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Background
Zacualpan is one of the oldest mining districts in North America with mining dating back to at least 1527. In 1531, it was the first mining district in the Americas to be given the title of 'Royal Mines' of Zacualpan by proclamation under the Spanish Crown. Numerous veins in the district have seen historic production but statistics for the early centuries of production are sporadic. In modern times, recorded production between 1975-2004 was approximately 17 million ounces of silver.
Introduction
The 125km2 Royal Mines of Zacualpan district has over 100 targets untested by modern methods. The project is located 100km southwest of Mexico City and 25km northwest of the Taxco Silver Mine. Access is by paved highway that runs through the middle of the district. Infrastructure is good throughout the district with gravel road networks, electric power, ample water supplies and a trained work force.
Production
Production presently comes from two operating mines, Guadalupe and Gallega (Salvadora), which feed a central processing plant rated at 500 tonnes per day. The plant presently operates at over half capacity. The Salvadora is located 500m from the mill and Guadalupe Mine is located within a 100m from the mill.
|
Three Months Ended
June 30, 2007 |
Six Months Ended
June 30, 2007 |
Six Months Ended
June 30, 2006 |
Total Tonnes (t) Produced |
25,451 |
48,296 |
29,859 |
Tonnes Produced per Day |
279 |
253 |
182 |
Silver Production (Oz.) |
73,890 |
159,497 |
189,409 |
Lead (t) |
157.35 |
293.03 |
164.62 |
Zinc (t) |
243.69 |
487.28 |
340.33 |
Cdn. $ direct costs per tonne |
43.38 |
46.97 |
63.23 |
Note: all measurements (other than silver) are in metric and are subject to smelter settlements
San Ramon
Production ceased in November 2006 to allow the construction of a new adit. The new adit will decrease production costs. At San Ramon two drill programs have taken place. The holes were drilled to both determine the size of the San Ramon Mine and to plan for future mining. The most significant results returned from both programs include:
Drill Hole |
Top of Intercept (m) |
Est. True Width (m) |
Silver
(g/t) |
Silver (oz/t |
Gold (g/t) |
Zinc (%) |
Lead (%) |
1 |
243.6 |
0.9 |
279 |
8.1 |
0.11 |
2.52 |
1.47 |
|
including |
0.2 |
957 |
27.9 |
0.04 |
2.66 |
1.02 |
4 |
133.8 |
0.9 |
746 |
21.8 |
0.36 |
3.08 |
1.08 |
Concepcion Vein
Drill Hole |
Top of Intercept (m) |
Est. True Width (m) |
Silver |
Silver (oz/t |
Gold (g/t) |
Zinc (%) |
Lead (%) |
(g/t) |
1 |
138.8 |
1.8 |
293 |
10.46 |
0.4 |
1.25 |
1.4 |
2 |
163.5 |
0.8 |
6,013 |
214.8 |
2.31 |
0.36 |
0.47 |
3 |
127.8 |
0.4 |
115 |
4.1 |
0.29 |
3.67 |
1.05 |
4 |
153.6 |
4.4 |
2,713 |
96.9 |
0.36 |
1.01 |
0.74 |
Including: |
|
0.4 |
27,793 |
992.6 |
3.4 |
9.47 |
7.52 |
San Agustin Vein
Drill Hole |
Top of Intercept (m) |
Est. True Width (m) |
Silver |
Silver (oz/t |
Gold (g/t) |
Zinc (%) |
Lead (%) |
(g/t) |
2 |
174.2 |
1.6 |
3,234 |
115.5 |
0.41 |
2.67 |
1.91 |
Including: |
163.5 |
0.7 |
7,010 |
250.4 |
0.73 |
5.87 |
4.26 |
3 |
127.8 |
1.2 |
450 |
16.1 |
0.23 |
2.3 |
0.75 |
4 |
153.6 |
0.6 |
1,140 |
40.7 |
0.56 |
0.56 |
0.23 |
The San Ramon is scheduled to resume production in the fall of 2007.
Gallega (Salvadora)
Salvadora Vein
The Salvadora Vein is located in the Gallega Mine about 500m southeast of the processing plant. Based on earlier underground sampling and drilling, mining began underground on the Salvadora Vein in late 2006. As part of the 2006 surface drilling program, mine staff requested the exploration group to drill the upper portions of the Salvadora Vein to determine whether they were also viable for mining. Results were as follows:
SALVADORA VEIN DRILL HOLES |
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|
|
|
|
|
DRILL |
TOP OF INTERCEPT |
ESTIMATED |
Ag |
Ag |
Au |
Zn |
Pb |
HOLE No. |
(m) |
TRUE WIDTH (m) |
(g/t) |
opt |
(g/t) |
(%) |
(%) |
|
|
|
|
|
|
|
|
24 |
95.0 |
0.2 |
688 |
20.1 |
0.32 |
0.66 |
0.30 |
|
|
|
|
|
|
|
|
25 |
245.8 |
0.4 |
538 |
15.7 |
0.12 |
0.80 |
0.15 |
|
Including: |
0.1 |
2,120 |
61.8 |
0.41 |
3.12 |
0.48 |
Exploration Potential
Exploration potential in the district is exceptional with limited modern work carried out to date. Continuing exploration is focused on expanding mineralized zones for mining and continued testing of the numerous historic silver mines and prospects throughout the property.
Over 200 old workings have been identified on only a small portion of the project that has been investigated by IMPACT as of yet. Historically, only material grading over 20 ounces per tonne silver was mined out of the vast majority of these workings. By targeting old workings and both sampling and mapping them, IMPACT believes that it has the opportunity to find veins in situ where mining stopped at the water table. If underground sampling results are encouraging, IMPACT will proceed to drill these targets.
Exploration
Chivo Silver Shoot
The Chivo Silver Shoot is located in the southern part of the Zacualpan silver district and represents a new zone of high grade silver mineralization at the Royal Mines of Zacualpan. Following up on previous high grade underground sampling (1,095g/t Silver over 1.25m TW) and surface sampling (2,640 g/t Silver over 0.85m TW), IMPACT drilled an initial eight holes on the Chivo Shoot. The holes tested the Chivo zone over a length of 60m and a downdip depth of 190m. The boundaries of the Shoot are not known and the zone remains open in all directions for expansion. Results included the following:
Drill Hole |
Top of Intercept (m) |
Est. True Width (m) |
Silver
(g/t) |
Silver (oz/t |
Gold (g/t) |
Zinc (%) |
Lead (%) |
7 |
44.4 |
1.1 |
841 |
24.5 |
0.63 |
0.43 |
0.32 |
8 |
50.5 |
2.4 |
422 |
12.3 |
0.25 |
1.54 |
0.69 |
|
including |
0.9 |
783 |
22.8 |
0.38 |
1.37 |
0.56 |
9 |
51.4 |
0.9 |
122 |
3.6 |
0.35 |
0.59 |
0.38 |
10 |
59.1 |
2.7 |
937 |
27.3 |
0.35 |
1.88 |
0.75 |
|
including |
0.7 |
2,380 |
69.4 |
0.43 |
4.83 |
1.85 |
11 |
55.1 |
0.9 |
153 |
4.5 |
1.07 |
0.85 |
0.22 |
12 |
63.7 |
0.9 |
460 |
13.4 |
0.53 |
0.45 |
0.36 |
13 |
80.2 |
3.5 |
249 |
7.3 |
0.15 |
2.27 |
0.93 |
|
including |
0.4 |
1,170 |
34.1 |
0.26 |
9.65 |
3.90 |
14 |
40.6 |
1.3 |
274 |
8.0 |
0.55 |
4.40 |
1.02 |
Production is expected to commence in the fall of 2007.
Cuchara Prospect
The Cuchara Prospect will be drilled in 2007 and will include additional drilling on the high-grade Oscar Vein, the Condesa Vein and other nearby veins. The Cuchara was one of the largest past silver producing mines in Zacualpan.
Oscar Vein
Two holes were drilled into two other early stage areas in the eastern part of the property. One hole discovered the polymetallic Oscar Vein with results as follows:
OSCAR VEIN DRILL HOLE |
|
|
|
|
|
|
DRILL |
TOP OF INTERCEPT |
ESTIMATED |
Ag |
Ag |
Au |
Zn |
Pb |
HOLE No. |
(m) |
TRUE WIDTH (m) |
(g/t) |
opt |
(g/t) |
(%) |
(%) |
|
|
|
|
|
|
|
|
26 |
95.0 |
0.3 |
2,820 |
82.3 |
7.83 |
7.83 |
3.48 |
Presently, very little is known about this target. More drilling is planned for this new discovery in the near future.
San Antonio Prospect
The San Antonio prospect is another one of the early stage targets to be drilled in 2007. It is located in the southeastern portion of the Royal Mines of Zacualpan Silver Project area. This is a historical mine marked by a double vein system. One vein is exposed in a glory hole measuring 45m x 3m x 30m deep, which was mined to the water table (no written records are known of who carried out this mining or when this mining was done). Chip samples taken by IMPACT geologists on surface at the edge of the glory hole assayed 164g/t silver, 3.23g/t gold, 2.65% lead and 0.93% zinc across 3.15m true width. A chip sample taken in an old pit north of the glory hole on the second parallel vein assayed 1,055g/t silver across 1.3m true width. The distance between the veins is 11m. The drill target at San Antonio is the downdip extension of the double vein system below the water table where the old time miners do not appear to have mined the veins.
Pino Prospect
The Pino Prospect is an early stage prospect on the Lipton Vein system. It is located 700m south of the Guadalupe Mine which has historically produced 10 million ounces of silver predominantly from the Lipton Vein. IMPACT continues to mine the Lipton Vein in the Guadalupe Mine today. The Pino Prospect area is marked by a large soil anomaly and sparse old small mine workings.
Pecheco Prospect
The Pecheco Prospect is located 5 km southwest of the Zacualpan processing plant. It is marked by a cluster of old mine adits and shafts, most of which are collapsed or blocked. Sampling at the end of one short adit recently opened by IMPACT field workers returned the following values near the end of the adit:
PECHECO ADIT SAMPLES |
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|
|
LOCATION |
ESTIMATED |
GOLD |
COPPER |
SILVER |
GOLD EQUIVALENT |
|
TRUE WIDTH (m) |
(g/t) |
(%) |
(g/t) |
(g/t) |
|
|
|
|
|
|
End of adit |
2.7 |
14.6 |
0.46 |
58 |
17.0 |
Including: |
1.2 |
32.4 |
0.80 |
106 |
36.8 |
|
|
|
|
|
|
8 m from end of adit |
2.4 |
5.9 |
0.70 |
80 |
9.4 |
Including: |
0.9 |
10.9 |
1.27 |
134 |
17.1 |
COBRE PROSPECT
The Cobre Prospect is an adit located on the Pecheco Vein System 3.5 km southeast of the Pecheco Prospect. Samples were collected in five places over the 25m exposed length of the vein in the adit and returned the following values:
COBRE ADIT SAMPLES |
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|
|
|
LOCATION |
ESTIMATED |
GOLD |
COPPER |
SILVER |
GOLD EQUIVALENT |
|
TRUE WIDTH (m) |
(g/t) |
(%) |
(g/t) |
(g/t) |
|
|
|
|
|
|
Average of 5 samples along 25 m exposed length of vein |
1.0 |
1.2 |
2.34 |
181 |
11.3 |
including: |
0.7 |
7.0 |
0.47 |
475 |
18.1 |
and including |
1.2 |
0.2 |
7.81 |
88 |
23.4 |
Mineralization
Zacualpan is a classic Mexican epithermal silver district with an abundance of veins that have seen historic production. Despite its long history, the largest mine in the district was discovered in the 1970's. Based on Guadalupe and other historical producers in the district, mine staff have developed a geological model for mineralization in the district. In this model upper levels of individual mineralized zones are typically silver-rich (commonly greater than 1000g/t silver) with lower levels characterized by base metal-rich (zinc + lead + silver + gold) mineralization. Veins mined historically at the larger mines in the district varied from 3 to 5 metres in width. Individual mineralized shoots are 50 to 150 metres long and are typically steeply dipping.
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