2. 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, 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.
Cautionary Statement
2
3. SILVER PRODUCTION NEW HIGHER GRADE SILVER MINES GOLD & COPPER ZONES EXTENSIVE EXPLORATION UPSIDE PRUDENT MANAGEMENT
IMPACT Silver has been a steady silver producer since 2006 with low cost operations on one large property in central Mexico.
2014 saw initial mining of new gold zones and metallurgical testing of copper zones in the Carlos Pacheco area, with the aim to diversify Company metal production
In response to lower silver prices, mining is successfully transitioning to new higher grade silver mines at Cuchara and Mirasol
Exploration continues to evaluate some of the 3,500+ historic mine workings in the district indicative of extensive silver and gold mineralizing systems
Management is focused on building value by efficient use of funds and technical assets, in pursuit of building a multimillion ounce precious metal producer
Overview
3
4. Frederick W. Davidson, CA
President, CEO, Director
President of IMPACT Silver and Energold Drilling Corp. Over 33 years of mining experience, including holding various senior positions at Erickson Gold Mines Ltd. and Mt. Skukum Gold Mines.
George Gorzynski, P. Eng.
VP Exploration, Director
Over 30 years of exploration and mining experience; also current Director of Tirex Resources, Defiance Silver and Berkwood Resources.
Richard Younker, CA, CMC
CFO
Held the senior financial consulting principal position at Woods Gordon; independent financial consultant in public and private sectors.
Armando Alexandri
COO
Over 35 years of mining experience in underground and open-pit mines as well as flotation and cyanidation processing plants.
H. Walter Sellmer, P. Geo
Director
Held senior positions at Amax Exploration, Canamax Resources Inc. and TOTAL Energold Corp.
Victor Tanaka, P. Geo
Director
President and CEO of Bayswater Uranium Corp. Held senior positions at Asamera Inc., Freeport McMoRan Gold Corp., Aber Resources, Major General Resources, Fjordland Exploration and Pathfinder Resources.
Richard Mazur, P. Geo, MBA
Director
President and CEO of Forum Uranium Corp. and CEO of Alto Ventures Ltd. Held senior positions at Canamax Resources and IMPACT Minerals.
Peter Tredger, P. Eng., MBA
Director
Former Senior Officer of Thompson Creek Metals Company. Held senior positions at Glencairn Gold (now B2Gold) and Wheaton River Minerals (now Goldcorp).
Jean-Pierre Bourtin, MBA
Director
President of a private equity firm in Connecticut, USA. Former Treasurer of Xerox Corp., Latin American and Emerging Markets.
Directors & Management
4
5. •100% owned and operated large 623 km² (62,300 ha) mineral concession package in south-central Mexico.
•Two contiguous mineral districts with long history of silver mining and entering new era of gold mining.
•A three hour drive southwest from Mexico City, with paved road access to the gate of IMPACT’s Guadalupe Production Center.
•Excellent infrastructure, with a modern power grid, ample water supply and a skilled, 99% Mexican workforce.
•Many other significant mining operations in the region.
5
Property Description
6. •The Royal Mines of Zacualpan is one of the oldest mining districts in the Americas, with nearly 500 years of recorded mining history
•IMPACT’s large land package has a long history of silver mining and is now entering a new era with the addition of gold production on the same property
•IMPACT’s exploration work has catalogued over 3,500 old mine and mill workings, indicating large exploration potential and forming an invaluable database for modern and effective exploration.
Prolific Mining History
6
Zacualpan District
Capire District
Early stage exploration area
Number of Old Mine Workings >3,500
Valle de Oro Subdistrict
7. Mines and Processing Plants
•Two Processing Plants and multiple mines
•The 500-tpd Guadalupe Production Center is the main production facility which receives mineral from four underground mines located within close proximity:
•Cuchara-Oscar Silver Mine
•San Ramon Silver Mine
•Mirasol Silver Mine
•Carlo Pacheco Gold Mine
•The 200-tpd Capire Pilot Plant is used as a bulk testing/processing facility and was most recently used to test the processing of gold and copper feed from the Carlos Pacheco Zone
7
8. 8
One Property - Two Processing Plants
GUADALUPE PRODUCTION CENTRE (500 TPD)
CAPIRE PILOT PLANT (200 TPD)
9. Mirasol
Began production in Q2/2014
Epithermal silver veins located in the Zacualpan District. Part of production transition to mining of higher grade silver veins in response to lower silver prices Total production in Q3 2014: 4%
San Ramon Began production in 2004 High grade epithermal silver veins in Zacualpan District Recent discovery of new high grade silver veins at depth have extended mine life Contribution to total production in Q3 2014: 19%
Cuchara-Oscar Began production in 2013 Corridor of epithermal veins linking new and legacy mines; recently ramped up to become the principal producing mine in the Zacualpan District Contribution to total production in Q3 2014: 53%
Gallega Mine Located less than one kilometer from Guadalupe mill and mined intermittently to provide modest tonnage and higher grade silver to feed. Contribution to total production in Q3 2014: 17%
One Property - Four Producing Mines
9
10. 10
San Ramon Deeps High Grade Silver Discovery
•Recent drilling has begun outlining a new deep high grade silver zone at the San Ramon Mine
•Current mining is averaging 239g/t Silver from Levels 18 and 19
•The Zone remains open for expansion to the south and to depth with additional drilling planned
New high grade silver discoveries (in red)
Open for expansion; drilling underway
11. Geology of Epithermal Vein Systems
Silver-rich at top of vein 150 – 1,000+ g/t Silver
Lead and Zinc-rich at bottom of vein
50 – 120 g/t Silver
Gold-copper at depths of 300 m+
Metal Zoning in Mineral Shoots
Strike Length 150 – 420 m (500 – 1,400 ft)
Metal Level in Producing Mines
Surface – 0 m (0 ft)
150 m (500 ft)
300 m (1,000 ft)
Depth
11
San Ramon Mine
Carlos Pacheco/San Juan Mine
Mirasol Zone
Cuchara-Oscar Mine
San Patricio Zone
12. 12
Carlos Pacheco / San Juan Gold-Copper Zone
•Test mining of gold and metallurgical testing of copper began at Carlos Pacheco South in January 2014
•Drilling in 2013 began outlining the larger San Juan Gold-Copper Zone
•The Zone remains open for expansion to depth with additional drilling planned
13. Rapid Exploration To Mine Development
RESEARCH Compile old mines/ prospects from historic maps
DRILLING Drilling in phases based on success
MINE DEVELOPMENT Mine Planning, Permitting and Construction
FIELD WORK Surface & underground sampling, mapping
MINE PRODUCTION & CASH FLOW
More than 3,500 old mines and prospects catalogued to date
Prioritize and select areas and prospects for drilling
• San Juan
• San Patricio
• Alacran North
•Cuchara-Oscar
•San Ramon
• Mirasol
• Carlos Pacheco
•San Juan
•San Patricio
A cornerstone of IMPACT’s success has been rapid mine development to increase mill throughput and generate near-term cash flow – drilling to production typically in <24 months
EXPLORATION AND MINE DEVELOPMENT PROCESS FLOWCHART:
18
14. Production Summary
Production Highlights
YTD 2014
YE 2013
Change
YE 2012
Silver production (oz)
480,194
682,526
+10%
620,515
Gold production (oz)
802
1269
+102%
629
Average mill head grade (silver grams per tonne)
152
158
+14%
138
Total tonnes produced (t)
120,463
159,270
-6%
168,826
Tonnes produced per day (on 500TPD mill)
441
436
-6%
463
Revenue per production tonne sold
$76.1
$84
-10%
$94
Direct costs per production tonne
$69.8
$68
+9%
$62
14
Silver-Focused Producer
Silver 80.83%
5.54%
4.68%
8.94%
Revenue Breakdown by Metals (2013)
Silver production
(oz)
Lead production (t)
Zinc production (t)
Gold production
(oz)
15. (CDN$000’000’s except EPS)
YTD 2014 (Sept)
YE 2013
YE 2012
YE 2011
Revenues
$8.9
$14.1
$15.9
$24.3
Operating expenses
$8.8
11.4
$10.3
$10.1
Mine operating earnings (loss)*
($2.0)
$1.5
$4.0
$12.9
EBITDA
$0.0
($4.6)
$1.6
$13.0
Net earnings (loss)
($2.9)
($8.5)
($1.1)
$7.6
Operating cash flow**
($0.6)
$0.6
$3.3
$10.2
Debt
Nil
Nil
Nil
Nil
Earnings (loss) per share – basic
($0.04)
($0.13)
($0.02)
$0.12
Cash and cash equivalents
$1.0
$3.5
$16.0
$30.8
Working capital
$4.0
$6.9
$21.4
$31.9
15
*Before Amortization and Depreciation **Before changes in non-cash working capital
Financial Highlights
The Company’s working capital and cash position decreased from the year ended December 31, 2012, as the Company invested in the development of the Capire Mine and Pilot Plant, as well as continued exploration in the Zacualpan District.
16. All prices in Canadian Dollars
As of Dec 1, 2014
Common shares – Issued & Outstanding
68.1 M
Fully Diluted
74.4 M
Share Price
$0.31
52wk Range
$0.23 - $0.89
30-Day Average Daily Volume
40,787 Shares
Market Capitalization
21.1M
Insider and Institutional Ownership
14.9%
Options Issued
6.3 M
Warrants
Nil
Corporate Summary (TSX-V: IPT)
16
Source: Yahoo Finance
1-Year Chart Summary
17. 2014
•TRANSITIONING TO NEW HIGHER GRADE PRODUCTION
•Complete ramp up of Cuchara Silver Mine and focus on grade (Q3 - Done)
•Begin initial mining gold at Gallega mine (Q3 – Done)
•Begin new higher grade silver production at Mirasol Mine (Q2 - Done)
•Expand high grade silver production at San Ramon Deeps (Continuing – completion Q4)
2015+
•EXPANSION AND EXPLORATION
•Prepare San Juan Gold-Copper Zone (Noche Buena Mine) and San Patricio Silver Mine for production
•Consider putting Capire open pit silver mine back into production with possible larger processing plant when silver prices recover
•Continue exploration on >3500 silver and gold-copper targets, and expansion of mining activities with aim to grow IMPACT Silver into a multimillion ounce precious metals producer
Plans for Growth
17
18. Contact Us
IMPACT Silver Corp.
TSX-V: IPT Frankfurt: IKL
Telephone
1-604-681-0172
Fax
1-604-681-6813
Email
inquiries@impactsilver.com
Investor Relations Manager
Jerry Huang MBA
Website
www.IMPACTSilver.com
Twitter
@IMPACT_Silver
Corporate Address
Suite1100 - 543 Granville Street
Vancouver, BC, Canada V6C 1X8
18
19. Appendix I: Capire NI 43-101 Resource Estimate Completed February 2011
Metal Content for Capire Mine
Ag (oz)
Au (oz)
Cu (lb)
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 (M&I)
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 Table of Classified Mineral Resources – Measured & Indicated and Separate Inferred
Zone
Classification
Tonnes
Ag (g/t)
Au (g/t)
Cu (%)
Pb (%)
Zn (%)
Capire
M&I
3,104,944
46.46
0.19
0.06
0.33
0.93
Aurora 1
M&I
1,807,302
44.50
0.199
0.07
0.36
0.80
Total
M&I
4,912,246
45.74
0.193
0.06
0.34
0.88
Inferred
371,066
36.54
0.161
0.06
0.28
0.71
•Drilling in 2010 showed Capire and Aurora 1 to be one continuous zone, now referred to as Capire
•See National Instrument 43-101 Resource Estimate on the Company website at www.impactsilver.com
19
20. Appendix II: Capire Drill Highlights
A Selection of Capire Drill Highlights
Drill Hole
From (m)
To
(m)
Interval
(m)
Ag (g/t)
Au (g/t)
Pb
(%)
Zn
(%)
Cu
(%)
C12-06
78.25
80.30
2.05
507
1.81
2.20
4.02
0.41
including
79.30
80.30
1.00
929
3.27
2.77
5.27
0.63
and
105.70
110.80
5.10
183
0.20
1.05
2.45
0.13
C12-21
83.35
100.10
16.75
153
0.40
1.14
2.71
0.21
including
92.40
97.00
4.60
435
0.71
3.13
5.99
0.48
C12-25
13.20
23.35
10.15
107
0.58
0.90
2.43
0.10
including
13.20
15.25
2.05
315
0.91
2.93
8.19
0.25
•Drill holes listed above were drilled vertically and all intersections are estimated to be close to true width
•See IMPACT Silver News Release dated October 25, 2012
20
21. Appendix III: Mirasol Drill Highlights
A Selection of Mirasol Drill Highlights
Drill Hole
Vein Name
From (m)
To
(m)
True Width
(m)
Ag (g/t)
Au (g/t)
Pb
(%)
Zn
(%)
Z12-71
Mirasol Central
73.9
82.9
8.94
183
0.030
0.07
0.14
including
Mirasol Central
75.2
82.4
7.15
216
0.040
0.08
0.16
Z12-79
Mirasol Arriba 3
127.25
128.40
1.14
400
0.034
0.13
0.08
and
Mirasol Arriba 1
162.60
164.48
1.88
529
0.283
0.37
1.31
Z12-80
El Deshuesadero
83.45
85.15
1.55
931
0.300
1.03
2.10
Z12-82
Mirasol
188.75
190.55
1.80
946
0.893
1.51
3.43
Z12-85
Mirasol Arriba 3
147.15
148.26
1.11
1,064
0.187
0.46
2.05
Z12-86
El Deshuesadero
217.25
220.70
3.20
289
0.090
0.14
0.51
•Mirasol was discovered in November 2012, 5.5km from the Guadalupe Production Center, in Zacualpan
•Several high grade silver values discovered, with drill hole Z12-79 encountering seven distinct veins, all of which are contributing potentially economic silver intersections. For details see IMPACT Silver News Releases dated January 28, 2013 and November 26, 2012
21
23. Appendix V: Carlos Pacheco Drill Highlights
A Selection of Carlos Pacheco Drill Highlights
Drill Hole
From (m)
To (m)
Interval (m)
Au (g/t)
Ag (g/t)
Cu (%)
Z08-68
Top of intercept - 85.74
2.90
19.6
68
0.29
including
Top of intercept - 85.74
1.0
49.7
59
0.31
Z12-13
192.30
199.00
6.70
3.84
28
0.54
including
192.30
195.05
2.75
8.47
56
1.12
Z12-23
229.85
230.95
1.10
3.82
84
0.54
A Selection of Intermediate (Noche Buena) Vein Drill Highlights
Drill Hole
From (m)
To (m)
Interval (m)
Au (g/t)
Ag (g/t)
Pb (%)
Zn (%)
Z12-16
100.00
114.30
14.30
0.04
82
0.09
0.19
including
100.00
106.50
6.50
0.06
119
0.06
0.14
Z12-18
57.00
59.00
2.00
0.20
337
0.23
0.43
Z12-23
26.10
28.10
2.00
0.22
207
0.10
0.15
•In addition to the gold-copper mineralization in the Carlos Pacheco vein, other drill holes intersected Ag-Pb-Zn mineralization in the Intermediate vein cluster, located midway between the Carlos Pacheco and Noche Buena veins. See IMPACT Silver News Releases dated December 4, 2008 and July 11, 2012
23
24. Appendix VI: San Juan Project Drill Highlights
A Selection of San Juan Project Area Drill Highlights
Drill Hole
Vein Name
From (m)
To (m)
True Width (m)
Ag (g/t)
Au (g/t)
Pb (%)
Zn (%)
Cu(%)
Z13-42
Carlos Pacheco
119.30
128.60
9.02
21.3
3.894
0.98
3.28
0.11
including
Carlos Pacheco
127.65
128.60
0.92
73.3
33.630
4.09
12.02
0.10
Z13-44
Noche Buena
11.60
14.00
2.07
1,409.8
0.963
0.29
0.34
0.03
and
Carlos Pacheco
158.05
162.40
4.03
30.9
4.070
0.18
0.83
0.12
Z13-45
Carlos Pacheco
169.00
173.00
3.78
18.3
9.350
0.04
0.08
0.22
Z13-60
Noche Buena
16.15
28.35
12.20
300.5
0.256
0.06
0.19
0.01
Z13-67
Carlos Pacheco
14.60
22.55
7.17
37.20
3.439
0.02
0.07
0.53
Z13-71
Carlos Pacheco
157.45
160.75
3.19
276.9
10.343
0.56
0.76
1.88
Z13-76
Noche Buena
52.00
57.87
5.67
994.2
1.102
0.27
0.28
0.02
•The San Juan Project Area encompasses a series of old mine workings containing multiple working levels located 150m to the north of the Noche Buena Mine. These old working lie along the northern extension of the Carlos Pacheco Vein, where previous drilling intersected 19.6g/t gold across 2.9m and 3.84g/t gold across 6.7m. See IMPACT Silver News Release dated October 30, 2013 for details.
24
25. Appendix VII: Condesa Drill Highlights
A Selection of Condesa (Cuchara) Drill Highlights
Drill Hole
To (m)
From (m)
Interval (m)
Ag (g/t)
Au (g/t)
Pb (%)
Zn (%)
Z12-39
167.30
171.00
3.70
312
0.029
0.27
0.90
Z12-42
136.00
139.78
3.78
214
0.269
0.15
0.37
Z12-45
177.90
179.00
1.10
1,655
0.010
0.25
0.08
Z12-46
151.40
154.25
2.85
255
0.111
0.22
0.46
Z12-55
57.80
59.60
1.80
245
0.030
0.12
0.36
Z12-63
106.50
108.85
2.35
231
0.010
0.16
0.26
Z12-64
101.10
105.55
4.45
200
0.035
0.21
0.49
Z12-68
46.40
50.30
3.90
250
0.009
0.07
0.16
•Condesa will be accessed through the underground workings of the Cuchara Mine,
•Mineralization from Condesa is planned to augment production from Cuchara-Oscar
•See IMPACT Silver News Release dated November 19, 2012 for details
25
