- Impact Silver (TSXV:IPT) has uncovered a new silver vein at its producing Guadalupe mine in Mexico, strengthening its case as one of the best stocks for a leveraged bet on a rebound in the price of silver
- Highlights include 1,400 g/t silver over 0.75 m
- Impact is an established silver producer and explorer active in Mexico
- Impact Silver stock has given back 19.70 per cent year-over-year, and 1.85 per cent since 2019
Impact Silver (TSXV:IPT) has uncovered a new silver vein at its producing Guadalupe mine in Mexico, strengthening its case as one of the best stocks for a leveraged bet on a rebound in the price of silver.
Underground drilling at Guadalupe intersected “significant mineralization” now designated Kena Vein South, according to Monday’s news release, only 100-200 metres from active mine workings. Assays from the first four drill holes in the zone include:
| Hole No. |
From (metres) |
To (metres) |
Interval (metres) |
Silver (g/t) |
Gold (g/t) |
Lead (%) |
Zinc (%) |
| MPZ-UG-001-24 |
79.45 |
81.10 |
1.65 |
377.9 |
0.40 |
0.27 |
0.42 |
| And |
178.10 |
178.85 |
0.75 |
1,400 |
0.39 |
0.90 |
2.09 |
| And |
206.70 |
224.00 |
17.30 |
213.8 |
0.02 |
0.15 |
0.25 |
| Including |
206.70 |
210.60 |
3.90 |
357.7 |
0.03 |
0.18 |
0.41 |
| And |
231.80 |
232.10 |
0.30 |
782 |
0.06 |
0.13 |
0.29 |
| MPZ-UG-003-24 |
241.62 |
242.40 |
0.78 |
463 |
0.09 |
0.63 |
1.23 |
| And |
254.00 |
255.20 |
1.20 |
198.0 |
1.99 |
3.31 |
5.93 |
| MPZ-UG-004-24 |
179.50 |
179.90 |
0.40 |
1,450 |
0.65 |
2.16 |
3.05 |
| And |
263.00 |
263.70 |
0.70 |
1,615 |
0.58 |
1.83 |
6.05 |
(Source: Impact Silver)
Kena Vein South has now been drill tested for more than 150 m from the mine’s 140 m level and is open for expansion to the southeast, updip and downdip amid ongoing drilling.
Leadership insights
“The Guadalupe mine first began production almost 500 years ago and we are still finding new discoveries in the swarm of veins that make up the mine complex mineralizing system,” Frederick Davidson, Impact Silver’s president and chief executive officer, said in a statement. “We are currently drilling this new Kena Vein South from the 140 m level of the mine. We will next move the drill to lower and higher levels of the mine to fully define the vein for mining. The close proximity of the new vein to current active mine workings will allow for rapid and low-cost mine development.”
A model miner
With demand for physical silver at an all-time high and the price per ounce poised for an upside surprise, investors stand to benefit from Impact Silver’s demonstrated leverage to the price of silver, having outperformed the metal during four rallies since 2016.
Impact’s leverage to the silver price (slide 3) is tied to sourcing about 90 per cent of its revenue from the metal, coupled with its long history of consistent production in the Royal Mines of Zacualpan silver-gold district (slide 7), where the company has processed more than 13 million ounces of silver to date over the past 18 years, generating revenues of more than US$261 million.
The district offers tangible exploration upside across four areas (slide 11), including the standout Capire project, where a 200 tonnes-per-day (tpd) processing pilot plant lies adjacent to an open-pit silver mine housing more than 4.5 million ounces of silver, 48 million pounds of zinc and 21 million pounds of lead, which the company is evaluating for potential extraction.
In addition, Impact Silver offers exposure to the 3,019-hectare Plomosas zinc-lead-silver district, where it has begun preliminary mining and processing operations at its Plomosas high-grade zinc mine, which shares a mineral belt with some of the largest carbonate replacement deposits in the world. Only 600 m of Plomosas’ 6 km-long structure have seen modern exploration, offering exponential exploration upside, in addition to other targets including copper-gold with indications of high-grade material from surface. Ongoing drilling has already uncovered high-grade mineralization over 30 per cent zinc.
Backed by efficient production and demonstrated room for mineralized expansion, de-risked by 20 per cent institutional ownership, consistently positive mine-level EBITDA, no debt on its balance sheet, and C$13.7 million in cash as of January 2024, Impact is well-positioned to continue improving grades, production and resource ounces for the foreseeable future, making it a smart-money bet on silver tempting generational highs.
About Impact Silver
Impact is an established silver producer and explorer active in Mexico.
Impact Silver stock (TSXV:IPT) is up by 3.92 per cent trading at C$0.26 per share as of 9:53 am ET. The stock has given back 19.70 per cent year-over-year, and 1.85 per cent since 2019.
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