Impact Silver Corporate Presentation


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Impact Silver Corporate Presentation

  1. 1. EXPLORE. PRODUCE. PROFIT! MARCH 2012TSX-V: IPT Ň )5$1.)857 ,./ Ň ,6,1 $$
  2. 2. DISCLAIMERExcept for historical information, this presentation may contain certain “forward-looking” statements and information relating to IMPACTthat are based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACTmanagement. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but notlimited to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operatinghazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors andstrategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-timeevents. 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 theobligation 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 Companyoperates; changes in the supply, demand and pricing of the metal commodities which the Company mines or hopes to find andsuccessfully mine; changes in regulatory requirements impacting the Company’s operations; the ability to properly and efficiently staffthe Company’s operations; the sufficiency of current working capital and the estimated cost and availability of funding for the continuedexploration 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 onthe Company’s forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any suchfuture results, levels of activity or achievements and neither the Company nor any other person assumes responsibility for the accuracyand completeness of these forward-looking statements.George Gorzynski, P.Eng., a Qualified Person under the meaning of Canadian National Instrument43-101, is responsible for the technical information in this presentation.
  3. 3. INVESTMENT HIGHLIGHTS EXPLORE. PRODUCE. PROFIT!• Three 100% owned producing silver mines in Mexico• Consistently profitable operations with 5+ years of production profitability• Strong asset base with two adjacent 100% owned districts• Open-Pit Capire Project scheduled to commence production in late 2012• Recent discovery of potential new gold district in the Huatecosco Gold Project• $7 Million, 35,000 meter exploration drill program for 2012• 90% of revenues is pure, un-hedged silver• Strong cash position with over CAD$33M and Zero Debt 1
  4. 4. FINANCIAL SNAPSHOTProven track record ofprofitable rapid minedevelopment• Revenues have increased138% from 2006 to 2010• Earnings have increased253% from 2006 to 2010• Earnings per Share haveincreased 133% from $0.03 to$0.07 from 2006 to 2010 2
  5. 5. PROJECT LOCATION MEXICO100% Owned 623km² ProlificMining District spanning twoMexican StatesZacualpan Silver DistrictState of Mexico• 423km² with three producingmines 500 TPD Processing PlantMamatla Silver DistrictState of Guerrero• 200km² with open-pit mine scheduled for pilotproduction late 2012The project is located 100 kilometers southwestof Mexico City 25 kilometers northwest of thewell-known Taxco Silver Mine 3
  6. 6. HISTORIC CORE ASSET BASENearly 500 years of MiningHistory in the two Districts• To date, over 2,500 old mine workings gshave been mapped are beingcurrently being explored• Positive exploration results identifiedthe three current producing mines,originally old mine workings• The skilled and successful IMPACTSilver exploration team holds a proven nmine development track record:• 2008 – Chivo Mine Development• 2009 – San Ramon Mine Expansion• 2010 – Noche Buena Mine Development• 2011 – Capire Mine Development 4
  7. 7. GUADALUPE PROCESSING PLANT500 TPD Guadalupe ProcessingPlant located in the ZacualpanDistrict• Flotation circuit capacity recently expanded toaccommodate additional mineral feed• Annual production levels of ~1 million puresilver ounces• Currently operating near capacity of 440 TPD• Excellent infrastructure: • Modern power grid • Paved highway access • Abundant water supply • Highly qualified Mexican work force 5
  8. 8. MINES IN PRODUCTIONThree silver mines inZacualpan District feed the c500 TPD Guadalupe 0Processing PlantChivo Mine• Mining began in 2007• Medium grade epithermal silver veinsSan Ramon Mine• Mining began in 2008• High-grade epithermal silver veinsNoche Buena Mine• Mining began in 2010• High-grade epithermal silver veins• Excellent mining conditions, with averagesilver grades of 200 g/t and a historicaverage cost per ounce silver of $9 lesslead-zinc credits 6
  9. 9. MINES IN CONSTRUCTIONMines scheduled to move intoproduction2012 Capire Open-Pit Mine construction commenced January 2012, production scheduled for late 2012Capire Open-Pit Mine• NI 43-101 Resource Estimate completed January 2011• Pilot production of ~250,000 oz from 200 TPD mill• Low-cost, open-pit mine in the Mamatla Mineral District• Medium and high-grade VMS silver deposits• 5,000 meter expansion drilling program underway2013Oscar Mine• Corridor of multiple high-grade epithermal silver veins• Being studied for production in 20132014Huatecosco Gold Mine• Extensive 15,000 meter drilling program planned for Huatecosco area in 2012• Potential new gold-copper district• Major structure with inferred strike length currently mapped at 16 kilometers 7
  10. 10. LONG TERM STRATEGYTo become a Multimillion Ounce Silver Producer with Multiple Processing CentersGuadalupe Mining Processing Centre• Oscar Mine Project being studied for production in 2013, will feed Guadalupe mill• Ongoing high-grade silver exploration• Current ore feed from Chivo, San Ramon, Noche Buena MinesCapire Mining Processing Centre• Capire Open-Pit Project scheduled for production in late 2012 through 200 TPD pilot plant• 5,000 meter drill program underway to 3 1 determine size of permanent millHuatecosco Mining Processing Centre*• Potential new gold district• Expansive 15,000 meter drill program underway to determine economic feasibility of future mill 4• Significant drill results from multiple targets*Future 2Southeast Mining Processing Centre*• Early exploration stage• Currently mapping numerous historic old mine workings*Future 8
  11. 11. SILVER PRODUCTION 9 Months Ended Sept 30th 2011 YE 2010 YE 2009 YE 2008 Silver (oz) 663,853 750,259* 823,571 645,668 Lead (t) 589 734 969 813 Zinc (t) 1,000 1,212 1,098 1,053 Revenue per production tonne sold $208 $123 $110 $90 Direct cost per tonne produced $76 $63 $60 $55*Silver production was marginally down 9% because the Company reduced the cut-off grade of the ore mined due to higher silver prices in 2011 PRODUCTION FORECAST 3 • Silver production increased by 250% from 2007 - 2011 • Organic growth with low-cost production averaging $70 2 per tonne Millions (Oz) Pure Silver • Revenue per tonne increased 37% vs. increase in 1 production cost of 15% from 2008 - 2010 0 2012 2013 2014 2015 9
  12. 12. CAPIRE OPEN-PIT PROJECTCAPIRE PROJECTRepresents new mineoperations in the newMamatla Mineral District• Construction of 200 TPD pilot plantunderway as of January 2012 3 1• Annual production from pilot plant is200,000 to 300,000 pure silver ouncesfrom 200 TPD plant• 5,000 meter drill program for 2012 is 4planned for the Capire zone to definemetallurgy and determine permanentplant size 2 10
  13. 13. CAPIRE OPEN-PIT PROJECT5000 m Drill Programto expand Capire Zonein 2012• Numerous old mine workings VMStargets to be drilled in area surroundingthe Capire Zone• Each triangle represents rock samplecontaining 500 g/t silver and/or 10% zinc• Multiple epithermal silver veinsdiscovered north of Capire Zone• Capital expenditure for balance ofconstruction of Capire Project is budgetedat $5M 11
  14. 14. CAPIRE OPEN-PIT MINE DESIGN Area of defined NI 43-101 Resources Open for expansion Open for expansion3D Model ofCapire Open-Pit Areas of Phase 2 drill Open for expansion program Processing Plant Site Tailings FacilityCAPIRE OPEN-PIT DEVELOPMENT PLAN• 2012 200,000 to 300,000 silver ounce production from 200 TPD 5,000 meter drill program to expand the zone to the north, west and east directions• 2013 In-house feasibility study for expanded plant sizing• 2014 Construct 800 to 1,500 TPD processing plant 12
  15. 15. CAPIRE PROJECTNI 43-101 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 46,140,820Indicated 3,694,066 16,300 3,693,733 19,029,800 49,522,173Measured Indicated 7,224,035 30,446 7,083,007 37,264,478 95,662,993Inferred 435,959 1,919 475,594 2,260,089 5,823,490 Summary Table Classified Mineral Resources – Measured + Indicated and Separate InferredDomain 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 0.93Aurora 1 Measured + Indicated 1,807,302 44.50 0.199 0.07 0.36 0.80Grand Total Measured + Indicated 4,912,246 45.74 0.193 0.06 0.34 0.88Grand Total Total Inferred 371,066 36.54 0.161 0.06 0.28 0.71• 5,000 meter drill program in 2012 to expand the Capire Zone• Construction of the Capire Open-Pit Mine and installation of pilot plant commenced January, 2012 13
  16. 16. MINE DEVELOPMENT OPPORTUNITIESOSCAR PROJECTThe Oscar Project is acorridor of multiple high-gradesilver veins linking the past-producing Cuchara SantaLucia Mines OSCAR PROJEC 3 1• Significantmineralization withinmultiple veins in a wide veincorridor 4• Drill results are being studiedwith potential to fast track the 2Oscar into production in 2013 14
  17. 17. OSCAR PROJECTOscar - Santa Lucia DRILLING HIGHLIGHTSCorridor OSCAR CORRIDORZacualpan District Drill Hole Interval Ag Au Pb Zinc (m) (g/t) (g/t) (%) (%)• Pre-existing mining infrastructure and a Z11-44 31 291 0.01 0.1 0.4short transport distance to the Guadalupe Including 0.3 6,730 0.20 1.5 8.0mill contribute to low-cost mining Z11-46 5.7 1,007 0.07 0.5 1.1operations in this zone Including 2.8 1,128 0.51 0.9 1.4• Mineralization expands to the north, SANTA LUCIA ZONEconnecting with the Cuchara Mine and to Z09-47 3.2 467 0.01 0.2 0.7the south, connecting with the Santa Z09-53 2.4 419 0.03 0.3 0.3Lucia mineralization Z10-03 1.1 588 0.05 0.4 2.0 Including 1.7 394 0.07 1.1 1.6• Drill highlights of 291 g/t silver over 30meter width and1,007 g/t over 5.65 meterwidth 15
  18. 18. EXPLORATION OPPORTUNITIESHUATECOSCO GOLDPROJECTThe Huatecosco Project is apotential new gold district• Significantmineralization withinmultiple targets in the Huatecosco 3 1Pedro Zone: • Carlos Pacheco (Au) • Huatecosco Vein System (Au) • Noche Buena (Ag) • Pilarica (Au, Ag) • San Juan (Au) 4 • Santa Teresa (Au) 2• Expansion drilling of 15,000 metersin 2012 is underway to determineeconomic feasibility of a future mill 16
  19. 19. HUATECOSCO GOLD PROJECTHuatecosco Gold Project DRILLING HIGHLIGHTSNoche Buena Zone/Northwest District HUATECOSCO GOLD PROJECT• A large gold and silver vein system discovered Drill Hole Interval Au Ag Cu Zinc southwest of Guadalupe Processing Plant (m) (g/t) (g/t) (%) (%) Z11-20 9.5 3.97 48.7 -- 2.6• Huatecosco is a main structure striking 16 km in length with multiple splays of gold-rich Including 4.2 6.96 84.3 -- 5.1 mineralization Z11-17 4.7 3.44 117.6 -- 0.8 Z11-48 4.1 5.22 30.1 0.7 1.8Carlos Pacheco Zone Including 0.8 25.0 50.1 0.5 1.6Noche Buena Zone/Northwest District• Significant gold-copper drill results include 19.6 g/t CARLOS PACHECO ZONE gold across 2.9 meters Z08-68 2.9 19.6 68 0.3 0.1• Open at depth with expansion drilling continuing to Including 1.0 49.7 59 0.3 0.1 substantiate that a gold-copper district lies underneath the Zacualpan Silver District Z08-65 2.1 11.3 18 -- -- Including 1.2 18.8 24 -- -- 17
  20. 20. MINE DEVELOPMENT PROCESS $7 Million, 35,000 meter Exploration Drill Program in 2012 5 STAGE MINE DEVELOPMENT PROCESS• Targets are generated by mapping and sampling of old workings Identify and Surface and Phase 1 2 Mine Planning, Map Old Underground Drilling Permitting and Mines and Sampling, Construction Production Workings Detailed Mapping Narrowed • Condesa • Capire • Chivo More than down to 2,500 • Huatecosco • San Ramon 500+ • Oscar Mapped Prospects • Pilarica • Noche for follow up • Santa Lucia • Capire North Buena First Drill Hole to Production: 12 – 24 Months (Chivo, San Ramon Extensions, Noche Buena) 18
  21. 21. OPTION AGREEMENTDEFIANCE SILVER CORP (TSX-V:DEF)PRODUCTION Santa Gabriela Processing Plant• IMPACT optioned its Veta Grande Project in Zacatecas, Mexico, to M Defiance Silver Corp in September, 2011 De• Zacatecas Mineral District historical production is over 700M oz Za silver• 200 TPD Santa Gabriela Processing Plant 10 mineral concessions optioned to Defiance for cash and major share position San Acacio MinePROJECTSVeta Grande Project• Commencing production by mid 2013• Veta Grande vein historically produced over 200M oz silverSan Acacio Mine• 10 concessions consisting of 746 ha• Mine controls ~45% of the Veta Grande vein• Currently defining feed for the Santa Gabriela plant 19
  22. 22. CORPORATE SUMMARY 9 Months Ended Sept 30th 2011 YE 2010 YE 2009 YE 2008Revenue $19.4 $16.7 $12.2 $8.9Net Earnings $6.9 $3.4 $1.6 $.66Cash Flow from Operations $9.1 $5.6 $4.4 $1.7Cash Cash Equivalents $33.7 $18.7 $5.3 $5.4EPS $0.11 $0.07 $0.02 $0.01 Shareholder Breakdown Stock Information Institutional 35% • Recent Share Price $2.05 Retail 60% • Market Capitalization 139M Management 5% Largest Shareholders • Sprott Asset Management 12% • Energold Drilling Corp 11% 20
  23. 23. SHARE PRICE PERFORMANCE – One Year S Source: Yahoo Finance, March 2012 Source: Yahoo Finance, March 2012 Finance, 0Recent Share Price: $2.05 52wk Range: $1.26 - $3.14Shares Outstanding – Basic: 68M Avg Vol (3m): 120,000Shares Outstanding – Fully Diluted: 73M Warrants: Nil 21
  24. 24. PROVEN PROFITABILITY $30,000,000 Revenue PROJECTED* $25,000,000 Net Earnings $20,000,000 Operating Cash Flow $15,000,000($CDN) $10,000,000 $5,000,000 $- 2006 2007 2008 2009 2010 2011 $(5,000,000) Year CAPITAL EXPENDITURE USE EFFICIENCY ($CDN)* Total funds raised since start Property payments, plant equipment, of operations in January, Cash Available and exploration expenditures 2006 $28 Million $38 Million $33.7 Million *Estimated projection based on in-house estimates 22
  25. 25. BOARD OF DIRECTORSPROVEN LEADERSHIPFrederick W. Davidson (CA) President, CEO Director Held senior management positions with Erickson Gold Mines Ltd. and TOTAL Energold Corp. Part of the management team that took both the Erickson and Mt. Skukum Gold mines from discovery to production. Currently President of Energold Drilling Corp. (TSX-V: EGD).George A. Gorzynski (P.Eng) VP Exploration Director Director of Tirex Resources Ltd., Defiance Silver Corp., Rupert Resources Ltd. and Berkwood Resources.H. Walter Sellmer (P.Geo) Director Held senior management positions with Amax Exploration, Canamax Resources and TOTAL Energold Corp.Victor A. Tanaka (P.Geo) Director Executive VP COO of Bayswater Uranium Corp and Director of several TSX-V mineral exploration companies.Richard J. Mazur (P. Geo, MBA) Director Holds senior positions in Alto Ventures Ltd. and Forum Uranium Corp.Peter Tredger (P. Eng, MBA) Director Past Vice President of Thompson Creek Metals Company Inc. and held senior management positions at Glencairn Gold Corp. and Wheaton River Mineral Ltd.Jean-Pierre Boutin (MBA) Director President and Money Manager in a private equity firm in Greenwich, Connecticut, former Treasurer of Xerox Corporation, Emerging Markets. 23
  26. 26. 2012 OUTLOOK• Commence open-pit production at the Capire Project through the 200 TPD pilot plant• Expand Capire Zone in the north, east and south directions with a 5,000 meter drill program• Maximize production at Zacualpan’s Guadalupe Processing Plant to 500 TPD• Accelerate the Oscar Project into production, which is planned to feed high-grade silver ore to the 500 TPD Guadalupe Processing Plant• Explore potential of the Huatecosco Gold Project and continue exploration of gold-copper and silver targets with a 15,000 meter drill program• Pursue accelerated growth through aggressive results-driven exploration and potential accretive acquisitions For more information please contact Meghan Brush, Investor Relations +1 604 681 0172 24