Slide 1: Corporate Presentation May 2011
CORPORATE PRESENTATION MAY 2011 IPT TSX-V
Slide 2: Cautionary Disclaimer
CAUTIONARY DISCLAIMER Except for historical information, this presentation may contain forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause the Company’s actual results, levels of activity, performance or achievements to be mat
Slide 3: Project Location
PROJECT LOCATION • Two Mineral Districts: The 423 sq km Royal Mines of Zacualpan & 200 sq km Mamatla Silver Districts are located in the southern portion of the Mexican Silver Belt 3
Slide 4: Project Overview
PROJECT OVERVIEW • 100% owned 623 km2 districts • District production began 1527 • 1975-2009 over 34 million Silver equivalent ounces produced • 2,000 old mine workings in GIS database (November 2010) 4
Slide 5: Royal Mines of Zacualpan
ROYAL MINES OF ZACUALPAN PRODUCTION • Experienced management team • Low cost production ($60/tonne) • Rapid mine development 12 – 24 months from discovery hole to production • 30% increase in Silver production year over year • Consistently generating profits since inception in 2006 GROWTH • January
Slide 6: Summary of Existing Operations
SUMMARY OF EXISTING OPERATIONS Excellent • Modern power grid • No environmental issues • Paved highway access • No security issues Mining • Abundant water supply • 3 hour drive from Mexico City Environment • Trained work force Existing Facilities • Three mines feed a central 500 tpd processing plant
Slide 7: Guadalupe 500 tpd Processing Plant
GUADALUPE 500 TPD PROCESSING PLANT • Continuous upgrades to expand capacity to 500 tpd 7
Slide 8: Royal Mines of Zacualpan cont'd
ROYAL MINES OF ZACUALPAN cont’d EXPLORATION • Large 623 km2 land package 100% Owned • Over 2,000 historic mine workings compiled • Skilled and successful exploration team: 2008: Chivo Mine Development 2009: San Ramon Mine Expansion 2010: Noche Buena Mine Development 2011: Capire Mine Development 8
Slide 9: Current Producing Mines
CURRENT PRODUCING MINES Three mines feed the 500 tpd Guadalupe Processing Plant CHIVO MINE • Flagship mine producing 43% of mill feed SAN RAMON MINE • High grade epithermal silver vein with recent discovery of large stockwork zone NOCHE BUENA MINE • Newest addition to production profile, commenced i
Slide 10: Chivo Mine
CHIVO MINE • Chivo is IMPACT Silver’s flagship producing mine • Discovered in late 2005, commenced production in November 2007 • Rapid mine development: production within 24 months • High grade epithermal Silver vein with by-product Lead & Zinc • Provides 43% of mill feed Scoop Tram hauling ore from
Slide 11: San Ramon Mine
SAN RAMON MINE • Located 1.3 km south of Chivo Mine • High grade epithermal silver vein with historic grades of 5,000 g/t silver in upper levels • Restarted mining at San Ramon in 2008 • Expansion of production now starting based on discovery of 20m wide stockwork zone on Level 5 • Provides 37% of m
Slide 12: Noche Buena Mine
NOCHE BUENA MINE Noche Buena Mine Portal • Discovery hole drilled in December 2008 • Initial production achieved in March 2010 • Rapid development: production within 15 months NOCHEBUENA SILVER ZONE Drilling Highlights • Provides 6% of mill feed Drill Hole True Width (m) Ag (g/t) Au (g/t) Z09-43 3.2
Slide 13: Zoning in Ore Shoots
ZONING IN ORE SHOOTS • Epithermal vein mineralization typically occurs in ore shoots measuring 50-400m in length, 2-8m in width and 300m vertical • Mineral shoots tend to have very high grade silver tops (e.g.- Chivo Mine and San Ramon Mine) • Mineral shoots tend to have higher lead-zinc grades at d
Slide 14: Gold-Copper Mineralization
GOLD-COPPER MINERALIZATION • Carlos Pacheco was the first gold-copper target to be drilled • Gold-Copper mineralization found in deeper parts of Silver vein system • Phase One drill program complete and opening of old underground workings begun CARLOS PACHECO Drilling Highlights Drill True Au Ag Cu
Slide 15: The Next Mining District - Capire VMS Subdistrict
THE NEXT MINING DISTRICT - CAPIRE VMS SUBDISTRICT 15
Slide 16: Capire VMS Subdistrict
CAPIRE VMS SUBDISTRICT • 100% owned; 200 km2 District • NI 43-101 Mineral Resource Estimate on Capire Project • Northeast quadrant hosts gold and silver veins • Southeast quadrant hosts veins and VMS deposits • Numerous drill ready targets Refer to Slide 4: Property Holdings Map. 16
Slide 17: NI 43-101 Resource Estimate
NI 43-101 RESOURCE ESTIMATE • Capire Deposit NI43-101 mineral resources estimates (January 2011) Metal Content for Capire + Aurora 1 Ag (oz) Au (oz) Cu (lbs) 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 Measure
Slide 18: Capire Mine Development Project
CAPIRE MINE DEVELOPMENT PROJECT 3D SURFACE MODEL Area of defined NI43-101 Resources Open for expansion 3D model of planned Capire open pit Open for expansion Area of Phase 2 drill Planned Processing program Plant Site Open for expansion Proposed Tailings Facility DEVELOPMENT PLANS • 2011: Permitting
Slide 19: Exploration Process
EXPLORATION PROCESS • Targets are generated by mapping and sampling of old workings • Greatly expanded program of exploration drilling for 2011 5 STAGE DEVELOPMENT PROCESS Identify and Surface and Phase 1 & 2 Mine Map Old Underground Drilling Planning, Mines and Sampling, Permitting Production Worki
Slide 20: Zacatecas
ZACATECAS Exploration Production • 100% interest in 12 mineral • 100% interest in 200 tpd concessions operational processing plant • Historical production of over • Intention to Joint Venture 1 billion oz of Silver • Nueva Granada Concession – Old mine dumps returned 100-400g/t silver • Cristian Min
Slide 21: Proven Leadership
PROVEN LEADERSHIP BOARD OF DIRECTORS Frederick W. Davidson (CA) President, CEO & Director Held senior management positions with Erickson Gold Mines Ltd. and TOTAL Energold Corp. Part of the management team that took both the Erickson and Mt. Skukum Gold mines from discovery to production. Currently
Slide 22: Profitability
PROFITABILITY $18,000,000 $16,000,000 Revenue $14,000,000 Net Earnings $12,000,000 Operating Cash Flow ($CDN) $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- 2006 2007 2008 2009 2010 $(2,000,000) $(4,000,000) Year Capital Expenditure Use Efficiency Total funds raised since start Property
Slide 23: Corporate Summary
CORPORATE SUMMARY Marc 31st Dec 31st Dec 31st Dec 31st Year Ended ($CDN) 2011 2010 2009 2008 Revenue $7,258,085 $16,677,710 $12,176,115 $8,907,958 Net Earnings $2,473,889 $3,437,675 $1,159,661 $662,100 Cash Flow from Operations $2,699,190 $5,550,411 $4,366,322 $1,733,858 Cash & Cash Equivalents $19,
Slide 24: Plans for 2011
PLANS FOR 2011 • Ramp up Zacualpan production to 500 tpd with expanded production from Noche Buena Mine and San Ramon • Place Capire Mine into production initially on a 200 tpd pilot plant basis • Recent $15 million financing will allow accelerated growth through expanded exploration and potential a