Interview With The VP, Exploration, And Director: Impact Silver Corp. (IPT.V) - George Gorzynski
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George Gorzynski is Vice President, Exploration, and a Director at Impact Silver Corp. He is a Geologist and an international mineral exploration Consultant to the junior exploration industry. Mr. Gorzynski's experience spans more than 30 years and has included projects over much of the globe. His work has involved a variety of commodities with particular expertise in precious and base metals. Mr. Gorzynski was instrumental in identifying, negotiating and completing the purchase of the Royal Mines of Zacualpan project for the company. He has served on the boards and in management of several junior companies. Mr. Gorzynski holds a bachelor of applied science, with honors, from the University of Toronto and a master of applied science from The University of British Columbia. He is a Professional Engineer registered in the province of British Columbia.
TWST: What is Impact Silver?
Mr. Gorzynski: Impact is simply an earnings story. We are a low-cost silver producer that has been profitable since operations began in 2006, and we're in a very well-funded position today with over $33 million in cash and zero debt. We control two large adjacent mineral districts, the Royal Mines of Zacualpan silver district and the Mamatla mineral district, totaling 623 square kilometers. We currently produce silver from three silver mines, which feed a 500-ton-per-day processing plant in the Zacualpan District. We forecast net earnings in 2011 to be approximately C$7.5 million, which, if we meet this target, will be an increase of 120% over 2010's net earnings of C$3.4 million. Our 2011 year-end numbers will be announced at the end of March. We project our annual production at almost 1 million pure silver ounces, not equivalent, and we plan on doubling our production levels in the next three years. We plan to grow into a multimillion-ounce silver producer by starting production at our newest mine, the Capire open-pit mine, located in the Mamatla District, in late 2012. To be straightforward, proven rapid mine development and consistently generating strong positive cash flow is what Impact Silver (IPT.V) is all about.
TWST: Please give us an idea of what the Mexican mining industry looks like. What is the infrastructure Impact Silver has in the area in which the company is active and what do you see as some of the cost structures or production hurdles that have to be considered as Impact Silver moves forward?
Mr. Gorzynski: Mexico is a country with a prolific history of mining, especially silver mining. With nearly 500 years of mining history in the two districts, our team has mapped over 2,500 old mine workings to date, which we are currently exploring. It's safe to say that in the districts that Impact is in, someone either knows someone who has worked at one of the mines or is working at one of the mines. Our project is located 100 kilometers southwest of Mexico City and 25 kilometers northwest of the famous Taxco Silver Mine. Our assets are in an exceptional area with very good infrastructure. Access is by paved road right to the front gate of the mine, and throughout the district we have electric power, ample water supplies, and a highly qualified and trained Mexican workforce.
TWST: Would you give us a perspective on what the sites look like from the surrounding areas?
Mr. Gorzynski: The Zacualpan district is very lush, and we're in an area of primarily low rolling hills, a mix of both forest and farmland, so it is really quite pastoral. The largest town is Zacualpan, which has a population of about 3,000 people, but for the most part, it is a farming country with the majority being private landowners. Impact's mines are currently all underground, which is positive in that it doesn't impact the surrounding area.
TWST: What depths are you talking about drilling?
Mr. Gorzynski: We drill holes to depths of between 300 and 1,200 feet. The ore zones are typically about 1,000 feet top to bottom and in length they are 300 feet to about 1,500 feet long, and we mine to a width of about 10 feet. The zones tend to be very silver rich at the top and then trend toward more lead-zinc rich at the bottom. Therefore, when talking about how deep we drill, the holes do get down to 1,200 feet to drill right through to the bottom of those zones. When I say they are silver rich at the top, they are extraordinarily rich. There are pockets that will run thousands of grams per ton silver, meaning 30 ounces per ton silver or more toward the tops of these zones. That's what really juices up the economics and largely why it is such a profitable operation.
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