The current plan is to further define and potentially mine these Intermediate Veins via a proposed cross cut from the Noche Buena Mine that also would access the Carlos Pacheco Vein. For this reason a lower economic cutoff is contemplated for the mining of these Intermediate Veins. The work of IMPACT's exploration team for this portion of the Carlos Pacheco and Intermediate Veins is now complete and the data has been passed to the mine planning group for engineering studies and potential production.
MAMATLA VMS DISTRICT
The Mamatla VMS (Volcanogenic Massive Sulphide) District is located to the south of the Royal Mines of Zacualpan Silver Gold District and comprises approximately 140 square kilometers of the total property area. The Capire Silver Mine, which is currently in the final stages of construction, was the main focus of interest and was further drilled in 2012 with encouraging results. The integration into the GIS database of the soil sample data collected by a previous operator in the 1990s was completed this year and a number of VMS exploration targets were defined. A prospecting program was initiated late in the year to outline further drill targets beyond the Capire Mine area in 2013.
Capire Silver Mine Drilling and Mine Construction
The new open-pit Capire Mine is the second mine currently under construction with first concentrate shipments expected during the first quarter of 2013. It represents a new production center in a new mining district and an opportunity that, upon successful completion of the proposed exploration and development program, would propel the Company to become a multimillion ounce silver producer.
In February 2011, the updated NI 43-101 compliant Measured and Indicated Mineral Resources was announced and totaled 7.2 million ounces silver, 30,446 ounces gold; 95.6 million lbs zinc and 37.2 million lbs lead (see IMPACT News Release dated February 1, 2011 for details).
The 2012 drill program was planned to determine the limits of the Capire Deposit and to test for other mineralized zones in the immediate mine area. Fill-in drilling around known mineralized intersections and 200 m step-out holes from the perimeter of the deposit area were undertaken in a 78 hole, 11,870m drill program. Highlights of 2012 drill results include the following:
Capire - Fifth Phase Drill Results (2012)Drill From To Interval Silver Gold Lead Zinc CopperHole meters meters meters (g/t) (g/t) (%) (%) (%)---------------------------------------------------------------------------C12-06 78.25 80.3 2.05 507 1.81 2.20 4.02 0.41Including 79.3 80.3 1.00 929 3.27 2.77 5.27 0.63And 105.7 110.8 5.10 183 0.20 1.05 2.45 0.13Including 109.8 110.8 1.00 322 0.35 0.44 1.31 0.07---------------------------------------------------------------------------C12-07 38.1 41.15 3.05 132 0.38 0.30 0.63 0.07---------------------------------------------------------------------------C12-08 44.7 47.75 3.05 100 0.82 0.23 0.39 0.07And 94.5 97.6 3.10 82 0.23 0.55 1.45 0.16---------------------------------------------------------------------------C12-09 77.75 86.9 9.15 79 0.13 0.41 1.03 0.09Including 79.3 80.8 1.50 302 0.32 1.20 2.40 0.26---------------------------------------------------------------------------C12-10 62.74 63.34 0.60 218 0.31 1.12 2.64 0.20---------------------------------------------------------------------------C12-11 80.3 103.7 23.40 46 0.17 0.36 0.95 0.07Including 94.55 97.6 3.05 108 0.17 0.75 1.90 0.15---------------------------------------------------------------------------C12-12 65.51 74.2 8.69 60 0.14 0.49 1.39 0.10---------------------------------------------------------------------------C12-13 64.05 71.65 7.60 50 0.08 0.21 0.57 0.08---------------------------------------------------------------------------C12-21 83.35 100.1 16.75 153 0.40 1.14 2.71 0.21Including 92.4 97 4.60 435 0.71 3.13 5.99 0.48Including 95 96 1.00 1,390 1.39 1.49 2.82 0.63---------------------------------------------------------------------------C12-25 13.2 23.35 10.15 107 0.58 0.90 2.43 0.10Including 13.2 18.3 5.10 150 0.79 1.29 3.54 0.12Including 13.2 15.25 2.05 315 0.91 2.93 8.19 0.25---------------------------------------------------------------------------C12-35 123 125.05 2.05 219 0.76 1.09 2.89 0.20---------------------------------------------------------------------------C12-42 39.65 45.75 6.10 164 0.88 0.93 2.05 0.14---------------------------------------------------------------------------C12-49 22.35 24.4 2.05 257 0.16 1.14 2.22 0.22---------------------------------------------------------------------------C12-50 37.6 46.75 9.15 107 0.37 0.60 1.45 0.10Including 38.6 42.7 4.10 164 0.45 0.70 1.65 0.14---------------------------------------------------------------------------C12-53 75.2 82.35 7.15 46 0.19 0.30 0.78 0.05---------------------------------------------------------------------------C12-58 85.4 91.5 6.10 73 0.28 0.51 1.30 0.08Including 89.45 91.5 2.05 145 0.48 0.89 2.38 0.16---------------------------------------------------------------------------C12-68 43.7 48.8 5.10 154 0.66 0.76 1.65 0.15---------------------------------------------------------------------------C12-76 30.5 34.55 4.05 142 0.18 0.84 1.86 0.11---------------------------------------------------------------------------C12-77 61 66.05 5.05 69 0.25 0.65 1.59 0.10---------------------------------------------------------------------------
