Mining from the RootsWed, 10/19/2016 - 00:14
From a grassroots exploration company to a significant silver producer in the space of just a few years, IMPACT Silver can be seen as a mining success story, especially within the current market. The company’s President and CEO, Frederick Davidson, explains that the company’s trajectory was the result of a daring acquisition. “IMPACT Silver took on a historic mine that was about to expire and only had two months of ore left,” he recalls. “We decided to make a heavy investment in three main areas to revive the project, and the first step focused on exploration in order to develop further resources to keep the mine running.” In 2015, IMPACT Silver was operating at 140g/t and in 2016, it has managed to increase this figure to 200g/t by substantially reducing losses. “This has enhanced the cash flow and in turn IMPACT has expanded ownership through staking and development,” Davidson boasts. “In 2015, we finally reached the 1 million ounce figure and all of our activity in the past five years has been financed by the cash flow generated in the mines.”
Contrary to today’s market, IMPACT Silver’s strategy had been one of expansion, having developed the reserves of the area and expanding the mill to 500t/d, mostly from organic operations cashflows and bootstrapping. “Obviously, given current market conditions, we are focused on cost control and profitable ounces and we are determined to keep the cash in the bank, retain our workforce, and continue operations,” Davidson maintains. IMPACT’s current land package includes a number of veins encompassed in the San Ramon Mine, the Noche Buena Mine, and the Cuchara-Oscar Mine. The company currently produces concentrates containing silver, lead, zinc, and gold. “There are a series of epithermal veins running North-West and South-East that have vertical depths that range between 250-300m,” he reveals. “These are the old Taxco veins, and in fact we have several geologists from Taxco that can easily identify them. We trace the vein and identify the highest ore grade that is economically viable, and these are all processed in the central mill.”
These veins have been mined for over 500 years, and through IMPACT Silver’s exploration the operator has discovered over 4,000 workings and ancient Spanish smelters. “It is an exciting prospect that we look forward to exploring with added capital,” he admits. In addition, IMPACT Silver has acquired a new tailing dam and has planted approximately 10,000 trees in order to expand the site even further. San Ramón is the highest grade deposit that the company has and it has been actively drilling there, with positive results. “In May, we announced wide sections of some of the highest grade silver we have encountered in the last decade on the property at San Ramón. We found 14.82m of 481g/t silver and 21.74m of 271g/t silver,” Davidson discloses. As a result, IMPACT Silver is garnering more attention from investors, yet it continues to monitor the market for possible acquisitions and deals to create more value and increase production beyond 1 million ounces.