Impact Building Third Mexican Mine

Vancouver — Groundbreaking at Its Planned Chivo Mine Has Junior Silver Producer Impact Silver (IPT-V, Isvlf-O) on Track to Grow Operations at Its Royal Mines of Zacualpan Mining Complex, 100 Km Southwest of Mexico City.

Chivo will be the third silver-producing operation on the mining complex, and the second built by Impact.

Underground development will likely reach the main Chivo silver shoot by November. Impact will then build multiple workings reaching into the mineralization.

The mine is expected to contribute production of 60 tonnes per day by early 2008.

The company first discovered high-grade silver veins at Chivo in 2005, while exploring old mine workings. Vein samples ran upwards of 2,000 grams silver per tonne. Follow-up drilling of 18 holes returned intercepts of up to 937 grams silver over 2.7 metres of true width.

Drilling delineated a silver mineralized shoot of 100 metres length, extending 220 metres downdip; the mineralization remains open to the northeast and southwest. A second possible shoot was also identified.

Impact says its two operating mines, Guadalupe and Gallega, have increased total production to about 300 tonnes per day — more than double the throughput rate when Impact bought Royal Mines of Zacualpan in early 2006 for US$1.84 million plus 300,000 shares.

The company is aiming for production of 500 tonnes per day by late 2008.

Mining in the Royal Mines of Zacualpan silver district dates back to the early 1500s. From 1975-2004, about 17 million oz. of silver were produced in the area.

Silver mineralization in the camp is hosted in epithermal vein structures. Veins typically run from 3-5 metres in width and are generally steeply dipping. Upper levels of the veins are usually silver-rich (upwards of 1,000 grams silver per tonne), while lower levels tend to be heavy in base metals.

In the first half of 2007, Impact produced about 190,000 oz. silver, along with modest lead and zinc credits, from almost 30,000 tonnes of ore processed.

Shares in the company recently rallied about 15% to trade at around $1.65 in a 52-week trading range of 90-$2.11. Based on its 43.1 million shares outstanding, Impact posts a $71-million market capitalization. Energold Drilling (EGD-V, EGDFF-O), a sister company with common management, holds about 15% of Impact Silver.