IMPACT Silver Corp.
TSX VENTURE : IPT

IMPACT Silver Corp.

October 12, 2006 12:49 ET

IMPACT Discovers New High Grade Silver Shoot

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2006) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT) is pleased to announce drill results from the Royal Mines of Zacualpan Silver Project. These initial results are from the first two target areas tested: Chivo Prospect and San Ramon Extension. A significant high-grade silver shoot was discovered at the Chivo Prospect.

CHIVO SILVER SHOOT

The Chivo Silver Shoot is located in the southern part of the Zacualpan silver district and represents a new zone of high grade silver mineralization at the Zacualpan Project. Following up on previous high grade underground sampling (1,095 g/t Silver over 1.25m TW) and surface sampling (2,640 g/t Silver over 0.85m TW), IMPACT drilled an initial eight holes on the Chivo Shoot. The holes only tested the Chivo zone over a length of 60m and a downdip depth of 190m. The boundaries of the Shoot are not known and the zone remains open in all directions for expansion. Results included the following:



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CHIVO SHOOT DRILL HOLES
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DRILL TOP ESTIMATED
HOLE OF TRUE SILVER SILVER GOLD ZINC LEAD
No. INTERCEPT (m) WIDTH (m) (g/t) (oz/t) (g/t) (%) (%)
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7 44.4 1.1 841 24.5 0.63 0.43 0.32
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8 50.5 2.4 422 12.3 0.25 1.54 0.69
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Including: 0.9 783 22.8 0.38 1.37 0.56
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9 51.4 0.9 122 3.6 0.35 0.59 0.38
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10 59.1 2.7 937 27.3 0.35 1.88 0.75
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Including: 0.7 2,380 69.4 0.43 4.83 1.85
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11 55.1 0.9 153 4.5 1.07 0.85 0.22
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12 63.7 0.9 460 13.4 0.53 0.45 0.36
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13 80.2 3.5 249 7.3 0.15 2.27 0.93
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Including: 0.4 1,170 34.1 0.26 9.65 3.90
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14 40.6 1.3 274 8.0 0.55 4.40 1.02
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SAN RAMON MINE EXTENSION

Five holes successfully tested the economic boundaries of the San Ramon Mine. These holes were drilled to determine the size of the San Ramon Mine and to plan for future mining. The holes were drilled to depths of between 85m to 180m below Level 10 of the San Ramon zone, the area of current mining. Mining has been progressing at a rate of approximately one 10-meter level every two months at San Ramon. It appears the deepest of the five holes cut the roots of the San Ramon mineralization. The most significant results returned:



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SAN RAMON DRILL HOLES
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DRILL TOP ESTIMATED
HOLE OF TRUE SILVER SILVER GOLD ZILC LEAD
No. INTERCEPT (m) WIDTH (m) (g/t) (oz/t) (g/t) (%) (%)
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1 243.6 0.9 279 8.1 0.11 2.52 1.47
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Including 0.2 957 27.9 0.04 2.66 1.02
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4 133.8 0.9 746 21.8 0.36 3.08 1.08
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The Royal Mines of Zacualpan Silver Project includes two operating silver mines, a 500-tonne-per-day (tpd) operating plant (currently operating at about 200 tpd) and associated mineral concessions covering 124.5km2 over most of the Zacualpan Silver District. Production is presently coming from the Guadalupe Mine in the center of the district and the San Ramon Mine in the southeastern part of the district. IMPACT's future plans call for continuing production while simultaneously expanding and upgrading operations to modern standards.

George Gorzynski, P.Eng. and Nigel Hulme, P.Geo., Qualified Persons under the meaning of Canadian National Instrument 43-101, are responsible for the technical content of this news release. Drill core was NTW size (5.71cm diameter) and BTW size (4.20 cm diameter). Half core samples were collected with a rock saw, tagged for identification and securely stored at the IMPACT base camp until shipment. Chip and channel samples were collected from cleaned rock faces in old mine workings and from bedrock outcrops over a continuous representative interval using a moil and hammer. A total of 5% assay standards and blanks were inserted into every sample shipment as a quality control measure. All samples were shipped to the ALS Chemex preparation laboratory in Guadalajara, Mexico, where they were fine crushed (70% passing a 2mm screen), pulverized (85% passing a 75 micron screen) and pulp split separated for assay by a riffle splitter. These pulps were shipped to the ALS Chemex laboratory in North Vancouver, Canada, where a 30g split of each was assayed for gold and silver by standard fire assay and a 10g split was analysed for an additional 30 elements by ICP spectrometry.

IMPACT Silver Corp. is a Tier 1 silver focused mining and exploration company with two producing silver mines at Zacualpan, Mexico, an advanced-stage silver project at Zacatecas, Mexico, and other projects in the Dominican Republic. Energold Drilling Corp. (EGD:TSX.V) owns 6.6 million shares of IMPACT.

On behalf of the Directors of IMPACT Silver Corp.

Frederick W. Davidson, President, CEO


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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