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.
IMPACT has established itself as a key player in the Zacatecas Silver District. The Company holds an option agreement with Defiance Silver Corp (DEF:TSX-V). These holdings represent potential ore feed for the 200 tpd mill located in the area. Infrastructure is excellent with paved highways that run through the district along with road networks, electric power and a trained Mexican workforce.
Option Agreement
The Zacatecas Veta Grande Project assets include the 200 tpd Santa Gabriela processing plant, surface rights, 10 mineral concessions owned 100% by IMPACT and three mineral concessions owned 27% by IMPACT but subject to a right of first refusal for acquisition by joint venture partner Silver Sun Resource Corp.
The option agreement consists of two staged payments to IMPACT totaling 6,675,000 common shares of Defiance which will represent a major shareholding in Defiance. The initial payment of 1,668,750 common shares of Defiance is to occur on or before 90 days from the signing of the option agreement. The second and final payment of 5,006,250 common shares of Defiance is to occur on the final closing defined as on or before the earlier of two (2) years from signing of the option agreement or on achieving commercial production at the Santa Gabriela mill. Commercial production is defined as production of 160 tonnes in a 30 consecutive day period. During the term of the option, Defiance will be the operator responsible for carrying out work programs and maintaining the assets in good standing under terms of an operating licence with IMPACT. This includes an existing operating permit for the processing plant that requires a schedule of upgrades to be completed to keep it current. Defiance is also required to complete a financing for a minimum of $1,500,000 prior to the final closing. This agreement is subject to approval by the TSX Venture Exchange. The potential creation of a control block is subject to approval by the shareholders of Defiance.
IMPACT management feels that signing this option agreement will unlock the value of these non-core assets for IMPACT in the form of a major shareholding in Defiance, a junior company with excellent management and a purposeful plan to advance these assets along with plans for additional acquisitions. This arrangement will also allow the Company to focus its resources on expanding its flagship mining operations at the Royal Mines of Zacualpan Silver District and, in the immediate future, the Capire Mine Development Project, scheduled for production in late 2011 as well as developing other projects and opportunities.
Exploration
Below is a summary of previous exploration completed by other vendors.
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 mine are not available, but old plans indicate that it was mined along a length of 700m and to a depth of 150-200m.
The San Jose Vein crosses the concessions over a distance of 800m. Old mine workings and dumps mark the surface along its entire width. A total of six channel samples were collected from surface exposures of the vein and averaged 239g/t silver over 0.74m true width ("TW"), ranging to a high of 444g/t silver over 1.10m TW. Five old mine dumps were also sampled along the vein. Two samples were collected at each dump site. The average of the five sulphide-bearing samples was 407g/t silver, ranging to a high of 1,070g/t silver. The average of five sulphide-poor samples was 141g/t silver, ranging to a high of 390g/t silver.
The Armado Vein trends 100m west of and runs parallel to the San Jose Vein. It has been traced over a distance of 500m and is marked by old mine workings and dumps along its entire length. Channel samples collected from surface exposures of the vein located 130m apart assayed 237g/t silver over 1.92TW and 1,320g/t silver over 0.30mTW. Two samples were collected at an old mine dump on the vein located 400m to the north. A sulphide-bearing sample assayed 358g/t silver and a sulphide-poor sample assayed 247g/t silver.
Several splay veins branch off the main Armado Vein. A channel sample from a splay vein in the southern portion of the concessions assayed 188g/t silver over 1.04m TW. At this location, a sulphide-bearing sample from the old mine dump assayed 556g/t silver and a sulphide-poor sample assayed 54g/t silver.
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 Zacatecas 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.
Related News Releases
| March 23, 2010 | Impact Silver Completes Purchase Of 200-TPD Mill At Zacatecas | |
| October 26, 2006 | Test Milling At Zacatecas Processing Plant Commences | |
| September 28, 2006 | IMPACT Silver Announces Signing of Comprehensive Agreement for Veta Grande Silver Project | |
Maps & Images
