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  Zacatecas (Veta Grande)
Background
The Zacatecas Silver District located in central Mexico is one of the largest historic silver districts in the world with past production estimated at 1.2 billion ounces.
Intro
IMPACT is undertaking an aggressive expansion into the Zacatecas Silver District where as of May, 2007 the Company holds 100% interest in 17 mineral concessions. Yale Resources (TSX.V: YLL) is earning up to 80% interest in four of them. These holdings represent potential ore feed for the 200 ton per day mill located in the Veta Grande area of Zacatecas that is currently operating on a toll mill basis. Presently IMPACT holds 25% Net Profit Interest in the mill, with an option to purchase 100% interest. Field work is under way on a number of these concessions, including those under option to Yale Resources with a multi-property drill program which completed in Spring of 2007. Drill results are pending.
Two of the initial targets on the concessions are the Cristian and San Pascual Mines. The Cristian mine, which last produced in 2003, still has shaft hoisting equipment in place in anticipation of the recommencement of operations. IMPACT was not able to access the workings, but samples from surface dumps returned 310g/t silver, 24.2% lead and 8.0% zinc from a high grade stockpile and 93g/t silver, 0.43% lead and 1.4% zinc from a low grade waste dump. The San Pascual Mine last produced about 20 years ago. A representative sample of the dump around the shaft assayed 875g/t silver. A representative sample from the dump beside the nearby Pirul shaft assayed 525g/t silver. Planned work at these and other sites controlled by IMPACT will consist of exploration and evaluation followed by drilling.
Zacatecas Mining Concessions
NUEVA GRANADA AND ASTURIANA CONCESSIONS
The concessions cover most of the Nueva Granada vein which is part of the Veta Grande vein system. Historically, the Zacatecas Silver District has produced over 1 billion ounces of silver and the Veta Grande vein system was the largest producer in the district. Past production figures from the Nueva Granada vein are not available, but old plans indicate that it was mined along a length of 700m and to a depth of 150-200m.
In addition, the concessions contain about 30,000 tonnes of old mine dumps. In 2003, it was reported that 12,000 tonnes from these dumps were processed, returning an average grade of 220g/t silver. This material was processed in the Veta Grande plant, which IMPACT controls through an option to purchase agreement.
LEO AND EL MILAGRO CONCESSIONS
The Leo and Milagro Concessions cover a splay off the major Canterra Vein in the southern part of the Zacatecas Silver District.
CANCER CONCESSION
The Cancer Concession is located in the eastern part of the District and covers a 500m length of the historic Providencia Vein marked by numerous old mine workings.
MARTIN AND SANTO CRISTO CONCESSIONS
The Martin and Santo Cristo Concessions are located near IMPACT's Cristian Concession where earlier sampling of old mine dumps returned 310g/t silver, 24.2% lead and 8.0% zinc from a high grade stockpile and 93g/t silver, 0.43% lead and 1.4% zinc from a low grade waste dump.
CRISTIAN CONCESSION
The Cristian mine, which last produced in 2003, still has its shaft hoisting equipment in place in anticipation of the recommencement of operations. IMPACT was not able to access the workings, but samples from surface dumps returned 310g/t silver, 24.2% lead and 8.0% zinc from a high grade stockpile and 93g/t silver, 0.43% lead and 1.4% zinc from a low grade waste dump.
SAN PASCUAL CONCESSION
The San Pascual Mine last produced about 20 years ago. A representative sample of the dump around the shaft assayed 875g/t silver. A representative sample from the dump beside the nearby Pirul shaft assayed 525g/t silver. Planned work at these and other sites controlled by IMPACT will consist of exploration and evaluation followed by drilling.
Zacatecas Venture
The Zacatecas Concession was purchased from a private Mexican vendor and is located contiguous with and west of the Salvador Concession previously purchased by IMPACT and optioned to Yale Resources. Under the Zacatecas Joint Venture Agreement, Yale has opted to also option the Zacatecas Concession from IMPACT.
Yale may earn up to 80% in the Zacatecas Concession under the same terms as the Salvador, San Jose and the San Sabino properties. To earn 65 % in the property Yale must reimburse IMPACT the purchase price of the property and spend a minimum of US $100,000 on exploration (including a minimum of 500 metres of drilling) within 18 months. To earn an additional 15% - for a total of 80% - Yale will then have to pay US $125,000 in either cash or stock to IMPACT at IMPACT's discretion. As the Zacatecas property is contiguous with the Salvador claim, the commitments for the two properties may be pooled in order to earn the interest in both properties.
ZACATECAS CONCESSION
The Zacatecas Concession is located approximately 2 km southeast of the operating Veta Grande processing plant under option by IMPACT. The concession covers part of a parallel vein system which extends on to the neighbouring Salvador Concession. Two old shafts at least 40m deep were found on the concession. Beside the shafts is a 2000 tonne mine dump. Selected vein material from the dump assayed 660g/t silver.
SALVADOR CONCESSION
The Salvador Property is located approximately 5 km southeast of the Veta Grande processing plant. Vein outcroppings and old workings indicate that the primary vein within the Salvador property can be traced for greater than 1 km. The central 400m of the open pits trace a very well defined 2-5m wide structure and a secondary vein nearby. There are three main shafts along the length of the vein: one at a presumed vein intersection and another outside the principal vein area, presumably for the ore extraction, access and services. There are at least two known splays to the principle vein. Along the length of the vein there are old mine dumps of various sizes.
MINA SAN JOSE CONCESSION
The San Jose property is located 5 km northwest of the Veta Grande processing plant. The project was acquired as part of the Veta Grande Silver Project purchase. (See News Release dated September 28, 2006.) The property has at least two veins and covers a 500-meter section of the principal vein. There are two open shafts with approximately 50m depth to the water table. In the vicinity of the two primary shafts are a number of runs of mine dumps.
SAN SABINO CONCESSION
The San Sabino property is located approximately 8 km north of the Veta Grande processing plant. The property covers a 500-meter section of the San Sabino Vein marked by old workings and trenches. In the main showing area an old open cut and an old small mine dump are present. Random samples from this dump assayed 303 g/t silver and a selected high grade sample ran 834 g/t silver. A chip sample taken from a remnant pillar across the open cut assayed 260 g/t silver across a true width of 2.35m.
There is a perpendicular structure that appears to intersect this structure at or near the open workings. This secondary vein has only one small test pit and appears to have not been mined. It outcrops across a width of 3.0m and one sample across this width returned 290 g/t silver.
All of these acquired concessions in the general Zacatecas district represent potential future feed for the 200 tonne per day Zacatecas processing plant under option to IMPACT.
Future
The Zacatecas Silver District is one of the largest historic silver districts in the world with past production estimated at 1.2 billion ounces. The Zacatecas Silver District represents an initial foothold in the core of the district from which IMPACT plans to leverage itself through acquisitions and joint ventures to become the district's dominant player. IMPACT has begun due diligence, exploration and engineering work to evaluate the production potential of the properties and the processing plant. IMPACT is currently evaluating other concessions in the district as potential acquisitions.
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