- Vizsla Silver (TSX:VZLA), a small-cap silver and gold stock, has piqued the market’s interest with an updated mineral resource estimate for its Panuco project in Sinaloa, Mexico
- The estimate includes a 43 per cent increase in combined measured and indicated resources from 155.8 to 222.4 million ounces of silver equivalent compared to the January 2024 estimate
- Vizsla Silver is a Canadian mining company focused on exploration and development in Mexico
- Vizsla Silver stock has added 51.90 per cent year-over-year and 232.74 per cent since 2020
Vizsla Silver (TSX:VZLA), a small-cap silver and gold stock, has piqued the market’s interest with an updated mineral resource estimate for its Panuco project in Sinaloa, Mexico.
The estimate delineates a 43 per cent increase in combined measured and indicated resources from 155.8 to 222.4 million ounces (Moz) of silver equivalent (AqEq) compared to the January 2024 estimate. This growth is paired with an 18 per cent decrease in inferred resources from 169.6 to 138.7 Moz AgEq. Panuco’s total resource breaks down into:
- Measured: 28.6 Moz of silver, 214,000 ounces of gold, 3,300 tons of lead and 7,900 tons of zinc (46.1 Moz AgEq).
- Indicated: 99.2 Moz of silver, 822,000 ounces of gold, 31,600 tons of lead and 102,300 tons of zinc (176.3 Moz AgEq).
- Inferred: 73.6 Moz of silver, 660,000 ounces of gold, 31,200 tons of lead, and 106,200 tons of zinc (138.7 Moz AgEq).
- Base-case metal prices of US$26 per ounce of silver, US$1,975 per ounce of gold, US$2,425 per ton of lead and US$2,976 per ton of zinc.
According to Monday’s news release, the updated mineral resource estimate is based on 979 drill holes spanning 372,685 metres completed by Vizsla Silver since November 2019, encompassing less than 10 per cent of the known vein strike on the 17,856.5-hectare property.
Investors current and potential can take part in a webcast on the new estimate at 10:00 am PT on January 9, 2025. Register here.
Contingent on ongoing exploration, Vizsla Silver plans on releasing Panuco’s next updated mineral resource estimate in the second half of 2025.
Leadership insights
“We are pleased to announce the fourth significant resource update for the high-grade Panuco silver gold district,” Michael Konnert, Vizsla Silver’s president and chief executive officer, said in a statement. “This update comes just four years after the initial discovery was made at Napoleon and represents only a snapshot in time as every vein included in the global project resource remains open for further expansion.”
“Drilling throughout 2024 focused on converting resources within the Copala and Napoleon areas into higher-confidence categories and was designed to in-fill previously reported intercepts used for resource estimation in the Panuco preliminary economic assessment (PEA) published on July 24, 2024,” Konnert added. “Global measured and indicated resources now stand at 222.4 Moz AgEq grading 534 g/t AgEq, representing a 43 per cent increase in contained ounces and a 4.5 per cent increase in average grade relative to the previous estimate. We are particularly excited to announce our first measured resource estimate, containing 46 Moz at an average grade of 640 g/t AgEq. The bulk of the measured resource is located at Copala, in and around areas designated for the first few years of mining. This update reflects the excellent mineralized continuity that exists at Copala. Reducing the space between drill holes at Copala to 25 metres has resulted in a significantly higher-grade profile in the upper levels of the resource and PEA mine plan.”
“Going forward, we continue to employ a dual track development approach at Panuco, advancing the project through development towards production in the back half of 2027, while continuing district-scale exploration through low-cost means. Ongoing initiatives include a fully funded and permitted test mine program, feasibility study and a 10,000-metre discovery-based drill campaign. This is a remarkable achievement that comes as a result of hard work and perseverance. I want to thank everyone from the entire Vizsla team, including our contractors and local communities, and look forward to another successful year in 2025,” Konnert concluded.
About Vizsla Silver
Vizsla Silver is a Canadian mining company focused on exploration and development. Its flagship Panuco silver and gold project in Sinaloa, Mexico, features a July 2024 preliminary economic study supporting robust potential for shareholder value creation, as highlighted by:
- An estimated 15.2 million ounces of annual silver equivalent production over a 10.6-year mine life.
- An after-tax net present value (5 per cent) of US$1.1 billion, with an 86 per cent internal rate of return and a 9-month payback at US$26 per ounce of silver and US$1,975 per ounce of gold.
Vizsla Silver stock (TSX:VZLA) is up by 13.62 per cent on the news trading at C$2.80 per share as of 11:32 am ET. The stock has added 51.90 per cent year-over-year and 232.74 per cent since 2020.
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(Top photo of Vizsla Silver’s Panuco silver and gold project in Mexico: Vizsla Silver)