Impact Silver Corp. [IPT-TSXV; IKL-FSE] shares rallied Wednesday September 11 after the company announced high-grade silver results from underground drilling at the San Ramon Mine in the Royal Mines of Zacualpan District, central Mexico.
Highlights from drilling include 2.14 metres of 418 g/t silver from 65.55 metres to 68 metres and 1.54 metres of 1,393 g/t silver from 48.44 metres to 50.17 metres.
On Wednesday, Impact shares jumped 8% or $0.03 to 41.5 cents. The shares are trading in a 52-week range of 19.5 cents and 51 cents.
Impact is a silver-gold producer with two processing plants on adjacent districts within its 100%-owned, 623-km2 claim package located three hours southwest of Mexico City.
The San Ramon Mine has been in production for over 14 years and continues to yield mineralization. During that period, Impact has produced over 9.4 million ounces of silver, generating revenue of $175 million.
San Ramon is located 5 km southeast of Impact’s 535-tonne-per-day Guadalupe processing plant. The company currently operates three producing silver mines which feed the Guadalupe plant, including the underground San Ramon Deeps Mine, Mirasol Mine and Cuchara-Oscar mine.
To the south in the Mamatla District, the Capire processing pilot plant is currently rated at 200 tonnes per day, but is expandable. It is adjacent to an open pit silver mine with a NI 43-101-compliant resource of over 4.5 million ounces of silver, 48 million pounds of zinc and 21 million pounds of lead.
Since 2005, production at San Ramon has been based the San Ramon Upper Zone and since 2014 on the San Ramon Deeps Zone, which continues down to the southeast extending the known mineralized system to a depth of 1,611 metres above sea level.
Known mineralization over the total San Ramon workings has a down-dip length of over 500 metres.
In Wednesday’s press release, the company said it intersected the vein system at depth and to the southeast of the current mine workings.
In total, the company said mining has occurred on 27 working levels over a vertical distance of 430 metres on three subparallel vein systems.
Meanwhile, on August 14, 2019, the company announced its financial results for the six months ending June 30, 2019. The company posted second quarter revenue of $2.8 million, a decrease of 11% from the same period last year.
Impact also reported a net loss of $2.8 million in the second quarter, which includes a one-time write-down of $1.7 million of exploration and evaluation assets as the company reduced its land package size to save on biannual concession taxes.
The company said silver production decreased to 145,658 ounces in the second quarter of 2019, from 194,223 in the year earlier period due to fewer tonnes being processed.
However, the company said it is well positioned for a rebound in the price of silver, which recently played catch-up with the rising price of gold. On Wednesday, spot silver was trading at US$18.13 an ounce.