Vizsla eyes maiden PEA for Mexico silver-gold project
Vizsla Silver Corp. [VZLA-TSXV] has outlined a series of objectives for its 100%-owned Panuco silver-gold epithermal vein project in Mexico, including the delivery of an updated mineral resource estimate in January 2024.
Key objectives for 2024 include the announcement of a maiden preliminary economic assessment (PEA) in the first half of the year.
The goal is to further de-risk the resource through updated technical studies including a fully-permitted bulk sample and test mine at the Copala and Napoleon resource areas. “Concurrently, we will continue exploring new areas of the district with both low-cost mapping/geological surveys and 65,000 metres of planned drilling,’’ said Vizsla President and CEO Michael Konnert.
“On the corporate side, we expect a series of potential catalysts will add near-term credibility and value to the company, including new technical hires to support the next phase of project development and a spinout of a wholly-owned royalty on the property,’’ he said.
The newly-consolidated Panuco gold-silver project is an emerging high-grade discovery located in southern Sinaloa, near the city of Mazatlan.
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.
The option allowed for the acquisition of over 75 kilometres of total vein extent, a 500 ton-per-day mill, 35 kilometres of underground mines, tailings facilities, roads, power and permits.
The Panuco project hosts an estimated in-situ indicated resource of 104.8 million ounces of silver equivalent (AgEq). On top of that is an in-situ inferred resource of 114.1 million ounces of AgEq. In 2023, the exploration team made two new discoveries at La Luisa and El Molina, both of which represent wide, high-grade near-surface structures with the potential to add resources within proximity to the main Copala and Napolean resource areas.
In 2024, the company said six diamond drill rigs will be active on the property (four focused on upgrading and expanding the current resource base in the western portion of the district ahead of the PEA and two devoted to exploration). Exploration drills will focus on priority targets proximal to current resources in the west as well as other high-priority targets in the eastern portion of the district.
Vizsla has received permits to develop and operate a test mine program at Panuco to extract a combined 25,000 tonne bulk sample from the Copala and Napoleon structures. Initial engineering for the bulk sample has already begun with plans to launch underground development in early 2024.
Vizsla shares edged up 1.34% or $0.02 to $1.51. The shares currently trade in a 52-week range of $2.24 and $1.26.