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    20120912 ipt presentation 20120912 ipt presentation Presentation Transcript

    • C O R P O R AT E P R E S E N T AT I O N │ S E P T E M B E R 2 0 1 2 T S X – V : I P T │ F R AN K F U R T : I K L │ O T C : I S V L F
    • CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Except for historical information, this presentation may contain certain “forward-looking” statements and information relating to IMPACT that are based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but not limited to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement. The factors that could cause actual results to differ materially include, but are not limited to, the following: general economic conditions; changes in financial markets; the impact of exchange rates; political conditions and developments in countries in which the Company operates; changes in the supply, demand and pricing of the metal commodities which the Company mines or hopes to find and successfully mine; changes in regulatory requirements impacting the Company’s operations; the ability to properly and efficiently staff the Company’s operations; the sufficiency of current working capital and the estimated cost and availability of funding for the continued exploration and development of the Company’s exploration properties. This list is not exhaustive and these and other factors should be considered carefully, and readers should not place undue reliance on the Company’s forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements and neither the Company nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. NI43-101 QUALIFIED PERSON 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 information in this presentation.1
    • CORPORATE HIGHLIGHTS • Profitable silver production in Mexico: Three 100% owned and operated mines • Corporate focus is on profits: 553% increase in net earnings from 2009 to 2011 • A strong cash position of $23.1M and zero debt and 90% of revenues from silver • Building a new mining district: Capire Mine and Processing Plant in Mamatla, Mexico • Friendly-to-investor, tightly managed share structure (73M Shares FD)2
    • LOCATION • Two mineral districts in a large contiguous 623 sq km land package • A three-hour drive from Mexico City with paved road access to operating plant • Excellent infrastructure: modern electric power grid, ample water supply and a skilled Mexican work force • Many other significant mining operations nearby3
    • HISTORY • The Royal Mines of Zacualpan is one of the oldest mining districts in the Americas with 485 years of recorded mining history • Over 3,000 old mine workings have been catalogued and form the basis for modern and effective exploration • IMPACT bought the Zacualpan assets in 2006 and then One of 30 historic processing plants found in the consolidated ownership of the district attesting to a long history of silver mining entire district for the first time in its history4
    • TWO DISTRICTS, ONE LAND PACKAGE ROYAL MINES OF ZACUALPAN SILVER DISTRICT • Current active mining center . • Large 100% owned claim position covers 423 sq km (163 sq miles) • Central 500 tpd mill fed by three underground mines: San Ramon, Chivo & Noche Buena • New underground Oscar mine scheduled for production late 2012 • Substantial exploration potential for both silver and gold This map is reproduced in miniature on following slides5
    • MINE PRODUCTION ROYAL MINES OF ZACUALPAN • 500 tpd Guadalupe Mill fed by the San Ramon, Chivo and Noche Buena mines • YE 2011:154,289 tonnes produced, average of 424 tpd at 5.7 oz/ton (195 g/t) silver recovered • YE 2011: 833,607 silver ounces produced • YE 2011: $9 cash cost per ounce silver net of lead and zinc credits • YE 2012: Oscar mine scheduled for production6
    • SILVER PRODUCTION % 2011 2010 2009 2008 2007 2007 Change 2006-2011 Total tonnes processed (t) 154,289 131,348 114,340 102,426 99,918 99,918 +126% Tonnes processed / day (t) 424 360 313 280 274 274 +116% Silver (oz) Production 833,607 750,259* 823,571 645,668 349,949 349,949 +79% Gold (oz) Production 676 600 - - - - - Lead (t) Production 731 734 969 813 601 601 +95% Zinc (t) Production 1,248 1,212 1,098 1,053 976 976 +72% Revenue per production tonne $171 $123 $110 $90 - - +90% sold Direct cost per tonne sold $70 $63 $60 $55 $44 $44 +17% *Silver production was marginally down 9% in 2010 because the Company reduced the cut-off grade of the ore mined due to higher silver prices • Strong organic growth marked by rapid mine development with first drill hole to mine production in less than 24 months • Currently building two mines: underground Oscar mine and open-pit Capire mine • 2011 direct cost per tonne sold averaged $70 per tonne or $9 per ounce of silver net7 of lead and zinc credits
    • TWO PRODUCTION CENTERS OPERATING UNDER CONSTRUCTION • Guadalupe Processing Plant, Zacualpan • Capire Processing Plant, Mamatla • 500-tpd crushing and flotation circuit • 200-tpd pilot plant being installed with future expansion plans8
    • TWO DISTRICTS, ONE LAND PACKAGE CAPIRE DISTRICT • Newest mineral district in IMPACT’s land package, located . 16 km southwest of Zacualpan in Mamatla, Mexico • Mamatla concession covers 200 sq km (77 sq miles) • Capire open-pit VMS deposit will be the first mine in the district • Initial production from 200 tpd pilot plant, currently under construction • Future silver production from Capire Mine & Processing Plant, September 2012 Capire is anticipated to propel IMPACT into a multimillion ounce silver producer9
    • NEW MINE DEVELOPMENT #1 CAPIRE PRODUCTION CENTER Defined NI 43-101 Plant Open for Mineral Resources expansion Site Tailings Facility Capire Open for expansion open pit 3D Model Processing Plant Site Open-Pit Tailings Facility Capire Mine site Capire Mine: Open pit model • Capire mine represents a new production center in a new mining district • Strategy to bring Capire to full-scale production: o 2012: Construction of 200-tpd pilot plant and 5,000 m drill program o 2013 & 2014: 200 tpd pilot plant production (~200,000 oz silver annually) to optimize operating parameters for expansion plans o 2015: Construction of full scale plant (800-1,500 tpd) with goal to10 produce over 1M oz silver annually
    • CAPIRE NI 43-101 MINERAL RESOURCE ESTIMATE Metal Content for Capire Project Ag (oz) Au (oz) Cu (lbs) Pb (lbs) Zn (lbs) Measured 3,529,969 14,146 3,389,275 18,234,678 46,140,820 Indicated 3,694,066 16,300 3,693,733 19,029,800 49,522,173 Measured & Indicated 7,224,035 30,446 7,083,007 37,264,478 95,662,993 Inferred 435,959 1,919 475,594 2,260,089 5,823,490 Summary of Classified Mineral Resources – Measured + Indicated and Separate Inferred Domain Classification Tonnes Ag (g/t) Au (g/t) Cu (%) Pb (%) Zn (%) Capire Measured + Indicated 3,104,944 46.46 0.19 0.06 0.33 0.93 Aurora 1 Measured + Indicated 1,807,302 44.50 0.199 0.07 0.36 0.80 Total Measured + Indicated 4,912,246 45.74 0.193 0.06 0.34 0.88 Total Inferred 371,066 36.54 0.161 0.06 0.28 0.71 • Initial production planned on higher grade portion of Capire • Drilling is continuing at Capire to expand mineral resources • Capire zone lies in the same stratigraphy as Campo Morado where Nystar (formerly Farrallon Resources) is in production on the large G-9 VMS deposit, which is on trend 45 km southwest11 of Capire
    • NEW MINE DEVELOPMENT #2 OSCAR MINE • Oscar is a silver vein corridor on the southern extension of the past- producing Cuchara Mine • The high grade Oscar-Santa Lucia Zones are scheduled for production in late 2012 to OLD CUCHARA MINE replace the Chivo mine where grades are dropping with depth OSCAR MINE • Pre-existing Cuchara mine SANTA LUCIA ZONE mining infrastructure will contribute to low capital costs and rapid mine development at Oscar (<1yr)12
    • NEW MINE DEVELOPMENT #2 OSCAR MINE • Oscar and Santa Lucia host high grade veins as found in the following drill holes: OSCAR CORRIDOR DRILLING HIGHLIGHTS SANTA LUCIA ZONE DRILLING HIGHLIGHTS True Lea True Drill Silver Gold Zinc Drill Silver Gold Lead Zinc Width d Width Hole (g/t) (g/t) (%) Hole (g/t) (g/t) (%) (%) (m/ft) (%) (m/ft) 31m / 1.4m / Z11-44 291 0.01 0.1 0.4 Z09-35 600 0.10 - - 101.7ft 4.6ft 7.5m / 6.3m / Including 780 0.02 0.4 1.1 Z09-47 278 0.01 0.2 0.7 24.6ft 20.7ft 5.8m / 3.2m / Including 398 0.03 0.2 0.9 Including 467 0.01 0.2 1.1 19.0ft 10.5ft 5.7m / 1.0m / Z11-46 1,007 0.07 0.5 1.1 Z09-50 602 0.02 0.1 0.1 18.7ft 3.3ft 2.8m / 2.4m / Including 1,128 0.51 0.9 1.4 Z09-53 419 0.03 0.3 0.3 9.2ft 7.9ft 1.1 / 1.1m / Including 4,580 0.26 1.7 4.0 Z09-55 372 0.01 0.1 0.2 3.6ft 3.6ft 6.6m / 2.1m / Z11-64 223 0.08 0.2 0.5 Z09-58 274 0.10 0.4 1.2 21.7ft 6.9ft 1.0m / 1.1m / Z11-74 1,875 0.74 2.7 6.9 Z10-03 588 0.05 0.4 2.0 3.3ft 3.6ft 23.4 / 1.7m / Z12-08 115 0.02 0.1 0.4 Including 394 0.07 1.1 1.6 76.8ft 5.6ft13
    • GEOLOGY METAL DISTRIBUTION IN ORE ZONES • Veins in the Royal Mines of Depth Length Mining Level Zacualpan District tend to 150-420 m (500-1400 ft) be silver-rich near the top 0 m (0 ft) (commonly 1,000+ g/t) with Silver-rich at top Oscar Mine increasing lead and zinc 200 – 1,000+ g/t Ag Noche Buena Mine and decreasing silver toward the bottom San Ramon Mine 150 m (500 ft) • New discoveries indicate that significant gold and copper may lie at depth Lead & Zinc rich at bottom Chivo Mine 300 m (1,000 ft) 60 – 150 g/t Ag • Capire zone is a different Carlos Pacheco type of mineralization: a Typical Gold (Copper) Gold-Copper Zone volcanogenic massive Mining Width at depth sulfide (“VMS”) deposit 3 m (10 ft) Host to high grade Gold14
    • VALLE DE ORO GOLD POTENTIAL AT DEPTH• First gold-copper zone found by company prospectors in a canyon below the known silver veins• Initial drill results on two zones returned high gold values (see tables below)• These initial drill results indicate potential gold horizons lying at depths of 300 m (1,000 ft) below the silver district• Drilling will test gold targets at depth on other silver veins CARLOS PACHECO DRILLING HIGHLIGHTS HUATECOSCO DRILLING HIGHLIGHTS True Width Gold Silver Copper Drill True Width Gold Silver Lead Zinc Drill Hole (m/ft) (g/t /opt) (g/t) (%) Hole (m/ft) (g/t /opt) (g/t) (%) (%) 2.1 m / 11.3 g/t 0.34 4.1 m / 5.2 g/t Z08-65 18 - Z11-48 30 0.7 1.8 6.9 ft opt 13.5 ft 0.16 opt 1.2m / 18.8 g/t 0.8 m / 25.0 g/t Including 24 - Including 50 0.5 1.6 3.9 ft 0.56 opt 2.6 ft 0.75 opt 2.9 m / 19.6 g/t Z11-17 3.2 m / 3.4 g/t Z08-68 68 0.29 118 0.6 0.8 9.5 ft 0.59 opt 10.5 ft 0.10 opt 1.0 m / 49.7 g/t 1.8m / 3.5 g/t Including 59 0.31 Z11-19 321 0.4 0.6 3.3 ft 1.49 opt 5.9 ft 0.11 opt 1.7 m / 31.1 g/t Including 69 0.31 9.5 m / 3.97 g/t 5.6 ft 0.93 opt Z11-20 49 1.7 2.6 31.2 ft 0.12 opt Z12-13 2.8 m / 8.5 g/t 56 1.12 4.2 m / 6.96 g/t Including 9.0 ft 0.26 opt Including 84 2.9 5.1 13.9 ft 0.21 opt15
    • TECHNICAL SUMMARY IMPACT’s goal is to build a multimillion ounce precious metals producer with multiple processing centers 1. Guadalupe Production Center • Oscar Silver Mine scheduled for production in late 2012 • Current ore feed from San Ramon, Noche Buena and Chivo Mines 1 2. Capire Production Center • New production centre in new district • Initial production through 200-tpd pilot plant • Multiple gold and silver targets in district 3. Valle De Oro Gold & Silver Area • Area of many silver veins with gold and 3 copper mineralization at depth • Large drill program currently underway • Potential site of a third processing plant 2 4 4. Southeast Exploration Area • Currently mapping numerous old mine workings, early stage exploration16
    • RAPID EXPLORATION TO MINE DEVELOPMENT • A cornerstone of IMPACT’s success is rapid mine development to generate near-term cash flow • Since 2006, IMPACT’s team has successfully discovered and built three new mines with two additional mines now under construction EXPLORATION AND MINE DEVELOPMENT PROCESS FLOWCHART: RESEARCH FIELD WORK DRILLING MINE & DISTRICT MINE Compile old Surface & Drilling in DEVELOPMENT PRODUCTION mines/ underground phases & CASH prospects from sampling, based on Mine Planning, FLOW historic maps mapping success Permitting and Construction • Capire (North) More than • Capire (new • San Ramon • Pilarica 3,000 old Select mining district) • Condesa & • Noche mines and areas and Cuchara North Buena prospects prospects • Oscar catalogued for drilling • Carlos Pacheco • Chivo to date • Huatecosco • Santa Lucia • Gallega First Drill Hole to Production: 12 – 24 Months (Chivo, San Ramon Extensions, Noche Buena)17
    • FINANCIAL SUMMARY % Change ($000’000’s CDN except of EPS) 2011 2010 2009 2008 2007 2006* 2006-2011 Revenue $24.3 $16.7 $12.2 $8.9 $7.3 $7.0 +247% Net Earnings $7.6 $3.4 $1.6 $.66 $.29 $.51 +1,390% Operating Cash $10.2 $5.4 $3.7 $2.2 $1.9 $2.6 +292% Flow* Cash & Cash $30.8 $18.7 $5.3 $5.4 $10.1 $4.0 +670% Equivalents Working Capital $31.9 $20.2 $6.3 $7.3 $11.3 $5.2 +467% EPS $0.12 $0.07 $0.02 $0.01 $0.01 $0.01 +1,100% * Royal Mines of Zacualpan project purchased by IMPACT Silver in January 2006 Revenue $30,000,000 $25,000,000 $20,000,000 Net Earnings $15,000,000 $10,000,000 Operating Cash Flow $5,000,000 before changes in $- non-cash operating 2006 2007 2008 2009 2010 2011 capital*18
    • LONG-TERM VALUE PLAY MARKET INFORMATION – SEPT 2012 Recent 52 Wk $0.96 - $1.55 Share Price Range $2.35 Shares Basic – 68 M Avg Vol 125,000 Outstanding FD – 73 M (3m) Market Cap 105 M Warrants Nil Largest Positions Sprott Asset Management, 12% Energold Drilling Corp, 11% Share Price Performance, 3 Years Source: Stockwatch, Sept 2012 CAPITAL EXPENDITURE USE EFFICIENCY ($CDN)* Total funds raised since start of Property payments, plant & equipment, Cash Position operations in January, 2006 and exploration expenditures (June 30th, 2012) $25 Million $38 Million $23 Million19
    • ZACATECAS OPTION AGREEMENT DEFIANCE SILVER CORP. (TSX.V:DEF) • IMPACT Silver optioned its 200-tpd Santa Gabriela Santa Gabriela Processing Plant Processing Plant and ten mineral concessions to Defiance Silver for cash and a 16.5% share position • Defiance Silver is a near term silver producer exploring in the Zacatecas Mining District in Mexico • Defiance Silver plans to marry IMPACT’s Santa Gabriela plant with their San Acacio Silver Mine (18M oz Silver defined) San Acacio Silver Mine20
    • FUTURE PLANS AND GOALS 2012 • 2012 is a transition year as IMPACT builds two new mines, laying the foundation for the next phase of profitable silver production growth • Continue aggressive exploration to accelerate organic growth at the Royal Mines of Zacualpan • With over $23 million of unallocated cash and consistent production earnings, pursue accretive merger and acquisition opportunities of near term production or cash-strapped precious metals companies worldwide 2013 to 2015 • Double silver production with expansion of Capire Production Center • Continue exploration and development of both silver zones and deep gold zones within the gold-rich Valle de Oro zone21
    • WHY IMPACT SILVER? • Five years of increasing revenues and earnings • Strong cash position & zero debt • Expanding silver production with two new mines commencing production within the next five months • Aggressive exploration for gold and silver in the Valle de Oro • Tight share structure and small This statue of a miner is located in front of the market cap for a profitable church in the town of Zacualpan, signifying the importance and acceptance of mining within producer the community and the surrounding areas. • Proven history of profitable mining success22
    • Contact Us Telephone: 1 604 681 0172Email: inquiries@impactsilver.com www.impactsilver.com