corporate presentation · corporate presentation sept 2020 ipt:tsxv / isvlf:us / ikl:fr 14 years of...
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Purest Silver Publicly Listed Company +90% Revenues from Silver
Corporate PresentationSept 2020
IPT:TSXV / ISVLF:US / IKL:FR
14 Years of Exploration & Production Success in Mexico
Disclosure
Forward-Looking Statements
This presentation may contain certain “forward-looking” statements and information relating to IMPACT Silver Corp. (“IMPACT” or the “Company”) that are based on thebeliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Such statements reflect the currentrisks, uncertainties and assumptions related to certain factors including but not limited to, exploration and development risks, expenditure and financingrequirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships withvendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any oneor more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may varymaterially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement. The factors that could cause actual resultsto differ materially include, but are not limited to, the following: general economic conditions; changes in financial markets; the impact of exchange rates; politicalconditions and developments in countries in which the Company operates; changes in the supply, demand and pricing of the metal commodities which the Companymines or hopes to find and successfully mine; changes in regulatory requirements impacting the Company’s operations; the ability to properly and efficiently staff theCompany’s operations; the sufficiency of current working capital and the estimated cost and availability of funding for the continued exploration and development ofthe Company’s exploration properties. This list is not exhaustive and these and other factors should be considered carefully, and readers should not place unduereliance on the Company’s forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levelsof activity or achievements and neither the Company nor any other person assumes responsibility for the accuracy and completeness of these forward-lookingstatements.
Cautionary Statement
The Company’s decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processingoperations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company’s geologists andengineers. The results of this work are evident in the discovery and building of multiple mines for the Company, and in the track record of mineral production andfinancial returns of the Company since 2006. Under NI43-101 the Company is required to disclose that it has not based its production decisions on NI43-101-compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertaintyand risk of failure.
NI 43-101 Qualified Person
George Gorzynski, P. Eng., Vice President, Exploration and a Qualified Person under the meaning of Canadian National Instrument 43-101, is responsible for thetechnical information in this presentation with the exception of the Capire project mineral resource estimate. Steven Ristorcelli, C.P.G. (U.S.A.), Principal Geologist forMine Development Associates and a Qualified Person under the meaning of Canadian National Instrument 43-101, is responsible for the Capire mineral resourceestimate and directly related information.
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL2
Why IMPACT Silver?
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL3
Pure-play silver producer with
tremendous 5:1 leverage to
increasing silver prices
Near-term production growth
and near-mine exploration
upside
District exploration upside:
hundreds of vein targets and
>5,000 historic workings
across the property
Investment Highlights
• 100% ownership of two mineral districts covering 211
km2 in Mexico State in south-central Mexico
• In our 15th year of continuous production at the Royal
Mines of Zacualpan Silver District
• Over 10M oz of silver produced since acquiring the
operation in 2006
• Restarted operations in early June following Mexico-
wide suspension of mining activities due to COVID-19
• Strong balance sheet with ~C$6M in cash, no debt and
positive cash flow from operations
• Superior leverage to rising silver prices
• Experienced and proven leadership team
• Silver sale to largest electronics co in world Samsung,
potential non-dilutive expansion financing
One of the purest
play silver producers
~90% of revenues from
silver in Q1 2020
Long-term, stable
production
Over the last 12 months, sold
~695K oz Ag and generated
C$1.7M in mine-level EBITDA
Near-term
production growth
Expanding production from
Veta Negra OP mine. High-
grade veins traced over 650 m.
In Q1, sampled 205.7 g/t Ag
over 22.7 m width
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL4
Near-term
development
opportunity at Capire
Expandable 200 tpd mill and
4.6M oz Ag open pit resource.
Potential to lower costs through
DMS technology
Near-mine & district
exploration upside
Hundreds of epithermal vein
targets and >5,000 historic
workings across the property
Exciting new
Chapanial discovery
Sampled 97.5 g/t Au and 97.9
g/t Ag over true width of 0.8 m
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
IMP
AC
T S
ha
re P
rice
(C
$/sh
are
)
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
$22.00
$24.00
Silve
r P
rice
(U
S$
/o
z)Highly Leveraged to Silver PricesSilver vs IPT Share Price
• One of the best leveraged silver plays in rising silver market
– In 2016, 2019, and 2020’s recent silver rally, IMPACT’s share price generated significantly higher returns than holding silver bullion
– Every $1 increment in silver prices represents direct increases to profit and value of ounces in ground
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL5
Jan 4 – Aug 2,
2016:
854% return
Jan 4 – Aug 2,
2016: 50% return
Jun 4 – July 30,
2019:
90% return
Jun 4 – July 30, 2019:
12% return
Mar 2 – July
26, 2020
149% return
Mar 2 – July
26, 2020
37% return
Capital Structure
Tickers TSXV:IPT, US:ISVLF, FR:IKL
Share Price (Sept 13 2020) C$1.02
52-Week Range C$0.22 – C$1.25
Shares Outstanding (basic) 116.2M
Shares Outstanding (FD)* 152.7M
Market Capitalization (basic) C$118.3M
Cash & Cash Equivalents (C$M) C$5.9M
Debt (C$M) None
Enterprise Value (C$M) C$113.6M
Capital Structure
0.0
0.5
1.0
1.5
2.0
2.5
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
Jul-
19
Sep-1
9
Nov-1
9
Jan
-20
Mar-
20
May-2
0
Vo
lum
e (
millio
ns)
Sh
are
Pri
ce
(C
$)
Volume Price
12-Month Share Price Performance
Share Ownership
Retail 70%
Institutional Funds (Eric Sprott, Stabilitas, SilverETF, Commodity Discovery Capital) 20%
Management & Insiders 10%
*Includes 5,185,000 options outstanding with a weighted average exercise price of C$0.55 and 30,504,322
warrants outstanding with a weighted average exercise price of C$0.36
Source: S&P Capital IQ as of July 24, 2020
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL6
Experienced Management & Board
Frederick W. Davidson, CA,
CPA
President, CEO, Director
• +33 years of mining experience, including holding various senior positions at Erickson Gold Mines Ltd. and Mt. Skukum
Gold Mines. Former CEO of Energold Drilling Corp. and CFO of TOTAL Energold (a partially owned subsidiary of TOTAL Oil of
France with oil, gas and gold production)
• Former Director of Wheaten River Minerals (acquired by Goldcorp in 2014 for $2.4 billion)
• MBA from TUBC and CA, CPA
George Gorzynski, P. Eng.
VP Exploration, Director
• +35 years of exploration and mining experience
• Director of Fireweed Zinc Ltd.
Jerry Huang, MBA
CFO
• +10 years of venture capital markets experience raising over $100 million
• Former advisor for HNW at CIBC, director of gold/copper and lithium projects on TSX-Venture
• MBA from University of British Columbia and CPA PEP from CPABC
Armando Alexandri
COO
• +35 years of mining experience in underground and open-pit mines as well as flotation and cyanidation processing plants
Victor Tanaka, P. Geo
Director
• +40 years of exploration experience
• Current Director of Fjordland Exploration, Westhaven Ventures and Consolidated Woodjam Copper
• Held senior positions at Asamera Inc., Freeport McMoRan Gold Corp., Cominco Ltd., and Aber Resources
Richard Mazur, P. Geo, MBA
Director
• President and CEO of Forum Energy Metals Corp. and CEO of Alto Ventures Ltd.
• Held senior positions at Canamax Resources and IMPACT Minerals
Peter Tredger, P. Eng., MBA
Director
• Former Senior Officer of Thompson Creek Metals Company
• Held senior positions at Glencairn Gold (now B2Gold) and Wheaton River Minerals (now Goldcorp)
Robert W. Lishman
Director
• +40 years of investment industry and business experience with strong portfolio management and financing expertise
• Currently Managing General Partner of investment fund Yellowjacket, LP
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL7
Royal Mines of Zacualpan500+ Years of Production
Production summary so far
10M oz Ag produced since 2006
One of the purest silver producers with
90% of revenues from silver in Q1 2020
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL8
457
349
636
824750
834
621683
726
950 953908
744664
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Silver Production Since Acquiring the Project in 2006 (000 oz)
Summary of Operating Results
Production by Metal Value (Q1 2020)
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL9
Q2 2020 YTD Q4 2019 LTM 2019 2018 2017
Tonnes processed 65,139 36,528 144,627 140,878 173,217 194,266
Throughput (tonnes/day) 358 397 396 386 475 532
Average grade (g/t Ag) 178 182 174 173 159 172
Silver production (oz) 308,564 180,670 679,475 664,056 743,950 907,848
Lead production (tonnes) 113 78 278 275 329 481
Gold production (oz) 154 113 384 376 469 540
Silver sales (oz) 317,480 182,670 694,792 667,628 733,267 907,848
Lead sales (tonnes) 115 76 290 287 344 481
Gold sales (oz) 152 112 385 367 489 540
Revenue per tonne of ore
processed (US$)$97.26 $105.47 $92.76 $92.82 $74.88 $79.62
Direct costs per tonne of ore
processed (US$)$75.79 $82.60 $75.24 $82.55 $83.63 $76.49
Mine-level EBITDA (C$M) $1.27 $0.87 $1.66 $1.37 -$1.68 $0.47
Silver90%
Gold5%
Lead5%
• In late 2018, IMPACT shifted its strategy towards lower cost, higher grade production
• Led to a significant decline in operating costs per tonne and an improvement in average grade
• In Q1 2020, IMPACT started to gradually expand processed tonnes (11% higher mill throughput compared to Q1 2019)
• Q2 2020 will be impaired due to nation-wide suspension of mining operations due to COVID-19
• The Company is reassessing production plans in light of positive results from the Guadalupe Mine and Veta Negra open pit
Royal Mines of ZacualpanProperty Overview
• 100% ownership of two contiguous mining districts covering
211 km² in south-central Mexico
• A 3.5-hour drive southwest from Mexico City
– Paved road access
• Connected to a modern power grid with ample water supply
and a skilled, 99% Mexican workforce
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL10
• 535 tpd Guadalupe Plant processing mineral from three
underground mines (Guadalupe, San Ramon and Cuchara)
and the Veta Negra open pit mine (all within close proximity)
• 200 tpd Capire Pilot Plant is on care and maintenance
– Most recently used to bulk test the processing of gold and copper
feed from the Carlos Pacheco Zone
Royal Mines of ZacualpanOverview of Mining/Processing Assets
Guadalupe Processing Plant
• 535 tonnes per day capacity
• Currently processing all ore production
Veta Negra
• New small open pit
operation which
commenced production
in September 2019
• 4 km northwest of the
Guadalupe mill
• 17% of Q1 2020
production
San Ramon
• Began production in
2004
• Current high-grade silver
production from large vein
at depth – San Ramon
Deeps
• 22% of Q1 2020
production
Cuchara
• Began production in
2013
• Corridor of epithermal
veins linking new and
legacy mines
• Production is from
medium grade epithermal
silver and lead-zinc veins
• 23% of Q1 2020
production
Capire Processing Plant
• 200 tonnes per day capacity
• Care-and-maintenance (since Feb 2014)
Guadalupe
• Historic producer located
beside Guadalupe
processing plant and
restarted in 2018
• Epithermal silver-lead-zinc
veins
• 38% of Q1 2020
production
• Operations restarted in early June 2020 following the country-wide suspension of mining activities due to COVID-19
• IMPACT has an active virus monitoring, prevention and response program in place that complies with all government
health and safety standards
• Mine and local communities are currently COVID-19 free and have had only one case since the outbreak due to strict
travel and safety protocols
11
Royal Mines of ZacualpanProlific History of High-Grade Silver Mining
• One of the oldest mining districts in the Americas
– Almost 500 years of recorded mining history
• First mining district in the Americas to be granted status
of ‘Royal Mines’ of Zacualpan in 1531 by the Spanish
Crown
• IMPACT’s exploration work has catalogued over 5,000
old mine workings and 42 historic processing plants,
indicating extensive historical mining, large exploration
potential and forming an invaluable database for
modern and effective exploration
Nombre de Dios La Cadena
La Zorra El Calvario
La Fortuna
Some of the 42 historic processing plants in the Zacualpan District
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL12
Metal Zoning in Mineral Shoots
Geology of Epithermal Vein Systems
San Ramon Mine
Guadalupe Mine
Cuchara Mine
Carlos Pacheco/San Juan Zone
Chapanial Target
Silver-rich at top of shoot150 – 1,000 g/t Ag
Lead and zinc-rich at bottom of shoot50 – 120 g/t Ag
Gold-Copper at depths of 300 m +
Strike Length150 – 1,200 m (500 – 4,000 ft)
DepthSurface – 0 m (0 ft)
150 m (500 ft)
300 m (1,000 ft)
Metal Level in Mines
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL13
Manto America Bulk Tonnage Target
Mines and Processing Plants
• District is tilted exposing deeper copper-gold zone in
centre of property and shallower silver mineralization
to northeast
• Intrusive rhyolite cupolas and dykes indicate heat
source in centre drove mineralizing systems
Au/Ag Ratios in Veins
San PabloNortePregones
Campire VMS
Santa Teresa
Carlos Pacheco
San Ramon
Cuchara
Guadalupe
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL14
Significant Exploration Upside
• Exploration continues to evaluate the 5,000+ historic
mine workings located on hundreds of mapped veins
(red lines on map) on an extensive mineralizing system
• Area 1: Brownfields exploration for silver veins within
close trucking distance to the Guadalupe plant; area
includes the San Ramon, Cuchara and Veta Negra
mines
• Area 2: Early stage exploration for Zacualpan southeast
extension silver veins
• Area 3: Brownfields and greenfields exploration on
silver-rich VMS and vein targets; includes the open pit
Capire mine
• Area 4: Brownfields and greenfields exploration on
copper-gold and silver vein targets
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL15
1
4
3
2
Area 1:Veta Negra: Low cost mining with exploration upside
• Expanding profitable, low cost open
pit operation placed into operation
in less than 2 months
• Q1/2020 mining grades averaged
191 g/t Silver across widths of
14m to 22m
• Accounts for 18% of current
production and growing
• Mineralization traced in trenches
over 650 meters length in veins
and disseminations
• First drill program planned
1916
Area 1San Ramon: High-Grade Silver Mine with New Drill Results
• Underground drilling has been expanding the new deep,
high-grade silver vein at the San Ramon Mine
• July 2018 drilling discovered a new zone located 100 m
south of current mining operations
– 4.97 m of 345.4 g/t Ag & 2.04 m of 661.2 g/t Ag
• Zone remains open for expansion to the south, down dip
and up dip with additional drilling planned1.03-203-0.25-0.61
1.20-249-0.20-0.57
NIVEL 8
C/P DE EMERGENCIA PROY.
2000
1950
1850
2050
2100 2100
2000
1950
2050
1800
1750
1700
ENTRADA
SECCION LONGITUDINAL VETA INMACULADA
1900
TOLVA
FALLA
1900
1850
Xo a CARGADERO
1750
1700
RAMPA (-)
MPZ-183-141.15-31-0.03-0.02C/P
FALLA
NIVEL 18
3.75-198-0.07-0.17
PILAR DE PROTECCION
PILAR DE PROTECCION
MPZ-194-15
9.14-54-0.03-0.10
NIVEL 16.5
2.60 174 0.90 1.13ANC Ag g/t Pb% Zn%
SR14-03
MPZ-171-13BNO. ENERGOLDBNO. MINPOZA
BNO 8 BNO. PROPUESTO PARA MINPOZA
ZONA DE AMPLIACION RAMPA GRAL. (-)
ÁREA DE AMPLIACIÓN RAMPA GRAL. (-)
PROY. ÁREA DE AMPLIACIÓN RAMPA GRAL. (-)
NIVEL 14.5
1650 1650
NIVEL 21
1600
MINERA EL PORVENIR DE ZACUALPAN S.A DE C.V
MUESTREO : S V V
ESCALA 1 : 1000
LEVANTO : M G A
OCTUBRE 2019
REVIZO : F H R
MINA SAN RAMON
SECCION LONGITUDINAL
VETA INMACULADA
APROBO: F H R
1600
PLAZA DE EXPLORACION
NIVEL 12
ZONA INESTABLE
CAIDOS
NIVEL 13
ÁREA= 2319.41 m
TON.= 9352 T
200gr Ag - 0.20% Pb - 0.50% Zn.
2
MPZ-193-15
9.50-14-0.01-0.05
21502150
NIVEL 1
5.10-104-0.21-0.78
3.40-255-0.23-0.47
2.20-24-0.03-0.17
NIVEL 11
NIVEL 5.5
NIVEL 9
1.85-43-0.27-0.73
1.85-138-0.35-1.67
NIVEL 0
SURNORTE
Z05-093.60-215-0.05-0.05
Z05-09
1.60-190-0.02-0.04
Z05-051.20-635-0.23-0.05
Z17-4310.02-27-0.02-0.04
Z17-444.73-144-0.04-0.07 2.85-166-0.10-0.27
Z17-452.15-218-0.04-0.09
Z17-47
1.90-133-0.11-0.34
DESP. AL BAJO
NIVEL 7
NIVEL 2
NIVEL 0
1850
1750
1700
3.75-198-0.07-0.17
MPZ-193-15
MPZ-194-15
9.14-54-0.03-0.10
9.50-14-0.01-0.05
SR-UG06-08
PLAZA DE EXPLORACION
SR-UG06-06
9.68-26-0.01-0.05
SR-UG06-07
11.02-17-0.01-0.03
3.69-16-0.02-0.06
SR-UG06-02
2.40-31-0.20-0.53
SR-UG06-03
1.69-63-0.02-0.08
SR-UG06-10
SR-UG06-11
1.04-102-0.10-0.22
SR-UG06-12
(0.23-214-1.90-4.90)
(0.79-117-0.03-0.13)
CHEMEX
CHEMEX
CHEMEX
CHEMEX
SR-UG06-13
CHEMEX
6.11-63-0.06-0.28
(1.11-176-0.12-0.44)
SR-UG06-01
SR-UG06-04
SR-UG06-05
CHEMEX
CHEMEX
6.67-103-0.07-0.12
3.50-94-0.11-0.36
(1.68-190-0.13-0.24)
(1.70-259-0.34-1.13)
CHEMEX
6.41-65-0.03-0.06(3.08-166-0.06-0.12)
SR-UG06-09
CHEMEX
2.93-376-0.81-0.86
CHEMEX
1.57-127-0.05-0.19
(1.13-172-0.07-0.26)
(0.81-125-0.13-0.28)
3.04-70-0.08-0.31
(1.29-120-0.16-0.65)CHEMEX CHEMEX
CHEMEX
OBRA ANTIGUA
MINERALIZACIÓN ABIERTA
BNO. PROY.01
75 MTS65 MTS BNO. PROY.02
Z05-070.80-203-1.02-1.24
Z05-08
COMUNICO OBRA ANTIGUA
Z05-060.60-443-0.15-0.27
Z05-05
1.00-139-0.08-
Z05-10
0.70-222-0.09-0.03
Z05-10
1.40-153-0.30-0.09
TIRO LA SOLEDAD
MPZ-267-18
MPZ-266-18 MPZ-268-188.47-84-0.05-0.17
(3.18-195-0.08-0.28)
7.99-24-0.03-0.08
7.99-24-0.03-0.08
1800
1750
1700
FALLA
NIVEL 17
NIVEL 19
NIVEL 18
NIVEL 20
3.75-198-0.07-0.17
MPZ-199-15
MPZ-192-15
3.53-106-0.03-0.13
NIVEL 16.5
VETA ESPERANZA
RAMPA (-) EXTREMO SUR
MPZ-201-16MPZ-207-163.32-147-0.28-0.76(0.95-859-0.83-2.37) (0.30-1490-0.45-1.45)
1650
MPZ-215-167.07-86-0.06-0.39
(1.65-155-0.07-1.06)
NIVEL 22
NIVEL 23
4.71-59-0.05-0.17
SR14-021.26-160-0.16-0.93
1.73-135-0.17-0.40
(0.68-297-0.37-0.94)
SR-UG4-10
5.15-23-0.55-1.53
NIVEL 24
1600
SR-UG4-11
SR-UG5-012.20-26-0.47-1.02
SR-UG5-022.65-163-0.18-0.91
SR-UG5-031.80-29-0.56-2.09
SR-UG5-041.55-48-0.20-0.63
SR-UG5-071.50-21-0.78-1.03
SR-UG5-051.70-10-0.39-0.76
SR-UG5-06
10.73-4-0.17-0.23
NIVEL 25
PLAZA DE EXPLORACION
FTE. DE EXPLORACIÓN NIVEL 21
NIVEL 26
C/P
NORTE SUR
NIVEL 26.5
NIVEL 23
SR-UG4-07
MPZ-281-193.71-59-1.00-1.99
(0.62-195-1.85-3.93)
1.29-16-0.20-1.81MPZ-282-19
1.04-45-0.35-0.90MPZ-283-19
NIVEL 28
BNO.PROY
BNO.PROY
PLAZA DE EXPLORACIONPROY.
BNO.PROY
BNO.PROY BNO.PROY
BNO.PROY
BNO.PROY
12.88-168-0.46-1.08ZONA DE STOCKWORK
MPZ-287-19
MPZ-285-19
MPZ-286-19
5.85-73-1.40-3.02
DESP. AL ALTO
1.34-305-0.66-1.74
MPZ-285-19
2.23-575-1.84-4.97
MPZ-284-19
DESP. AL ALTO
MPZ-285-191.10-247-0.42-0.55
3.19-321-0.19-0.60
DESP. AL ALTO
MPZ-284-190.72-584-0.26-0.77
MPZ-288-190.50-764-0.22-0.46
NIVEL 27
2.45-307-0.46-0.49
MPZ-288-19
2.60-221-0.30-0.31
MPZ-289-195.50-28-0.68-2.13
MPZ-293-19MPZ-294-193.07-225-0.43-1.25 1.80-8-0.07-0.40
BNO.PROY
MPZ-295-19 OPERACION
Open for expansion
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL17
Area 1Guadalupe to Alacran Exploration Area
• Fertile exploration area between two large
historic Mines
• The Guadalupe Mine to the north produced
over 10 million ounces silver between
1972-1991, and much more since first
recorded production in 1529; Sept 2018
drill results:
– 2.61 m of 1,263 g/t Ag & 8.82 m of 306 g/t Ag
• The Alacran Mine to the south is marked by
extensive underground workings with
historic reports of very high-grade (1,000’s
of g/t) silver and gold mining beginning
before 1527
Guadalupe Mine
+10M oz Ag historic production
Drill Targets
Guadalupe Deeps
El Paso
San Ignacio
Remedios
El Progresso
Alacran Deeps
Alacran Mine
Large historic Ag/Au production
1,200 m zone
Ala
cra
n D
ee
ps D
rill
Targ
et
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL18
Area 1San Felipe Corridor Exploration Targets
• A number of drill targets have been developed on
veins within short trucking distance of the Guadalupe
Mill
• San Felipe is an old multilevel mine where an initial
drill hole intersected high-grade silver
– 834 g/t Ag over 3.34 m
• Socavon Zacualpan and El Paso are on the mine
access road is less than 1km from the Guadalupe
mill
• Other exploration targets being mapped and
sampled to develop additional drill targets
Chivo MineHigh grade production
between2007-2012
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL19
Area 2Tasco North & Pregones Exploration Areas
• Area is synonymous with silver in Mexico – Taxco is the most
famous silver mine in Mexico
• To the north, IMPACT’s early exploration efforts have discovered
numerous old mines and old processing plants
• Taxco district still owned & explored by majors (Grupo Mexico.)
Old Mines Old Processing Plants
Epithermal silver veins
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL20
Area 3Capire: Potential Quick Expansion of Production
• 43-101 open pit resource of 4.5Moz Silver @ 79g/t + lead-zinc in open pit with expansion / exploration upside
• 200 tpd pilot plant on care & maintenance; turnkey to restart with rising silver prices
• Infrastructure pre-built for 1,000 tpd plant
• VMS silver-lead-zinc (-gold-copper) deposit; other VMS prospects with upside nearby
• DMS technology has potential to materially reduce operating costs and extend mine life
200 tpd pilot plantOpen-pit
3D model of
planned
open-pit
Mill
Tailings Facility
Capire open-pit 3D modelCapire open-pit mine and pilot plant on VMS
Ag-Pb-Zn deposit (currently on standby)
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL21
Capire ProjectNI 43-101 Resource Estimate
• Resource estimate is based on
an optimized pit shell
• Potential to mine ore at a lower-
cut-off grade through use of
conventional Dense Media
Separation (DMS) technology
• Resource estimate excludes
additional mineralization lying at
deeper levels that may be
amenable for potential
underground and open pit
development
Mineral Resources are current as at January 9, 2016. The reported mineral resource (“Base Case”) cutoff grade is US$30/tonne in the table. Steven Ristorcelli, C.P.G.
(U.S.A.), Principal Geologist for Mine Development Associates and a Qualified Person under the meaning of Canadian National Instrument 43-101, is responsible for
this Capire project mineral resource estimate (See IMPACT Silver news release dated January 18, 2016 and NI 43-101 Technical Report posted on www.sedar.com for
supporting information and other details.)
Cut-off NSR Average Grade Contained Metals
(US$/tonne) Tonnes (000s) (US$/tonne) Ag (g/t) Zn (%) Pb (%) Ag (000 oz) Zn (000 lbs) Pb (000 lbs)
10 4,465 $36.20 44.21 0.72 0.31 6,346 71,183 30,212
15 3,450 $43.24 53.03 0.85 0.37 5,881 64,914 28,072
20 2,707 $50.37 62.22 0.98 0.43 5,414 58,444 25,755
25 2,177 $57.19 71.06 1.10 0.49 4,974 52,766 23,522
30 1,786 $63.74 79.49 1.22 0.54 4,563 47,975 21,423
35 1,490 $69.96 87.65 1.33 0.59 4,199 43,692 19,504
40 1,242 $76.47 96.20 1.45 0.65 3,842 39,596 17,666
45 1,035 $83.30 105.37 1.56 0.70 3,507 35,693 15,905
50 859 $90.69 115.49 1.69 0.75 3,189 31,983 14,203
NI 43-101 Compliant Inferred Resource Estimate (January 2016)
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL22
Capire ProjectUnlocking Value through Dense Media Separation (DMS)
• Highly encouraging results from a 2019 study evaluating the viability of DMS
– DMS is a low-cost method of pre-concentrating minerals to increase the grade of
mineral feed into the processing plant and improve processing economics
• Initial results showed that 25% of the sample mass could be rejected while
retaining over 99% of silver, lead and zinc and >97% of copper and gold
• A second test on a low-grade sample showed that over 42% of the sample
mass could be rejected while retaining 93% of silver and lead and 79% to
92% of copper, gold and zinc
• A DMS preconcentration plant could unlock some significant operating cost
improvements that would allow a lowering of cut off grade and access to
otherwise uneconomic areas of the Capire deposit
• DMS is used across many operations around the world
– Operations using DMS include the Kroondaal platinum mine in South Africa, Comide
and Kamfundwa copper mines in the DRC, Navachab gold mine in Namibia and the
Tati nickel mine in Botswana
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL23
Area 4 Carlos Pacheco – Gold/Copper District
• Test mining of gold and metallurgical
testing of copper carried out at Carlos
Pacheco South in 2014; gold, silver,
lead and zinc recoveries are good;
copper metallurgy needs more work.
• Past drilling results at Carlos Pecheco
included 19.6 g/t Au over 2.9 meters
(see PR dated Dec 3, 2008 for details)
• Average grade 3.2g/t Au, 75g/t Ag,
0.35% Cu & 1.5% Pb+Zn.
• Mining infrastructure in place at north
and south ends of zone
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL24
Area 4Gold Exploration Targets around Buried Intrusive
• The core of the district is host to gold veins and potential
bulk tonnage gold mineralization on the flanks of a large
magnetic high (pink on map)
• Intrusive rhyolite breccia dikes indicate magnetic high is
probably a buried felsic intrusion and heat driver of
mineralization in the Zacualpan district
• High grade gold veins being explored at Chapanial and El Canelo
• Bulk tonnage gold zone being explored at Manto America
• Further exploration planned
Manto America
El Canelo
Chapanial
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL25
Area 4Manto America Bulk Tonnage Target
• Large area (+1 km2) of sericite-pyrite
alteration with elevated gold values in
soils and rocks
• 2019 channel samples returned 33
samples over 2 g/t gold; highest value
19.5 g/t gold over 1.2m
• Gold values associated with sulphide
lenses and quartz-hematite veinlets
• Bulk tonnage gold targets
• Exploration planned – trenching and
shallow RC grid drilling
La Mora-
2nd bulk
tonnage target
Manto America Cat
Trench 2
Manto America Cat
Trench 1
Manto America Soc 1
and 2
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL26
Area 4Chapanial Gold Discovery
• Located 7 km west of the Guadalupe processing plant&
southwest of Veta Negra Mine
• Sampling results from 2020 exploration include:
– 97.5 g/t Au and 97.9 g/t Ag over a true width of 0.8 m
– 18.25 g/t Au and 75.4 g/t Ag over a true width of 0.2 m
• Close to historic Chapanial mine which produced on three levels
over 45 m depth and along strike for 100 m
• Vein is associated with a major structure which hosts a sulphide
bearing polymictic breccia up to 8m in width
• Many other veins and anomalies are currently being explored
Chapanial
Highlighted Channel Sampling Results
Chapanial
Norte
Chapania
Sur
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL27
Plans Going Forward
2020
•Explore while optimizing silver production
• Drill exploration targets at Veta Negra, Guadalupe, Chapanial, Manto America
• Continue Exploration on priority targets among the >5,000 silver and gold-copper old mine prospects
• Continue to drill and optimize high-grade silver production at Guadalupe and Veta Negra
• Increase cash flows and optimization of Guadalupe mill
• Consider placing Capire open pit silver mine back into production with rising silver prices
• Identify and evaluate strategic opportunities for financing and acquisitions
2021+
• Expansion and exploration
• Continue aggressive exploration and drilling of priority targets
• Consider placing Carlos Pacheco Zone into production when gold and copper prices improve
• Consider expanding Capire open-pit silver mine to 1,000 tpd
• Continue exploration and expand mining activities with aim to grow into a multi-million oz precious metals producer
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL28
Thank you – invest in IPT.V purest explorer/producer
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL29
Pure-play silver producer with
tremendous 5:1 leverage to
increasing silver prices
Near-term production growth
and near-mine exploration
upside
District exploration upside:
hundreds of vein targets and
>5,000 historic workings
across the propertyTelephone 1-604-644-7707
Email [email protected]
Website www.IMPACTSilver.com
Corporate Address Suite 705 - 543 Granville
Street
Vancouver, BC, Canada V6C 1X8
Appendix
31
Market Capitalization (C$M)
$15,069
$10,343
$3,896
$3,752
$3,671
$2,454
$2,370
$1,737
$1,610
$874
$484
$388
$331
$296
$163
$141
$119
$52
Fresnillo
Pan American
SSR
First Majestic
Hecla
Coeur
Hochshild
Silvercorp
Fortuna
Endeavour
Americas Gold & Silver
Great Panther
Sierra
GoGold
Excellon
Silver Bear
IMPACT
Santacruz
54.6
25.9
13.2
12.6
11.7
7.9
7.7
6.4
5.7
4.0
3.4
1.6
1.5
1.2
1.1
1.0
0.8
0.7
Fresnillo
Pan American
First Majestic
Hecla
Coeur
Fortuna
SSR
Silvercorp
Hochshild
Endeavour
Sierra
Silver Bear
Great Panther
Americas Gold & Silver
Excellon
GoGold
Santacruz
IMPACT
2019 Silver Production (M oz Ag)
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL31
Source: S&P Capital IQ and company filings as of July 24, 2020
Silver Producers in the Americas
Rapid Exploration to Mine Development
A cornerstone of IMPACT’s success has been rapid mine development to increase mill throughput and
generate near-term cash flow – drilling to production typically in <24 months
Exploration and mine development process flowchart
RESEARCH
Compile old
mines/ prospects
from historic
maps
DRILLING
Drilling in
phases based
on success
MINE
DEVELOPMENT
Mine Planning,
Permitting and
Construction
FIELD WORK
Surface &
underground
sampling,
mapping
MINE
PRODUCTION &
CASH FLOW
More than 5,000
old mines and
prospects
catalogued
to date
Prioritize and
select
areas and
prospects
for drilling
• Veta Negra
• Extensions
• Alacran area (drilling planned)
• El Paso (drilling planned)
• San Ramon
Deeps
• Cuchara
• Guadalupe
• Veta Negra
• Guadalupe
• Veta Negra
open pit
www.impactsilver.com TSXV:IPT / OTCPK:ISVL.F / DB:IKL32
33
P E R F I L
TIRO CENTRAL
NIV EL - 50
NIVEL - 245
NIVEL - 140
NIVEL - 195
NIVEL - 110
G - 81
G - 82
G - 83
G - 840.83
103
6.71
75
1.75
126
4.24
336
G - 27
2.05
97
G - 262.79
46
P A - 276
3.95
295
4.36
23
P A - 356
P A - 18
Y=1
,800
P A - 14P A - 19
Y=1
,600 X=1,400
NTE
LONGITUDINAL VETA LIPTONIA
NIV EL - 140
Y=2
,000
X=1,200
2.23-438-1.00-2.011.34-216-0.84-1.88
NIVEL - 70
1.45-34-0 .25-0.24
6.05-208-0.62-0.73
P A - 283
FU
ND
O G
UIL
LE
RM
INA
FU
ND
O G
UIL
LE
RM
INA
NIVEL - 140
MINA GUILLERMINA
NIVEL - 70
X o a LIPT ON
NIVEL - 140
NIVEL - 110
NIVEL - 0
1,896.50
1,796.50
1,696.50
PROY. FRENTE NORTE NIVEL-70
VETA LIPTONIA
VETA LIPTONIA
VETA LIPTON
CRUCERO
LIPTONX.o. A
NIV EL - 140
PROY. FRENTE NORTE NIVEL-110
SIMBOLOGIA
PROYECTO
SULFUROS
ANDESITA
CUARZO-CALCITA
FALLA-FRACTURA
X.o.A LIPTON
X.o.A LIPTON
X .o.
A L IP TONPROY. FRENTE NORTE NIVEL-100
PLANO GEOLOGICO LIPTONIA
S E CCION LONG. VETA
LIP TONIA
POSIBLES RECURSOS
P E R F I L S O B R E V E T A L I P T O N
NIVEL - 100
1,896.50
1,796.50
1,696.50
SUR
ZONA DE PRODUCCION
NIVEL - 100
RAMPA (+) A NIV 50
BLANCO DE EXPLORACIONNIVEL 15
NIVEL 30
NIV EL - 60ZONA DE FALA
• Current Guadalupe Lipton
prodtuction mainly on
extensions of historic mining
(Yellow= historic mining,
orange and red = near term
future mining areas)
Refurbishing Historic Infrastructure at Guadalupe
• Refurbishing old assets and equipment – in this case the mine shaft and underground railroad to lower cost and speed up tonnage being hauled out of mine
34
35
Area 1: Alacran Gold-Silver Mine1918-1926 Mining Areas Long Section
1.2+ km zone
35
36
Area 1: Alacran Gold-Silver MineTwo historic reports indicate super high grades
Lewis (1920) “…At enriched places, lenses of silver sulphides are found, 30 to 70cm. wide, the ores carrying 20 to 60 kg. silver per metric tonne. The wall-rock for a short distance is also impregnated to the point of making good mill-ore. The unenriched spaces between the ore bodies usually assay 400 to 500 gm. Silver. All the high-grade ores carry gold, with a characteristic accompaniment of iron and copper sulphides……”
Garcia (1921) reports “The Alacran Mine employed 500 workers who produced 8 to 10 tonnes <per day> of direct shipping ore assaying 35kg/tonne which was exported to Penoles in Toluca and 40 tonnes <per day> of less than 10kg/tonne which was sent to the <Cuchara> flotation plant.Do the math: 50 tpd operation producing about 7 million ounces silver per year
36
Ore Sorting DMS Plant Example
• Hudbay Ontario uses DMS
• Not a new technology but a proven cost reduction approach to small high grade mines
• There are many DMS and other ore sorting plants in operation around the world
37