By: AllPennyStocks.com News

Wednesday, February 20, 2013

Metal miners just aren’t getting any love in 2013, or during the fourth quarter of 2012 for that matter. Economic concerns both domestic and abroad from the euro zone and China have kept their thumb on metal prices since the beginning of October, subsequently putting significant pressure on miners. Spot gold has fallen from highs near $1,800 per troy ounce in the early days of October to $1,600 in Wednesday trading. Spot silver has dropped from over $35 per ounce to hanging by a thread on support at $29.50 per ounce in Wednesday action. The drop in metals has struck equities large and small. Even monsters like Barrick Gold Corp. (TSX:ABX) and Goldcorp Inc. (TSX:G) have lost about 30 percent in the past five months.

A junior that has also languished with fallen prices is Impact Silver Corp. (TSX-Venture:IPT), but the company could be ready for a rebound. The profitable Vancouver-based company is different than many other developmental miners on the Venture in that it has brought three underground mines from discovery to production at the Royal Mines of Zacualpan Silver District in central Mexico.

Well, make that four.

The company reported today that it has commenced production at its Cuchara-Oscar Mine in the Zacualpan Silver District. Initial production at the mine is slated to come from the Marqueza Vein with plans to expand to nearby veins later this year. The ore will be processed at the Guadalupe Processing Plant and replace the feed from the lower-grade silver production from the Chivo Mine. At an expected 270 grams per tonne average silver grade, the production at Guadalupe will increase for 2013 and going forward.

Impact not only has a presence in the Zacualpan District, but also in the adjacent Mamatla District. Drilling is ongoing in both districts with the company intending to bring another mine, the open-pit Capire Mine, on-stream later this quarter while it continues aggressive exploration projects throughout both districts. In February 2011, an updated NI 43-101 compliant Measured and Indicated Mineral Resources was announced and totaled 7.2 million ounces silver, 30,446 ounces gold; 95.6 million pounds zinc and 37.2 million pounds lead were shown for Capire.

Also planning to add cash to corporate coffers is Impact’s 16.5 percent stake in Defiance Silver Corp., who is advancing Impact's 200-tonne-per-day mill and mineral concessions into production in the Zacatecas Silver District.

While this plethora of developments are ongoing, shares of Impact have slid from $1.77 late in September to under $1.00 in today’s trading and are now sitting near one-year lows and a technical support level. Very few miners have been immune to the decompression in metal prices, but a profit is a profit and this junior outwardly seems like it could be due for a bounce. Proper due diligence is, as always, encouraged.

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