Uncategorized
IMPACT Silver Announces Third Quarter 2021 Results, Q3 Net Income Positive, with Year to Date Cash Flow from Operations of $2.8 Million
IMPACT Silver Corp. (TSX-V: IPT) (OTC Pink: ISVLF) announces its financial and operating results for the third quarter ended September 30, 2021.
The Company reported $13.7 million in revenue for the first three quarters of 2021, a 24% improvement year over year compared to revenue of $11.0 from the first three quarter of 2020. Year to date cash provided by operating activities improved to $2.8 million, EBITDA (earnings before interest, taxes, depreciation, and amortization) remained strong at $1.9 million.
After investing $3.0 million in exploration expenditures and mining assets during the year to date, the cash position remained strong at $21.5 million with working capital of $22.1 million, up from cash of $17.4 million and working capital of $16.8 million at September 30, 2020. The Company has drilled over 10,000 metres on the property in 2021.
Mine operating income before amortization and depletion for the current year improved 45% to $3.2 million from $2.2 million in 2020. Cost of sales rose over the quarter to $3.6 million compared to $3.1 million as the company’s increased exploration and development at the Guadalupe mine, which should have a positive impact on grade and tonnage by the first quarter of 2022.
Q3 2021 Financial Overview
- Revenue for Q3 2021 was $4.1 million down from $4.8 million in 2020 due to lower silver grades and tonnage this quarter as the Company focused on developmental work rather than production tonnage.
- Net income for the quarter was $0.03 million, down from Q3 2020 as silver grades fell due to due to increased processing of development muck, and declining grades in older sections of the Guadalupe mine.
- Net working capital for the Company at September 30, 2021 was $22.1 million compared to of $16.8 million, a 31.5% increase over same period.
- After investing $1.3 million in exploration and other capital assets during the quarter, cash remained strong at $21.5 million.
- The Company has no long-term debt.
Q3 2021 Production Overview
- Throughput at the mill was 34,587 tonnes in Q3 2021 as small increase over Q3 2020.
- Average mill feed grade for silver was 156 grams per tonne in Q3 2021, a decrease of 6% from 166 g/t in Q3 2020. Management expects grades to improve as newly defined high grade areas start feeding the mill in 2022. Q3 2021 saw heavy rains which resulted in higher hauling and mining costs. Mining at the high grade Veta Negra open pit was halted during the quarter due to heavy rains.
- Direct costs per production tonne were $91.31 in Q3 2021, as the Company stepped up exploration and development at the Guadalupe mine. YTD costs per tonne were $82.60.
- Q3 2021 silver production was 152,026 ounces (2020 – 158,992 ounces).
EXPLORATION & DEVELOPMENT PLANS
At Guadalupe work is underway to ramp production capacity back up to pre-pandemic levels as supply chain and pandemic protocols wind down. A substantial underground development program at Guadalupe is continuing which includes a two-stage refurbishment of the mineshaft at the Guadalupe mine, and rebuilding and extending the extensive underground railroad system on the 195 Level to access the Pachuqueno section of the mine which recently reported high grade drill intersections. This will provide for considerably higher capacity with lower associated hauling costs. As development advances, the Company anticipates a gradual increase in production late in the year from the Guadalupe complex.
On further exploration news, a fourth drill rig has been added to the Company-owned fleet and drilling plans have been expanded to 20,000 meters through 2022. This will include follow up on recent drilling successes at Guadalupe and Pachuqueno which included 2,186g/t silver over 3.38 metres. Drilling will also be ongoing this year at the San Ramon Mine for additional zones beyond previous production areas.
CAPIRE – POTENTIAL RESTART OF OPEN PIT PRODUCTION
Company engineers are reviewing the Capire open pit and processing plant for potential restart of operations. Previous 43-101 studies on the Capire deposit have been recalculated and confirmed with a review using the experience of previous test mining. Other studies are being conducted with regard to critical infrastructure to determine optimum plant size for Capire operations. Also, as the result of successful laboratory scale studies, a bulk sample of 1,400 kilograms of material selected by the Company’s consultant from the Capire open pit was shipped for testing to a Canadian laboratory using state of the art X-Ray Transmission (“XRT”) pre-concentration processing technology. XRT technology is a process that recognizes and sorts rocks based on the specific atomic density of the material. XRT rapidly sorts ore grade material from waste reducing the amount of material to be processed during the milling process resulting in cost savings. Preliminary results have been positive and further commercial scale testing is planned. The Company will be evaluating the impact of XRT technology upon both capital and operating costs, recoveries and ultimate mining and processing rate.
The information in this news release should be read in conjunction with the Company’s unaudited condensed consolidated interim Q3/2021 financial statements and Management’s Discussion and Analysis, available on the Company website at www.impactsilver.com and on SEDAR at www.sedar.com. All amounts are stated in Canadian dollars unless otherwise specified.
ABOUT IMPACT SILVER
IMPACT Silver Corp. is a successful silver explorer-producer with over 90% of its revenue from silver resulting in a share price that is highly leveraged to the silver price. The Company has two processing plants on adjacent districts within its 100% owned mineral concessions covering 211km2 in central Mexico with excellent infrastructure and labor force. Over the past 15 years, IMPACT has produced over 11.2 million ounces of silver, generating revenues of over $220 million, with no long-term debt. At the Royal Mines of Zacualpan Silver District, three underground silver mines and one open pit mine feed the central Guadalupe processing plant. To the south, in the Mamatla District, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with a mineral resource of over 4.5 million oz silver, 48 million lbs zinc and 21 million lbs lead (see IMPACT news release dated January 18, 2016 for details). Company engineers are reviewing Capire for potential restart of operations in light of current elevated silver prices. With 15 years of exploration successes leading to production cash flows, IMPACT has shown the Zacualpan Silver District to be endowed with many high-grade silver-gold zones and has placed multiple zones into commercial production.
Posted November 22, 2021
MORE or "UNCATEGORIZED"
Millennial Announces Closing Private Placement for Total Proceeds of $9,188,880
Millennial Potash Corp. (TSX-V: MLP) (OTCQB: MLPNF) (FSE: X0D) is... READ MORE
July 31, 2025
Laramide Resources Announces Closing of Upsized $12,000,000 Private Placement
Laramide Resources Ltd. (TSX: LAM) (ASX: LAM) (OTCQX: LMRXF) a ... READ MORE
July 31, 2025
SPC Nickel Closes $3.5 Million Rights Offering Backstopped by Dundee Corporation
SPC Nickel Corp. (TSX-V: SPC) and Dundee Corporation (TSX: DC.A) are pl... READ MORE
July 31, 2025
St. Augustine Announces Positive Results of the Kingking Copper-Gold Project Updated Preliminary Feasibility Study
NPV7% of $4.18 Billion After-tax IRR of 34.2% at $4.30/lb Copper ... READ MORE
July 31, 2025
Independence Gold Intersects 52.46 Metres Grading 2.51 g/t Gold and 19.73 g/t Silver in the Johnny Vein at the 3Ts Project, BC Independence Gold Corp. (TSX-V: IGO) is pleased to report assay results from three additional diamond drill holes completed at the Johnny Vein System at the 3Ts Project located in central British Columbia. These results further confirm the continuity and high-grade nature of the Johnny Vein System and expands the known footprint of mineralization. Located approximately 185 kilometres southwest of Prince George, British Columbia, the 3Ts Project comprises thirty-one mineral claims covering approximately 35,486 hectares in the Nechako Plateau region. The project lies 16 km southwest of Artemis Gold Inc.'s Blackwater Mine and hosts a low-sulphidation epithermal quartz-carbonate vein district within which at least nineteen known mineralized veins, ranging from 50 to over 1,100 metres in strike length and true widths of up to 32 m have been identified. Highlights from diamond drilling include: • Hole 3TS-25-31 intersected a broad zone of mineralization grading 2.51 g/t gold and 19.73 g/t silver over 52.46 metres (true width approximately 32m), including: o 2.32m grading 9.83 g/t gold and 28.02 g/t silver o 2.90m grading 7.16 g/t gold and 63.10 g/t silver o 1.14m grading 18.46 g/t gold and 33.33 g/t silver • Hole 3TS-25-29 returned 7.94 metres grading 2.65 g/t gold and 10.71 g/t silver (true width approximately 7.46m), including 1.94 metres of 7.53 g/t gold and 32.47 g/t silver. • Hole 3TS-25-30 returned 5.90 metres of 1.86 g/t gold and 17.29 g/t silver (true width approximately 5.54m), including 0.72 metres of 4.00 g/t gold and 26.39 g/t silver. "These results further validate the Johnny Vein System as a high-grade, laterally extensive target with strong potential for resource expansion," stated Randy Turner, President & CEO of Independence Gold. "We are particularly excited by the width and grade intersected in hole 3TS-25-31, which demonstrates consistent mineralization over more than 30 metres of true width and includes multiple zones of exceptional gold and silver values." The Johnny Vein System is one of several epithermal quartz-carbonate veins being explored at the 3Ts Project and appears to be comprised of several intertwining veins with mineralized breccias that produce wide zones of mineralization. The primary vein set is interpreted to have a true thickness of approximately 32 metres; however, including adjacent mineralized breccias and minor veins, the total mineralized width may extend up to 47.5 metres true width. The Johnny Vein indicates similarities in grade and continuity to the established Ted-Mint and Tommy Vein Systems, which form the foundation of the current 3Ts resource model (please see news release dated August 18th, 2022 for further details; "Technical Report on the Mineral Resource Estimate Update for the 3Ts Gold Project, Omineca Mining Division, British Columbia, Canada", authored by Armitage and Miller). The combined in-pit and underground components of Tommy and Ted-Mint vein systems contain a total inferred resource estimate of 4,469,297 tonnes grading 3.64 grams per tonne gold and 96.26 g/t silver, at a cut off grade of 0.4 g/t gold equivalent ("AuEq") in-pit and 2.0 g/t AuEq underground, containing 522,330 ounces of gold and 13,831,415 ounces of silver, totaling 678,156 AuEq ounces. Drill results from the Johnny Vein System will be incorporated in the updated NI 43-101 mineral resource anticipated to be completed in the third quarter of 2025. Drill Hole From (m) To (m) Interval (m) Gold (g/t) Silver (g/t) 3TS-25-29 4.00 6.00 2.00 1.15 9.50 and 10.00 11.80 1.80 0.61 3.89 and 20.92 21.66 0.74 2.85 9.46 and 25.66 27.53 1.87 4.09 20.32 and 33.00 38.00 5.00 1.22 2.40 and 44.06 52.00 7.94 2.65 10.71 including 44.06 46.00 1.94 7.53 32.47 3TS-25-29 63.17 63.68 0.51 1.10 13.73 and 66.00 66.70 0.70 1.71 28.57 and 71.00 74.00 3.00 0.75 15.33 and 80.68 86.58 5.90 1.86 17.29 and 88.00 91.00 3.00 0.80 2.00 and 102.70 104.88 2.18 2.03 4.13 3TS-25-31 65.05 66.50 1.45 4.68 5.52 and 67.69 68.10 0.41 6.24 4.88 and 73.54 126.00 52.46 2.51 19.73 including 79.18 81.50 2.32 9.83 28.02 and including 87.10 90.00 2.90 7.16 63.10 and including 109.36 110.50 1.14 18.46 33.33 and 155.00 156.54 1.54 1.82 5.84 Table 1: Significant Intercepts from the Johnny Vein *The true widths of the veins are average 80-95% of the reported interval width QA/QC Protocols Samples consist of saw-cut (NQ) drill core with one-half retained for reference and one-half submitted for analysis. Samples were submitted in sealed plastic bags delivered to Bandstra Transportation for shipping to SGS Natural Resources Canada (SGS) labs in Burnaby, British Columbia, for sample preparation and analysis. Robotic sample preparation is used to ensure reproducibility and samples are pulverized to greater than 85% passing 75 microns. All samples are submitted for four acid digest with an ICP finish. Gold grades are obtained by fire assay with AAS finish. Samples which return greater than 10 parts per million gold and 100 parts per million silver are resubmitted for fire assay with a gravimetric finish. Sample batches consist of core samples, control standards, blanks and duplicates. Blanks and control standards (QAQC) are inserted into each batch of samples, with one QAQC per 20 samples. QAQC samples that return values 10% outside of the expected range require samples from that internal batch to be rerun by the lab. SGS laboratories operate under a Quality Management System that complies with ISO/IEC 17025. SGS's minerals laboratory in Burnaby is accredited by the Standards Council of Canada (SCC) for specific mineral tests listed on the scope of accreditation to the ISO/IEC 17025 standard. Please see SGS Analytical Methods for further details regarding analytical procedures. About Independence Independence Gold Corp. is a well-financed mineral exploration company with holdings ranging from early-stage grassroots exploration to advanced-stage resource expansion in British Columbia and Yukon. The Company is positioned to add shareholder value through systematic project advancement, while management continues to evaluate additional gold and silver projects for possible acquisition. For additional information, visit the Company's website www.ingold.ca. Andy Randell, P.Geo., the Company's Qualified Person as defined by National Instrument 43-101 and who is an independent consultant for the Company, has reviewed the technical information in this news release. Drill Hole Information from this release Drill Hole Easting Northing Elevation Azimuth* Dip Total Meterage 3TS-25-29 363045 5876905 1218 170 70 144 3TS-25-30 363067 5876940 1216 270 70 106 3TS-25-31 363067 5876940 1216 220 65 158 * All drill hole locations are in NAD83, Zone 10 Datum **Based on true north. For magnetic declination add 17.5 degrees
Independence Gold Corp. (TSX-V: IGO) is pleased to report assay r... READ MORE
July 31, 2025
