2. Cautionary Statement
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.
2
3. Overview
GROWING
ASSETS
CONTINUOUS
EXPLORATION
PRUDENT
MANAGEMENT
IMPACT Silver is a junior silver producer with low cost
operations and a growing portfolio of silver mines in
south-central Mexico.
A cornerstone of IMPACT’s success is systematic
exploration leading to rapid mine development to
increase mill throughput and generate near-term cash
flow.
Focused on creating value by growth primarily through
earnings, in the pursuit of building a multimillion ounce
precious metals producer.
3
4. Directors & Management
Frederick W. Davidson, CA
President, CEO,
Director
President of IMPACT Silver and Energold Drilling Corp. Over 35 years of
mining experience holding various senior positions, including 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; 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.
4
5. Location Map in Mexico
• Nearly 100% owned and operated 623
km² (62,300 ha) mineral exploration
package in south-central Mexico
• Two contiguous mineral districts with
mining activities dating back to the
1500s
• A three-hour drive southwest from
Mexico City, with paved road access to
the gate of the processing plant
• Excellent infrastructure, with a modern
power grid, ample water supply and a
skilled, 99% Mexican workforce
• Many other significant mining
operations within close proximity
5
6. Prolific Mining History in Zacualpan District
• The Royal Mines of Zacualpan
Silver District is one of the oldest
mining districts in the Americas
• Over 3,000 old mine workings
have been catalogued to date,
forming the basis for modern
and effective exploration
• IMPACT purchased the
Zacualpan assets in 2006 and
consolidated the ownership of
the entire district for the first
time in its history
• The 623 km² land package
consists of the Zacualpan
District, the Capire District and
the Valle de Oro subdistrict
6
7. District Location Map
• The Royal Mines of
Zacualpan (“Zacualpan”) is a
100%-owned and operated,
423 km² land package
• The 500 tonne-per-day
(“tpd”)Guadalupe
Production Centre is fed by
three underground,
epithermal silver mines: The
San Ramon, the Noche
Buena and the CucharaOscar Mine
• The adjacent Capire District
is 200 km² at hosts a 200 tpd
pilot plant, fed by the nearby
VMS, open-pit Capire Mine
7
8. Long Term Goal and Development Plan
To build a profitable, mid-tier, multimillion ounce precious metals producing
company with multiple mines feeding multiple processing centres.
Exploration and Mine Development Process Flowchart
RESEARCH
Compile old
mines and
prospects
from historic
maps
FIELD WORK
Geological
mapping,
surface and
underground
rock sampling
DRILLING
Drill program
will be resultsdriven and
implemented
in phases
MINE
DEVELOPMENT
Mine design,
planning,
permitting and
construction
Over 3,000 old
mine workings
and prospects
catalogued in
IMPACT’s
ArcGIS
database
Select and
prioritize
favorable areas
and prospects
and design the
drill program
Current targets:
Pilot operations
at Capire Plant
with plans to
expand to larger
scale production
in the future
•
•
•
•
•
•
•
Capire (south)
Mirasol
La Condesa
Santa Efigenia
El Gigante
San Juan
Manto Rico
PRODUCTION
&
CASH FLOW
• San Ramon
• Noche Buena
• Cuchara-Oscar
• Capire
8
9. Two Production Centres
Guadalupe
Production Centre
Capire Production
Centre
Zacualpan District
Capire-Mamatla District
500 TPD
200 TPD
Operating near
capacity
Pilot plant with
expansion plans
Mill feed from
San Ramon,
Noche Buena &
Cuchara-Oscar Mines
Mill feed from
Capire Mine
(VMS, open-pit)
(epithermal, underground)
9
11. Capire Mine & Production Centre
• Capire Production Centre (200 tpd pilot plant)
• Capire Mine (VMS, open-pit)
11
12. Four Producing Silver Mines
San Ramon
Noche Buena
Cuchara-Oscar
Capire
Began production in
2008
Began production in
2010
Began production in
2013
Epithermal veins
Current primary
producing mine in the
Zacualpan District
Epithermal veins in
Valle de Oro subdistrict
located in the
Zacualpan District
Corridor of wide, highgrade epithermal veins
linking legacy mines
within the Cuchara
Mine Complex in the
Zacualpan District
Volcanogenic
sulfide deposit with
high-grad polymetallic
mineralization in the
Capire-Mamatla
District
Production contribution
Q2 2013: 46%
Production contribution
Q2 2013: 32%
Production contribution
Q2 2013: 22%
Production contribution
Q2 2013: 0%
(In commissioning phase)
12
13. Geology of Epithermal Vein Systems
Metal Level in Producing Mines
Metal Zoning in Ore Shoots
Strike Length
150 – 420 m (500 – 1,400 ft)
Depth
Surface – 0 m (0 ft)
Cuchara-Oscar Mine
Silver-rich at top of vein
200 – 1,000+ g/t Ag
Noche Buena Mine
San Ramon Mine
Valle de Oro subdistrict
(Exploration property)
150 m (500 ft)
Lead and Zinc-rich
at bottom of vein
60 – 150 g/t Ag
300 m (1,000 ft)
Gold-copper at
depths of 300 m+
13
14. Exploration Targets
•
An abundance of attractive exploration targets across Zacualpan and Capire districts to
drive organic growth and potentially advance into mine development and production.
Zacualpan
District
Capire-Mamatla
District
• Mirasol
• La Condesa
• Santa Efigenia
• San Jaun
• Manto Rico
• Guadalupe
• Aurora II
Valle de Oro
Subdistrict
• Carlos Pacheco
• El Gigante
• Huatescosco
623 km²/
62,300 ha
land
package*
Dominican Republic
• Early stage exploration on
legacy claims
*Does not include the Dominican Republic claims
Statue of miner in front of Zacualpan’s main
church in the town’s centre
14
15. Valle de Oro – Gold Potential at Depth
•
First gold-copper zone found by
exploration team in a canyon below
the known silver veins in the
Zacualpan District
Hole
Number
Vein
Name
From
(m)
To
(m)
True
Width
Silver
(g/t)
Gold
(g/t)
•
•
Now known as the Valle de Oro, this
is an area of many silver veins with
gold and copper mineralization at
depth
The San Juan Project area
encompasses a series of old mine
workings located 150 m north of
the Noche Buena Mine on the
Carlos Pacheco vein
IMPACT’s previous drilling on Carlos
Pacheco intersected gold values
including 19.6 g/t gold across 2.9 m
and 3.84 g/t gold across 6.7 m
Carlos
Pacheco
61.70
63.15
1.31
7.9
3.956
Z13-42
Carlos
Pacheco
119.30
128.60
9.02
21.3
3.894
including
Carlos
Pacheco
127.65
128.60
0.92
73.3
33.630
Z13-44
•
Z13-40
Noche
Buena
11.60
14.00
2.07
1,409.8
0.963
and
Carlos
Pacheco
158.05
162.40
4.03
30.9
4.070
including
Carlos
Pacheco
158.05
160.00
1.89
59.9
7.666
Z13-45
Carlos
Pacheco
169.00
173.00
3.78
18.3
9.350
including
Carlos
Pacheco
171.00
173.00
1.89
12.8
17.100
See IMPACT News Release dated October 30, 2013 for more information
15
16. Production Summary
Production Highlights
Q2 2013
HY 2013
Silver production (oz)
185,998
351,649
620,515
Gold production (oz)
360
584
Silver-Focused Producer
629
YE 2012
2012 Metal Production
Silver - 85.5%
Average mill head grade
(silver grams per tonne)
163
155
138
Total tonnes produced (t)
42,086
84,095
168,826
Tonnes produced per day
462
467
463
Revenue per production
tonne
$89
$94
$94
Direct costs per
production tonne
$70
$67
$65
Lead - 4.2%
Zinc - 6.1%
Gold - 4.2%
16
17. Financial Highlights
Q2 2013
HY 2013
YE 2012
YE 2011
Revenues
$3.8
$8.0
$15.9
$24.3
Operating expenses
$3.2
$5.8
$10.3
$10.1
Mine operating earnings
$0.1
$1.2
$4.0
$12.9
EBITDA
($1.4)
($1.2)
$1.6
$13.0
Net earnings (loss)
($1.9)
($2.6)
($1.1)
$7.6
Operating cash flow*
($0.2)
$0.6
$3.3
$10.2
Nil
Nil
Nil
Nil
($0.03)
($0.04)
($0.02)
$0.12
Cash and cash equivalents
$10.0
$10.0
$16.0
$30.8
Working capital
$12.7
$12.7
$21.4
$31.2
(CDN$000’000’s except EPS)
Debt
Earnings (loss) per share – basic
17
*Before changes in non-cash working capital
18. Corporate Summary (TSX-V: IPT)
All prices in Canadian Dollars
As of October 28, 2013
Common shares –
Issued & Outstanding
68.1M
Fully Diluted
74.8M
Share Price
1-Year Chart Summary
$0.71
52wk Range
$0.52 - $1.43
90-Day Average Daily
Volume
58,543
Market Capitalization
48.4M
Insider Ownership
7.3%
Options Issued
Source: BigCharts.com
6.7M
Warrants
Nil
18
19. Plans for Growth
2013
• 30,000 meter exploration drill program (underway)
• Increase average silver feed grade at the Guadalupe Mill (underway)
• Complete drilling at Mirasol Prospect and determine its potential as next
producing mine (underway)
2014
• Continue drilling on the VMS targets in the Capire district
• Goal of completing graduation to the TSX from the TSX-V
2015
• Consider the location of an additional processing centre in the
Zacualpan District
• Define the size of the planned expansion at the Capire Processing
Centre and to initiate construction the larger processing plant
19
21. 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
435,959
1,919
475,594
2,260,089
5,823,490
Inferred
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
M&I
4,912,246
45.74
0.193
0.06
0.34
0.88
371,066
36.54
0.161
0.06
0.28
0.71
Total
•
Inferred
Drilling in 2010 showed Capire and Aurora 1 to be one continuous zone, now referred to as Capire
21
22. 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
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
and
•
•
Drill holes listed above were drilled vertically and all intersections are estimated to be close to true width
See News Release dated October 25, 2012
22
23. APPENDIX III: Mirasol Drill Highlights
A Selection of Mirasol Drill Highlights
Drill
Hole
Vein Name
From
(m)
To
(m)
Interval
(m)
Ag (g/t)
Au (g/t)
Pb
(%)
Zn
(%)
Z12-71
Mirasol Central
73.9
82.9
8.98
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 4
111.22
113.36
2.14
119
0.014
0.07
0.18
and
Mirasol Arriba 3
127.25
128.40
1.15
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
1.70
931
0.30
1.03
2.10
Z12-85
Mirasol Arriba 3
114.65
116.00
1.35
792
0.143
0.48
0.16
Z12-86
Mirasol
176.56
177.60
1.04
337
0.023
0.15
0.76
•
•
Discovered in November 2012, located 5.5km from Guadalupe Processing Plant, 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. See News Releases dated January 28, 2013 and November 26, 2012
23
24. APPENDIX IV: Cuchara-Oscar Drill Highlights
A Selection of Cuchara-Oscar Drill Highlights
Drill Hole
To (m)
From (m)
Interval (m)
Ag (g/t)
Au (g/t)
Pb (%)
Zn (%)
Z11-46
92.10
97.75
5.65
1,007
0.07
0.50
1.1
including
96.70
97.75
1.05
4,580
0.26
1.70
4.0
108.95
111.70
2.75
1,128
0.51
0.90
1.4
Z11-55
21.80
22.85
1.05
435
0.01
0.15
0.24
Z11-64
36.60
43.20
6.60
223
0.08
0.18
0.52
Z11-69
0.70
3.35
2.65
408
0.62
0.73
1.12
Z11-74
21.35
22.35
1.00
1,875
0.74
2.65
6.88
Z12-05
92.50
97.60
5.10
234
0.05
0.14
0.49
Z12-08
22.36
45.75
23.39
115
0.02
0.12
0.36
and
•
See News Releases dated October 26, 2011 and April 23, 2012
24
25. APPENDIX V: Valle de Oro 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 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 News Releases dated December 4, 2008
and July 11, 2012
25
26. APPENDIX VI: La Condesa Drill Highlights
A Selection of La Condesa 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
•
•
•
La Condesa accessed through the underground workings of the historic Cuchara Mine, which is also used to
access the Cuchara-Oscar Mine
Mineralization from La Condesa is planned to augment the production from Cuchara-Oscar
See News Release dated November 19, 2012
26
