News Summary
On December 9, 2025, IMPACT Silver announced further high-grade drill results from the Santo Domingo Zone at its Plomosas Mine in Mexico. The drilling program continues to extend the known mineralization. Highlights from the seven underground drill holes include:
– Hole UGSD-2512 intersected 4.95 metres of 18.83% zinc equivalent (ZnEq), which included a higher-grade interval of 1.33 metres grading 25.57% ZnEq.
– Other notable intersections include 0.85 metres of 26.30% Zinc and 6.45% Lead in hole UGSD-2511, and 2.07 metres of 10.60% Zinc and 9.43% Lead in hole UGSD-2512.
CEO Frederick Davidson stated that the drilling continues to return “exceptional high-grade results,” extending the zone to the northeast. He emphasized that the proximity of these intersections to active mine workings allows for “rapid and low-cost access and mine development.” Drilling is ongoing to define additional mineralization at Plomosas.
Material Impact
The news of continued high-grade drill results is positive but routine for IMPACT Silver at this stage. It aligns with the company’s stated strategy of expanding mineralization at the Plomosas mine and reinforces the exploration potential of the asset. However, it does not fundamentally alter the investment thesis on its own.
A chronological review of 2025 news provides the necessary context:
– Early 2025: The year began with positive drill results from both the Plomosas zinc mine (January) and a new high-grade silver discovery (Kena Vein) at the legacy Zacualpan mine (February, June). This set a positive operational tone.
– Financings: The company executed several crucial financings. A $5.2 million private placement was closed in May/June, followed by a substantial, company-altering $16 million bought deal private placement in September at $0.36 per unit. This larger financing significantly de-risked the company, providing a strong cash position of $25.2 million as of Q3 2025 and fully funding its exploration and development plans for the foreseeable future.
– Financial Performance: Quarterly results have shown a clear trend of operational improvement and growth, primarily driven by the ramp-up of the Plomosas mine.
– Q1 revenue nearly doubled year-over-year to $10.7 million, with a return to positive EBITDA.
– Q2 and Q3 continued the trend with revenues up 27% and 24% year-over-year, respectively. Net losses have narrowed significantly compared to 2024. This demonstrates a successful transition to a two-mine operation.
– Plomosas Exploration: Throughout the second half of the year (July, November, and now December), the company has released a steady stream of high-grade drill results from Plomosas. These results consistently show extensions to known zones and lie outside of historical resource blocks, confirming management’s thesis on the property’s potential.
The most recent news is another data point confirming this successful exploration strategy. While the grades are excellent and the location near existing infrastructure is economically advantageous, the market has come to expect such results from the ongoing program. The more material events in 2025 were the successful ramp-up of Plomosas reflected in the financial statements and the $16 million financing which secured the company’s balance sheet. This news supports the current share price but is unlikely to be a major independent catalyst.
Catalysts
– Q4 and FY2025 Financial Results: Investors should watch for continued revenue growth, progress on the Plomosas ramp-up toward its 200 tpd design capacity, control over per-tonne operating costs at both mines, and a potential shift to sustainable net profitability.
– Continued Drill Results: Further results are expected from both the Plomosas mine area (Santo Domingo, Juarez zones) and greenfield targets along the 6km trend, as well as from the Kena Vein at Zacualpan. The market will be looking for continued high grades and expansion of mineralized zones.
– Capital Allocation: How the company deploys its significant cash balance will be key. This includes progress on underground development at both mines and any updates on a potential restart of the Capire open-pit silver mine.
Materiality Conclusion
The December 9 drill results are Routine – Positive. They confirm the company is successfully executing its exploration plan at its key growth asset, Plomosas. The results are in line with expectations set by previous announcements and serve to reinforce the existing investment case rather than materially changing it.
