Vizsla Resources Corp. [VZLA-TSXV] on Monday November 9 released impressive drill results from its Panuco silver-gold epithermal vein project in Mexico. The results are from 12 holes that tested targets known as the Papayo and San Carlos prospects. “These results expand the discovery of Papayo to the south and at depth while showing wide, lower grade veins at San Carlos,” the company said in a press release.
Drilling highlights include Papayo hole NP-20-21, which returned 2,401 g/t silver equivalent (216.0 g/t silver, 21.60 g/t gold, 1.91% lead and 6.02% zinc) over one metre true width from 129.8 metres and 331 g/t silver equivalent (207.3 g/t silver, 1.0 g/t gold, 0.56% lead and 1.32% zinc) over 1.49 metres true width from 163.8 metres.
The district-scale Panuco Project represents the consolidation of mining concessions covering 9,386.5 hectares in a producing camp outside of Concordia, Sinaloa.
Back in September 13, 2019, Vizsla snapped up Canam Alpine Ventures Ltd., a company that held options to acquire a 100% interest in the Panuco mining concessions and related infrastructure and processing facilities. Canam could exercise its options by completing US$3.4 million in work commitments and making payments of US$43 million over a 72-month period.
The Panuco district has been producing since the 1500s, but has never seen systematic modern exploration due to fragmentation of ownership. Vizsla has said it believes there is significant high-grade silver and gold discovery potential on the property.
Vizsla has said active and historical surface mapping implies that there is more than 75 km of cumulative vein strike on the property and more than 31 active historic mines within the veins. Historic production from these mines has not been recorded.
However, reportable historic drilling includes a diamond-drill intercept from one of these veins containing 2,235 g/t silver and 9.5 g/t gold over a 4.23-metre true width.
Vizsla has previously said it looked forward to drilling several high-grade silver and gold zones. It also said it hoped to complete a maiden resource later in 2020.
On Monday, the company said it was announcing results on a silver equivalent basis due to the overall silver dominant nature of the mineralization at the Panuco project. “Drilling at Papayo continues to deliver high-grade results that expand the strike length to 300 metres and the mineralization remains open in all directions,” said Vizsla President and CEO Michael Konnert.
Konnert said the company is rapidly expanding the early drill success at Panuco to prioritize those with the potential to host large volumes of mineralization and move on from the smaller zones. Expanding Papayo will remain a focus while the company is moving away from San Carlos where a very wide, but lower grade vein intervals have been intercepted to date, he said.
Vizsla is a company that was formed to acquire metal projects in Canada and Mexico. Its portfolio includes the 20,265-hectare Blueberry Project, which lie on a copper-porphyry trend southwest of Houston, British Columbia.
On Monday, Vizsla shares eased 5.1% or $0.09 to $1.66 on volume of 356,560. The shares are currently trading in a 52-week range of $2.93 and 24 cents.