IMPACT Silver Corp. ("IMPACT" or the "Company") is pleased to announce results from the first drilling on the El Paso Vein located in the Royal Mines of Zacualpan Silver-Gold District of central Mexico.
Drill hole Z17-26 intersected 834 g/t silver over 3.38 meters (true width) including 1,448 g/t silver over 1.26 meters (true width) at the San Felipe prospect on the El Paso Vein. The zone remains open for expansion. IMPACT mining personnel plan to access the old San Felipe Mine workings to establish underground drill stations to continue testing the zone. The El Paso Vein is centrally located within the district, passes less than one kilometer from IMPACT's producing 535 tonne per day Guadalupe processing plant, and represents a potential near-term source of additional high-grade feed for the plant.
The El Paso Vein is one of a series of northwesterly striking, northeast dipping structures that transect the district. These classes of veins often have strike lengths of one to five kilometers and are host to a number of important past producing mines in the district such as La Cuchara, Chontalpan, Xitinga, Lipton, and Liptonia. The El Paso Vein has been traced in outcrop and underground workings for 2.1 kilometers from the El Paso adit in the north to San Felipe in the south with widths ranging up to thirteen meters as evidenced in the El Capulin adit.
The San Felipe encompasses a series of old underground workings that have been partially rehabilitated and explored by IMPACT's exploration team. Based upon archive maps, the main level working extends for one kilometer, with the central portion having three working levels, plus some small stopes. Several shafts providing ventilation and some smaller adits are also present. A number of high grade rock samples (1,120 — 1,280 g/t silver) have been collected from the San Felipe workings; however, the northern portion of these workings are not accessible. The aim of this current drill program is to test the El Paso Vein in the area of the old underground workings, with an emphasis on the northern, as of yet unexplored, portion of the El Paso Vein.
Drill hole Z17-26 intersected the El Paso Vein under the northern, unexplored portion of the main workings with a true width of 3.38 meters grading 834 g/t silver, 0.12g/t gold, 0.32% lead, and 0.57% zinc that included a higher-grade interval of 1,448 g/t silver, 0.14 g/t gold, 0.60% lead, 0.69% zinc over a true width of 1.26 meters. As well a new vein intersection was encountered in Z17-26, 110 meters below the El Paso Vein which contained 199.3 g/t silver over a drill core length of 1.3 meters. Currently both intersections for Z17-26 remain open to expansion to the north and in both the up and down dip directions.
Two additional drill holes (Z17-24 and 25) intersected grades of 122.1 and 113.5 g/t silver over widths of 1.4 and 1.6 meters respectively for the El Paso Vein in the southern portion of the San Felipe with hole Z17-24 containing an additional intersection of 239.6 g/t silver over a core length of 1.58 meters located 44 meters below the El Paso Vein.
The San Felipe has the potential to provide a near-term source of feed for IMPACT's nearby Guadalupe processing plant. Consequently, a decision has been made to have IMPACT's mining team construct better access into the San Felipe workings for underground drill stations to continue testing the El Paso Vein, but with shorter and more cost-effective drill holes.
Brian V. Hall, M.Sc., P.Geo. and Wojtek Jakubowski, P.Geo., Qualified Persons under the meaning of Canadian National Instrument 43 101, have reviewed and approved the technical content of this news release.
About IMPACT Silver:
IMPACT Silver Corp. is a silver producer with two processing plants on two adjacent projects within its 100% owned mineral concessions covering 357km2 in central Mexico: the Guadalupe Production Centre and the Capire Processing Plant. At Guadalupe, three underground silver mines feed the central 535 tpd processing plant located within the historic Royal Mines of Zacualpan Silver District. At Capire, the 200 tpd processing plant and open pit silver mine are on care and maintenance waiting for a recovery in silver prices. Additional information about IMPACT and its operations can be found on the Company website at www.IMPACTSilver.com.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Manager Investor Relations
(604) 681 0172 or [email protected]
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Forward-Looking and Cautionary Statements
This IMPACT News Release contains certain "forward-looking" statements and information relating to IMPACT that are based on the beliefs of, and assumptions made by, IMPACT management, following consideration of the information currently available to IMPACT management. Such statements include statements regarding the discovery and commercialization of commercial quantities of minerals, improvements in profitability, increases to processing capacity, expansion of resource quality and quantity, exploration goals, future results, the operational goals and outcomes in the Zacualpan and Capire districts and generally, and future production as a result, expected 2017 drilling and testing operations, IMPACT's exploration program for 2017, the completion and effectiveness of the mining database project and other statements that are not historical facts. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, without limitation, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume any obligation to update any forward-looking statement contained herein other than in accordance with applicable law.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under National Instrument 43-101, the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk.