TSX-V-listed Impact Silver, which owns assets in Mexico, has reported a 40% year-on-year increase in revenue to $7.7-million for the second quarter. This included $1.8-million in revenue contributed by its Plomosas high-grade zinc mine.

The company's Zacualpan silver/lead/zinc project contributed $5.9-million in revenue for the quarter under review, compared with $5.4-million in the second quarter of 2023.

Silver production at Zacualpan decreased by 2% year-on-year to 152 152 oz, while lead and gold production decreased by 26% and 69%, respectively.

Further, the Plomosas mine, which was brought online late in 2023, continued to ramp up during the second quarter of this year. Production levels are expected to ramp up to between 150 t/d and 170 t/d by the end of the third quarter and eventually reach design capacity of 225 t/d by the end of this year or early next year.

Impact recorded a mine operating loss, before amortisation and depletion, of $200 000 for the second quarter, compared with an income of $900 000 in the second quarter of 2023.

The company points out that it continued to experience cost pressures at its mine sites, certain one-time costs associated with bringing the Plomosas mine online and the negative effects of a strong Mexican peso.

Its net loss widened to $2.6-million in the second quarter, from a net loss of $900 000 in the prior comparable quarter.

Looking ahead, Impact expects to improve grades at Zacualpan and higher production at Plomosas.

"During the second quarter, our team at Plomosas successfully met its objective of increasing production throughput following a substantive but continuing mine rehabilitation programme. As we approach design capacity levels over the coming quarters, we expect to expand the mine's development and increase high-grade production activity at site.

"Meanwhile, our silver operations at Zacualpan are adapting to higher cost profiles by improving efficiencies in terms of grade and recoveries, which we expect to bear fruit in 2025. Our new discovery of the Keno vein is exciting and potentially the start of a trend of new higher-grade production results beginning later this year," comments Impact president and CEO Fred Davidson.