Vizsla Silver boosts M&A resources at Panuco Project, Mexico

Vizsla Silver Corp. [NYSE, TSX: VZLA; Frankfurt: 0G3] reported results of an updated mineral resource estimate for its flagship, 100%-owned Panuco silver-gold project in Sinaloa, Mexico. The Updated Mineral Resource Estimate was completed by Allan Armitage, Ph.D., P.Geo., of SGS Geological Services.

Highlights of the Updated Mineral Resource Estimate, including a comparison to the previous mineral resource estimate released in January 2024: 43% increase in combined measured and indicated mineral resources from 155.8 to 222.4 Moz AgEq; added 46 Moz AgEq in new measured resources and 176 Moz AgEq in new indicated resources; 9.4% increase in combined measured and indicated grade at Copala (580 g/t to 635 g/t AgEq); 4.5% increase in global indicated grade (511 g/t to 534 g/t AgEq); 18% decrease in inferred mineral resources from 169.6 to 138.7 Moz AgEq mostly due to conversion to indicated resources and 4.9% decrease in inferred grade (433 g/t to 412 g/t AgEq).

Key Statistics: The Updated Mineral Resource represents less than 10% of the known vein strike of the newly consolidated district; 91% of the value of the Updated Mineral Resource Estimate is comprised of precious metals, including 56% from silver.

A total of 11 epithermal veins were included in the Updated Mineral Resource Estimate. Total all-in exploration cost of US$0.41/oz AgEq discovered.

Combined Measured and Indicated Mineral Resources are estimated at 12.96 million tonnes (Mt) grading 307 g/t silver, 2.49 g/t gold, 0.27% lead, and 0.85% zinc (222.4 million ounces (Moz)silver equivalent (AgEq) at 534 g/t AgEq). The Updated Mineral Resource Estimate includes measured mineral resources of 28.6 Moz of silver, 214 thousand ounces (koz) of gold, 3.3 kilotonnes (kt) of lead, and 7.9 kt of zinc (46.1 Moz AgEq) and indicated mineral resources of 99.2 Moz of silver, 822 koz of gold, 31.6 kt of lead, and 102.3 kt of zinc (176.3 Moz AgEq).

Inferred Mineral Resources are estimated at 10.5 Mt grading 219 g/t silver, 1.96 g/t gold, 0.30% lead, and 1.01% zinc (412 g/t AgEq). The Updated Mineral Resource Estimate includes inferred mineral resources of 73.6 Moz of silver, 660 koz of gold, 31.2 kt of lead, and 106.2 kt of zinc (138.7 Moz AgEq).

The Updated Mineral Resource Estimate is centred on the western portion of Panuco, encompassing ~8.6 km of the known 86 km of cumulative vein strike in the district. The Updated Mineral Resource Estimate includes 157 new infill/expansion holes (69,754 metres) completed by Vizsla Silver between September 2023 and September 2024. In total, the Updated Mineral Resource Estimate is based on a total drill database of 979 holes (372,685 metres) completed by Vizsla Silver since November 2019.

“We are pleased to announce the fourth significant resource update for the high-grade Panuco silver gold district,” commented Michael Konnert, President and CEO. “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 published on July 24, 2024. Global Measured and Indicated resources now stand at 222.4 Moz AgEq grading 534 g/t AgEq, representing a 43% increase in contained ounces and a 4.5% 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.”

A technical report is being prepared on the Updated Mineral Resource Estimate in accordance with NI 43-101 standards and will be available on the company’s website and SEDAR within 45 days of the date of this release. The effective date of the Updated Mineral Resource Estimate is September 9, 2024.

The company remains well-funded for its 2025 operational objectives including a fully permitted bulk sample test mine program, updated metallurgical test work, delivery of a Feasibility Study and ongoing discovery-based drilling designed to test high priority targets located in the eastern areas of the district. Depending on ongoing exploration success, the company plans to publish a further update to the Updated Mineral Resource Estimate in the second half of 2025.

To date, the company has spent approximately US$146.7 million in exploration expenditures over the life of the project.  This equates to an estimated discovery cost per silver equivalent ounce of US$0.41 for resources defined in the Updated Mineral Resource Estimate.

The newly consolidated Panuco silver-gold project is an emerging high-grade discovery located in southern Sinaloa, Mexico, near the city of Mazatlán. The 17,856.5-hectare, past producing district benefits from over 86 km of total vein extent, 35 km of underground mines, roads, power, and permits.

The district contains intermediate to low sulfidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host rocks are mainly continental volcanic rocks correlated to the Tarahumara Formation.

Vizsla Silver is focused on advancing its flagship, 100%-owned Panuco silver-gold project. The company recently completed a Preliminary Economic Study for Panuco in July 2024 which highlights 15.2 Moz AgEq of annual production over an initial 10.6-year mine life, an after-tax NPV5% of US$1.1B, 86% IRR and a nine-month payback at US$26/oz Ag and US$1,975/oz Au.