IMPACT Silver Corp.
TSX VENTURE : IPT

IMPACT Silver Corp.

September 20, 2007 18:12 ET

IMPACT Silver Corp. Commences Construction of Third Mine and Increases Production

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 20, 2007) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT) is pleased to announce both the commencement of construction activities at the new high-grade silver Chivo Mine as well as an increase in production throughput to 300 tonnes per day ("tpd") at the Royal Mines of Zacualpan Silver District, Mexico.

CHIVO MINE

Permitting is now complete and groundbreaking has begun to put the new Chivo Mine into production. Chivo will be the third producing mine at the Royal Mines of Zacualpan Silver Project and the second put into production by the IMPACT team. The Chivo Mine is located in the central part of the district. Underground access is expected to reach the main Chivo Silver Shoot in late October. Once there, development work will commence to open multiple headings on the mineralization, creating development muck that will be processed in the mill. Production from stoping will commence at 60 tpd in early 2008 and will significantly boost IMPACT's overall silver production.

Chivo was discovered in 2005 when IMPACT crews found high-grade veins in old mine workings (see IMPACT news release dated September 7, 2005). Samples from the veins assayed 1,095g/t silver and 0.38g/t gold across 1.25m true width ("TW") in the workings and 2,640g/t silver and 1.36g/t gold across 0.85m on surface.

Two subsequent drill programs consisting of 18 holes returned highlights of 937g/t silver, 0.35g/t gold, 1.88% zinc and 0.75% lead across 2.7m TW (Drill hole Z-06-10) and 378g/t silver, 0.30g/t gold, 4.25% zinc and 1.76% lead across 4.7m TW (Drill hole Z07-03) (See IMPACT news releases dated October 12, 2006 and July 12, 2007). This drilling outlined a silver shoot measuring 100m horizontal by 220m down dip which remains open for expansion to the northeast and southwest. The program also discovered a possible second shoot, the Chivo Northeast Zone, with four holes which returned highlight results of 451g/t silver, 0.43g/t gold, 3.86% zinc and 1.32% lead across 1.4m TW.

As part of the ongoing 10,000m drill program, surface drilling is further outlining extensions of the Chivo Northeast Zone and several nearby parallel veins. Underground drilling to further expand the main Chivo Silver Shoot is being done by IMPACT's wholly-owned underground drill. IMPACT geologists believe that the cluster of veins in the Chivo area will form the basis for another significant mining hub in the Royal Mines of Zacualpan.

THREE HUNDRED TONNES PER DAY PRODUCTION ACHIEVED

IMPACT's two existing mines, the Guadalupe and Gallega Mines, have achieved consistent production of 300 tpd, more than double the original production level of 145 tpd when the Royal Mines of Zacualpan was purchased by IMPACT in January 2006. It is IMPACT's goal to achieve production of 500 tpd before the end of next year. Production increases are anticipated to come from the Chivo Mine when it comes on line, expanded production in the other existing mines and two other zones being assessed for near term production.

Frederick W. Davidson, President and CEO of IMPACT, said: "This is an important milestone within our overall growth strategy. In 18 months we increased production from 145 tpd to 300 tpd. We're making excellent progress on the ground towards our near term goal of ramping up production at the Royal Mines of Zacualpan to 500 tpd."

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 (4.20cm 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 30-gram split of each was assayed for gold and silver by standard fire assay and a 10-gram split was analysed for an additional 30 elements by ICP spectrometry.

IMPACT Silver Corp. is a silver focused mining and exploration company with a producing silver operation at the Royal Mines of Zacualpan, Mexico, an advanced project with a producing mill at Zacatecas, Mexico, and other projects in the Dominican Republic. Energold Drilling Corp. (TSX VENTURE:EGD) who was the contractor for the drill programs, 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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