 +31
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Zinc sales (t) 353 265 +33
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Inaddition to the successful second quarter, the Company achieved recordrevenues and silver production for the first half of 2011 due toincreased throughput from the Noche Buena Mine and improving grades atthe San Ramon mine resulting in higher grade mill feed, as well ascompleting numerous upgrades to the 500-tpd ("tonnes-per-day") Guadalupeprocessing plant. Due to higher silver prices, the Company continued torevise cut-off grades which marginally increased the cost per ounce butcontributed to increased silver sales for the first half of 2011producing a record $12.7 million in positive cash flow, and anexceptional $4.9 million in net earnings (
.08 EPS), compared to
.9million (
.02 EPS) in the comparable period in 2010. The installationof new and more efficient float cells and silver-lead concentrate dryerin the first quarter improved throughput and recoveries, and contributedto silver production of 224,361 oz., up 20% from 186,890 oz. in thesecond quarter 2010 and marginally down from 260,970 oz. in the priorquarter due to the mill being shut down for four days.
The Company's financialposition remained strong with $32.6 million in cash and cashequivalents and net working capital of $33.2 million. The Companycompleted a $15 million private placement in December 2010 (see IMPACTnews release dated December 15, 2010) of which subsequently the warrantsattached to the placement were accelerated in June 2011 (see IMPACTnews release June 15, 2011) adding $10.5 million to the Company's cashbalance. The Company's working capital is expected to remain veryhealthy throughout 2011 as cash flow from mining operations is plannedto be sufficient to fund the Company's planned 2011 operating costs,exploration expenditures and equipment purchases.
In the MamatlaMineral District, the Company focused on expediting the new open pitCapire Mine Development Project scheduled for first production in thenear term subject to timely receipt of permits. Production plans atCapire are to first install a 200-tpd pilot plant (already purchased) tooptimize mining and processing parameters toward planning for a largeroperation in the future. Surface rights for all mining areas, tailingsdam and the processing plant have been acquired. Condemnation drillingunder the plant site, tailings dam and rock waste piles has beencompleted in preparation for mine and plant construction. When inproduction, Capire will be the Company's fourth active mining operationand represents a new production district. The orientation and shallowdepth from surface of the mineralization will allow for open pit miningof a portion of the zone.
EXPLORATION
IMPACT continues toexecute its aggressive 20,000 meters surface and underground 2011 drillprogram split between the 423-square-kilometer Zacualpan Silver Districtand the 200-square-kilometer Mamatla Mineral District, while buildingits GIS databasenow with over 2,000 old mine workings catalogued. The Company hasdefined numerous priority drill targets and will likely exceed itstarget of 20,000 meters of drilling in 2011.
The exploration teamassigned to the Capire Subdistrict has been working to expand theCapire Zone. Recent expansion drilling began to outline additionalmineralization to the north and southeast beyond the limits of thepreviously defined Measured and Indicated Mineral Resources (see IMPACTnews release dated February 1, 2011). Highlights include 304g/t silver,4.51g/t gold, 1.52% lead, 3.05% zinc and 0.49% copper across 5.0m (seeIMPACT news release dated August 17, 2011). IMPACT engineers are nowstudying the possibility of expanding the open pit plan to incorporatethese new drill results. The depositremains open and drilling to expand these resources is continuing. Thedrill is also testing other nearby zones of mineralization.
Duringthe quarter IMPACT announced initial first phase drill results from theHuatecosco Gold-Silver Camp located south of IMPACT's Noche Buena Mine.Like other prospects in this area, recent drill results included goldrich intersections such as 6.96 g/t gold, 84 g/t silver, 2.89% lead and5.11% zinc across a true width of 4.24m (see IMPACT news release datedJune 02, 2011). Drilling is continuing on this and other targets alongthe 16km long Huatecosco trend.
IMPACT Silver Corp. is a silverfocused mining and exploration company operating in Mexico with aproducing silver operation at the 423-square-kilometer Royal Mines ofZacualpan Silver District, the 200-square-kilometer advanced MamatlaSilver District including the Capire Mine Development Project, and anoption agreement for a major share position in Defiance Silver Corp. inreturn for IMPACT's 200tpd mill and mineral concessions in the ZacatecasSilver District (see IMPACT news release dated August 25, 2011 for moredetails).
A recorded conference call can be accessed at our website: www.IMPACTSilver.com
On behalf of the Directors of IMPACT Silver Corp.,
Frederick W. Davidson, President & CEO