IMPACT Silver Corp.
TSX VENTURE : IPT

IMPACT Silver Corp.

November 20, 2006 17:02 ET

IMPACT Silver Corp.: Progress Report on Royal Mines of Zacualpan

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 20, 2006) - IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT) is pleased to provide an update on its ongoing program to improve the capacity, efficiency, safety and profitability of the Royal Mines of Zacualpan Project. Upon acquisition of the project in January 2006, IMPACT embarked on a 2 year plan to modernize operations, which had not received adequate capital investment for a number of years. Some of the actions taken to date include:

- Expansion of Mine Operations

- Workflow Improved to Eliminate Bottlenecks

- Mill and Plant improvements

- On-site Assay Lab upgraded to modern standards

- Mine and Worker safety programs implemented

- Community relations program undertaken

Mining Operations - New working faces have been opened in the mines along with significant changes made to the deployment and scheduling of mining equipment in order to eliminate operational bottlenecks. Much of the mining equipment has been upgraded including having rebuilt five of the six scoop-trams. A new mine geologist was hired and the refurbishment of the wholly owned underground drill has expanded underground exploration efforts and lead to the discovery of several intermediate high grade veins in the Guadalupe Mine that are now being mined. New computerized equipment has been installed and additional staff hired, to map and monitor exploration, mining and processing operations. The mine now communicates with the Vancouver head office via new telephone links and a satellite high-speed internet connection.

Processing Plant - Metallurgical studies have led to significantly increased metal recoveries. The 7' by 10' ball mill has been refurbished and rebalanced, and both ball mills have been outfitted with new liners. Conveyor belts have been replaced throughout the plant. The zinc concentrate drier has been refurbished and work is now proceeding on the lead-silver concentrate drier. The head grade, concentrates and tailings samplers have been replaced. A full inventory of spare parts for the mining equipment and mill has been purchased.

Assay Laboratory - The lab at the mine has been retrofitted and upgraded. A new assay furnace and high precision weigh scale have been installed. Laboratory workers have been trained and now operate under quality assurance. Recent blind tests on standard samples have demonstrated the high quality of assays now being reported by the mine laboratory. While assays will still be processed through commercial laboratories for the purposes of public disclosure and ongoing performance checks, the availability of next-day accurate onsite assays enables IMPACT to schedule and optimize mining, development and exploration programs in significantly shorter time frames.

Safety Program - IMPACT has hired a safety officer who is conducting an ongoing safety audit of all operations and runs regular safety courses that are required for all mine employees. Safety equipment has now been installed throughout the mine and plant. Safety protocols are now clearly marked and new safety procedures have been implemented. All employees have been outfitted with modern safety equipment.

Community Relations - A community relations officer has been added to the mine staff. IMPACT has made an ongoing dialogue with locals a fundamental pillar of its operations. The mine has budgeted for aid destined for local community projects and schools.

In aggregate, the Royal Mines of Zacualpan now employs a proactive approach to operations and maintenance. Immediate results from the changes include improved worker morale, stronger community support, a significant decrease in operating downtime as well as overall improvements in operating costs and metal recoveries. For 2007, an additional US$1 million has been budgeted to be used towards further upgrades, new equipment purchases and expansion of the operations.

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. (TSX VENTURE:EGD) 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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