IMPACT Silver Signs Binding Conditional Agreement Vancouver, British Columbia--(Newsfile Corp. - February 9, 2023) - IMPACT Silver Corp. (TSXV: IPT) (OTC Pink: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") is pleased to announce it has signed a Share Purchase and Sale Agreement (the "Sale Agreement") with Consolidated Zinc Limited (ASX: CZL) ("CZL") of Australia dated February 9, 2023 to purchase all of the outstanding shares of its subsidiary, Minera Latin America Zinc S.A.P.I de C.V. ("MLAZ"), which holds a 100% interest in the Plomosas zinc-lead-silver mine in the state of Chihuahua, northern Mexico.
HIGHLIGHTS
- The acquisition will expand IMPACT's production profile from one to two producing operations – the Plomosas zinc-lead-silver district in northern Mexico and the Royal Mines of Zacualpan silver-lead-zinc(-gold) district in central Mexico.
- The purchase price is US$6 million consisting of a minimum US$3 million cash and the balance in IMPACT shares plus a 12% net profit interest royalty to CZL. Completion of the transaction is anticipated on or before April 7, 2023.
- CZL reported Plomosas JORC mineral resources1 of 215,000 tonnes grading 13.5% zinc, 6.3% lead and 34.0 g/t silver indicated, and 772,000 tonnes grading 13.1% zinc, 3.0% lead and 19.0 g/t silver inferred, at a 3% zinc cutoff at December 2021. IMPACT plans a drill program in 2023 to infill and test extensions of the known mineralization.
- Plomosas is host to high grade mineralization. Historical mining is in the global upper quartile for zinc grade with approximately 2.5MT mined since 1943 grading 15-25% zinc, 2-7% lead and 40-60 g/t silver with low deleterious elements2.
- CZL has been mining Plomosas since September 2018 except for some temporary short suspensions during Christmas. IMPACT plans to upgrade the mill and mine with the aim to continue mining followed by plans for expanding operations.
- IMPACT's highly skilled operations team has 17 years of underground mining and flotation milling experience at Zacualpan which it will bring to advance the Plomosas operations.
- Exploration potential at Plomosas is exceptional with only 600m of the 6 kilometre long structure assessed plus other exploration targets on the 3,019 hectare property including untested copper-gold targets. Regionally, Plomosas lies in the same mineral belt as some of the largest silver-lead-zinc carbonate replacement deposits ("CRD") in the world2.