IMPACT Silver Puts a New Mine Into Production

IMPACT Silver just put a new mine into production. But this doesn’t matter because mining stocks are not real companies (I received an email telling me that mining stock are not real companies). Like I said before, it doesn’t matter what these mining companies do right now. They are so hated that even if they put a moon into production, no one would care. Sorry, actually traders would sell it off thinking, “Well, the catalyst already happened. The moon is now in production. We need to sell because there is only one moon and now that it is in production, there is no more upside.”

February 19, 2013

IMPACT Silver Commences Production at the Cuchara-Oscar

IMPACT Silver Corp. (“IMPACT or the “Company”) is pleased to announce that the Company has successfully moved its newest silver mine into production. The commencement of production at the Cuchara-Oscar Mine represents IMPACT’s fourth underground silver mine taken from discovery to production at the Royal Mines of Zacualpan Silver District in Mexico.

Initial production at Cuchara-Oscar will come from the Marqueza Vein, with plans to expand production to the nearby Oscar, Resguardo and Maria de Jesus Veins later in 2013. The Cuchara-Oscar Mine is projected to provide approximately 20% of the mineral feed in 2013 to the Guadalupe Processing Plant with the balance of the feed mainly provided by the currently producing San Ramon and Noche Buena Mines. The feed from the Cuchara-Oscar Mine will replace lower grade silver production from the Chivo Mine. The average silver mining grade at the Cuchara-Oscar in 2013 is anticipated to be 270 grams per tonne (g/t), which will allow for an increase in overall silver production at the Guadalupe Plant.

The Cuchara-Oscar Mine is another success attributed to IMPACT’s technical team. Drill results from Cuchara-Oscar are summarized in IMPACT news releases dated January 21, 2013 and January 23, 2012, which include highlights of 291 g/t silver across 30.65 meters and 1,007 g/t silver across 5.65 meters. Within eight months of the production decision, the Cuchara-Oscar Mine was moved into production utilizing the historic infrastructure in the area.

George Gorzynski, P.Eng., Vice President Exploration and a Qualified Person under the meaning of Canadian National Instrument 43 101, is responsible for the technical content of this news release.

IMPACT is a profitable silver mining company with a portfolio of producing mines in Mexico. The Company’s 100%-owned and operated underground silver mines feed a central 500-tonne-per-day (tpd) processing plant located within the historic Royal Mines of Zacualpan Silver District. IMPACT is also currently developing its second mining district in Mexico, the open-pit Capire Mine and Processing Centre, scheduled to begin pilot plant operations shortly. The upcoming commencement of production at the open-pit Capire Mine represents the next phase of significant production growth for the Company, with the objective of ultimately establishing IMPACT as a multimillion-ounce silver producer. IMPACT also holds a 16.5% shareholding in Defiance Silver Corp., who is advancing the Company’s 200-tpd mill and mineral concessions into production in the Zacatecas Silver District. Additional information can be found on the Company website at www.IMPACTSilver.com.

5 Comments to IMPACT Silver Puts a New Mine Into Production

  1. J.A.'s Gravatar J.A.
    February 20, 2013 at 12:51 pm | Permalink

    These things leave me pretty much stumped.

    I have VGZ, IPT and YNGFF in my portfolio and the last few weeks have been pretty depressing. Positive news and positive expectations. Any other companies’ price would jump, but not these, they just keep coming down.

    And I just have to keep wondering, should I buy more of these or did I originally buy lottery tickets instead of value stocks.

  2. Roger's Gravatar Roger
    February 20, 2013 at 1:53 pm | Permalink

    Congratulations to Impact Silver. Here’s a company that keeps doing things right, keeps growing organically without diluting shareholders, and has a solid technical team that has keeps putting mine after mine in production. To the extent that the market right now keeps shrugging any good news because of the plunging gold and silver prices, I am taking advantage and buying a little Impact every day. They are set to start making some serious money in relation to their market cap. Fundamentals will always eventually win out in the end as cash is cash, regardless of which industry generates it.

  3. TwoAce's Gravatar TwoAce
    February 20, 2013 at 2:54 pm | Permalink

    Mariusz,

    It’s great to see Impact Silver delivering on Cuchara-Oscar. It’s even better to see Mr. Market presenting us with some amazing opportunities. In the last thirty minutes I took the opportunity to raise my VG holding by 150% at 1.31 CAD. I will buy more, and these counts for IPT as well.
    I can image this must be painstaking, but in five years those who perservere (true contrarians) will look back with a smile, and ask themselves why they didn’t buy more (this happens to me on a regular basis).

  4. naxal's Gravatar naxal
    February 20, 2013 at 4:30 pm | Permalink

    Impact has not been doing everything right.

    This is from a press release on August 17, 2011 – “The Capire Project is in the mine planning and permitting stage with initial pilot plant production scheduled to start in late 2011. ”

    This is from a press release on January 11, 2012 – “IMPACT recently announced the construction of the Capire Mine and pilot plant had commenced, with first concentrate shipments scheduled for late 2012″

    Today is February, 2013 and production is yet to start at Capire.

    On May 29, 2012 they came up with this – “We will be shifting production from the Chivo Mine to the new high-grade Oscar Mine, putting the Chivo Mine on care and maintenance” – This was unexpected and shocking.

    This is what Mariusz wrote in this blog on June 13, 2011 – “Currently, the company is on track to produce 1 million ounces in 2011 and 1.5 million ounces in 2012.”

    Mariusz was not wrong in making that assumption because thats what Impact was guiding. And when you fail to deliver you get sold off. Having said that I do agree that miners are getting sold off more than they deserved to. But miners are not without blame.

    • Mariusz Skonieczny's Gravatar Mariusz Skonieczny
      February 20, 2013 at 7:40 pm | Permalink

      Naxal,

      I agree that IMPACT Silver has not been doing everything right. However, I don’t know a single miner that has done everything right. Perfection in mining is non-existent.

      However, the miners are only punished. They are punished for mistakes but they never get rewarded for anything. Gold and silver price goes up, they do not go up. Gold and silver stay the same, miners go down. Gold and silver go down, miners get destroyed. Also, they get punished multiple times for the same thing. How many times are you supposed to go to jail for the same act?

      Now, we get IMPACT put a new mine into production, and we get punished again. So I suspect we will get punished again when Capire is in production which should be in a few weeks. I should call the company and tell them not to put it into production because we, investors, cannot afford another punishment.

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