IMPACT Silver Corp.
TSX VENTURE : IPT

IMPACT Silver Corp.

September 07, 2005 13:56 ET

IMPACT Silver Corp.: New High Grade Silver Discoveries

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 7, 2005) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT) is pleased to provide an update on the Royal Mines of Zacualpan silver project in Mexico. Over 100 silver prospects have been catalogued on the property and IMPACT field crews are systematically carrying out a program of mapping and sampling to prioritize prospects for the next round of drilling. Highlights from recent work include the following:

CHIVO WORKINGS

Field crews have traced the Compadres Vein System a distance of 1300m northwest of the high grade Compadres Mine at which point they uncovered the entrance to the old Chivo mine workings. In the mine workings IMPACT personnel were able to observe two parallel north trending veins. A sample from the western vein assayed 1,095g/t silver and 0.38g/t gold across 1.25m true width. The wall rock beside the vein contained numerous small veinlets and assayed 463g/t silver and 0.477g/t gold across 2.2m true width. Crews were unable to further access this area due to collapsed mine workings. From the eastern vein six channel samples were collected over a strike length of 40m and averaged 175g/t silver and 0.92g/t gold across 1.54m true width. Host rock between the two veins contains 10-35% small veinlets and assayed 83g/t silver and 0.57g/t gold across 6.35m. A channel sample from one of the veins exposed on surface above the Chivo workings assayed 2,640g/t silver and 1.36g/t gold across 0.85m.

This discovery of another section of high grade mineralization on the productive Compadres Vein System continues the success IMPACT has had exploring this trend.

SANTA ISABEL WORKINGS

The Santa Isabel workings are located in the west central part of the large property in an area not previously examined by IMPACT. Field personnel partially sampled the remnants of an old 2m wide stope to a point where the underground workings were collapsed. The portion of the stope sampled averaged 830g/t silver and 0.56g/t gold across 0.8m true width over a strike length of 50m in nine samples ranging up to 3,020g/t silver and 0.13g/t gold across 0.7m true width. This zone does not appear to have been mined below the level sampled and is planned to be targeted in the next round of drilling.

ENGINEERING STUDIES

IMPACT has contracted consulting engineers to evaluate the mining and metallurgical operations at Zacualpan. These engineering studies are presently continuing mainly with metallurgical tests aimed at optimizing silver recoveries in the processing plant. Field work continues with mapping, rock sampling and soil sampling on both advanced and early stage silver exploration areas.

PRODUCTION AND DEVELOPMENT

Under terms of IMPACT's option agreements, the Mexican companies may continue mining and processing material from the properties until IMPACT exercises its purchase options for the operations, contracts and properties. Mining is presently continuing at the high grade Compadres Mine on Level 5. Mining has stopped at the Cuchara Mine and the equipment moved to expand production from the 195 Level of the Guadalupe Mine. Material is trucked from the mines to the central processing plant. IMPACT geologists periodically visit and sample the active areas in the mines to keep directly informed of developments.

FUTURE PLANS

Compilation of the considerable database collected to date, is continuing. Mapping and sampling continues with the aim of establishing additional targets for the next drill program. The drill program will build on the high grade intersections IMPACT reported below the Compadres Mine (see news release dated May 16, 2005) and test a number of earlier stage targets such as the Chivo and Santa Isabel workings. This work along with the corporate, legal and engineering investigations will form the basis for making a purchase decision for the Royal Mines of Zacualpan claims, mines and the 500 tonne per day processing plant lease. If IMPACT decides to purchase the Zacualpan assets it would immediately become a significant producer of silver as well as byproduct zinc, lead and gold.

George Gorzynski, P.Eng., a Qualified Person under the meaning of Canadian National Instrument 43-101, is responsible for the technical content of this news release. 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 5% 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 exploration and development company with projects in Mexico and the Dominican Republic. IMPACT is 31% owned by Energold Mining Ltd. (TSX VENTURE:EGD)

On behalf of the Directors of IMPACT Silver Corp.

Frederick W. Davidson, President

The TSX Venture Exchange has neither approved nor disapproved this news release.

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